Kathleen Ferguson and Allan Rosen
As part of their pledge to utilize the proceeds from the proposed quarter-cent sales tax for Orange County’s most pressing needs, our county commissioners are asking voters to support an historic investment in economic development, which will be used for “funding infrastructure improvements needed to recruit new businesses and expand existing businesses … business loans and grants to grow businesses in Orange County … [and] targeted business recruitment, retention, and expansion efforts.†The commissioners realize that without new sources of revenue, future budgets will be even more painful and challenging to balance than those of the past two years. Based on their commitment to economic development, we wholeheartedly recommend that Orange County voters approve the quarter-cent Sales and Use Tax referendum.
This proposal is estimated to raise $2.3 million annually and the commissioners made a five-year pledge to allocate 42.5 percent of the funding – nearly $1 million – to economic development as well as 42.5 percent to the local schools systems and 15 percent to be split between emergency medical services and libraries. Importantly, the quarter-cent sales-tax increase does not apply to groceries, gas or prescription medicines.
While committing proceeds to schools, libraries and emergency management is vital, directing resources to economic development is the only allocation that will grow the county’s tax base. Retaining successful local businesses and attracting new businesses is critical to Orange County’s fiscal health. The new commercial property and sales-tax receipts will support essential services that would be in jeopardy otherwise, while also reducing the pressure to increase residential property taxes. Furthermore, an improved business climate will increase employment opportunities for county residents.
Based on their recent track record (shown below), we are confident the commissioners, county manager and the county’s economic-development professionals will continue to make smart decisions regarding economic development.
Two years ago, the commissioners approved the 2030 Comprehensive Plan, which committed the county to pursue “viable and sustainable economic development that contributes to both property and sales tax revenues, and enhances high-quality employment opportunitiesâ€.
More than a year ago, the county economic-development department began receiving regional recognition as leaders in recruiting solar-energy businesses. This leadership was bolstered when the Orange County campus of Durham Tech began offering certificates and degrees in sustainability technologies, including solar PV installation certification.
Last year, the commissioners charged the Planning Department to craft a unified development ordinance in order to signal citizens and business that the county is serious about economic development.
This year, the county maintained 100 percent funding of the economic-development department, invested $200,000 in the county’s small business loan fund and allocated $200,000 to fund a water and sewer engineering design for the Buckhorn Economic Development District.
Earlier this month, the county manager reported on establishing water and sewer districts to organize, finance and administer the county’s investment in infrastructure.
In addition, for almost two years the economic-development citizen advisory board has supported the evolving policy environment by providing timely reports to the commissioners, including our May 2010 strategic recommendations, which emphasized bringing water and sewer utilities to the county’s economic-development districts, streamlining regulatory policies, funding targeted research and investing in new and expanded tools essential to all local governments committed to economic development. Our recommendations were based on homegrown research (our own and by UNC graduate students), including an assessment of Orange County’s regional competitiveness, financing options for infrastructure, factors influencing regional economic-development investments and case studies on implementing incentives programs and university-based technology transfer.
This December, the advisory board will receive a report on leveraging UNC research to promote entrepreneurship and business expansion in the county. The report is expected to highlight where investments and new policies are most likely to spur local economic development.
Later this winter, we will submit recommendations for filling the advisory board’s at-large vacancies. Particular emphasis will be placed on candidates with the expertise to ensure that the desired outcomes – a larger commercial tax base, more retail sales and improved employment opportunities for residents of all job skills and levels of educational attainment – are achieved. It’s critical that many, if not most, members have senior-level experience with business start-up, investment and location decisions, particularly with those sectors most promising for Orange County.
We have been privileged to serve on the advisory board during this transitional period. It’s reassuring that the commissioners have initiated several key building blocks for success. We hope the voters will give them a vote of confidence by approving the Sales and Use Tax referendum. Providing nearly $1 million per year for five years for economic development will go a long way towards improving Orange County’s cherished quality of life.
Kathleen Ferguson is the chair and Allan Rosen the vice chair of the Orange County Economic Development Commission.