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November-December 2002

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After an exhaustive multi-state search, Del Laboratories chose to make Rocky Point home to most of its manufacturing activities. The decision, which will be moving 500 jobs from Farmingdale, N.Y., to Pender County, was the product of hard work by countless players from across our community. Not least among them were the company’s existing workers at Rocky Point, whose diligence and company loyalty couldn’t be trumped by pledges from economic developers up and down the East Coast. To all of them, we say thanks.

Against vocal objections from some groups, the economic development community succeeded in winning passage of legislation that will help the state in its no-holds-barred battle for new jobs and investment. HB 1734, the N.C. Economic Stimulus and Job Creation Act, contains provisions for immediate cash assistance to arriving companies that is directly tied to the number and quality of the jobs they bring with them. No member of the General Assembly from east of I-95 voted against this measure, and we are in the debt of Greater Wilmington’s legislative leaders for helping shepherd this much-needed program into reality.

We were also recently greeted with the announcement by Corning that their Wilmington location will remain open, indeed actually boosting its workforce. The plant’s flexibility was cited as the reason the company wanted to keep it open, but we suspect Corning’s decision had much to do with its long and successful track record in Wilmington. Whatever the case, the region breathes a collective sigh of relief and extends its heartiest thanks to Corning for its continued prominence here.

Our organization is both proud and thankful to have reached agreement with economic development officials in Wallace for an exciting new marketing partnership that will return benefits to both sides. It’s proof that our results over the past few years have not gone unnoticed. And it is yet another sign that 21st century economy will demand that neighbors work together as closely as possible.

Finally, as detailed in our story on universities in economic development, we can be grateful for the strong leadership our community enjoys from the University of North Carolina at Wilmington. UNCW truly lives up to its mission of providing not just superb academic and research programs, but also consistently valuable service across our community. Few personify the best traditions of educational leadership better than Chancellor Jim Leutze, to whom we extend our warmest appreciation.

How lucky we’ve been. And how grateful we are!

Best Regards,

R.Scott Satterfield

Though universities have been around for nine centuries, most of their history is marked by an inert inward focus on scholarship. It has only been since the late 1900s that most had anything beyond scant interaction with the world outside. But that has changed dramatically in recent years, and there are now clear and synergistic ties between modern universities and the larger economy and community. For economic developers, there are increasingly important linkages with universities, and these relationships are expected to grow even stronger moving into a knowledge-based economic era.

The value universities now bring to economic development takes its form in numerous ways, all equally important.

Technology Transfer

New technologies began flowing visibly from universities during World War II as penicillin, radar and nuclear weapons grew out of campus-based research organizations. By the 1990s, California would begin relying on its excellent university system to help usher its economy away from dependence on defense and aerospace industries to a more diversified one based on life sciences, information technology and digital media. Much the same will be needed from North Carolina’s universities as the state sheds “old economy,” experts say. “You can see the importance of that tech transfer role in places like Raleigh’s Centennial Campus,” says Jim Nichols, director of electronics and information technologies development at the N.C. Department of Commerce. “More and more, we’ll see our universities emerge as centers of applied knowledge.”

Teaching and Learning Programs

With education now a lifelong endeavor, companies’ site selection choices are being based in part on proximity to learning opportunities for their workers. Those could include advanced science and statistics courses for entry-level research staff or management programs for top-level executives. “More and more, universities are basing the designof new curricula on input they receive from business,” Mr. Nichols says. And having access to enrichment courses – languages, photography and local history, for example – is a factor that can assist firms in recruiting, transferring and retaining good employees to a business location.

Quality of Life

Universities provide a stimulating atmosphere that adds much to a community’s quality of life. For some, that may manifest itself in season tickets to NCAA basketball games. Others find value in a regular program of music and performing arts. Access to high-quality libraries and recreational facilities is something many in the vicinity of a university find appealing. Universities also spur an eclectic selection of restaurants and night spots that anyone in the community can enjoy. “A university’s presence tends to bring an element of youth and vitality to a community,” Mr. Nichols says.

Direct Economic Impact

Universities shower a measurable amount of prosperity onto their surrounding communities just in their capacity as large employers and customers. “Overall, out of every dollar here, about ten to twelve cents is spent by this university,” says James R. Leutze, chancellor of the University of North Carolina at Wilmington (UNCW). The institution’s current spate of construction alone reaches half a billion dollars, he says. With students arriving at North Carolina universities from across the state and the world -- bringing along and spending real dollars -- higher education is an important industry in its own right.

A Major Draw for Greater Wilmington

Since its earliest incarnation, UNC-W has considered itself a partner in Wilmington’s economic development, Dr. Leutze says. The partnership can be seen in internships, graduate placement and faculty consulting, all of which provide local businesses affordable expertise and ready manpower. It is especially evident in the Small Business and Technology Development Center (SBTDC), which, among other resources, offers counseling and support to boat builders through its Marine Trades program. And the university provides valuable scientific expertise needed to ensure the environmental integrity of the Cape Fear River while keeping it a viable commercial asset.

It is not uncommon to see the chancellor taking an active role in meeting with business leaders who are considering moving all or part of their operations to the Wilmington area. “We’re always happy to talk to WID clients about the support they can expect from us,” Dr. Leutze says. He refers to UNCW’s interest in economic development as “a two-way street.” A growing local economy bestows benefits on the university. The university’s efforts to attract and keep world-class faculty, for example, often hinge on the expectation that spouses will have access to interesting employment prospects, he says.

Announcements

Del Laboratories Brings 500 New Jobs to Pender County

Governor Mike Easley recently led a contingent of local and state leaders in welcoming the decision by Del Laboratories to relocate most of its manufacturing operations to Rocky Point, a move that is bringing about 500 jobs with it. “Our competitive edge is our willingness to invest in our workforce even during tough economic times,” Easley told the gathering. “The expansion of Del Laboratories, a company that has excellent long-term prospects for growth, is one more example of this region creating quality economic growth.”

Headquartered in Farmingdale, N.Y., Del Laboratories (AMEX: DLI) manufacturers, markets and distributes cosmetics and proprietary pharmaceuticals, including well-known brand names such as Sally Hansen Hard as Nails, Corn Silk, Naturistics and LaCross. Its products are sold in more than 30 countries. In 2001, the firm, which employs 1,700 worldwide, enjoyed net sales in excess of $332 million, up from $295 million in 2000. The company will shut down its current plant in Farmingdale.

Del Laboratories, which considered numerous sites along the East Coast, opted for a location that it already knew well. Since 1997, it has maintained warehousing, distribution and re-packaging operations in Rocky Point, employing a workforce of 220. “We’re very proud of what Del Labs’ decision says about our existing industry program,” says Scott Satterfield, CEO of Wilmington Industrial Development (WID). “They knew what they’d be getting here: a welcoming community that is pro-business, a diligent workforce and a location that offers convenient access to both North American and global markets.”

WID Inks Marketing Partnership with Wallace Business Group

WID and the Wallace 100 Committee, Inc. recently finalized a unique partnership agreement that adds a new dimension to regional development opportunities. WID will assist in the marketing and advertising of industrial parks and land in Wallace, which sits at the border of Duplin and Pender Counties.

“In a globally-competitive economic development environment, neighboring communities have little choice but to join forces in their marketing and promotion,” says Scott Satterfield, C.E.O. of WID. “Wallace is one of Eastern North Carolina’s most promising communities, and we are delighted they’ve asked to collaborate with our program.”

Wallace is home to some 3,326 residents, according to the 2000 census. During the 1990s, it grew by 14.3 percent. Among its assets are affordable land, strong industrial infrastructure, convenient access to 1-40, and a growing and diverse housing stock. Housing and other residential and recreational amenities in Wallace underwent a quantum leap in 1996 with the completion of River Landing, the impeccably manicured community of custom homes ranging from $200,000 to $1 million in value. The community will ultimately accommodate 1,100 properties when fully developed, according to Kevin Hine, executive vice president and general manager at River Landing. “So far, we have about a hundred residences,” he says.

Hine, a member of the board of directors of the Wallace 100 Committee, Inc., is confident that the group’s new relationship with WID will bear fruit. “The success WID has had in Pender County, we believe, can be replicated in Wallace.” A Wallace resident for the past four years, Hine says that the partnership illustrates the growing importance placed on regional strategies for economic development. “We’re very bullish about the new arrangement,” he says.

Longtime residents agree. “We think Wilmington is the industrial hub for our area,” explains Charlie Farrior, a Wallace native who has been the town’s mayor for the past eight years. “As Wilmington grows, we will grow.” The completion of I-40 has elevated the potential of the community to attract new business and residents, says Mayor Farrior, who owns a local retail firm. “The ease with which people here can now get to Raleigh or Wilmington has certainly helped us grow.”

Pinnacle Packaging Finds a Home in Wilmington

In August, Tulsa-based Pinnacle Packaging became one of newest members of Greater Wilmington’s industrial family when it purchased International Paper's folding carton plant here for an undisclosed amount. The facility, which will do business as Oracle Packaging, is located on 23rd Street near EUE/Screen Gems Studios.

The firm makes butter and cheese cartons, as well as packaging for baked goods, retail gifts, photo envelopes and beverages. Acquisition of the Wilmington site, with its workforce of 200, will enable it to produce overnight mailers, household aluminum foil and detergent cartons, as well. The deal makes Oracle, which also now has sites in Georgia and Ohio, a $100 million company.

“This purchase is a huge deal for us,” J. Scott Dickman, chief executive officer of Pinnacle Packaging told the Morning Star. “Wilmington will be the flagship for the new company.”

Member Golf Tournament

The Committee of 100 is pleased to announce that United Parcel Service has agreed to sponsor our Spring Membership Invitational Golf Tournament. UPS is a leading global provider of specialized transportation and logistics services, and is the world's largest small package and express carrier.

“We are excited to partner with WID and the Committee of 100 and are looking forward to a great tournament.” said Michael DiNovi, Director of Sales for the East Carolina District.

“UPS is one of our key supporters and their involvement with this tournament further indicates their desire to support economic development in this region.” said Scott Satterfield, CEO of Wilmington Industrial Development.

The tournament will be held on May 1, 2003 at River Landing Golf Course in Wallace, North Carolina. More information will follow in upcoming editions of the focus.

Scott Sullivan-Chairman
Russell M. Carter-Vice-Chairman
Bill King-Treasurer
R. Scott Satterfield-Secretary

R.V. Biberstein, Jr.
Carl Byrd, Sr.
Mayor Harper Peterson
Meg Davenport
Robert Greer
Paul Grimsley
Frank Hamilton, III
Dr. James Hundley
Phil Marion
Louise McColl
Paul McCombie
Dr. Eric McKeithan
Dr. Eugene McMurray
Gene Renzaglia
James Smith
Dwight Strickland
Robert Stuart

What is SBA Looking For As Equity in A Project?

As a borrower considers equity requirements for their project, must they always put in cash? For most projects the answer is usually “Yes.” However, there can be an exception where land is used for equity.

How does this work? If your borrower has purchased land prior to the past 24 months, in anticipation of the need for growth, or to move from leasing to ownership of their business facility, then the land may have appreciated so the borrower has equity in the land.

When a borrower has just purchased property, then they use only the purchase price value in their project costs. Borrowers who have held property for 24 months or more are allowed to use the current appraised value in their total project costs-thus enabling them to use the difference between purchase price and appraised value towards their equity requirement.

An example of this scenario for an existing borrower needing 10% in equity injection is shown below:

Land Recently Purchased                             Land Purchased 24 Mos. Ago @ $200,000

Land Cost Value $200,000                          Land Appraised Value $225,000
Construction $300,000                                 Construction $300,000
Other $ 50,000                                               Other $ 50,000
Total Project $550,000                                 Total Project $575,000

10% Equity $ 55,000                                     10% Equity $ 57,500
Credit for Land - -0-                                        Credit for Land - 25,000
Cash Required $ 55,000                               Cash Required $ 32,500

This shows the land equity will reduce the actual cash a borrower must have for their project. This is an excellent way for borrowers to preserve cash to use for future growth. If you have questions concerning equity, job creation, or other issues related to a borrower’s project, please call so that we can assist you.

Please call Susie Parker at 910-763-8414 to obtain more information on how the SBA’s 504 Loan Program can assist with your project.

Are you Eligible?

5.153%*

SBA’s 504 Loan Program has 20 year
Fixed Rate Financing.
*Current rate as of November 2002, rates subject to change

En-sure, Inc.
Mr. Phil Hatcher
6301 Seamist Court
Wilmington, NC 28409
Phone: 910-232-6730
Fax: 910-313-1908

WK Dickson & Co., Inc.
Mr. Dan Dawson
909 Market Street
Wilmington, NC 28401
Phone: 910-762-4200
Fax: 910-762-4201
www.wkdickson.com

We would also like to thank John Whitley, International Business Development Counselor, Small Business Technology and Development Center and Bill Coddington, Manufacturing Extension Specialist, Industrial Extension Services for speaking at the forum.

The forum was a great success, thank you to all who attended.

Boney Architects Named North Carolina Firm of the Year

"Boney Architects, a 50-person planning, design and construction administration firm with offices in Wilmington, Raleigh and Charlotte, is the 2002 recipient of the North Carolina Chapter of the American Institute of Architects Firm Award.”

“This honor is the highest presented to an architectural firm by the state chapter. It is given annually to a North Carolina firm that has consistently produced quality architecture with a verifiable level of client satisfaction for a period of at least 10 years as an established presence in the state.”

Source: North Carolina Magazine, October 2002

UNCW Retains Rank

The University of North Carolina at Wilmington has retained its ranking among the top universities in the South in the annual U.S. News & World Report rankings.

The University is ranked seventh in a category that includes public institutions that provide a full-range of undergraduate and masters programs, but few, if any, doctoral programs.

CP&L and Florida Power to be Re-named

Progress Energy announced Wednesday, October 2, 2002 that its two major electric utility companies, CP&L and Florida Power, will be re-named Progress Energy effective January 1, 2003.

Wilmington Ranked 8th in Nation

Golf Digest ranked Wilmington, NC number 8 in the nation as “The Best Little Golf Town in America.”

“With more than 50 public courses within an hour’s drive of Wilmington, the Cape Fear Coast is a golfer’s paradise,” states Judith Grizzel, President/CEO of the Cape Fear Coast Convention & Visitors Bureau.

Lanier, Whaley, Craft & Co. move

Lanier, Whaley, Craft & Co. have relocated their office. Their new address is:

1404 Commonwealth Drive, Suite 200
Wilmington, NC 28403
Phone: 910-256-6366
Fax: 910-256-5870

SBA 504 Loan

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