Board of Supervisors: June 16, 2005

June 16, 2005

June 16, 2005

Virginia:

At a Continued Meeting of the Nelson County Board of Supervisors on June 16, 2005, 3:00 p.m., at the Courthouse in Lovingston, Virginia, thereof:

BOARD OF SUPERVISORS:

Present:
Gary E. Wood, Chair
Harry S. Harris, Vice Chair
Constance Brennan, Central District Supervisor
Stephen A. Carter, County Administrator

Absent:
Thomas H. Bruguiere, Jr., West District
Thomas D. Harvey, North District

NELSON COUNTY ECONOMIC DEVELOPMENT AUTHORITY:

Present:
Natt Hall
Allen Hale
Montie Pritchett
Barbara Powell
Maureen Corum, Director of Tourism & Economic Development

Absent:
Stu Armstrong
John Spencer

Guests Present:
Rob McClintock, Director of Research, Virginia Economic Development Partnership
Bob DeMauri, Director, Thomas Jefferson Partnership for
Economic Development

Supervisor Wood called the Board of Supervisors’ Meeting to order and stated that a joint meeting with the Nelson County Economic Development Authority has been scheduled to discuss the Target Business Study.

Maureen Corum introduced the Guest Speakers and reviewed the action items identified in the 310 Ltd. Target Business study as follows:

1. Create a shared vision for the Board of Supervisors, Economic Development Authority, Business Leaders and Members of the Community;
2. Better define roles and responsibilities among county officials;
3. Create a broadband strategy;
4. Improve workforce development;
5. Implement Lovingston Revitalization project;
6. Forward regional and state partnerships;
7. Create an organization to facilitate business networking;
8. Improve business retention efforts;
9. Address staff workload; and
10. Examine possibility of signage for Colleen Business Park.

Rob McClintock described the activities of the Virginia Economic Development Partnership, noting their mission as a marketing organization to recruit businesses to Virginia and assist Virginia businesses in exporting internationally. He noted changes in Virginia businesses since the 1980's when 60-70% were manufacturing. He said that today, the majority are professional services. Rob McClintock said that the site selection process has also changed. He said that having water and sewer available at a site is still important, but that broadband is now expected on a site too. He said that the business prospect process used to take 1 – 1 1/2 years but now takes about 6 months to make a decision.

Rob McClintock said that localities need to have "site product" to match the community's goals and that the process of site selection is much more difficult now. The process typically involves site selection to fit a matrix with little opportunity for input or "sale" by the locality with much of the early site selection process done via the internet. Rob McClintock said that the challenge for VEDP is to make a good impression via the internet and through the marketing materials sent out with the goal of getting a site consultant or client to actually visit the site. He said that the chances of getting them to Virginia improve if they visit the potential sites. He noted that since September 11th, defense and homeland security businesses have real opportunities for Virginia. He suggested that if the county were successful with access to broadband, that sector could have potential for Nelson.

Bob DeMauri said that the Thomas Jefferson Partnership for Economic Development provides a regional perspective to potential businesses and provides assistance to existing businesses within the region. He said that TJPED's job is to know the region - what sites are available, what labor force is available, etc. He noted one of the regional challenges is the low unemployment rate causing the prospect to question whether there will be a sufficient workforce. He said that the case has to be made that the region has a large percentage of people underemployed and willing to commute. He said that the other regional challenge is the lack of ready-to-go sites, especially larger sites of 50+ acres. Bob DeMauri said that the locality closes the deal with the prospect, often offering incentives such as the site, infrastructure, a streamlined permitting process, etc.

Bob DeMauri said that his organization is now putting more emphasis on small businesses and entrepreneurial business development, along with looking at ways to attract defense and homeland security businesses. He recommended that the county consider work sessions to determine what the county might want to do to prepare for future economic development. He noted that in the past, companies used to come to the region for the quality of life - because an owner wanted to live in the area. Now the companies are often owned globally and the bottom line is the primary consideration. He said that the region is generally not the most cost effective or most site-ready and that we would have to work on these areas to be ready and competitive.

Rob McClintock noted that once a locality has the technical needs in place (site, infrastructure, etc), the work force development issue becomes critical - availability, skills, education. He said that paying attention to the businesses already here is also important both because they are sales agents to new and prospective businesses and because many of the new jobs in the state are as a result of expansions. He said that working with the existing business community is as important as recruiting new businesses.

Allen Hale said that the county has low unemployment, no ready-to-go sites, is working on broadband and has the best quality of life around. He asked what incentives would be appropriate for a county of our size. Bob DeMauri said that the sites at the Colleen Business Park are the most cost competitive anywhere but that the challenge is to find companies that are not dissuaded by the 30 minutes to the interstate or Charlottesville. He suggested that the county consider incentives such as a streamlined permitting process, Board of Supervisors' direct involvement, a commitment to a specific timetable, etc. Rob McClintock said that the incentives are often used as an equalizer; that in most cases, the incentives may tip the balance in favor of a locality all other things being equal. He said that he would not counsel any community to go too heavily into incentives. The state feeling on incentives is that the package needs to make sense for all players at the table - the state, the locality and the business. He said that the incentives need to relate to the community's goals - is this business what the county is looking for? He said that if you have to buy a project, he's not sure you would want to. He suggested the use of performance benchmarks for incentives.

Connie Brennan said that at a recent meeting of the Workforce Investment Board, the three major concerns related to workforce in the region were affordable housing, childcare and transportation. She suggested that it would be worthwhile for the county to spend time discussing what kinds of businesses we want. Natt Hall noted that all of the studies commissioned have shown that Nelson has a great lifestyle and can draw professionals here with broadband. He said that the EDA is focused on capitalizing on the lifestyle. Bob DeMauri agreed saying that a locality cannot focus just on the large prospects, noting that manufacturing jobs used to employ 11% in the region but that sector is now down to 7%.

Harry Harris said that the 2 - 2 1/2% unemployment is a misleading figure with many commuting to other areas. He asked how the county could bring those people back into the county to show a business that we can supply a workforce. Bob DeMauri said that low unemployment is not the only issue if a company feels confident that it can attract and hold workers with salary and benefits. He said that a case could also be made for a percentage of the potential workforce being currently under-employed. Connie Brennan said that a survey of commuters asking what salaries and benefits would be required to bring them back to the county to work would be important. Gary Wood identified the county issues related to economic development as a need for improved communication between county entities on process; hitting a balance on the type and size of employer - i.e. attracting those that will employ the people who are here or currently commute rather than bringing 400 employees in; and the limited number of available sites owned by the county.

Concluding the presentation, the Board of Supervisors continued the June 16, 2005 Meeting to June 21, 2005 as follows:

Re: Continuance of June 16, 2005 Meeting to June 21, 2005

On a motion by Mr. Harris, seconded by Ms. Brennan, with Mr. Harris voting yes, Ms. Brennan voting yes, Mr. Bruguiere absent, Mr. Harvey absent, and Mr. Wood voting yes, the following Resolution was adopted:

BE IT RESOLVED, That the Nelson County Board of Supervisors does hereby continue the June 16, 2005 Meeting to June 21, 2005.

_________________________________________, Chair