NC Communities Join Forces in Economic Development

June 1, 2005

Economic development is a fiercely competitive endeavor. Armed with marketing budgets and incentives, communities routinely go to battle in pursuit of expanding and relocating companies, and the jobs and tax revenues that come with them.

So when an economic development initiative is the product of collaboration, rather than competition, it's not simply unusual. It's practically unheard of.

But that is precisely what happened in March of 2005 when three North Carolina jurisdictions - the neighboring towns of Cornelius, Davidson and Huntersville in northern Mecklenburg County - joined forces to create a new industrial park in Huntersville. Mecklenburg County has also agreed to share in the park's development costs.

"This is a wonderful example of cooperation among four governments," said Randy Kincaid, the mayor of Davidson. "I believe that it will serve as a model for all future economic development in northern Mecklenburg County."

In an unprecedented effort, municipal and regional economic development officials worked together to create an Interlocal Agreement for the industrial park, called North Mecklenburg Industrial Park, including an ownership and revenue sharing plan.

"Without question our best incentive is the Interlocal Agreement," said Mark Heath, director of the Lake Norman Regional Economic Development Corporation. "This marks the first time three municipalities in North Carolina have agreed to share the development costs and tax revenues for an economic development venture of this type."

Such a revolutionary approach didn't take shape overnight. Discussions among town, regional and county representatives began in 2002 to consider issues impacting growth in northern Mecklenburg County. As a result of these discussions, the Leak-Goforth study was commissioned in 2002.

One of the key conclusions from this process was that the largely residential towns of Cornelius, Davidson and Huntersville needed to diversify their tax base through commercial and industrial development.

"There are multiple benefits to the North Mecklenburg Industrial Park," according to Kim Phillips, mayor of Huntersville. "The project will generate increased tax revenues to the towns and provide long-term employment opportunities for residents who won't have to commute. Also, the land is being taken out of residential zoning which takes the burden off already overcrowded schools."

The study also confirmed that the communities could promote themselves more effectively, and at less cost, as a single market of more than 55,000 people rather than three separate towns. Consequently, the towns and the Lake Norman Chamber of Commerce formed the Lake Norman Regional Economic Development Corporation in 2003.

"This is an innovative arrangement because we're operating as partners rather than competitors," said Cornelius mayor Gary Knox. "As opportunities come to our door, we'll be able to recruit a higher percentage by having this partnership."

Those involved in the North Mecklenburg Industrial Park project regard it as simply the first stage of a long-range economic development plan for the region.

"This is definitely not a one-time deal," said Ernie Pearson, an attorney with the consulting firm of Sanford Holshousher Business Development Group. "The parties fully contemplate developing similar industrial parks in Cornelius and Davidson. This organization is forward-thinking in its effort to preserve property for quality industrial parks in an area where available land is being used up quickly."

For more information contact:
Lake Norman Regional Economic Development Corporation
704-992-2300
www.lakenormanregion.com