Work Session of the Town of Cary, NC

February 28, 2006

Subject: Economic Development

Time: 5:30 p.m.

Location: Cary Town Council Chambers, 316 N. Academy St., Cary, NC

Present: Mayor Ernie McAlister, Mayor Pro Tem Jack Smith, Council Members Marla Dorrel and Mike Joyce; Council Member Julie Robison arrived late, and her arrival time is noted in the minutes.

Absent: Council Members Jennifer Robinson and Nels Roseland

Mayor McAlister began the meeting at 5:35 p.m.

The final report is attached to and incorporated in these minutes as Exhibit. The consultant’s power point presentation is attached to and incorporated in these minutes as Exhibit.

Mrs. Robison arrived at 5:55 p.m.

Mayor McAlister stated the consultants have told council what to do and suggested how to do it, and that was his expectation.

Mr. Joyce stated it’s important to recognize that Cary is a pass-through community for traffic. He believes the Town should address the downtown area now before I-540 comes through. He will send his recommendations to council as the plan moves forward.

Mrs. Robison asked for additional comments on the on-line permitting issue and how competitive Cary is in the region and state. The consultant stated that the Division of Environment and Natural Resources have established a one-stop permitting process. He stated the Town may want to look at how they set up their one-stop procedure.

Mrs. Robison asked the consultant to comment on what they perceive to be Cary’s tourism draw. The consultant stated much of it will focus on sports-related tourism. The consultant stated Cary’s next step in this regard is to inventory its assets and collaborate with some of the regional partners.

Mrs. Robison stated in the last economic development work session the consultant noted that the business stakeholder group had similar priorities as the council’s priorities. She asked their priority for the economic development organization. The consultant stated they found that people didn’t understand the organizational issues, which resulted in a mix of responses and no clear direction.

Mayor Pro Tem Smith wants to look at the recommended targets and determine what the recommendations really mean. He stated it’s important to develop an effective campaign to target.

Mayor Pro Tem Smith thinks the Town needs to know how other communities have improved their permitting process. He stated one element to do this may be education to ensure that people are prepared and knowledgeable at the beginning of the process so their application isn’t repeatedly rejected. He thinks the economic development commission (EDC) can help with this.

Mayor Pro Tem Smith believes it is good to see an emphasis on BRE (business retention and expansion).

Ms. Dorrel stated the product development recommendation is a high priority; however, the exercise at the last work session did not indicate it was a high priority for council. She does not think the council should abandon this issue. She is uncomfortable with the results of that exercise being a final recommendation. She stated it was an indicator but not a solid recommendation, because it wasn’t a studied response. The consultant stated the EDC can help flesh this out, and stressed it’s important to increase diversity of what currently exists -- determine what the current product lacks and determine how to get it on the table.

The consultant stated the plan should be implemented over a 3-5 year period, and each year the Town should tackle a few things so that it’s implemented over the 3-5 year period.

The consultant suggested that the EDC look at zoned acres and identify ones with the highest development potential, because it’s important to have “shovel ready” property. The consultant stated there is only one certified site in Wake County, and it gets lots of activity.

Ms. Dorrel hopes that more than additional study occurs as a next step.

Mayor McAlister stated the next EDC meeting is March 21; the town center work session final report is March 7; and budget deliberations begin soon with the council for funding decisions. He stated based on this timing, there is no reason to delay moving forward.

Mayor McAlister stated staff seeks direction on time frame, costs, etc. for EDC so they have specific direction about council expectations. He suggested to hold an economic development retreat after the EDC has reviewed the document.

Mrs. Robison thinks it is appropriate to forward the plan to the EDC, but she thinks it’s a mistake to send it to them without the cost projections. She stated a real analysis can’t be done on the organization issue without a cost projection. She thinks staff should do this before it goes to EDC, which will help the EDC make a rational recommendation.

The consultant stated there are different funding levels for economic development. The rule of thumb for progressive economic development is between $5-$8 per capita for overall program funding. Less progressive communities may fund at a $3 per capita level. Some items can be done on a shoestring budget, while others require more funding. Mrs. Robison wants examples of the various scenarios.

Mr. Coleman stated staff has begun working these numbers and will have the numbers attached to the various options when it goes to the EDC. The consultant offered assistance if needed.

Mayor Pro Tem Smith stated the council will need willpower to address this, because it could have tax rate implications. He thinks that the staff developing the scenarios and the report moving to EDC should be parallel so the next step isn’t stalled.

The consultant stated focus groups are already invested in the process, which should help with public support with the tax dollars.

Ms. Dorrel stated it’s imperative to resolve the organization issue up-front. She stated there are lots of questions yet to be answered, but the organizational structure must be resolved prior to moving forward with the program.

Mayor McAlister stated the EDC should address the organizational issue as a starting point, which will determine who does what.

Mrs. Robison asked the council to request a formal recommendation from the EDC on the organization issue.

Mayor McAlister stated at this point the task shifts from Sanford-Holshouser to the EDC, and their first order of business is to determine the recommended organization. He asked if the EDC is up to the task. Ms. Nellie Shipley, chair of the EDC, stated it’s important to ensure their volunteer time and energy is productive. She doesn’t want the EDC action to be yet another report. She understands the initial decision of the EDC may impact other recommendations. She asked if the council wants all details thoroughly thought out.

Mayor McAlister stated whatever organization is recommended will involve hiring someone, and it doesn’t make sense to make all the decisions before this person(s) is hired. He stated the first order of business is to determine how to best organize based on the report and Cary’s history.

Mr. Joyce would prefer to hand the report to the chamber to help expedite the process instead of depending on the volunteer commission. He stated it’s important to determine budget issues and determine what it will cost for the chamber to carry economic development in the interim.

Mayor McAlister stated the plan is a 3-5 year process. He stated it’s important to have the right structure in place to begin with. He thinks the EDC and council should focus on this instead of taking interim steps.

Mrs. Robison concurred. She asked if the EDC needs additional resources (access to consultant, etc.), because existing staff are very busy during the budget season. Mayor McAlister stated if the EDC needs to call on Sanford-Holshouser, then he hopes the council will be agreeable. Mr. Joyce concurred.

Ms. Shipley stated the EDC will probably need more resources and after their first meeting they’ll know better what is needed. She’s confident they can get some information from staff. She stated the chamber is another good resource. She plans to ask the chamber to put together a task force group to work with the EDC on this endeavor.

Ms. Dorrel stated the organization issue is a big test. She stated there are issues of control, accountability, etc. She has lots of questions in each scenario about accountability. She is curious about other benchmark communities and how they measure up to what Cary might do. She stated the EDC may need to ask the council to clarify their priorities. She wants four scenarios examined by the EDC. She stated to-date, the council hasn’t given the EDC enough information to rule out any of the four scenarios. She wants to feel good about the EDC’s recommendation, which means they need to take the time to ask the tough questions.

Mayor McAlister stated the council now passes this issue to EDC with the first task for EDC being to develop a recommendation for the proper organization going forward. He stated the EDC should engage the council, staff and Sanford-Holshouser as necessary. He stressed the importance of moving forward as quickly as possible.

Mr. Fogleman, budget director, thanked all study participants. He stated anyone with comments should e-mail feedback@townofcary.org to stay engaged in the process.

Mayor McAlister adjourned the meeting at 7:16 p.m.