Doing Business in Nelson County: September 2004

September 2004

NELSON COUNTY ECONOMIC DEVELOPMENT AUTHORITY
Thursday, September 9, 2004

Present:
Allen Hale
Natt Hall
Tom Wheaton
Barbara Powell
Stu Armstrong
Montie Pritchett

Absent: John Spencer

The meeting was called to order.

There was no public comment.

Motion: To approve the minutes of the August 5, 2004 meeting minutes. Wheaton-Hall (6-0)

Treasurerâs Report ö Stu Armstrong reported that the funds from the certificate of deposit had been transferred to the operating account.

Old Business
Allen Hale reported that the deed and bill of sale had been executed for Leisure Products (DBA California Sidecar)

A representative from Byrd Enterprises (the business making the gateway signs) and county staff would be meeting with a representative from VDOT on Friday, September 10 for a final inspection of the proposed location for the sign for the northern county entrance on in the median of Route 29.

Barbara Powell reported that the loan agreement for the market feasibility study is now being reviewed by the prospect's attorney.
Motion: To authorize Chairperson Allen Hale to execute the
loan documents on behalf of the EDA contingent on receipt of the appropriate legal opinions. Armstrong-Hall. Roll Call Vote (6-0)

New Business
Motion: To adopt the revised Bylaws changing
the name from Nelson County Industrial Development Authority to Nelson County Economic Development Authority. Powell-Armstrong. Roll Call Vote (6-0)

The meeting was continued.

ECONOMIC DEVELOPMENT AUTHORITY
BOARD OF SUPERVISORS SPECIAL MEETING

Present: EDA members as listed above
Connie Brennan
Tommy Harvey
Harry Harris
Staff: Steve Carter

Debbie Kurtz and Betsy Mikell with 310 Ltd (Richmond, VA) presented information on their work to-date as consultants preparing the Target Market Study with the purpose of receiving input from the two Boards before preparing their final recommendations. Ms. Kurtz and Ms.
Michael have spent several days in the county interviewing businesses and citizens and researching the area to assist the county in identifying compatible businesses and industries and to develop a plan for marketing the county to those identified business sectors.

Ms. Kurtz noted that with over 18,000 economic development organizations in the US competing for approximately 1,200 businesses expanding or changing, the competition to attract business is stiff. She reviewed the primary factors for developing a marketing strategy:
1. Positioning the county in such a way as to be attractive to the target industries;
2. Examining the existing industry and identifying any clusters of like industries;
3. Making a sustained effort rather than a one-time campaign.

Debbie Kurtz then reviewed some of the possible perceptions of Nelson County from a 1999 VA Tech Economic Development Summit Report:

Favorable Perceptions -
Natural beauty; friendly people; good work ethic; central location in Virginia; Highway 29; two elementary schools; low unemployment; moderate climate; close to Charlottesville; land for tourism development and agriculture; Wintergreen Resort

Less Favorable Perceptions -
Lack of water; terrain; "no change" attitude; leakage to other counties; little retail; lack of technology (phone, fiber); affordable housing or rentals; absentee residents

Betsy Mikell said that there had also been comments during several interviews about "Virginia Slow" - a slow-paced, slow-moving, slow-thinking work force.

During discussion of the retail sector, Tommy Harvey said that the county is not in the market for a Walmart, that the county is a unique and special area. He also noted that water and sewer is available in the areas identified for possible development. Tom Wheaton said that he did not know how the county could get around labor force and housing issues. Connie Brennan said that there are many kinds of industry that do not require large workforces.

Debbie Kurtz then reviewed comments received from targeted interviews with five Nelson businesses - a mix of tourism-related, manufacturing and agriculture-related businesses. Most noted labor concerns, several noted land cost concerns for expansion and one noted concerns with the inability to advertise their services in a "fractured" media market. All offered suggestions for ways to bring in new business and expand on the clusters already here.

Debbie Kurtz noted two clusters of business in the county:
Agribusiness - orchards, vineyards, suppliers to same; and
Tourism - service industries, supporting businesses, restaurants.

She then noted that from the 1999 VA Tech Summit Report, Summit participants indicated: "Tourism development offers the most growth potential and has the highest level of public support."

Debbie Kurtz reviewed the Assets and Liabilities for Industry Attraction including operational costs (water, electricity, land); skilled and available labor (and types of labor); livability benefits (cost of housing, local beauty, schools); educational institutions and work force training programs; etc.

Debbie Kurtz suggested that the county consider starting the process with retention strategies for existing businesses ö identifying the problems those businesses face and how the county might help. She said that the final report would include recommendations for target industries and strategies for marketing to those industries.

Connie Brennan said that the county probably did not need to create large numbers of new jobs. She asked whether looking a why people are commuting to other areas to work would be helpful. Debbie Kurtz said that it would, that there are many issues to look at in developing an overall
marketing strategy.

There being no further business, the meeting was adjourned.