camden county green industrial park: a feasibility study march 13th, 2008
TRANSCRIPT
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Camden County Green Industrial Park: A Feasibility Study
March 13th, 2008
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Introduction
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Participants understand what the study team considers the basic concepts underlying development and operation of green industrial park.
Study team understands local perspectives on what values, goals, concerns and resources would be relevant to such a park operating in Camden County.
Desired Outcomes
The University of North Carolina at Chapel Hill
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9:00 Convene 9:20 Basic concepts and assumptions 10:20 Break 10:30 1st concurrent session 11:20 2nd concurrent session 12:10 Working lunch 1:15 Wrap up 1:30 Adjourn
Agenda
The University of North Carolina at Chapel Hill
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Begin and adjourn on time. Listen attentively. One speaker at a time. Stick to task and topic. Share the floor. It is OK to disagree …please do so respectfully. No confidentiality.
Meeting Ground Rules
The University of North Carolina at Chapel Hill
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Overview
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“Green”
The University of North Carolina at Chapel Hill
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People, Planet, Prosperity
We spell “green” with three Ps.
The University of North Carolina at Chapel Hill
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Industrial Park
The University of North Carolina at Chapel Hill
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What types of businesses might thrive in an industrial park in Camden County?
What are the economic, social and environmental impacts of such businesses?
How would Camden County or participating businesses pay for such a park?
Key Components of Study
The University of North Carolina at Chapel Hill
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The Fourth P: Place
The University of North Carolina at Chapel Hill
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We will be speaking to you,
and we are also listening.
This Workshop and Beyond
The University of North Carolina at Chapel Hill
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Environment
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Purpose• Assess likely impacts of green industrial park in
Camden County.
• Identify technologies, building designs and practices to reduce those impacts.
• Establish benchmarks to measure environmental performance, e.g., energy use per square foot of building space.
Environmental Analysis
The University of North Carolina at Chapel Hill
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Three main types: Traditional Green Sustainable or Eco-industrial
Industrial Parks
The University of North Carolina at Chapel Hill
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Assemblages of land for locating uses such as: • Office
• Manufacturing
• Warehousing
• Newer business parks consist of a mix of high tech offices, shops and services, with higher densities and walkable town centers
Traditional Industrial Parks
The University of North Carolina at Chapel Hill
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Similar to traditional industrial park, but include:• Green materials and design - recycled materials, avoid
sensitive areas (e.g., wetlands), small footprint, use natural light, etc.
• Green operation - reduced water and energy use, recycle wastes, reduced stormwater runoff, alternative energy
• Green firms - manufacturer of solar collector, recycled products, energy efficient lights
Green Industrial Parks
The University of North Carolina at Chapel Hill
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Sturtevant, WI
Nation’s largest green warehouse
• 550,000 square feet on 38 acres• Within 390-acres business park
• Owner is planning a 3.5 million square foot, green industrial park in Minooka, IL
Green Distribution Center
The University of North Carolina at Chapel Hill
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Networking of complimentary firms - Industries or firms interact rather than operate in isolation
Industrial symbiosis - Materials produced by one industry are consumed as inputs by another
Benefits - Reduced energy and materials use
Sustainable Industrial Parks
The University of North Carolina at Chapel Hill
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Over 100 sustainable industrial parks planned or built worldwide • Mostly in China, Europe, and United States
Worldwide, success as common as failure• Failure seems more common in US
Examples• Kalundborg, Denmark• Cape Charles, VA
Current Status
The University of North Carolina at Chapel Hill
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Network of Firms or Agencies
• Biotech• Oil refinery• Coal-fired power plant• Plasterboard manufacturing• Town of Kalundborg• Soil remediation• Fish farm
Kalundborg Eco-Industrial Park
The University of North Carolina at Chapel Hill
Photo by UN Environment Program
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Kalundborg, Denmark
The University of North Carolina at Chapel Hill
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Sustainable Technologies Park Planned from 1995, opened in 2000, closed 2005
Strength• Active participation from citizens• Cooperation between all levels of
government
Weakness • Failed to attract enough industries
Cape Charles, VA
The University of North Carolina at Chapel Hill
Only building built and remaining
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Principles: Building design - minimize material and
energy use Support services - water recapture and reuse,
recycling, co-location of buildings Business type – preference for firms linked to
green technologies Surrounding uses – integration of other uses,
e.g., housing and retail
A Green and Sustainable Park
The University of North Carolina at Chapel Hill
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Economic Development
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Why Economic Development?
• Unsustainable/undesirable status quo• Higher wages for county residents• Economic diversification• Tax base expansion• Resident retention• Replacement of prospective lost tax base and jobs
from proposed landfill
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Task One: Demographic and Economic Scan
Thorough description of numerous economic and demographic trends affecting Camden County
• Population• Income and Wealth• Education• Employment• Business Climate• Quality of Life
The University of North Carolina at Chapel HillThe University of North Carolina at Chapel Hill
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Task Two: Targeted Industry Clusters Characterization
• Industry clusters consist of interdependent business sectors that trade among themselves.
• C3E has defined 45 national industry clusters for studying a regional economy’s strengths.
• Concentrations of employment and firms in industry clusters shows competitive advantage.
• Cluster understanding enables targeting of industry sectors, geographies and even specific companies for attraction and development.
The University of North Carolina at Chapel Hill
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Population Change 2000-2005
26.36%
-0.39%
16.03%
11.45%
6.84%7.86% 7.51%
23.30%
1.93%
30.84%
0.28%
-2.04%
6.12%
-5.00%
0.00%
5.00%
10.00%
15.00%
20.00%
25.00%
30.00%
35.00%
Camde
n
Curritu
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Chowan
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Portsm
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Virgini
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The University of North Carolina at Chapel Hill
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Camden Key Findings
• Good high school graduation rate (31st) • Household income ranks 8th
• Low poverty rate • Low unemployment• Skilled workforce• Limited industrial sites
The University of North Carolina at Chapel Hill
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Unemployment Rate 2006 3rd Quarter
9.9%
2.2%
4.9%
2.5%
3.6%4.1% 3.9%
4.8%
3.8% 4.1%4.5%
3.3% 3.0%
0.0%
2.0%
4.0%
6.0%
8.0%
10.0%
12.0%
Camden
Curritu
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North C
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VA
Norfolk,
VA
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The University of North Carolina at Chapel Hill
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Employment a mixed picture
2,146 in-county jobs
– 23% gov’t (~17% NC)
– 1,655 private jobs - retail and construction sectors dominate
– Growth in education (training) employment due to Blackwater
Wage structure
– Household income ranks 8th
– In-county jobs weekly wages rank 17th
– Jobs in county pay less than state average in most sectors
76% of residents out-commute (NC’s 25%)
Camden Key Findings
The University of North Carolina at Chapel Hill
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Camden County 1970-2030
0
2,000
4,000
6,000
8,000
10,000
12,000
14,000
16,000
18,000
1960 1970 1980 1990 2000 2010 2020 2030 2040
Year
Pop
ulation
The University of North Carolina at Chapel Hill
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The University of North Carolina at Chapel Hill
Camden Employment Type
Public, 491, 23%
Private, 1,655, 77%
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Private Sector Employment 1995, 2007
19 24
216
305
65
2847
77
19
398
227
5075
107
0
50
100
150
200
250
300
350
400
450
Manufacturing Health Care Retail Construction Accom & Food Professional Other
19952007
The University of North Carolina at Chapel Hill
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Camden County Weekly Wage 2006 3rd Quarter
$543
$484$508
$539
$478
$546
$470
$744
$634
$775
$830
$632 $632
$0.00
$100.00
$200.00
$300.00
$400.00
$500.00
$600.00
$700.00
$800.00
$900.00
Camde
n
Curritu
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Chowan
Dare
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Pasqu
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Perqu
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North
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The University of North Carolina at Chapel Hill
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The University of North Carolina at Chapel Hill
Camden's Wage Structure:Camden/NCAnnual Wage Variance, 2007 1st quarter
-$2,860
$1,820
-$1,872
$20,904
-$4,056-$7,956-$5,668
-$20,124
-$4,576
-$17,264-$20,592
$2,964
-$17,784
-$3,796-$1,612
-$25,000.00
-$20,000.00
-$15,000.00
-$10,000.00
-$5,000.00
$0.00
$5,000.00
$10,000.00
$15,000.00
$20,000.00
$25,000.00
To
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Out-Commuting
67%
28%
10%
23%
62%
26%
60%
34%
55%
60%
43%
76%
65%
0
0.1
0.2
0.3
0.4
0.5
0.6
0.7
0.8
0.9
Camde
n
Currit
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The University of North Carolina at Chapel Hill
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Commute Time To Work
32.4
35
27.4
19.9
22.824
21.723.8
27.3
23.9
33.1
25.1
37.7
0
5
10
15
20
25
30
35
40
Camde
n
Currit
uck
Chowan
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North
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, VA
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Min
ute
s
The University of North Carolina at Chapel Hill
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Camden Prospective Cluster Targets
NENC and Hampton Roads share industry clusters that offer development targets
• Information services
• Financial services and insurance
• Aluminum products (ship building)
• Metal products
• Health services
• Business services
The University of North Carolina at Chapel Hill
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SHR/NENC Regional Clusters
The Carolina Center for Competitive Economies (C3E) Kenan Institute for Private Enterprise
-100%
-80%
-60%
-40%
-20%
0%
20%
40%
60%
80%
100%
-100% -80% -60% -40% -20% 0% 20% 40% 60% 80% 100%
U.S. Percent Change in Employment 1998-2003
Re
gio
na
l Pe
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nt
Ch
an
ge
in E
mp
loy
me
nt
19
98
-2
00
3
Tobacco Products $16,308
Wood Processing $31,568
Feed Products $20,619
Nonresidential Building Products $51,084
Information Services $43,256 Business Services
$35,678
Basic Health Services $34,686
Financial Services & Insurance $37,604
Hotels & transportation services $28,818 Aluminum & Aluminum Products
$58,980
The University of North Carolina at Chapel Hill
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NENC Clusters
The University of North Carolina at Chapel Hill
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What’s Needed
• Good business climate with relatively low property taxes
• Skilled resident population
• Available land and sites
• Adequate wage structure
• Good air transport access (Norfolk and Currituck) and improving highway infrastructure
• Proximity to economic engine
Key Economic Development Factors
The University of North Carolina at Chapel Hill
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Cluster Analysis & Green Industrial Park• Characterize the population of firms in the targeted
clusters suitable for location in a rural county such as Camden.
• Determine the percentage of clean, dirty, and renewable energy oriented industry sectors within each clusters which might be suitable for a green industrial park.
• Develop a list of targeted prospects suitable for location in a green industrial park and a list of targeted prospects suitable for other Camden locations.
• Suggestions for improvements to attract these prospective targets.
Camden Next Steps
The University of North Carolina at Chapel Hill
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Finance and Governance
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Capital Financing Options
Ownership/Governance Options
Preliminary Cash Flow Scenarios and Models
Finance and Governance
The University of North Carolina at Chapel Hill
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Land Building Infrastructure
• Offsite
• On-Site
Facility Components
The University of North Carolina at Chapel Hill
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Pay-As-You-Go Debt
• Bonds• Installment Financing
Partnerships Grants
Capital Financing
The University of North Carolina at Chapel Hill
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Economic Development• Economic Development Administration• NC Rural Center Infrastructure Economic Development• NC Commerce Department Programs
Rural Community Development • 21st Century Community• Tier 1 Designation under Article 3J Tax Credits• Golden Leaf – Community Assistance Initiative
Environmental • Department of Energy Block Grant Program• Clean Water Management Trust Fund• Renewable Energy Tax Credits
Diverse Public Funding
The University of North Carolina at Chapel Hill
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Local Government Line Department• Anson Co.• Washington Co.
Economic Development Commission• Bladen Co.• Sampson Co.
Independent Nonprofit Organization• Alamance Co.• Henderson Co.
Governance: County/Municipal
The University of North Carolina at Chapel Hill
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Council of Governments Regional Economic Development Partnership Interlocal Cooperation
• Kerr-Tar Regional EDC• North Mecklenburg Industrial Park
Governance: Regional
The University of North Carolina at Chapel Hill
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Kerr-Tar Regional Mini Hub
North Mecklenburg Industrial Park
Sample Case Studies
The University of North Carolina at Chapel Hill
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Four Counties (Granville, Franklin, Warren, Vance) sharing costs/revenues from regional economic development
Project includes four technology parks spread across region
Innovative interlocal agreement $5 million raised in seed funding to initiate project
Kerr-Tar Regional Mini-HUB
The University of North Carolina at Chapel Hill
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Three towns (Cornelius, Huntersville, Davidson) sharing costs/revenues from industrial park project
Management by the Lake Norman Regional EDC Towns shared $4 million construction cost based
on population Tax revenues shared on same basis
N. Mecklenburg Industrial Park
The University of North Carolina at Chapel Hill
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Break followed byConcurrent Sessions