Economy Slowly Rebounding

As of Wednesday, November 24, 2010

Signs of modest recovery are slowly emerging, but Moore County cannot expect a return to a normally robust economy for another couple of years.

Representatives from the major economy-driving engines offered some upbeat commentary but remained cautious in their projections last Thursday when they addressed the Moore County Board of Commissioners at an all-day business retreat.

The impact from the coming expansion of Fort Bragg as a result of BRAC (Base Realignment and Closure) was among the key topics.

"It hasn't happened yet," said Ray Ogden about the highly publicized BRAC. "It's still hazy how it's going to play out here."

Ogden is executive director of Partners in Progress, a public/private partnership promoting economic development throughout Moore County.

Counties surrounding the sprawling Fort Bragg reservation have been girding for growth as the military base is expanding as a result of base closures elsewhere in the country. Expectations have been building up for the past four years, but the big push is yet to come.

However, Ogden did share plenty of good news.

So far this year, nine companies have announced plans for expansions and new facilities expected to create 395 new jobs and representing investments totaling $5.32 million.

The biggest is the $2.7 million Ingersoll Rand expansion in Southern Pines, adding 98 jobs. Trident Marketing has announced a $750,000 investment in its Southern Pines facilities, creating 80 new jobs, and another Southern Pines enterprise, K2 Solutions, will add 50 jobs in a $500,0000 investment. Connectinc plans to invest $480,000 to renovate the former Carthage Fabrics building and create 32 jobs.

Other projects are planned in Aberdeen, Pinebluff and Robbins.

Ogden said that Partners in Progress rounded up more than $1 million in grants through the N.C. Rural Center to boost these economic endeavors in Moore County. He called it the most grant money ever awarded in one year.

"I think a million bucks in one year is pretty good," Ogden said.

'Beginning to Shape Up'

On the negative side, Ogden said that the unemployment rate remains low, and several empty buildings remain available. However, he is hopeful about prospects to fill a flex building in the Southern Pines Corporate Park, where 57,457 square feet are "beginning to shape up."

Other available buildings awaiting purchase or tenants include 16,000 square feet at 322 Fields Drive in Aberdeen, empty for the first time; 21,460 square feet in the Southern Floor building in Robbins; 95,000 square feet in the Klaussner building in Robbins; and 153,000 square feet in the Candor Hosiery Building, also in Robbins.

Ogden said the Iron Horse Industrial Park in Aberdeen has 125 acres but needs an industry that can use the available railroad spur. The Southern Pines Corporate Park offers 99 acres zoned for urban progress.

The joint Moore-Montgomery industrial park initiative just getting started will provide about 3,000 acres straddling the two county lines.

Ogden said this project, known as the Heart of North Carolina Mega-Park, offers promise because of its "perfect location" and other potential attractions. He said PIP is looking for funds to cover the cost of surveying the land, developing a master plan and related expenses.

Ogden said the mega-park may not be fully developed for 20 years, "but we need to do the groundwork now."

Capital Challenges

Ogden said many companies are not investing or hiring because of the shaky economy and because of concern about regulations.

He called the lack of available capital one of the most serious factors. He told of two businesses that recently indicated interest in expanding but were unable to do so because they couldn't raise sufficient capital.

"Starting a business right now is difficult, but that is where the jobs are," Ogden said. "We have to figure out ways to get capital to these guys," Ogden said.

In an overview of economic conditions here, Ogden said that although the jobless rate remains high, it is still lower than in most neighboring counties, with the exception of Chatham. He said average wage scale is lower and overtime has been reduced at many businesses.

Ogden said construction work took one of the biggest hits when it comes to hiring. However, the county and municipalities have issued $56 million in building permits, including the $40.7 million FirstHealth Heart Center, the $11 million Pinehurst Medical Clinic and $4.3 million in school facilities.

He said that Partners is remaining visible in making contact with potential companies and with BRAC officials.

"We're making sure the area is before those people before they come here," he said, adding that earlier that day his office had received two requests for additional information.

Presence at Airport

Commissioner-elect Craig Kennedy, who attended the retreat, said he would like to see a Partners in Progress presence at the county airport.

Although the airport no longer offers passenger service, it remains a busy arrival and departure point for executives of some of the largest corporations in the country. These people arrive in corporate jets, spend a few days golfing and fly back home.

Kennedy, who will be part of the county budget-making process next spring, said he wanted to reach those top executives when they first arrive in the county.

Carol Thomas, a key administrator for the Moore County Airport, said the airport authority would welcome the presence of Partners. She said that in most cases, airport officials do not know these top executives are coming until they actually arrive.

Fred Hobbs, Partners board chairman, introduced Ogden and reminded the gathering that when the nonprofit agency was founded in 2002, the county was funding the economic development program with an appropriation as high as $300,000 a year. The county now contributes about $100,000 and local businesses, industries and institutions cover the remaining costs.

Hobbs also pointed out that Partners operates with what is probably the smallest economic development staff in the state.

Contact Florence Gilkeson at florence@thepilot.com.

More like this story

Bflat 1 year, 6 months ago

The commissioners should have heard economic reports BEFORE the 3 voted in that limited obligation bond of over $50,000,000. Economic Development people are good at projecting a postive attitude but what is happening with the national economy will affect Moore County. Foreclosures of homes will reach another high in the next couple of years as those that were on hold earlier in the year will soon be released.

Other counties have building programs going on and the BRAC folks relocating are already purchasing those homes, while in Moore County some builders are struggling.

SoPinesNo1 1 year, 6 months ago

It seems that Partners in Progress is doing a very good job of economic development in trying times, and with very little financial support, from the Moore County Board of Commissioners.

JoeGarrison 1 year, 6 months ago

Again the economy is bad, and improvement is needed. But I hope this will quiet the rhetoric from some who would use their bad attitudes to influence their outlook on the future. The future is what we make of it. We need to continue the trend set the last two years of reducing cost of government, trying to lower taxes for our people, and creating an environment in which jobs can be created. Even though Ray Ogden says we don't need less regulation I think a more streamlined and user friendly approach can and should be used. Using this criteria: 1. Listing the regulations that are required by state and federal mandates. 2. Listing the discretionary regulations that are within the counties perview. The first you can't do anything about, but the second you can. We need to make sure that only necessary regulation be used and unecessary regulations be eliminated @SoPineNo1-Amen:)

JAP 1 year, 6 months ago

Joe,

If you want to continue the trend of "trying to lower taxes for our people", then you should oppose the approval of $50 million worth of bonds (at a higher interest rate) for a project that could be completed at a lower cost.

JAP

PS-I am not opposed to the project, I know there is a need for more space for the jail.

JoeGarrison 1 year, 6 months ago

The jail has to be built, I'm glad we agree on that. The method of limited obligation bonds, besides being the normal method used by government entities to pay for a project like this, is the best and safest way for the Moore County Tax Payer. 1. It limites the exposure or liability to the taxpayer unlike a general obligation bond which is backed by the taxing power of the county. Rather the liability will be on the property and buildings themselves. 2. Interest rates are as low as we've seen, if and when the economy improves the interest rates will increase. By doing it now, when costs are low and interest rates low we will have saved the taxpayers a lot of money rather than waiting and seeing. 3. The jail as designed is not only more safe and efficient, but will save us money in the long run. Just think, only if the commissioners in 1995 had had the foresight to build a facility that did more than put a bandaid on a gaping wound. We might not be debating that today, but if is for children. So again for the size and scope of such a project along with the water improvements I believe that the commissioners did the right thing. And let me say this, I'm a conservative who wants a smaller county government, less taxes, and less regulation. I don't believe supporting a need for our public safety conflicts with that. Thanks for the post:)

JoeGarrison 1 year, 6 months ago

Again the issue at hand is about jobs and the economy. I believe that low taxes, less regulation, and a smaller efficient government is the way to create an environment of growth and prosperity. Again I believe that most of the zoning power should reside in local municipalities and what little say the county has is limited and responsible.

Bflat 1 year, 6 months ago

Spending big bucks in a downward spiral of the economy is not the way to have small efficient government with lower taxes. When the more than 6.5 to 7 million foreclosures are unleashed into the marketplace nationwide, quite a few of those are going to be in Moore County. Conservatives do not forge ahead on big spending items until the economy is stable. The huge debts Moore County is facing will mean a tax increase to pay for those debts. The income stream on sales and other fees may not keep up.

The taxpayers were not saved money by paying too much for the Grimm property when less expensive land was available. Building federal sized cells in the JAIL is not saving taxpayers money and building more than is needed doesn't save money. Interest rates may be low but the other thing is the costs are much more than others that built jails recently. The 3 commissioners think making criminals more comfortable is important and I'm sure there are federal inmates just hoping to get a transfer to the new JAIL as soon as it's finished.

By the way, construction of the huge 4 story federal sized JAIL & 3 story public safety building started last week.

None 1 year, 6 months ago

JoeGarrison sez..."The jail has to be built, I'm glad we agree on that."

The only ones' who agree that a 55.2 million dollar taxpayer funded project like that are those who see liberalism as a means to spend us into decades of “deficit-drain” on our local economy for the next 30 years.

Would you like to see the Limited Liability Bond projections? And for your information the interest rate IS more than the rates for a General Liability Bond that we didn’t get to exercise our rights as citizens of this county.

For the wise, intellectual, and forward thinking that plan ahead in Poorer County here are some facts for consumption:

The North Carolina Financial Outlook and previous Revenue Outlooks can be found at FRD’s website:

http://www.ncleg.net/fiscalresearch/ *November 2010 Report* Facts Garrison!

As opposed to one person's opinions who is part of the Moore County Spin triumvirate.

"Again I believe that most of the zoning power should reside in local municipalities" As with the Little River deal - reach out and touch someone - approach to zoning - by former Carthage Mayor, Larry Caddell, where Out-of-State investors will have sewer courteousy of Moore County Municipal Administrators, and TPo3. Isn't that property half-way to Pinehurst?

Those who have contacted me via email for information regarding supporting information and facts, are in agreement that three sitting county commissioners are corrupt! Secondly, they (Caddell and Picerno) have no one’s interest other than their own company's self-preservation at the top of their selfish agenda.

Before spin doctors sit down to their keyboards in an attempt to warp taxpayers psyche ~ perhaps a few minutes to review North Carolina Financial Forecast...

AASCU State Relations and Policy Analysis Team Daniel J. Hurley, Director Lesley McBain, Senior Research and Policy Analyst Tom Harnisch, Policy Analyst Alene Russell, Senior State Policy Consultant

www.aascu.org/policy

What’s there not to understand…and by the way Joe, I sent this to Hunter Chase and Steve Bouser last week. They can’t claim not to have factual information as well. They selectively choose to publish their opinions that are not in conflict with GOP George and advertisers who make false promises.

None 1 year, 6 months ago

Joe Garrison Sez..."The jail as designed is not only more safe and efficient, but will save us money in the long run."

*FACTS* September 15, 2010 Notes on Meeting with Moseley Architects and Bordeaux Construction

Quote from that meeting - Joe! "Mr. Mace indicated he had spoken previously with Mr. Bordeaux and asked him if they built a Harnett-type facility on a different site in Moore County what the cost might be. Mr. Bordeaux had indicated he could do it for 20% less than the Harnett County facility, so under $20M (not accounting for property acquisition and assuming suitable site). Mr. Mace stated that his fee for design of the Moore County site (like Harnett’s design) would be half of the Harnett design fee. He again stated that he believed the County’s site dictated its solution."

*QUOTE* "Mr. Mace said he could guarantee the project (designed similarly to Harnett County) at a fixed cost and could be complete in less than a year, but if the Board chose to stay on the current site he would not recommend that as an option."

*Quote* "There was some discussion about value engineering. Mr. Bordeaux stated that they did do some value engineering at the beginning of the Harnett project, but only minor. Mr. Mace commented that any project will have opportunities for greater efficiency or cost savings, but that he cautions about making major changes because inevitably you impact something that you do not consider. Mr. Mace commented that it was good to see due diligence on this project."

A review:-). "Mr. Mace stated that his fee for design of the Moore County site (like Harnett’s design) would be half of the Harnett design fee."

Please explain to readers why your Father-in-Law outright rejected this proposal? EGO or fee wasn't included for transfer of Southern Software, Inc equipment, up-grades, and consultations that wasn't included the GIFT of donated software.

Please support Nick Picerno's contention of spending another 19.2 million as opposed to save that cost to taxpayers? Simple question he can answer. I know you just speak for yourself and no one else....

None 1 year, 6 months ago

SoPinesNo1 says..."It seems that Partners in Progress is doing a very good job of economic development" SP ~ I alluded to the fact that Lee County has a structured manufacturing base with Caterpillar rehiring lost positions. Lee County has 20 to 1 manufacturing base over Poorer County. A list of their accomplishments for bringing in more employment opportunities would be interesting, if they have any new job opportunities? Southern Poorer County is land-locked with golf courses: jobs for those who work on golf courses or at First Health, other employment possibilities remain across the county lines. Until the northern Poorer County opens land for future development, economic progress will remain stagnant for decades. The new Cardiac Center at First Health provided no new jobs for local craftsman since virtually all Prime and Subprime contractors let bids to companies who have skilled employees, or are already on staff. So much for GOP Georges' spin!

None 1 year, 6 months ago

"Ogden said construction work took one of the biggest hits when it comes to hiring. However, the county and municipalities have issued $56 million in building permits, including the $40.7 million FirstHealth Heart Center, the $11 million Pinehurst Medical Clinic and $4.3 million in school facilities."

Poorer County may have issued the building permits, but how many jobs were created for locals? I personally spoke with the Project Manager/Engineer who oversaw the $40.7 million FirstHealth Heart Center, not one person from Moore County was employed. The motels offering weekly rates and some restaurants’ on hamburger alley in Aberdeen fared well, other than that...unemployment is about the same.

Can't anyone be forth coming with the people of Poorer County, or is there a GOP Class on how to spin information to make us look good!

deidretg 1 year, 6 months ago

JoeG says at 4:20pm - that we need to reduce cost of government, lower taxes for our people.

JoeG says at 5:12pm - that we will have saved the taxpayers a lot of money - that he believes the commissioners did the right thing - he's a conservative who wants a smaller county government, less taxes, and less regulation.

JoeG says at 5:16pm - that the issue at hand is about jobs and the economy.

SOUNDS GREAT!!! Now what does daddy's (I-L) crowd say?

T.Cary McSwain says his plan is "Moore County is being faced with a bond issue to replace government buildings, etc. $300,000,000" NCCESAC Meeting Feb 28, 2007 in Pinehurst

T. Cary McSwain - "Moore County manager says new detention center ($50+ million bond) won't push taxes up" by Michael Zennie, Fayetteville Observer June 25, 2010

T. Cary McSwain - "T. Cary McSwain, County Manager, observes that early financial projections called for a property tax increase to fund the new debt ($69.5 million education bond) service payments of seven cents ($.07 per $100)." by Mary Hunter, Carolina Business Journal, August 1, 2008 (a proposed 18% tax increase at that time)

County Commissioners - "The commissioners did not rule out budget cuts as high as 10 or 15 percent, and Chairman Lea pointed out that School Superintendent Susan Purser mentioned cuts of 10 percent in her budget." Florence Gilkeson, The Pilot, Thursday, Nov 18, 2010

T. Cary McSwain - "The new year won't be a good budget year, McSwain admitted." Florence Gilkeson, The Pilot, Thursday, Nov 18, 2010

Let me guess who is running the show, JoeG or T. Cary? Considering T. Cary's rather extensive past record in multiple jurisdictions, I'd say nobody else touches his throttle. JoeG, you best get out of the way, and wave goodbye to "lower taxes for our people" as you so blissfully put it and jobs period (10% to 15% cuts). If his best guess was 18% tax increase on $69.5 million then you do the math on $55.2 million and see what he has in mind for you and your future children. We haven't even got to his $26 to $30 million Government Building with his personal top floor suite yet.

He has already stated "No Tax Increase" for the federal prisoner suites, at $95,000 each, here in Columbia, SC, I mean Carthage, so guess who takes the cuts? EVERYBODY ELSE IN MOORE COUNTY

JoeG, I need some of what you've got to ease the pain that's surely coming Moore County's way for years to come. You might want to loan some out to county employees who haven't seen a raise in years and aren't likely to see one for many more years unless they decide to pay for all of this by raising taxes instead of cutting benefits and services as they are currently doing.

None 1 year, 6 months ago

deidretg => math is obviously a serious problem with supposedly well educated managers and commissioners. You oversighted the fact that T. Cary McSwain was in attendance with Moseley Architects and Bordeaux Construction on September 15, 2010.

Notes on that "Meeting with Moseley Architects and Bordeaux Construction" meeting indicate that Commissioner Nick Picerno and County Manager Cary McSwain were in total opposition to saving taxpayers a meager 19.4 million dollars. You ~ Sir ~ are on target with a $300,000,000.00 spending spree carried over from McSwains days in South Carolina as a liberal big spender.

Quote from the recently adopted Resolution of a code of Ethics by the Moore County Board of Commisioners on November 16, 2010: Whereas, as public officials we are charged with upholding the trust of the citizens of Moore County....as prepared by Misty LeLand, attorney for TPo3 - paid for by taxpayers.

If not saving taxpayers 19.2 million dollars is considered trust of the taxpayers, please someone explain what is - voting on multi-million dollar issues facing taxpayers?

Zoey 1 year, 6 months ago

Ogden said,

"However, the county and municipalities have issued $56 million in building permits"

I personally know of two building material suppliers, geographically located on opposite ends of the county, that has scaled-back hours of operation due to the f/ailing economy.

Toda says, "not one person from Moore County was employed".

If all contractors are being outsourced, all building materials are outsourced, where are the profits to be made, locally ? I guess it's left up to the citizens of Moore Co. to provide diligent work ethics, to bring these companies out of the building debt incurred, before we see any profits in Moore Co.

I may not agree with the commodity that K2 Solutions produces, but I do know for fact, they have hired many local craftsman with their expansion. Seems we find ethics in the oddest of places....

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