Rowan in a Retail 'Vacuum'

BY MARK WINEKA
SALISBURY POST

Salisbury and Rowan County officials asked themselves a question Wednesday: What should be the

Economic Development Commission's role in retail recruitment?

They didn't necessarily come up with an answer, just more troubling questions. Why do Cabarrus and Iredell counties do so much better in retail sales and how do you keep Rowan Countians from leaving to spend their dollars elsewhere?

"There is a vacuum in recruitment of retail," acknowledged Jake Alexander, chairman of the Salisbury-Rowan Economic Development Commission.

Commenting at a Holiday Inn luncheon among Salisbury City Council, county commissioners, EDC members and officials of a few Rowan County towns, Alexander suggested that the EDC could make retail recruitment part of the assistant director's job. But he cautioned that he wasn't confident of the results.

Demographics dictate retail development, Alexander said, and until the demographics are right, outside developers won't make the big push in Rowan. At present, Rowan is witnessing commercial growth, which Alexander believes represents a "backfilling" to demand.

Alexander added that the county has ample room for more retail and commercial growth.

But should efforts at retail recruitment be the EDC's job? The EDC traditionally recruits manufacturing and service industries. City Councilman Bill Burgin first posed the question Wednesday, adding that he fears the present and future loss of retail dollars to Cabarrus County.

"They are eating our lunch, folks, in retail sales," County Commission Chairman Jim Neely agreed.

Salisbury City Manager David Treme said the new industries recruited to Rowan County usually don't translate to immediate tax dollars for Salisbury because they locate outside the city limits.

"Economic development for us is not a big industry," Treme said. "It is retail, commercial and office space."

Retail sales figures routinely show Rowan County lagging behind neighboring counties such as Iredell, Cabarrus and Davidson that are comparable in size and population.

Rowan County topped the billion-dollar mark in annual retail sales for the first time in fiscal year 1997-98. Rowan ranks 21st of 100 counties in North Carolina in retail sales. Iredell County is 12th; Cabarrus, 15th; and Davidson, 16th. The fiscal year ended June 30.

County Manager Tim Russell noted that the additional sales tax revenues in Iredell have a significant impact in lowering Iredell's property tax rate. Both Russell and Treme said the time is right to develop a strategy or plan for retail recruitment, and Treme pushed for someone whose sole job was bringing in that kind of business.

"If we don't sow, we're not going to reap," Treme said. "Whether it's to be the Chamber or the EDC, we've got to get into the race. Things now are happening by accident."

Rowan County Commissioner Dave Rowland said he has never envisioned the Chamber doing retail recruitment. He said it should be the EDC's job Ð probably the role of an assistant director.

Jim Morton of China Grove said the Chamber's primary interest is looking after its existing membership. Asking the Chamber to actively seek new retailers might be asking it to "walk a fine line," Morton said.

But several of the officials said competition helps existing businesses. If the community has two clothing stores and adds a third, it might help keep the shoppers here, for example.

"If they (Rowan shoppers) go to Charlotte, the other two have lost already," Burgin said.

Spencer Mayor Buddy Gettys said the EDC should direct all of its time to recruiting industry. He argued that new industries bring more people, or keep them here, and that sparks more retail development.

Recruiting retail before the numbers exist to support it might be putting the cart before the horse, Gettys said.

Bruce Jones, a Chamber director, said his organization has positioned itself to maybe take on the challenge of retail recruitment. At its last retreat in March, City Council listed retail recruitment as a priority and indicated that it might be the Chamber's role.

The officials generally agreed that Rowan's retail future won't include a Hanes Mall-type shopping center, but lies more in strip developments. Rowland said present zoning restrictions and scarcity of buildings combine for a lack of available strip center sites.

EDC member John Henderlite said Interstate 85 still offers the county's highest retail potential. He stressed that a "big-box retailer" doesn't look at political boundaries the way the government officials do.

"We've got to position ourselves not as Rowan County, but as this spot in the corner of the region," Henderlite said.

On another subject, Alexander updated the group on EDC's search for a new executive director. Harry Whalen left earlier this fall to take a similar position in Fayetteville.

Between 40 and 50 people have applied so far, and the board expects 75 to 100 applicants before the deadline, Alexander said. Consultant Walter Harper and Associates is helping in the search. That firm will eventually recommend three to eight prospects for interviews.

Alexander said passion matters, adding that the EDC is looking for someone "who has the capacity to develop a personal passion for the community and a love for Rowan County."

"I've seen it in other economic developers," Alexander said. The EDC expects to hire someone in January, who can be ready to work by February. The assistant director's position also is open, but the EDC will wait to fill that spot until after the director is hired.

Alexander said the EDC also seeks a person already familiar with the industrial recruitment process in North Carolina and "someone who understands our culture." est