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14 <br />+�reatiVe <br />There are many scenarios where this clause will place Lee County at a disadvantage. Just <br />one example: a company could look for an expansion site that would allow freed capacity <br />at an existing facility to be better utilized. <br />There is no incentive policy that I have read or heard about in NC that has a similar <br />clause. If Lee County is the only county with this clause, it puts the County at a <br />disadvantage. <br />Clause 3 <br />"No incentive will be offered to a prospective new business that would directly compete for <br />market share with an existing business in Lee County if, in the opinion of the Board of <br />Commissioners, the incentive would represent a threat to the survival of the pre - existing <br />business." <br />• This clause discourages the clustering of like companies. Clustering is desired in <br />economic development. Companies locate where there are concentrations of skilled <br />labor. Community Colleges make investments in training programs that can be shared <br />by like industries. There are proven synergies between companies that support <br />clustering. Utility systems are efficient because of serving similar industry clusters. <br />• This clause goes against a basic tenant of economic growth — build upon assets. <br />• Clustering is important for workers. If an existing company in Lee County closes, and <br />there is not another company that desires similar skill sets, workers will be forced to <br />move to find work. <br />• No existing business has signed a pledge to stay beyond today. Companies you recruit <br />do sign a pledge to make an investment, hire people, and operate over a period of <br />time. By not recruiting a similar company, Lee County will lose as companies go out <br />of business. There is always churn in an economy. Not recruiting today will leave Lee <br />County short tomorrow. <br />• The wording of "opinion of ...Commissioners that would represent a threat to the <br />survival of the pre- existing business" is hard to define, and the definition will change <br />as elected leaders change. Ambiguity is not desirable in a policy. <br />• This clause would require taking almost every project to the Commissioners before <br />incentives could be discussed to determine if it is deemed a competitor. For example, <br />are all plastics companies competitors, just those that make a similar product, those <br />that supply the same company, supply the same industry? This would pose a huge <br />logistical and practical problem. In fact, the incentive policy is supposed to be a <br />guideline so every project will not have to be taken before the board. <br />• No incentive policy I have read or heard about in NC has a similar clause. <br />Clause 4 <br />"The new or expanding business must create and maintain a minimum of 25 new jobs in Lee <br />County to be considered for an incentive. An existing business will be required to maintain the <br />same number of existing jobs as well as create the 25 new jobs. The business will be required to <br />maintain all jobs for the duration of the incentive period. Businesses will be required to show <br />proof of job creation and be subject to random audits for verification." <br />Creative Economic Development Consulting, LLC <br />PO Box 706, Elkin, NC 28621 • 336 - 526 -1332 • www.creativeedc.com <br />