Helping North Carolina Grow Its Economy

Leaders from Franklin, Granville, Vance and Warren counties in North Carolina signed on the dotted line Dec. 13, officially ratifying an historic interlocal agreement. The four counties will contribute to the cost of developing industrial properties and will share the tax revenues that are generated. The partnership aims to create enhanced mid-tech industrial parks that will attract investment and generate jobs for workers in all four counties.

This type of regional collaboration is unprecedented, said Michael Luger, director of UNC Kenan-Flagler’s Carolina Center for Competitive Economies (C3E) at the Kenan Institute of Private Enterprise. Luger conducted the original feasibility study for the concept. The regional economic development project, called the Kerr-Tar Hub (named after the region where the counties are located), is the most extensive use of an interlocal agreement and of cost and revenue sharing for an economic development project anywhere in the United States.

“We’ve found no examples of four counties that have joined forces to sign an agreement with this kind of longevity and dedication,” said Luger. “It is indeed historic, and it sets these four counties apart from thousands of other counties across the country. This is the result of vision, leadership, cooperation and hard work.”

In addition to producing the project’s initial feasibility study, Luger and C3E staffed and provided technical assistance for the project’s multiple planning committees.

With $4 million in financial support from the N.C. General Assembly and the interlocal agreement signed, the Kerr-Tar Economic Development Corporation is now moving forward to secure options for the land that will be developed and to develop a marketing strategy to attract investment.

In order to take those next steps, C3E was contracted to perform an implementation study; the results were presented on Dec. 31. The study provides:

1. Methods of selecting what industries the area should pursue for the park. Luger and his team will identify firms and provide the information to the economic development officials in the four counties
2. List of amenities – such as training facilities, rural Internet access and tax breaks – where the state’s dollars should be invested to attract firms

In coordination with the implementation study, C3E is developing a work force development plan for the area. Luger and his team will propose a strategy to prepare and train the area’s labor force for the types of industries that the area will likely attract.

Luger predicts that the hub will create 1,500 jobs over the next 20 years.

“C3E’s involvement with the Kerr-Tar Hub project is very much in keeping with the ambition of the Kenan Institute to be a ‘do-tank’ as well as a ‘think-tank,” said Luger. “Ultimately, the success of our involvement will be measured by the number of jobs created, the dollars of capital invested and the improved quality of life for our fellow North Carolinians.”

For more information about C3E, visit their Web site. For more information about the Kerr-Tar hub go to www.kerrtarhub.org.