Board of Commissioners Special Meeting

Town of Swansboro Board of Commissioners February 12, 2024, Special Meeting Minutes In attendance: Mayor John Davis, Mayor Pro Tem William Justice, Commissioner Jeffrey Conaway, Commissioner Joseph Brown, and Commissioner Douglas Eckendorf. Mayor Davis shared that Commissioner Larry Philpott had submitted his resignation earlier in the day, effective immediately, therefore the board currently had 1 vacancy. ********************************** Call to Order/Opening Prayer/Pledge The special meeting was called to order at 6:00 pm. Mayor Davis led the Pledge of Allegiance. The purpose of the meeting was to receive a presentation from Mark Sutherland of JOED related to Economic Development in the Swansboro area, EOC/PSB Site Search Committee appointments and Planning Board appointments. Public Comment Citizens were offered an opportunity to address the Board regarding items listed on the agenda. No comments were given. Adoption of Agenda On a motion by Commissioner Conaway, seconded by Commissioner Brown, the agenda was adopted unanimously. Appointments/Recognitions/Presentations EOC/PSB Site Selection Committee Interim Manager Barlow reviewed that at its January 23, 2024, meeting, the Board of Commissioners created a committee for the purpose of searching for a site to build the EOC/PSB. Keith Walsh was appointed as chair and provided with the responsibility for recommending members. Mr. Walsh had recommended the following members:  Commissioner Doug Eckendorf  Melissa Anderson  Junior Freeman  Roy Herrick On a motion by Mayor Pro Tem Justice, seconded by Commissioner Brown, Resolution 2024-R2 creating the EOC/PSB Site Selection Committee and appointing the members recommended was adopted unanimously. Board Appointment Town Clerk Fender shared that Eric Young was appointed to the Planning Board at the Page 1 of 3 January 23, 2024, regular meeting, however he declined the appointment. Therefore, an appointment was needed for an in-town seat. A vacancy still existed for one ETJ seat. On a motion by Mayor Pro Tem Justice, seconded by Commissioner Eckendorf, Jerry Seddon was unanimously appointed to the vacant in-town seat on the Planning Board. Economic Development Presentation Mark Sutherland - Executive Director of JOED provided the board with an update and reviewed his slides, attached herein with the power point presentation of the meeting. In response to inquiries from the board regarding “Project Coffee”, Mr. Southerland shared the following: - Would be 30-acre light industrial park with multiple businesses. - 200 =/- primary jobs. - Estimated tax base was $30 million. - A draft resolution in support of the project could be provided for approval at the February 13, 2023, meeting. - To date only a preliminary engineering report had been obtained, however, proceeding further requires support of Phase I from the Town. - JOED has a good track record for obtaining grants. In response to inquiries from the board, Planning Correll clarified that setback, buffers, architectural elements, wetland preservation and other matters such as those would be addressed by the Town Unified Development Ordinance. Additionally, to accommodate certain needs that the UDO prohibits or restricts, a developer can apply for Conditional Zoning, and or variances. Board members supported adding adoption of a Resolution in support of “Project Coffee” to the next regular meeting agenda. The board allowed for comments from the public and Charles Rawls urged them to support the project. Board members shared the following comments/concerns: Commissioner Conaway and Mayor John Davis both had concerns with increase of cost for Fire and Police Services, and more congestion on Highway 24 with 200+ jobs being added at some point. Commissioner Eckendorf shared that planned growth usually invites more capital and allows for planning for success. Page 2 of 3 Mayor Pro Tem Justice shared his appreciation for the presentation, while he supported the project, he would like to see the projected handled in a manner that infrastructure would not be stressed. Adjournment On a motion by Commissioner Conaway, seconded by Mayor Pro Tem Justice, the meeting was adjourned at 6:58 pm. Page 3 of 3  2/12/2024 Special Meeting February 12, 2024 1 1. Please turn cell phones to “off” or “vibrate”. 2. The Board offers the public three opportunities to speak during the meeting: A comment period is offered at the beginning and end of the meeting. Please note that a separate opportunity is provided for those items requiring a public hearing. Public Hearing(s) – There are no public hearings scheduled for this meeting. 2 1  2/12/2024 PUBLIC COMMENT Citizen opportunity to address the Board for items listed on the agenda. 3 AGENDA AND CONSENT ITEMS Action Needed: Motion to Adopt the Agenda as prepared (or amended) and approval of the Consent Items 4 2  2/12/2024 EOC/PSB Site Selection Committee Presenter: Jonathan Barlow – Interim Town Manager 5 Board Appointments Presenter: Alissa Fender– Town Clerk 6 3  2/12/2024 Economic Development Presenter: Mark Sutherland – Executive Director of JOED 7 Introduction to JOED Update to Swansboro Town Board 12 January 2024 8 Town Hall 8 4  2/12/2024 What Is Economic Development? “The creation of community prosperity” And what is Prosperity? 1. Personal Wealth 2. Business Growth 3. Increased Tax Base 9 9 What is JOED? Jacksonville Onslow Economic Development, Inc. (aka the Committee of 100) is a 501(c)6 non-profit corporation formed in January 1970. Swansboro in a member. The Jacksonville Onslow Economic Development Partnership, Inc. Formed in 2008, is a 501(c)3 non-profit corporation that exists to accommodate special circumstances: - Home of the Community Business Loan Fund - Receive contributions from certain investors - - Receive certain grant funding for projects 10 10 5  2/12/2024 Mission Statement The Mission of JOED is to stimulate, encourage and promote economic development in Onslow County and its municipalities. We accomplish this through the recruitment of new industry and investment, the creation of new jobs, and by assisting our existing industries with their expansion. In short: attract other people’s money 11 11 JOED Board of Directors • Up to 18 elected (voting) members serve staggered 3-year terms • From Private Sector • Ex-Officio members (or designated representative) Executive Director, JOED President, J-O Chamber of Commerce Career Center Mgr, NC Works (local) Chair, J-O Chamber of Commerce Commanding Officer, MCB CL ExDir, Greater Topsail Chamber Commanding Officer, MCAS NR ExDir, J-O Sports Commission CEO, Onslow Memorial Hospital Chair, J-O Sports Commission Mayor, City of Jacksonville Chair, Onslow County School Board Manager, City of Jacksonville Chair, Onslow County Commissioners Mayors of Onslow County towns Manager, Onslow County Chairman, ONWASA President, Coastal Carolina Community College Director, OAJ Airport 12 12 6  2/12/2024 Cornerstones of Traditional ED “Legacy Tasks” New Industry Recruitment Industry Retention & Expansion Product Development (Industrial Sites & Buildings) A marathon, not a sprint…… 13 13 Current Recruiting & Retention Projects (1,260 jobs, $374M Investment) Stoney Skywalker Gridiron Goat Taco Flubber A-Team * Project names are used for confidentiality 14 14 7  2/12/2024 Example: Project Goat (2023) • At stake: • 182 new jobs (recruiting) + 44 existing jobs (retention) = 226 • $17.7M Capital Investment • New, 35,000SF production facility • Substantial retool and refit of 191,000 SF, 50-year-old existing factory • New, $2.5M modern paint facility • Improvements to dockage and storage • Dredging to permitted depth • New, 175-ton MarineLift 15 By the Numbers: Project Goat • Annual Local Economic Impacts • New Direct Jobs 182 • Average Wage ($37,603 Avg = 1.244) $46,794 • New Direct Annual Payroll $8,516,508 • New Annual Taxable Sales (Payroll x 1.18) $9,521,456 • Capital Investment $17,700,000 • New Direct Annual Local Sales Tax Revenue $214,233 (Taxable sales x .0225) • New Direct Annual Ad Valorum Tax Revenue $115,935 (Investment/100*.655) • Five-Year Local Revenue Impacts • Sales Tax: $1,071,164 • Ad Valorum Tax: $579,675 16 8  2/12/2024 Project Goat (2023) • Combined Local Revenue Impact: Recruiting & Retention • Ad Valorum and Local Sales Tax • Five Years: $1,482,665 • Annually: $412,468 17 Example: Project Gridiron (Holly Ridge) 2023 • $12.5M Capital Investment • 87 new jobs, average $68,748 Onslow County: Holly Ridge: Annual Ad Valorum Tax $81,875 Annual Ad Valorum Tax $49,750 Annual Sales Tax $159,470 18 9  2/12/2024 Project Impact on Local Businesses • Formula: • Net new payroll x .54 = DIRECT disposable income per project job • However, “taxable sales” is new payroll x 1.185 • Considers indirect impacts / secondary jobs • Example: Project Goat • New Direct Payroll = $8,516,508 • New Direct Disposable Income = $4,598,914 • BUT: New Taxable Sales = $10,092,061 19 Beyond Direct Impacts…… • Each Primary Job creates an average of 1.7 Secondary (Service Sector) Jobs • Health care, education, retail • Construction, service industries, transportation • Example: Camp Davis Industrial Park, Phase III • Forecast 2,500 Primary Jobs • 2,500 x 1.7 = 4,250 Secondary Jobs • Total Direct / Indirect = 6,750 jobs 20 10  2/12/2024 • County invested avg $149K per year • County now receives $389K per year 21 21 Return on Investment: Annual Consumer Spending Completed Projects Working Projects Direct: $13,067,671 $46,588,000 Indirect: $47,043,616 $167,716,800 TOTAL: $60,111,287 $214,304,800 22 22 11  2/12/2024 Economic Development Strategic Plan Town of Swansboro – May 2018 Strategic Goals I. Develop as a connected community in order to maximize local economic and social interaction II. Improve and protect the town’s natural environment in order to attract new residents and maximize the town’s economic development potential. III. Foster and improve the town’s sense of place in order to attract residents, visitors, and business investment. IV. Actively recruit new businesses; support the expansion of existing businesses; and expand the physical accommodation of growth. 23 Project Coffee 24 12  2/12/2024 Project Coffee • Background • Need for local, light industrial product • Therefore, a “product development” effort • Consistent with strategic plan • Business retention & expansion imperative • Concept (Public / Private / Non-Profit) • Landowner participation through development and sales • Non-profit purchases land and secures grants for development • Local government supports with zoning, permitting & some public infrastructure grants • Outcomes • Good local jobs, increased tax base, light industrial product • Next Steps • Draft MOU’s, followed by partnership agreements 25 Contact Us: Mark Sutherland, Executive Director, msutherland@joednc.com Teresa Miller, Marketing Director, tmiller@joednc.com Jacksonville Onslow Economic Development (JOED) 26 JOED@JOEDNC.com, www.JOEDNC.com 26 13  2/12/2024 PUBLIC COMMENT Citizen opportunity to address the Board. 27 MANAGER’S COMMENTS Jon Barlow, Interim Town Manager 28 14  2/12/2024 BOARD COMMENTS Mayor John Davis Mayor Pro Tem William Justice Commissioner Larry Philpott Commissioner Jeffrey Conaway Commissioner Douglas Eckendorf Commissioner Joseph Brown 29 ADJOURN 30 15