Board schedules public hearings for incentives

Mar 2, 2010 — News-Topic

Paul Teague

Mar. 2, 2010 (McClatchy-Tribune Regional News delivered by Newstex) -- In an effort to bring more than 200 badly needed jobs to the area, the Caldwell County Board of Commissioners approved scheduling two public hearings for March 15 to consider economic development incentives during its meeting Monday night at the City-County Chambers in Lenoir.

The proposals, which already have been endorsed by the Caldwell County Economic Development Commission Board of Directors and the Caldwell County Sales Tax Reinvestment Committee, involve the use of more than $400,000 from the sales tax reinvestment fund.

The larger of the two projects is an expansion by Magna International (NYSE:MGA) (TSX:MG'A) at its Lenoir facility. The company acquired automotive parts manufacturer Meridian International last year and is seeking to branch out into the composite parts business.

According to plans submitted to the EDC, the company will create at least 181 jobs over the next five years and invest $8 million. Based on the county's guidelines, Magna has been recommended to receive $362,000 -- $2,000 for each job created. The average pay for the jobs has been pegged at just under $40,000 per year.

Magna also has applied for a North Carolina Department of Commerce Jobs Development Investment Grant (JDIG) to aid in its expansion.

Meanwhile, the commissioners also are set to consider a proposal to use $50,000 in sales tax reinvestment funds to bring Automated Solutions from Catawba County into the vacant Hammary Furniture building in Sawmills.

"The facility they are in (currently) is functionally obsolete," EDC Director Harry Whalen said.

The company, currently located in Hickory, has stated it intends to create 25 new jobs -- in addition to the 12 individuals presently employed -- over the next two years for its plastic materials manufacturing operation. The average hourly wage for the new hires will be more than $15 per hour.

The prospect of new jobs was welcomed by the board as the county tries to reduce an unemployment rate that has soared to more than 16 percent in the past year.

"I think we all appreciate what you and your board are doing," Commissioner Ron Beane said to Whalen.

In other economic development news, the commissioners approved establishing a March 31 deadline regarding a $50,000 North Carolina Rural Economic Development Center grant that had been awarded last year to American Pole. The company's plan to renovate the former Suddreth-Fletch building on Nuway Circle in Lenoir has been stalled.

Without progress on the project, the county intends to release the money back to the Rural Center, though the company could re-apply for the funds at a later date.

Two additional public hearings were called for March 15 by the board, including a proposed revision of the mountain road standards and rezoning request submitted by Oscar Vasquez. The items will be considered by the Caldwell County Planning Board at its March 8 meeting.

When the board meets, it will have one new member, following the appointment of Chris Money to replace Ralph Haigler. Also re-appointed to the planning board were Kenneth Crump, the current chairman, and Sharon Schmidt, the present vice chairwoman.

Commissioners Don Barrier and Ron Beane, both Democrats, supported keeping Haigler on the board. However, all three Republican commissioners -- Clay Bollinger, Rob Bratcher and Ben Griffin -- chose to appoint Money, the owner of a Lenoir building supply company, instead.

"Ralph Haigler is probably the person who has the most knowledge about planning who is not a builder or developer," Beane said.

Added Barrier, "The (planning) board would be best served if Ralph remained on."

In other appointments, the commissioners kept Sharon Bryant as the extraterritorial jurisdiction representative on the Lenoir Planning Board and named Ronnie Jewell as Blue Ridge Electric's representative on the Caldwell County Local Emergency Planning Committee.

Turning to state government, the commissioners unanimously endorsed a resolution in support of North Carolina House Bill 1434, which would allow counties to continue to collect motor vehicle property taxes. Co-sponsored by Caldwell County State Rep. Edgar Starnes, the legislation would reverse action previously taken by the N.C. General Assembly that calls for the state to collect vehicle taxes on behalf of the counties, beginning with the 2011-12 fiscal year.

Caldwell County Tax Administrator Mack Chandler noted that the county's collection rate for vehicle taxes has averaged more than 96 percent the past three years. In addition, he fears there will be a delay in the receipt of revenues, similar to the three-month lag that currently occurs with sales tax allocations.

Griffin said he could foresee the state ultimately opting to keep the vehicle tax revenue, which accounts for $3.4 million per year in revenue for the county.

Bratcher agreed and said, "What it means for us is a reduction of revenue. And when that happens you can either raise revenue or reduce services."

Added Beane, "The end result is (the state) will eventually get all of it. The state is grasping at everything they can do to raise revenue."

Editor's note: Additional details from Monday's meeting will appear in a future edition of the News-Topic.

In other business, the commissioners:

--Received a report from Barrier concerning Google's (NASDAQ:GOOG) Gigabit Project, which is designed to create a test market for an ultra-fast Internet network. Lenoir and Hickory, along with other communities in Caldwell and Catawba counties, have joined forces in an effort to be chosen for the project.

Barrier encouraged residents to visit www.googlehickorylenoir.com to learn more about the project and voice their support.

--Heard a presentation from Larry McMullen to mark the 20th anniversary of the return of the local North Carolina National Guard troops after their participation in Operation Desert Storm. The board viewed a video of the return, which McMullen said was one of the largest welcome-home events in the nation.

Looking ahead, McMullen said an event is being planned for later this year to recognize current and previous mobilized units. He also intends to request assistance from the county in the purchase of American flags to place at area cemeteries.

--Approved the sale of the former Patterson Fire Department for $30,005.

--Granted a request to fill a vacant Caldwell County Animal Control officer position.

Newstex ID: KRTB-0404-42478274