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December 28, 1999
Salisbury Post; Rowan County, NC

Insight

New EDC director hit ground running

SALISBURY POST

 

           
Randy Harrell hit the ground running in April when he took over the job as executive director of the Salisbury-Rowan Economic Development Commission.

At his first meeting with the local EDC board, he announced that he would host the state Economic Development Commission meeting in Salisbury in January 2000.

He’s stayed in motion ever since.

As he goes about his job of attracting industry to Rowan County, Harrell says he finds the community has what most people are looking for: location, location, location.

The only drawback he identifies here now is workforce preparedness, a weakness he says exists across the state and nation as well. As people are losing jobs in conventional manufacturing, many of them are ill-prepared to compete in the modern job market. They need greater skills.

Harrell also wonders when Salisbury and Rowan County will have a more attractive entrance off I-85 at Innes Street.

He addressed those issues and others in a Q&A interview with Post editor Elizabeth G. Cook. Here’s an edited transcript of that interview.

 

Q: When it was announced that you were coming here, your chairman at Elizabeth City-Pasquotank praised you highly and said, as an example, that when some board members knew of businesses they thought they’d like to have there, you did your research and recommended against some of them. What kind of businesses might those have been?

 

A: They were companies that may have created some environmental concerns, such as air emissions, smoke stacks, those kind of things. In Elizabeth City and Pasquotank, the county is on the Pasquotank River. One of the sites being considered would have had smokestacks. And since it was on the Intracoastal Waterway, I thought it would be a detriment and would decrease the aesthetic value of the community, so I advised against it.

 

Q: How did they take that?

 

A: They agreed with me. We didn’t pursue it.

 

Q: What’s the biggest industry that you recruited there?

 

A:The biggest industry that I recruited while I was there was Davis Yachts, which is no longer there because they fell during the decline of boat manufacturing. At the time, they were employing approximately 350 people.

Shortly after we convinced them to locate in Elizabeth City, the federal government implemented the luxury tax, and these were million-dollar yachts. When you’re trying to sell a boat and you have to pay a 10 percent luxury tax on it, it really cuts back on the amount of people who can afford to buy a boat.

So it put them in a bind. As a matter of fact, I believe it was 35,000 jobs across the country that were eliminated because of the luxury tax —that has now been taken away.

 

Q: What were some of your other successes?

 

A: One of my biggest successes was a company that we brought in called Superior Brands, which manufactured pet treats. It was a company out of Quincy, Mass. So we were competing against about five or six other states. They were looking all over North Carolina. It is now a part of Nestle’s; it was purchased by Carnation. So the family business sold out about five or six years ago and they’re probably employing close to 300 if not more now, depending on the peak season.

You’d be surprised how many people buy pet treats for the pets during the holidays.

 

Q: What were some of your disappointments or frustrations while you were there?

 

A: If I had some disappointments, it would be from the standpoint of working with companies and knowing you didn’t have the amenities and infrastructure the companies were looking for. Although we would have an opportunity to work with those, when they quickly met with us and we talked about their requirements and their needs and then we found out we couldn’t provide it, then of course you lose the company.

Companies locate because you have what the companies need. If you can’t provide the infrastructure, such as the water and sewer, natural gas, you can quickly be eliminated.

 

Q: Do they have natural gas in that area of the state?

 

A: They do not. They will. You know, they passed a bond referendum. It’ll be two, three years before you see it in northeastern North Carolina. It’s in some counties in northeastern North Carolina, but of the 17, there are only one or two that have it.

 

Q: As you’ve been here in the Economic Development job in Rowan County, have you encountered any myths that you’ve had to fight, or misperceptions people have about this area?

 

A: No.

 

Q: What seems to be the general impression of this area?

 

A: It’s a wonderful place to be. Matter of fact, when word was out that I was coming to Salisbury I received a lot of calls from my friends all over the state and across the country. Salisbury is a highly respected place. People know the potential of this community. They saw it as a good move for me and I did too. ... It is a wonderful place, it really is.

It’s starting to grow on my wife. She left from where her mother and father were, and had been raised there all her life. She’s beginning to like it. We’re excited. We’re ready to build a house.

 

Q: What are Rowan County’s strengths as you try to present it as a place for someone to live in and locate a company in?

 

A: Location, location, location.

Rowan has close proximity to Charlotte and Mecklenburg County, it’s up along the 85 corridor, that’s going to be eight lanes. We’re close to Raleigh, close to Winston-Salem. All that is a very positive factor in attracting industry.

 

Q: What are the drawbacks?

 

A: Drawbacks right now, from what I’m hearing —but it’s not just here, it’s across the state and across the nation as well —is the labor force.

One of the problems that we’re having in Rowan County and across the state is there is a major decline in traditional manufacturing, such as your textile manufacturers. You’re going to see a major impact take place in the tobacco industry because of the tobacco settlements. So there are going to be some layoffs in that profession as well.

A lot of these individuals aren’t trained. So when they lose their jobs they’re not in a position to find other jobs.

So one of my main concerns is, as it is just about every developer across the state, is workforce preparedness and making sure our General Assembly and our state continue to provide funds to train these individuals. You’re going to see more of a decline.

Just to give you an example ... more than 110,000 jobs have been lost since 1995 (due to plant closings and lay-offs), 20,000 this year in manufacturing. That’s a lot of jobs.

 

Q: What those workers are told is, if you’re ever going to lose your job, this is the best time and the best scenario because there are so many jobs out there.

 

A: Well, I’m not sure there are that many jobs out there. If you look at the unemployment rate, it’s lower than it’s ever been. Our unemployment rate in October was 3.6 percent. That’s fairly low. At one time it was below 2 percent. Then you had Cone Mills and these others close out.

I think it was my chairman who mentioned before I came here that there’s a lot of diversity in this community. Most of them have found jobs. But there are still some that worked for Cone Mills that are unemployed because they don’t have the skills that businesses are looking for. We have to find a way to train them and be sure they have jobs so they can take care of their families.

That is one of my major concerns, but that is a concern that’s facing everybody. We’re no different in that regard.

 

Q: Do you think the word is getting down to the students or workers that they need more training? Have we gotten rid of the expectation that, well no matter what, I can find a job somewhere?

 

A: That’s a hard question to answer. Our schools are beginning to let students know that technical training is just as important as going through a liberal arts program. Not everybody’s right for college. There are jobs for them out there if they want to take on these special training positions, such as welding or electricians, plumbing. There’s always a profession you can go into if you want to. But I think, 10-20 years ago (the thinking was) you have to go to college and get a four-year degree. And you still see that with a lot of families; probably most families. But there are jobs out there in the technical market just as there are in the high education market.

 

Q: What does Rowan County need to do to position itself better for new industry or expanded industry?

 

A: I think they’re moving in the right direction, from the standpoint of planning. A lot of counties across the state and nation in general sometimes are more concerned about short-term planning than long-term planning. With what’s happened in Cabarrus County and the growth that’s taken place over there in the last three years, I think it’s created a substantial amount of insight to our elected leaders that we need to move slowly, we need to plan accordingly.

A good example of that is when (County Manager) Tim Russell recommended we look at the 85 corridor, that we make sure the property is evaluated and assessed to its best uses. That was a good move. The county wants to grow. We all want to grow because it adds to the tax base. Sometimes you can grow too fast and it can be a detriment and have a major impact on your public schools.

So I think controlling growth is something you’re going to see the county continue to work with, and the city as well. That’s something I completely support.

We don’t need to be in much of a hurry. When it comes to economic development, especially when you know you’re in a growth area, patience is definitely a virtue. Let’s make sure we do the right things and we’re selective on the type of companies we bring.

We are working with a substantial amount of companies that will pay good wages and benefits. These are the type of jobs that will hopefully encourage our young people to come back and stay in Salisbury and Rowan County.

As a parent, I don’t fault my son for going where he can make a better salary and take care of his family. If we can create those technical positions and skilled positions here, then I think we’ll be in a position to keep our young people here and draw young people. That’s important to me, very important.

 

Q: Do we have water available at all the places we need it now?

 

A: Yes. Infrastructure is good. We have all the infrastructure and amenities that we need. As we continue to grow, we’re going to have to upgrade. But right now we’re in a position to work with the larger industries and provide whatever is needed for small industries as well.

 

Q: Is there anything else we need to do to get ourselves more prepared, make ourselves more attractive?

 

A: One of the things people seem to have a concern about is the entrance coming into Salisbury off 85. They see that as being an eyesore. I’m not sure what the plans are for the city and county to do anything with that. But that really sends a message. You know, we’re getting ready to put up this new building on Innes Street for the Chamber of Commerce and the EDC and the visitors center. When they come off 85, that should be, “Shew, what a beautiful place.” And there are improvements that are taking place now, but we need to continue to make sure we do the right things aesthetically to make this community pleasing, from a perception standpoint.

 

Q: How’s the activity right now?

 

A: We’re busy. We went up to Raleigh last week and we made presentations to 21 representatives from the Department of Commerce. Took them to City Club for lunch. We’re probably —maybe I shouldn’t say that —we’re generating a lot of activity through the Department of Commerce. We have a real good relationship.

Right before you came, we had a call that they’re going to bring a client in next week.

Our relationship with Carolinas Partnership is good. And our relationship with my colleagues adjacent to me is good.

 

Q: Do any prospective industries have feelers out in Rowan County right now?

 

A: Yes. We are working with a substantial amount of companies. In this profession, you may be working with them but it may be a long time before it moves toward fruition. We’re working some small companies, some mid-size companies and some big companies.

 

Q: How do most of them hear about Rowan County?

 

A: We have a good web site. We also have a close relationship with consultants. Consultants are becoming a bigger part of this profession. Large companies now basically go out and retain the services of a consultant. They do the fact-finding mission. So if you know these consultants and they’re aware of your product, then when they’re working with a company they’ll contact you and see if you’re interested in working with them. The relationship with consultants has increased substantially.

It used to be when you worked with a large company — and I’ve been in the business a long time —you worked with the president or vice president. Now you work with the consultant. ... They go back and make a recommendation to corporate offices: “This is where you might want to go.”

 

Q: As we look into recruiting industry here, are there any areas of the county that you think should be off-limits to developers?

 

A: The question I have to ask is, what type of development? Industrial development, from the standpoint of manufacturing, there may be some areas that should be off limits. I’m not sure if I’m in a position to identify them. But there are certain areas that need to be specifically designed for commercial development, other areas for retail development, other areas for service-related ventures. That’s what it’s important that we plan accordingly and make sure that we develop property in the right areas of the county.

The main thing we don’t want to do or I don’t want to see happen is anybody’s property depreciate. I’m hoping when development takes place in our county, it appreciates property. That was one of the reasons the county went forward with the implementation of zoning, which was the right thing to do.

 

Q: Some people talk about preserving farmland.

 

A: And I support that. Not every piece of property in Rowan County is prime for development. There are some pristine areas out there and I’d love to see them stay like they are.

It’s nice to ride around in the county sometimes and see no development. It’s beautiful. ... I think sometimes we forget about our farmers and agribusiness. They play a prime part in our economy. And they’re struggling right now.

 

Q: Do you see the potential for any more development in the city of Salisbury?

 

A: From the standpoint of commercial development, yes, and that’s already taking place.

Dave Treme went to Raleigh with us last week. We took a team consisting of my operations, the EDC; we had county representation, we had city representation, we had chamber representation, and we had Judy Newman from the visitors center. So the message we sent was we’re all working together.

 

Q: There’s a rumor floating around that y’all are about to close in on something really big.

 

A: That’s the rumor.

 

Q: It’s been called “the Whale Project.”

 

A: I mentioned at one of my board meetings. That’s one of many projects that has that name, and that is a project we are working on with a consultant. It is a good-sized project, but it’s not one I can elaborate on. We’re still in the beginning stages on that. We’re fortunate that we’re still in the running. But that’s a project that’s probably going to take a long time before it does move toward fruition.

It would be a great asset to Rowan County. But in this profession I don’t get too excited like I used to. We work at their pace; we provide them information they need. We hope we may make the short list. Right now I’m confident that may happen, but you never know. Things can change so quickly.

Many projects I’ve worked with over the years, we thought we had them then at the last minute they make the decision to go somewhere else. Or it will come down to right at the end and the incentives get into it. They start running their numbers. “You can give us 10 million dollars worth of incentives....”

 

Q: They have you over a barrel. How do you feel about incentives?

 

A: I don’t like incentives, but yet I’m a realist. If we’re going to compete and we’re going to bring industry in here, we going to have to play the game. As long as can provide an incentive with the understanding that we’re going to get a return on our investment, then it’s justifiable.

Some cities and counties do things that I would not recommend that Rowan County do. But we do run the cost-benefit analysis.

CP&L’s a good example. It’s a possibility it could have gone to another county. So the county had to come to the table. And that’s a small amount of money for what they’re going to get in return.

.... You have to listen and you have to be receptive and you have to say, “We’ll consider it. We’ll come back with a proposal.” And that’s what Rowan County does. They do it very carefully.

   

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