Posts Tagged ‘Greensboro’

Commitment to green initiatives lagging in Triad

Sunday, April 25th, 2010

This article was featured in the Sunday, April 25 News-Record Ideas column.

Earth Day was celebrated Thursday, and the news was filled with stories highlighting events and green business successes. By all accounts, one would believe that the Greensboro-High Point market is an enthusiastic participant in all things green and sustainable. But is it? Perhaps an independent assessment would be appropriate.

The American City Business Journals (publisher of the Triad Business Journal) recently analyzed data from 43 U.S. markets where it publishes weekly business papers regarding the levels of green planning, building and green business activities. All were ranked in 20 categories under five broad criteria: daily commute time, use of public transit, sprawl, the number of LEED-certified projects and the number of green jobs per capita.

Analysis such as this is not an end in and of itself, but it could gauge whether intelligent local land use, economic development foresight, citizen participation, adaptive training capacity and a cutting-edge knowledge work force are in place.

Read the rest here

American Express Data Center in Greensboro (Part Two)

Tuesday, April 20th, 2010

“This would be the largest by far,” said Rob Bencini, a former Guilford County economic development official and a consultant for business development and governmental policy. “That’s how big this is.”  Read more…

TUESDAY, APRIL 20, 2010

(Updated 3:41 pm)

Accompanying Photos

GREENSBORO — Guilford County and Greensboro will likely be asked to give American Express between $11 million and $13 million in incentives if the New York-based company builds a $400 million data center in the eastern part of the county.

An official familiar with Greensboro’s proposed package — expected to be presented to the City Council in executive session tonight — put the figure at between $5 million and $7 million.

Details of the package could not be determined Monday but would likely include water, sewer and road improvements.

On top of that, Guilford County will be asked to put up $6 million, which would be the largest incentives outlay in the county’s history.

Since 1993, the county board has approved less than $14 million in financial incentives. The biggest outlay — $2 million — went to RF Micro Devices in 1999.

“This would be the largest by far,” said Rob Bencini, a former Guilford County economic development official and a consultant for business development and governmental policy. “That’s how big this is.”

The board will hold a public hearing May 6 to consider the request.

American Express wants to build a data center that would employ between 125 and 150 people. The company, best known for its credit card and travel operations, is also reported to be considering an unspecified offer from Des Moines, Iowa.

After 20 years, local officials say, the company investment could surpass $1 billion.

“I can’t really overstate the impact of a project like this,” Bencini said. “This is a huge project.”

The commissioners learned about the project at their meeting last Thursday.

“Historically, in all of these requests that I have seen, the participation of the city has been about the same as the county,” Commissioner Billy Yow said. “Typically, they feel like they are offering the same thing to the city they are to the county.”

The American Express project would involve two buildings on two parcels in eastern Guilford: about 100 acres in Rock Creek Center and part of a 700-acre tract owned by developer Roy Carroll near Knox Road and Birch Creek Road.

The Carroll property would be annexed into Greensboro, allowing the city to share in the incentive offering and benefit from the promised boost to the tax base.

In 2004, Carroll offered to donate 100 acres of the eastern Guilford tract for the incentive package that Greensboro put together to recruit Dell, the giant computer company that decided to build in eastern Forsyth County.

Although his land wasn’t ready for development at that time, Carroll said in 2005 that it had been prepared so it could be construction-ready in four months.

Carroll was unavailable for comment Monday.

Iowa officials are tight-lipped about their efforts to recruit the company. The proposed project has gotten no media coverage there.

Des Moines is a major insurance and financial-services business region, according to a professor at Des Moines’ Drake University.

“Outside Hartford, it’s the biggest insurance center in the nation,” said Tom Root, an associate professor of finance.

Root hasn’t heard about the American Express project, but based on what he knows about the economy, economic development officials there would be very interested in the company.

“I would say that yes, they would be targeting that industry. Absolutely,” Root said. “In general, when you think about the area and the industry here, that’s a really good fit.”

The Iowa legislature passed a bill in 2009 to give major incentives to companies building data centers after it recruited centers from Microsoft and Google.

Under that law, the biggest incentives would include permanent sales-tax exemptions on equipment and electricity for those investing $200 million over six years.

How City Council members and county commissioners respond to the proposed packages remains to be seen.

Yow says he plans to vote against the incentives “even with the state of the economy.”

He added: “The performance of these big companies coming in and asking for money hasn’t been that great lately. Look at Dell.”

Contact Donald W. Patterson at 373-7027 or don.patterson@news-record.com

Contact Richard M. Barron at 373-7371 or richard.barron@news-record.com

http://www.news-record.com/content/2010/04/20/article/american_express_incentives_could_total_13m

American Express Data Center (Part One)

Monday, April 19th, 2010
FRIDAY, APRIL 16, 2010

(Updated Saturday, April 17 – 7:42 am)

Accompanying Photos

GREENSBORO — An unidentified data-services company could pick sites in eastern Guilford County for a $400 million operation that would employ 125 to 150 people.

Over 20 years, the company’s investment could exceed $1 billion, which would have a major impact on the local tax base.

The company will ask local governments for incentives that include water and sewer and road improvements.

Local recruiters were scheduled to pitch the proposal Thursday night to members of the Guilford County Board of Commissioners.

The proposal could be presented to the Greensboro City Council as early as next week.

The two parcels, which have not been identified, include one in the county and one in the city. Land costs were not disclosed.

Local business recruiters declined to comment Thursday.

Other local leaders have been reluctant to talk about the project because of its sensitive nature but did confirm the basic outlines of the proposal. They declined to identify the company involved.

Those familiar with the project declined to say specifically what the company would do for fear of divulging its identity, but they did say that it would process, back up and store data.

Guilford County is competing with Des Moines, Iowa. Economic development officials there also declined to comment, citing the confidential nature of the process.

The majority of the jobs created would pay more than $60,000 a year, including benefits.

“That suggests that these are fairly skilled jobs,” said Andrew Brod, director of UNCG’s Center for Business and Economic Research. “That is the kind of thing we want…. They are good-paying jobs. That’s a very positive thing.”

Although sources do not anticipate that the company would produce significant job growth over the years, they said capital investment should continue.

Rob Bencini, a former Guilford County economic development official and now a private consultant, said the county’s total property tax base is $42 billion.

A $1 billion project would be nearly 2.5 percent of that tax base, Bencini said, adding “that’s a huge percentage.”

For several years, local economic developers have trained their sights on data centers because they provide environmentally clean operations and high-paying, high-skill jobs.

And Greensboro also offers the amenities that data centers want, including direct connections to the fastest, largest Internet transmission line on the East Coast. The line, which runs diagonally across the state, connects Greensboro to the most powerful Internet grid in the country.

Eastern Guilford County also offers at least one major industrial park, Rock Creek Center, which is offering two sites that could each accommodate buildings of more than 300,000 square feet.

Data center owners also require power supplies that won’t fail, and Greensboro has access to Duke Energy’s most reliable grid.

Dan Lynch, president of the Greensboro Economic Development Alliance, has talked with many data services companies, and he said Duke Energy is a definite asset.

“We go to shows specifically for data centers,” Lynch said in a 2008 interview. “When you mention that Duke Energy is your power provider, you see these folks light up. Not only are (Duke’s) people good, they’re extremely competitive with their pricing and their reliability.”

A Web site for data center operators, 7×24 Exchange, wrote in 2008 that “a large data center, for example, can easily consume as much electrical power as a small city.”

Security and safety for data centers are crucial because the information housed in their computers is the lifeblood of business and government. Through the years, data centers have been built to withstand floods, hurricanes and even nuclear attacks to keep their computers online.

Contact Richard M. Barron at 373-7371 or richard.barron@news-record.com

Contact Donald W. Patterson at 373-7027 or don.patterson@news-record.com

April 15 News & Record article on the proposed American Express data center in Guilford County.  My comments.

http://www.news-record.com/content/2010/04/15/article/guilford_county_hopes_to_secure_data_center_jobs

The New Economy and it’s Impact on Guilford County

Tuesday, March 23rd, 2010

A PowerPoint presentation highlighting the changes in the economy and the impact on the most critical aspects of Guilford County’s economic future.

GUILFORD COUNTY ECONOMIC DEVELOPMENT

Guilford County’s Economic Development Plan

Tuesday, March 23rd, 2010

The Economic Development Plan that I wrote in 2005.  It focuses on Prosperity of the citizenry as opposed to virtually any other plan the reader might encounter.

INTRODUCTION

In June 2003 the Board of Commissioners directed staff to update the county’s comprehensive plan. That effort generated Framework for the Future: Guilford 2020 – A Fiscal Impact Analysis and Economic Development Strategy. A primary objective of the effort was to assess the county’s present economic situation and provide strategies to enhance the county’s competitive positioning in the future.

Guilford County Community and Economic Development presents this report to be incorporated into the Framework for the Future document and recommends strategies to enhance Guilford County’s economic development efforts. These strategies are a result of expertise and research by Community and Economic Development staff. This report presents a new economic development philosophy that is centered on workforce development, job creation, higher wage rates and prosperity.

Traditionally, economic development efforts were measured simply by the number of jobs created. In today’s economic development world, job creation is merely one factor to consider. Living wage rates, rising wage rates, environmentally sound local practices, rising educational attainment, basic infrastructure needs, including wireless connectivity —all have become critical components of a successful local economic development landscape. The quality of place – that subjective term for how others perceive a location – has become a more critical factor than ever. The role that county government plays can impact the development and ultimate outcome of that economic development portrait. After taking into account all of the different goals that are important to Guilford County, the primary goal of all economic development efforts can be boiled down to one basic concept:

PROSPERITY FOR THE CITIZENS OF GUILFORD COUNTY

ISSUES, STRATEGIES, AND RECOMMENDATIONS

There may be ample room to discuss – or even disagree – over the philosophy, strategies and tactics regarding the advancement of economic development. But there is no doubt that the primary purpose of economic development activity in Guilford County is to provide economic prosperity for its citizens. A prosperous community can support its families, enhance the opportunities for citizens to achieve home ownership status, and build a measure of wealth to weather bad economic times or to ensure sufficient funding for retirement. How Guilford County gets there is the basis for this Economic Development Strategic Plan.

Traditional Economic Development

The American economy has transitioned from an agrarian state to a manufacturing economy, has become more service-provision oriented and is in the midst of another transition. According to TIP Strategies, an economic development consulting firm from Austin, Texas, the old economic triangle model of jobs, sites and manufacturing is still being followed by most economic practitioners today. This plan presumes that most economic development practitioners focus on this concept for three reasons: it is what has worked in the past and is what they know; it does provide jobs (though in today’s world typically low-paying); and it provides an easy measure to gauge a success (which is politically important). This model of economic development – whereby economic development organizations work to recruit relocations and expansions of manufacturing operations – is still alive, but is now beginning to wane.

More…

The Guilford County Economic Development Strategy

Guilford County Economic Development Policy

Tuesday, March 23rd, 2010

I wrote this policy after finishing the Economic Development Plan in 2005.  This policy was adopted in February, 2008.

Even with several prosperity-related sections omitted, it is the most progressive local economic development policy the reader will encounter.

GUILFORD COUNTY: ECONOMIC DEVELOPMENT INVESTMENT GUIDELINES

Google 1gb Experiment Benefits to Greensboro

Sunday, March 7th, 2010
SUNDAY, MARCH 7, 2010

(Updated 9:24 pm)
By RICHARD M. BARRON
Staff Writer

Accompanying Photos

BENEFITS OF FIBER OPTICS

GREENSBORO RADIOLOGY: Doctors could quickly send CT scans and other large-data files from hospital to hospital, to smaller offices and to home-care nurses who don’t have high-speed access for better patient service and diagnosis.

ELON UNIVERSITY SCHOOL OF LAW:Professors and students could have fast, real-time conferences and classes with other colleges and universities, and Elon students who can’t afford high-speed Internet could join classes live from home in the event of bad weather or illness.

DEVELOPMENT/RE AL ESTATE: Developers and builders could swap massive blueprint files with local inspectors instantly and collaborate over changes in days, not weeks. Real estate sales companies could add more marketing video and home information that would normally tax a customer’s patience at slow speeds.

More online

Read more about the project at googlegreensboro.com

Many of Greensboro’s big businesses, universities and medical providers have already spent millions for some of the fastest data networks anywhere.

But many of the rest of us — small businesses, homeowners, students and small health care operations — make do with slower download speeds.

That mismatch keeps small and large Internet users from trading ideas, information and services that could make this city smarter, healthier and richer.

Now Internet search company Google wants to build an ultra-high-speed broadband network for an entire community. It wants to use its Google Fiber for Communities project to test what happens when everybody in a community has affordable Internet access that’s 100 times faster than what most consumers use today.

Greensboro is one of hundreds of cities scrambling to meet the late March deadline to make its best pitch for the project.

In its application request, Google is asking every city what such a network would do for the community. Based on interviews, here are some ways it could help Greensboro:

Improve health care

Such major providers as Greensboro Radiology have large fiber transmission systems allowing them to send big computer files of CT scans and other complex images between physicians and Moses Cone Health System.

But smaller medical practices — even those a few blocks away — can’t afford the thousands of dollars for fiber-optic cable and high-speed service that would allow them to see computer images in real time, said Stephen Willis, Greensboro Radiology’s chief information officer.

So they wait for tedious downloads a new system could process instantly as patients and doctors confer in real time.

Even nurses and doctors who specialize in home care could get access to complex images at a patient’s bedside.

Affordability would make this more than just another high-priced medical toy. It could reduce the cost of better diagnosis and treatment without forcing a patient back to the hospital.

Home businesses

Bringing ultra-high-speed Internet home: That’s the key to Google’s proposed Fiber project. That means bringing opportunity that home businesses never could have considered before.

A home-based software developer could send massive files of computer code through a fiber-optic cable that would be nearly impossible through conventional cable.

Small businesses could find many other ways to benefit from high-speed Internet service, said Sam Funchess, president and CEO of the Nussbaum Center for Entrepreneurship.

As an entrepreneur himself, Funchess once operated an Internet radio station and digital music-download service. But he had to rent space in a data center at $1,000 a month because he could not get high bandwidth at his office. He predicts that small-scale movie and music downloading services could blossom with universal access to high-speed broadband.

Sell homes faster

About 70 percent of home buyers use the Internet to scout their potential purchases, said Bill Guill, president of the Greensboro Regional Realtors Association.

Keeping customers focused is key, he said, and slow download speeds are deadly for short attention spans.

“We could provide people a whole lot more information in terms of video, but right now the speed of the download prohibits that,” Guill said. “There are things coming online all the time that we could use. I feel like that could be a huge asset.”

Although the real estate industry is ravaged by recession, builders will someday be planning for new developments again.

And super-fast Internet could speed their interaction with city and county governments as never before, said Rob Bencini, a consultant who as a former Guilford County government executive once managed the inspection and planning process here.

Blueprints and development plans are large documents that developers must hand-carry to inspectors. It’s a cumbersome process to inspect, request changes, then repeat the process over weeks or even months.

Such a file is too large for the system to handle on the current network. But the Google system would allow a developer to send complete plans nearly as easily as an e-mail and the process could be wrapped up in days.

“The submission of online plans can become commonplace,” Bencini said. “That can make a huge difference in the world of builders and developers. Governments are going to have to adjust to this.”

Expand education

North Carolina’s public universities are already connected by high-speed Internet, as are its independent colleges and universities.

Still, as educators note, the opportunity to reach people and students in the greater community can bring untold benefits.

“It can bring people very close who are physically quite far away,” said Hope Williams, president of N.C. Independent Colleges and Universities. “The better access and higher speed access we have for everybody, the better.”

Expanding outreach at a low cost could surely improve education in many ways, said Howard Katz, a professor at Elon University School of Law in Greensboro.

Teleconference classes between universities, for example, are possible right now, Katz said. But faster speeds make everything easier.

“If you have that capacity,” he said, “the ability to do it more seamlessly where you’re seeing the speaker in real time, where you’re able to participate more readily without that delay … is one way where that could come into play.”

When bad weather strands students at their apartments, affordable Internet could keep them tuned in to class.

And when Elon students help local people with their taxes or legal issues through regular community outreach programs, for example, they could set up high speed links with retirement communities and spare elderly people the inconvenience of traveling to the school for assistance.

Hurry the future

The miraculous becomes commonplace — that’s how many experts describe what could happen a decade from now as Internet users come to expect speeds 100 times faster than today’s consumer data transmission speeds.

Some say the Google project would be “transformative” for Greensboro. And there’s no doubt the corporate name alone would attract scores of other companies curious about what made Greensboro special.

But for many residents the transformation will come in a hundred small ways that will seem commonplace someday.

“In the short run,” Katz said, “I would imagine you wouldn’t wake up one day and the world in Greensboro would be absolutely transformed. But it is going to happen, and the sooner it happens in Greensboro it will give us the opportunity to do things that 10 years from now would be universal. It’s impossible to predict.”

Contact Richard M. Barron at 373-7371 or richard.barron@news-record.com

Article on the potential benefits of the Google 1gb bandwidth to Greensboro.   My comments included.

http://www.news-record.com/content/2010/03/06/article/how_can_google_help_greensboro_work_better

Greensboro needs help with its economic development focus

Friday, March 5th, 2010

News & Record article.   Old style economic development will not work any more.

SUNDAY, OCTOBER 18, 2009

(Updated 5:55 am)
By AMANDA LEHMERT
Staff Writer

THE CANDIDATES’ TAKES

Here’s a portion of what the at-large candidates have to say about economic development and jobs:

Marikay Abuzuaiter: The city needs to do more to promote small businesses and help them be healthy.

Sandra Anderson Groat: The current system of economic development teams are working well. The council is sustaining by having ready infrastructure and hosting a business summit.

Robbie Perkins: City Council needs to provide a strategic vision, ensure the city functions well, continually invest in infrastructure, and promote planning efforts like the downtown revitalization and the aerotropolis plan.

Gary Nixon: The council needs to be more stable and give more incentives to small business to hire locally.

Danny Thompson: Greensboro should provide more incentives to be a hub for industry.

Nancy Vaughan: The city should pursue grants to make areas of the city ready for new business and seek regional solutions for long-term infrastructure needs.

GREENSBORO — It’s become an election 2009 mantra.

Jobs, jobs, jobs.

Every City Council candidate wants them. Hardly anyone has an idea how to get them.

“I realized after getting elected, it’s not that easy,” District 3 candidate Zack Matheny said.

With a high unemployment rate hanging over the county and the national economy continuing to sputter, new jobs may be elusive right now.

But local leaders say there are things Greensboro’s council hopefuls can do to make the city business-friendly and primed for an economic upturn.

It starts with being good at their jobs.

Businesses that are looking to relocate appreciate a well-run government, analysts said.

“You want stability. You want supportiveness,” said Rob Bencini, an economic development consultant who formerly worked for Guilford County.

At-large candidate Gary Nixon, who moved to Greensboro in 1980 to expand his engineering firm, agrees.

“The police and city manager debates dragged on too long,” he said. “Those type of things need to be taken care of to encourage private investment.”

Leaders have also stressed the importance of incentives as one of the few direct impacts City Council can have on job creation.

Most candidates say they support them. The sitting council approved three economic incentives in the past term.

At-large council candidate Danny Thompson would like to see the city build a reserve fund to provide incentives to businesses that would bolster the region as an “epicenter for product distribution” on the East Coast.

He would like to see the city cut 2 percent from its bottom line and raise 2 percent in revenue to pay for it.

“If we are going to play this incentive game, let’s play to win,” Thompson said.

Some candidates, including several council members, have expressed interest in establishing an incentives program for small business like the one developed by Guilford County, which gives some property owners who make improvements a break on property tax payments.

But some candidates have said the incentives should be linked to job creation.

“I embrace that,” said Mayor Yvonne Johnson, a candidate for re-election. “Our small businesses are important.”

City leaders don’t have to reinvent the wheel, some said. They can just do a better job promoting and enhancing what they’ve got, such as Greensboro’s small-business loan program.

“The city doesn’t do enough aggressive advertising for the programs they have,” Raymond Trapp, a local real estate professional and chairman of the zoning commission.

To that end, District 1 Councilwoman T. Dianne Bellamy-Small has asked the city’s economic development staff to provide educational materials to help inform businesses what is available to them.

City leaders could continue to promote Greensboro’s center city, business leaders said. A hip downtown will attract and retain a creative class of entrepreneurs.

That may not have a direct impact on jobs, but drawing those types of people will be important to the future of employment, Bencini said.

“We’ve got to have an environment that attracts and keeps those types of people,” said Pat Danahy, president and CEO of the Greensboro Partnership.

Meanwhile, the sitting City Council is making plans to work better with business leaders toward broader community goals.

The council has asked the city staff to organize a business summit and questionnaire to open communication — an idea promoted by City Councilwoman Trudy Wade.

“We need to develop a plan with measurable goals based on that feedback, and monitor ongoing progress,” Wade said.

Contact Amanda Lehmert at 373-7075 or amanda.lehmert@news-record.com

http://www.news-record.com/content/2009/10/17/article/creating_jobs_isnt_so_easy_council_finds

Education Emphasis for Logistics Misplaced

Thursday, March 4th, 2010

My comments in a February 14, 2010 News & Record Article regarding the ending of the WIRED grant.

http://nl.newsbank.com/nl-search/we/Archives?p_action=doc&p_docid=12DF156A6DB3A948&p_docnum=2

Job Fair Reality

Thursday, March 4th, 2010

Seekers of all ages crowd in at job fair

THURSDAY, SEPTEMBER 11, 2008

(Updated 8:22 am)
By RICHARD M. BARRON
Staff Writer

GREENSBORO – Hundreds of persistent job seekers braved a hard rain and scarce parking to attend the Greensboro Chamber of Commerce’s Job Expo Wednesday.

At times, the line of people waiting to get in stretched outside the Guilford Convention Center at Interstate 40/Business 85 and Lee Street.

Some expressed surprise at the scores of job seekers crowding the tables of more than 60 businesses set up to recruit employees.

“I didn’t think there would be so many people here,” said Cynthia James, 43, who is just starting to look for a customer service job after five years out of the work force to help her son, his girlfriend and their baby.

“I just can’t believe this many people are out of a job,” she said.

People of all ages squeezed through the aisles, talking to representatives including the Army, Crown Automotive, Guilford County Schools and Mass Mutual.

Temporary services agencies had a high profile, and many were finding it hard to find exactly the right kinds of workers for their positions, despite the rising unemployment rate in the Piedmont Triad.

“It is an employer’s market right now, so they are looking for high skill,” said Barbara McNeill, with the Triad Adecco franchise.

She is working with a large company that needs accounting, human resources and payroll workers. She will have to recruit people from as far away as Pennsylvania to fill those jobs.

By 3 p.m., McNeill had seen about 100 prospective employees from unskilled to highly experienced, and she’ll be able to find work for about 50 percent of them.

“There seemed to be a direct correlation between pay and education and training,” said Rob Bencini, intergovernmental services director for Guilford County, who talked with many of the employers at the expo.

He said many jobs were paying as low as $10 an hour, especially for people with low skill levels.

“Many of the jobs are not careers, but they are work for now,” he said.

One company that’s looking for up to 100 workers with a range of skills is O’Reilly Auto Parts, which will open a distribution center in May. The company is looking for hourly workers through higher-level supervisors.

O’Reilly offers training to many of its employees to teach them its procedures and culture, said David Leonhart, the regional distribution center director.

Meanwhile, Vital Akimana was off to the side, trying to get used to the crush of a job expo. The Guilford College senior said he is starting the job hunt early so he can see what his options are.

A double major in peace and conflict and religious studies who lived his early life in Rwanda, Akimana is interested in mediation work or personal assistant administrative work.

“Anything that has the possibility to grow,” he said. “The amount of people in the building – it kind of seems a little crowded and hard to assimilate information.

“Students should probably have this experience because it might shock them at first.”

Contact Richard M. Barron at 373-7371 or richard.barron@news-record.com

Job fair comments.

http://www.news-record.com/content/2008/09/11/article/seekers_of_all_ages_crowd_in_at_job_fair