Join us in thanking these area meeting sponsors

Asheville: The Biltmore Company; Biltmore Farms; Clark and Leatherwood; Hampton Inns of Asheville; Charles D. Owen Manufacturing Co.; Rep. Wilma Sherrill.

Boone: Appalachian State University; Grandfather Mountain; Tweetsie Railroad; Watauga Medical Center.

Charlotte: Allvac; Bank of America; Belk Inc.; BellSouth; Carolina Public Relations; Carolina Tractor; Charlotte Hardwood Center; Cummings Atlantic Inc.; Duke Energy; Hunton & Williams; Kennedy Covington; KPMG LLP; Little & Associates Architects; Palmer & Cay; Shelco; Wachovia Bank.

Elizabeth City: Albemarle Propane; Biggs Pontiac Inc.; City Beverage Co. Inc.; Gateway Bank & Trust Co.; J. W. Jones Lumber Co. Inc.; W.W. Owens & Sons Moving & Storage Inc.; RV’s Restaurant.

Elon: BB&T; Bank of America; Central Carolina Bank; Chandler Concrete Co. Inc.; Elon University Love School of Business; 1st State Bank; Gilliam Coble & Moser LLP; Glen Raven Inc; Grant Thornton; MidCarolina Bank; Vernon Vernon Wooten Brown Andrews & Garrett PA; Wachovia Bank NA; Westcott Buick Pontiac Isuzu GMC; Wishart Norris Henninger & Pittman PA.

Fayetteville: Fayetteville State University; Fayetteville Tech Community College; Glenn Jernigan & Associates; Tom Keith & Associates Inc.; Kelly-Springfield Tire Co.; Village Green Related Companies.

Gastonia/Shelby: Citizens South Bank; First Gaston Bank; The First National Bank (Shelby); Grant Thornton; David Hoyle Investments; PSNC Energy.

Goldsboro/Kinston: Brody Associates; Group III Management Inc.; Harvey Enterprises & Affiliates; T. A. Loving Co.; Mt. Olive Pickle Co.; Pate Dawson; R. N. Rouse & Co.; Seegars Fence Co.

Greensboro: Brady Services; Grant Thornton; Jefferson Pilot Financial; Koury Corp.; Miller Brewing Co.; Southeast Fuels Inc.; United Guaranty Corp.; U.S. Trust Company of N.C.; VF Corp.

Greenville: The Daily Reflector; DIMON International; Dixon Doub Conner & Foster PLLC; DSM Pharmaceuticals; Grady-White Boats; University Health Systems (PCMH).

Hickory: Bank of Granite; Broyhill Investments; CV Industries; Fulenwider Enterprises; Grant Thornton; Hickory Furniture Mart; Hickory Springs Manufacturing; Inform Inc.; Alex Lee Inc.; Shurtape Technologies; Office of Jack Suddreth.

High Point: B&C Associates Inc.; Dixon Odom; Grant Thornton; High Point Bank & Trust; Lexington State Bank; North State Communications; Phillips Industries; Phillips Interests.

New Bern: Amital Spinning; Hatteras Yachts; Jenkins Gas & Oil; Kenneth Morris Insurance; Linda Staunch & Associates; Thomas Development Inc.; Ward and Smith PA; Weyerhaeuser Co.

Rocky Mount/Wilson: Coastal Lumber; Dove Knight & Whitehurst Architects; RBC Centura; Standard Commercial; Stephenson Millwork.

Salisbury: Farmers & Merchants Bank; Fisher Harriss Development; Food Lion; Grant Thornton; Power Curbers Inc.; Rowan Investment Co. Inc.

Southern Pines/Pinehurst: Asheboro Elastics Corp.; Capel Inc.; Century Associates of North Carolina; First National Bank and Trust; Hobbs, Upchurch & Associates; Jordan Lumber; George W. Little & Associates; The Pilot; Pine Needles; Southern Builders.

Statesville: Grant Thornton; Lowe’s Companies Inc.; Statesville Chamber; Yadkin Valley Bank/Piedmont Bank.

Triangle: Blue Cross/Blue Shield; Capital Bank; First Citizens Bank; The Freelon Group; GlaxoSmithKline; Golden Corral Corp.; IBM; Martin Marietta Materials; NAI Carolantic Realty; NC Association of Electric Coops; News and Observer; O’Brien/Atkins Associates; Progress Energy; Sprint; Verizon Communications; York Properties Inc.

Winston-Salem: BB&T; DB Alex Brown; TW Garner Food Co.; Grant Thornton; Kilpatrick Stockton; Novant Health; Pike Electric; R. J. Reynolds; Wachovia Bank; Womble Carlyle.

Wrightsville Beach/Wilmington: Cameron Management Inc.; David Jones Investments; N.C. State Port Authority; RSM McGladrey; Wells Automotive; Woodbury & Company.

Economic Development Committee briefed on initiatives
More than 70 members of the NCCBI Economic Development Committee met Aug. 10 at the N.C. Rural Center in Raleigh. Because the number of attendees outnumbered the seats in the NCCBI Boardroom, Billy Ray Hall, executive director of the Rural Center, graciously offered up meeting space. Jim Fain, Secretary of the N.C. Department of Commerce, discussed economic development initiatives that were approved by the legislature this year. Valeria Lee, president of the Golden Leaf Foundation, provided an update on grants recently awarded by the foundation. Gene Fornaro, director of business development with the Industrial Extension Service at N.C. State University, and Jane Albright, public affairs officer with the IES, discussed recent success stories of the IES and its impact on the state’s economy. Robert Stolz, chairman of the N.C. Economic Development Board, discussed the board’s achievements and its goals for 2005. He said the main reason that several economic development bills moved through the General Assembly this year was because of the collaboration of NCCBI, the Economic Development Board, the Economic Developers Association and others. NCCBI Economic Development Committee Chair Watts Carr agreed that collaborative efforts are very effective with state legislators. He encouraged committee members to be thinking about issues that should be addressed when the committee meets this fall to develop its legislative proposals for 2005.

Are you interested in joining an NCCBI policy committee?
We rely on the policy committees to develop legislative positions that provide a framework for NCCBI’s work with the N.C. General Assembly. The committee structure provides our members with an opportunity to hear firsthand from state policymakers on a variety of issues and a real chance to make an impact on the laws and regulations that govern the state’s business community.

We are in the process of updating our committee membership lists and adding new members. If you are interested in serving on a committee, contact Debbie Mueller, legislative assistant, at dmueller@nccbi.org Following are the NCCBI policy committees and a brief description of each:

Economic Development: Works to sustain a strong business climate through support of workforce development programs, the state ports, improved water and sewer service, business growth and recruitment incentives, the seven regional partnerships and travel and tourism.
Education: Supports continued high accountability standards for public schools and a strong system of community colleges and public and independent colleges and universities. NCCBI advocates strong teacher training programs and funding for information technology.

Environmental Concerns: Examines legislative and regulatory issues related to the environment with subcommittees looking specifically at air, water and solid waste issues.

Health Care: Works to control the rising cost of health care coverage for employers. Health care mandates are opposed as they drive-up costs of premiums and can limit business’ ability to provide coverage for their employees. Medical malpractice insurance reform is strongly supported.

Legal Issues and Workplace Policies: Explores issues related to the courts and how state laws impact employment and business operations. Legal reform continues to be a major focus, and the committee continues to support changes to limit punitive and non-economic damages.

Taxation & Fiscal Policy: Researches tax issues that affect business and industry and advocates changes in tax policy to keep North Carolina business-friendly and competitive with other states.

Transportation: Supports dedicated funding for all modes of transportation to meet current and anticipated needs. The committee also supports legislation requiring state and federal agencies to better coordinate their decision-making processes regarding transportation and economic development to prevent delays of much-needed projects. Opposes diversion of transportation monies to the General Fund.


Kirk praises Boone Chamber leaders
“Local chambers of commerce are the lifeblood of a community,“ NCCBI President Phil Kirk told the more than 200 persons attending the 55^th annual meeting of the Boone Area Chamber of Commerce on Aug. 3 at the Broyhill Inn and Conference Center. “Where there is a strong chamber, there is a thriving, progressive community,” Kirk said. He complimented the Boone Chamber for its work on behalf of public education and travel and tourism.

“As the ‘Voice of Business’ for North Carolina, NCCBI needs you to join with us to lobby for a better business climate in our state,” Kirk said. “We have enjoyed many economic development success stories in the past, but we cannot rest on our laurels. Business as usual will not work in today’s competitive global economy.”

Kirk told the chamber attendees that the recent session of the General Assembly was the best in memory for economic development. He saluted Gov. Mike Easley, Secretary of Commerce Jim Fain, and the bipartisan leadership in the General Assembly.

Kirk said the economy is slowly improving in North Carolina, but pointed out that excessive legal costs, high business taxes, health care costs, and unnecessary rules and regulations compared to those in other countries make it difficult for manufacturers in the United States to compete successfully.

He was introduced by Dr. Harry Davis, professor at Appalachian and economist for the North Carolina Bankers Association. Joedy Eller, outgoing chairman, presided and Dan Meyer assumed the chair’s position for 2004-05.


Kirk unveils special magazine section on Catawba County
A positive, can do attitude, along with aggressive economic development which recognizes the value of tourism, was one of the primary reasons Catawba County was chosen to be profiled in the August edition of the NORTH CAROLINA magazine, NCCBI President Phil Kirk told 80 community leaders at Rock Barn Golf and Spa on Aug. 4.

“The headlines on this special section – ‘Catawba County Sees Its Future in a New Light’ and ‘Refocused – When Hard Times Hit its Core Industries, Catawba County Didn’t Gripe, It Regrouped’ say it all,” Kirk said.

He told the group, “You have suffered tremendous job losses and high unemployment. Our changing economy has been a special challenge in the Unifour area.” He called for tougher administration of existing trade treaties and regulations, for medical malpractice reform, and the lowering of corporate and personal income taxes.

Catawba County’s support for its three public school systems, Catawba Valley Community College, and Lenoir-Rhyne was praised by the NCCBI president. Special praise was given to the new Hickory Metropolitan Higher Education Center, which is a part of CVCC but is a partnership among Appalachian State, CVCC, Lenoir-Rhyne, N.C. State and UNC Charlotte.

Kirk was introduced by Lynn Lail, a member of the NCCBI Board of Directors and a county commissioner. Others on the program included Millie Barbee of the Hickory Metro Convention and Visitors Bureau, Scott Millar of the Catawba Economic Development Commission, and Charlie Snipes, Bank of Granite CEO and president.


Kirk discusses small business issues with Eden Chamber
"State government needs to do a better job of working to ensure that small businesses succeed in our state," NCCBI President Phil Kirk told members of the Eden Chamber of Commerce at a luncheon at the Meadow Greens Country Club in Eden on Aug. 20.

He told the group that the Small Business Survival Committee in Washington ranks North Carolina as the 37th friendliest state to small business. "That means 36 other states are more small business friendly than we are," Kirk said. "The study considered such areas as taxes, regulations, legal costs, health care costs, environmental rules, and other areas. State government needs to be a helper to small business or least not enact barriers to success."

Kirk saluted the work of the Small Business Centers at each community college and the Small Business Technology Development Centers. He also commended Governor Easley for proposing a small reduction in corporate income taxes for small businesses but said the legislature did not approve the small reduction, which he termed "a first step in reducing the overall corporate tax for all businesses."

NCCBI will work for a reduction in personal income taxes because North Carolina has the highest rate in the Southeast and for a reduction in the corporate income tax, which is the third highest in the Southeast. Reducing personal income taxes will help many small businesses, he pointed out, because so many are structured in such a manner that they pay taxes on the personal income tax rate table. He also said that NCCBI will continue to focus on economic development issues as well as efficiency in government. Kirk was introduced by Phil Berger Jr.


Q&A on Amendment One: Self-Financing Bonds

What is a self-financing bond? It is an economic development tool used by communities across America to attract jobs, revitalize communities and neighborhoods, and increase property values. North Carolina is one of only two states in the country that does not have this tool.

How are the bonds used? Local governments issue the bonds to pay for public improvements, such as streets or water and sewer lines, associated with private investment in development districts.

What kind of developments? Development that can be supported by self-financing bonds include new manufacturing plants, re-use of abandoned or vacant facilities, affordable housing, commercial development in inner city areas, redevelopment of areas damaged by environmental pollution or natural disasters.

Why are they called “self-financing bonds”? Bonds are paid off from additional tax revenues collected within a development district that has experienced higher property values as a result of public and private investment within that district.

Who creates the development district? Local governments, following discussions with landowners, designate the boundaries of the development districts. The districts don’t go into effect until the State Local Government Commission has approved the development plan.

Will the property tax rate be raised to pay off the bonds? No. The existing tax rate in the community and development district stays the same.

Who approves issuance of the bonds? The Local Government Commission in the State Treasurer’s Office has final approval authority. The Commission is an independent non-partisan organization. North Carolina is one of few states in the country that gives such authority to an arms length state commission and the only one that gives the state final authority on approval to issue bonds.  Over many decades, the Commission has done an extraordinary job of protecting the financial strength of local communities. North Carolina has 25 percent of the AAA financial rated communities in the country, far more than any other state. 

On what basis does the Local Government Commission make its decision? The law establishes seven specific criteria that a community’s development plan must meet before the bonds can be issued. One of the most important is that the commission must be satisfied that the project would not proceed without the public improvements paid for with the self-financing bonds. North Carolina has some of the most rigorous standards in the country for using self-financing bonds.

What happens if the project fails? In more than 50 years no local bond approved by the Local Government Commission has defaulted. In addition the Commission can require some bonds to be insured and local governments have a lien and may foreclose on private development to collect the taxes owed on the project. The local governments can require other safeguards of private businesses as part of the agreement to use the bonds. Also, the amendment specifically prohibits pledging the taxing power of the local government to repay the bonds without a referendum. 

Does approval of the bonds require a vote? No. There are three reasons why. First, the law requires a vote only if the taxing power of the community is pledged to pay off bonds. The law clearly states that with these bonds communities will not be pledging their taxing power to pay off these bonds. Secondly, the bonds are used to support projects that are ready to start now and can’t afford to wait around months for a referendum. Third, self-financing bonds can be insured. Also local governments can put a lien or foreclose on private development to collect the taxes owed.

What about the development’s impact on the existing neighborhood? The law specifically requires the development plan to include a description of the benefits to the residents and business owners in the development district and to address what steps will be taken to deal with any possible negative impacts the project will have.

How have the bonds worked in other states? There are a variety of economic studies about the benefit of self-financing bonds. There is little, if any dispute, among those studies that there are significant increases in jobs, private investment, property values and tax revenues within the development districts. For example, in Iowa the value of land within development districts grew from $650 million to $4 billion ö a growth rate 10 times faster than overall municipal property valuation.  Property tax revenues collected from development districts there grew from $22 million in 1989 to $118 million in 1999.



State Government

EMC considers changes in New Source Review rules
The state Environmental Management Commission (EMC) is considering changes to North Carolina’s regulations regarding New Source Review (NSR). The commission held public hearings in Charlotte on Aug. 5 and in Raleigh on Aug. 12 to receive input. Written comments on the issue can be submitted to the commission until Sept. 13. At issue is whether North Carolina adopts federal NSR changes, alters those rules or sticks to the state’s own rules that are already in force.

The NSR program is a permitting program that governs when new and expanding industries must install air-pollution controls. This permitting program outlines the process by which these permits will be reviewed to assure air quality standards are maintained. Regardless of whether facilities are subject to NSR review, their emissions cannot cause violations of the health-based ambient air quality standards. After years of implementing the program, it became clear that both the permitting agencies and the facilities were spending a great deal of time and money achieving little or no air quality benefits. EPA’s stated goal in issuing new rules in December 2002 was to simplify and streamline the process. It is not up to the State of North Carolina to determine how they will respond to the proposed EPA rule changes.

The EMC is considering three broad options. NCCBI, along with the state’s major manufacturers, other business associations and local chambers of commerce, is supporting Option 2, which would adopt the EPA language by reference. Option 1 would keep the current rule, and Option 3 would adopt the EPA language with various modifications.

Leslie Bevacqua Coman, NCCBI’s vice president of governmental affairs, spoke at the Raleigh hearing. “NCCBI is recommending now, as we have done in the past, that the state’s regulations be consistent with federal regulations when possible, practical and there is no imminent threat to human health or the environment. Approving Option 2 is clearly an opportunity to do just that. It is an opportunity to approve a regulatory approach that is consistent with federal guidelines, consistent with states in our region of the country and will not be a threat to human health or the environment, “ Bevacqua Coman said.  “Adopting the federal rule with no changes will ensure that North Carolina has rules consistent with other Southeastern states and will help protect our state’s business climate and promote continued economic growth. Only by adopting fair and consistent rules can businesses have the certainty they need to make important decisions, including decisions about expansion and job creation”.

The business community was highly visible at both the Raleigh and Charlotte hearings. Representatives from many of our member companies including Duke Energy, Progress Energy, Weyerhaeuser, and several local chambers of commerce presented testimony at the hearings.  The Environmental Management Commission will receive written comment until Sept. 13.

State revenues grew more than a half-billion dollars over the fiscal year
Strong tax collections in June helped the state end its fiscal year with a final budget surplus of $242.5 million, or about 1.7 percent more than was expected in total tax and non-tax revenues. Greater than anticipated sales taxes contributed the most to the surplus, but revenues also were significantly over budget in personal and corporate income taxes. Total corporate income tax collections for the year (in the chart below they are reported net of transfers to other accounts) amounted to $886.4 million for the fiscal year. That compares to $837.1 million in the prior year and with $660.2 million in the 2002-03 fiscal year. Personal income taxes – the state’s largest revenue source – grew by $421.4 million or 5.9 percent in Fiscal 2003-04 from the prior year. Sales taxes grew by $299.4 million or $7.6 percent year-to-year. The state’s total tax and non-tax revenue for the year ended June 30 of $14.8 billion represents a gain of $553.8 million or 3.9 percent from the prior year.

State’s jobless rate falls to 5.0%, lowest in three years
North Carolina’s unemployment rate sank to its lowest level in more than three years in July when the ESC said it stood at 5.0 percent, down from 5.5 percent in June. It was the fifth month in a row that North Carolina’s rate was below the national rate. The number of North Carolinians estimated to be employed increased by 12,024 in July, and there was a decrease of 20,094 in the number of individuals unemployed. The number of nonfarm payroll jobs in North Carolina increased by 8,200 to 3,858,000 from June to July. The state has added 58,700 net jobs since January. Manufacturing gained the most jobs of any sector in July, with an additional 2,800 (0.5 percent) jobs. Educational and health services grew by 2,700 (0.6 percent) jobs, and there were 1,500 (0.7 percent) more jobs in the construction industry. Trade, transportation, warehousing and utilities lost the most jobs, 3,600 (0.5 percent). Average weekly hours for production workers fell to 38.8 in July from 39.7 in June. Average hourly earnings rose from $14.23 in June to $14.38 in July. Overall, average weekly earnings for production workers fell from $564.93 to $557.94 over the month.


UNCC to house Health Insurance Innovations Commission
The Belk College of Business Administration at UNC Charlotte will coordinate activities for the new N.C. Health Insurance Innovations Commission (HIIC), established to address two key issues: access to affordable health insurance for the state’s small businesses, and management of high cost/high frequency medical conditions.

Commission members, who will be appointed by the General Assembly upon recommendation of the Speakers of the House and the President Pro Tem of the Senate, will include physicians, small business owners, insurance brokers, advocates for the uninsured and nursing, health insurers and hospital representatives.

Claude Lilly, dean of the Belk College, will work closely with Rep. Connie Wilson (R-Mecklenburg), Sen. David Hoyle (D-Gaston) and Ches Gwinn, founder and president of Metrolina Health Initiative (MHI), to assist in the selection and appointment of HIIC members and to oversee administration of the commission.
 
The Belk College will provide meeting space, professional services and support staff for the HIIC, and will coordinate the Commission’s fundraising from government and private sources.

The bill that created the HIIC, sponsored in the General Assembly by Wilson and Hoyle, began as a study conducted by Gwinn and the MHI for the Duke Endowment. NCCBI strongly supported the legislation.


Economic Development

Cree gets J-DIG grant for major expansion in Triangle
Cree Inc. said it would expand its semiconductor production in the Triangle, bringing 300 new jobs and about $300 million in additional investment to the area. A final site for the company’s expansion has not been selected; however, the new positions will primarily involve manufacturing and R&D, with an average annual compensation of $50,000. Cree, one of the world’s leaders in the development and manufacturing of semiconductor materials, is the 16th recipient of the new state Job Development Investment Grant (J-DIG) award.

Under terms of Cree’s J-DIG grant, over the next 11 years the state will rebate to the company 65 percent of the state income taxes paid by workers in the new jobs. Over the 11 years, that could amount to $5.1 million. State officials estimate that the expansion will generate a cumulative gross state product value of about $903 million and produce a positive cumulative net state revenue impact of $17 million.

Cree began operations in 1987 when a group of students licensed patents of 10 silicon carbide-related products from N.C. State University. Cree became the first U.S. company to produce blue and green light-emitting diodes known as LEDs, which are used in many lighting applications today including cell phones, automobile dashboards and indoor/outdoor displays. Cree went public with an IPO in 1993. The company reported revenues of $307 million in the fiscal year ended June 30.
 
Cree employs 964 regular full-time individuals in their Durham location. The company also has operations in Sunnyvale and Santa Barbara, Calif., totaling about 120 employees combined and sales offices in Japan and Hong Kong. 

“I would like to extend my thanks to Governor Easley and the North Carolina Department of Commerce for working with us to keep these jobs and this expansion in North Carolina,” said Chuck Swoboda, president and CEO of Cree. “The grant and recent changes by the General Assembly have been instrumental in our decision to expand here.”

Israeli company picks Martin County for manufacturing facility
Syfan USA, an Israeli company that is a leading supplier of quality shrink and overwrap films, will locate its first international manufacturing facility in Martin County, bringing 61 new jobs and an $11 million investment to the state. The company will receive $200,000 from the One North Carolina Fund, $300,000 from the N.C. Department of Transportation Rail Access Fund and customized community college industrial training. The new manufacturing facility will be housed in the former Atlantic Structures building at the Martin County Regional Business Park. Construction to upgrade the facility will begin in early fall and is expected to be complete by first quarter of 2005. The new jobs will be skilled manufacturing positions and will have an average salary between $15-$16 per hour. The N.C. Department of Commerce, the N.C. Department of Transportation, the N.C. Community College System, Martin County, the Martin County Committee of 100, the Edgecombe-Martin County Electric Membership Corporation and North Carolina’s Northeast Partnership contributed significantly to the development of this project.

 
Names in the News

Jameson elected head of Carolinas chamber executives
David Jameson, president of the Greensboro Chamber of Commerce, assumed the presidency of the Carolinas Association of Chamber of Commerce Executives at the group’s annual meeting last month in Asheville. Bill Russell, president of the Lake Norman Chamber of Commerce, became president-elect, and Brenda Blackburn, head of the Roanoke Valley Chamber of Commerce, was elected treasurer. New board members elected from North Carolina were Elyse Cochran, Moore County; Doug Croft, Thomasville; John Cox, Cabarrus; and Bob Williford, Greater Hendersonville. Returning board members include Rick Lutovsky, Asheville; and Susanne Sartelle, Greenville-Pitt. David Bradley, president of the Mt. Airy Chamber, was honored as the North Carolina Chamber Executive of the Year.

Wyche receives Women in Business award
Rosemary Wyche, NCCBI's vice president of development, received a prestigious Women in Business Award at the Triangle Business Journal's seventh annual awards program on Aug. 12 at the Sheraton Imperial. In nominating her for the award, NCCBI President Phil Kirk wrote, "Rosemary's position at NCCBI; her background in banking, foreign trade, economic development, and small business; and her passion for community service; and for working to develop good jobs for our citizens makes her uniquely qualified for the Women in Business Award." He commented specifically on her work as the staff person for NCCBI's Small Business Advisory Board and her current board service as an alternate to the president on the N.C. Economic Development Board, N.C. Travel and Tourism Board, and the N.C. Travel and Tourism Coalition, in addition to her membership on the Western N.C. Carolina Museum of Art. Wyche received a crystal bowl, was shown on the video shown to the 500 people in attendance at the luncheon, and is being featured in this week's edition of the Triangle Business Journal, along with the 25 other award winners. Other NCCBI members who were recognized were Dr. Leslie Alexandre, N.C. Biotechnology Center; Danielle Breslin, Blue Cross/Blue Shield of North Carolina; Tammy Brown, Progress Energy; Lynne Garrison, Blue Cross/Blue Shield of North Carolina; Verna Graff-Gessaman, RBC Centura Bank; Terry Haggerty, First Citizens Bank; Elaine Hylwa, WakeMed Cary Hospital; Linda Leake, Change by Leake; Claire McCullough, Meredith College; Helen Poole, Duke Health Community Care; and M. Carter Worthy, Carter Worthy Commercial Realty Inc. Char Grunwaldt, publisher of the Triangle Business Journal and a member of NCCBI, presided.

Triangle identify campaign wins national recognition
The regional community pride campaign, entitled “The Triangle, A Family of Communities,” received a national Grand Award and the Best of Show Award at the American Chamber of Commerce Executives (ACCE) annual 2003 Awards for Communications Excellence Ceremony in Orlando, Fla., last week. “This was a true family project. Every community partner helped in highlighting their unique contributions to the region while supporting the teamwork we need to flourish in building an even better future for the Triangle,” said Greater Raleigh Chamber of Commerce President Harvey Schmitt. “This campaign epitomizes the most attractive elements of the Triangle – the diversity of our communities,” said Durham Convention and Visitors Bureau President Reyn Bowman. The campaign is a collaboration of the following organizations: the Chapel Hill/Orange County, Durham, and Greater Raleigh Convention & Visitors Bureaus; Cary, Greater Chapel Hill-Carrboro, Greater Durham, and Greater Raleigh Chambers of Commerce; public information officers from Cary, Durham, Durham County, Raleigh, and Wake County; and the Research Triangle Regional Partnership.
 
 Greg Brownstein was hired as vice president of marketing for the Piedmont Triad Partnership (PTP), a new position. Brownstein, who will begin work on Sept. 7, most recently served as director of marketing and business development for Idealliance, the Winston-Salem community non-profit organization responsible for marketing, managing and facilitating the development of the Piedmont Triad Research Park in downtown Winston-Salem. Prior to that he was manager of public information and marketing services at Guilford Technical Community College and public affairs officer with the Greensboro Area Chamber of Commerce. He received his A.B. in journalism from UNC Chapel Hill and an M.F.A. from UNC Greensboro. The creation of the vice president of marketing position is part of PTP’s strategy to raise the visibility of the Piedmont Triad region domestically and internationally. Also, the PTP hired Libby Brown as research manager. Brown is currently working as an intern with the Greensboro Department of Transportation.


UNC System recruiting for new head of university affairs
The UNC System is seeking a Senior Vice President for University Affairs in the Office of the President. The Senior Vice President for University Affairs reports to the President and is responsible for engaging external constituencies and all UNC campuses in partnerships to advance strategic University communications; directing state and federal legislative relations, supporting economic development in North Carolina, and building greater fund-raising and advancement capacity University-wide.

The Senior Vice President for University Affairs represents the University on relevant state and national councils, boards, and task forces, and must have experience that demonstrates strong collaborative leadership and facilitation, strategic thinking and analytical problem-solving abilities; a demonstrated record of effective leadership and budgetary responsibility in increasingly responsible positions; a deep understanding of higher education and the academic environment, including teaching, research and outreach/engagement missions; excellent written and oral communication skills; experience working with a multi-campus system; and a demonstrated commitment to diversity. A full description of this position is available at
http://www.northcarolina.edu/content.php/apps/hr_jobs/index.php

Interested applicants should submit a resume and letter of application that highlights qualifications for the position, and the names, addresses, telephone numbers, and email addresses of five references. Electronic nominations and applications are requested and should be sent to OPsearch@northcarolina.edu.


Washington Watch

EPA proposes new safeguards for purchase of brownfield property
To encourage the purchase, cleanup, reuse and economic revitalization of property that may be environmentally contaminated, EPA announced a proposed rule requiring potential owners to conduct certain inquiries into the previous ownership and environmental conditions of the land prior to purchase. If the inquiries are performed properly and other reasonable steps undertaken, the purchasers can buy the land with assurance from EPA that they will not be subject to lawsuits under the Superfund hazardous waste cleanup law.

 Although the current Superfund law provides some protection to “innocent” land purchasers who unknowingly buy contaminated property, the statutory language is ambiguous. The new proposal provides certainty for purchasers of potentially contaminated property and reduces yet another barrier to cleanup and redevelopment in local communities across the nation. 

The EPA proposal also will apply to any person conducting a waste site characterization or assessment with funding from the federal brownfields grant program, regardless of whether a purchase takes place. Prospective property owners who do not conduct the inquiries properly may lose their ability to claim protection from Superfund liability.

Superfund authorizes EPA to negotiate with parties that helped create hazardous waste sites to get them cleaned up. If these parties refuse to cooperate, EPA can sue them to conduct the cleanup.  Regardless of how the cleanup is conducted, Superfund also gives EPA the authority to recover from parties any costs it incurs as part of the cleanup effort. Currently, land purchasers who unknowingly buy contaminated property can find themselves subject to Superfund liability.  EPA was directed by Congress to propose this regulation to support the liability defense under the Small Business Liability Relief and Brownfields Revitalization Act of January 2002. The act specified that potential buyers be protected from Superfund liability as long as they perform all appropriate inquiries into former uses of the land. The act directed EPA to develop a standard for such reviews. EPA used a negotiated rulemaking process to develop the proposed standards.


Talk with your member of Congress about these issues
The House and Senate have adjourned for the August Recess. Except for their participation in their party conventions, most members will be at home through Labor Day. This recess provides us the opportunity to meet with members of Congress and/or invite them into plants to showcase American manufacturing and to emphasize key issues before the Congress. Also, recognizing that this is a presidential election year, this recess period we place strong emphasis on the electoral process and encourage you and your employees to be actively involved in the process.

Studies have shown that employees not only want to hear from their employers on issues and the election, but that they trust information from their employer. You know all too well what is at stake in the upcoming elections. The question is whether your employees know what’s at stake for their company and for them. We urge you to get your employees involved and have suggested a number of ways your company can make a difference.

Here is where things stand on major issues in Congress:

FSC/ETI Jobs Bill: NAM-member lobbying has helped secure House and Senate passage of bills that bring us significantly closer to complying with our WTO obligations, ending sanctions on    U.S. exports and providing tax relief to U.S. businesses. The next hurdle is reconciling the two bills. Both bills include repeal of the ETI regime, a domestic manufacturing benefit, an international tax reform package, and extension of the R&D tax credit. However, there are a number of outstanding issues, including whether to include S Corporations and other pass-through entities into the final bill. Meanwhile, the clock keeps ticking. By the time legislators return to Washington in September, EU tariffs on a broad range of U.S. exports will have increased to 11percent. 
 
Asbestos: Reform efforts are still alive. Senate Leaders Frist (R-TN) and Daschle (D-SD) exchanged draft proposals in recent weeks, giving hope to companies and workers that have been victimized by massive asbestos claims. Several key issues remain unresolved. However, we have never been closer to a solution. The NAM-led Asbestos Alliance continues to urge senators to reach a consensus this summer. Join us by contacting your senators:
The current system is hurting those who it should be helping the most -- asbestos victims.
 
Fair and Balanced ETI Legislation: The Senate has chosen conferees and the House is expected to follow suit shortly after Labor Day. Once that occurs, the House and Senate have 17 legislative days prior to the scheduled recess to reconcile their versions of H.R. 4520 and S. 1637, legislation that repeals the current export tax breaks ruled illegal by the World Trade Organization and promotes the competitiveness of U.S. manufacturers. The European Union began imposing retaliatory tariffs -- 10 percent as of 8/1 -- on U.S. exports in March to protest these U.S. tax breaks for exports, known as the Extraterritorial Income Regime (ETI, successor to the Foreign Sales Corporation, or FSC). The tariffs will continue to increase by 1 percentage point each month to a maximum of 17 percent or until the ETI regime is repealed. Both bills are structurally similar, including a domestic manufacturing benefit, an extension of the vital R&D tax credit -- which expired 6/30 -- a number of international tax reforms and enhanced investment incentives for small businesses. The NAM sent a letter to Senate conferees, highlighting the issues that should be addressed in a final package and noting that tax relief for domestic manufacturing should apply to all manufacturers, including S-corporations and other pass-through entities. The manufacturers’ tax break, however, is critically different in the two bills. Whereas the Senate bill’s tax break is structured as a deduction and would apply to all U.S. manufacturers, regardless of business structure, the House bill confers an actual tax rate reduction that would apply only to C-corporations. If your business is organized as an S-corporation or is an unincorporated entity, e.g. an LLC, then under the House version, it would not receive the domestic manufacturers’ tax break.

Class Action: During his pre-recess wrap-up speech, Senate Majority Leader Bill Frist (R-TN) made positive comments about trying to bring the Class Action Fairness Act (S. 2062) back to the Senate floor after the Senate reconvenes in September. The bill experienced a temporary setback last fall when it fell one vote short of the 60 needed to overcome a filibuster. More recently, the Senate again failed to invoke cloture on S. 2062, which would curb trial lawyer “forum shopping” by shifting most major class-action suits to federal court. The House approved similar legislation (H.R. 1115) last year. CAFA would allow federal courts to hear cases involving at least $5 million and 100 plaintiffs, as long as at least one plaintiff and one defendant are from different states.

New Medicare Regulation: The Department of Health and Human Services released newly proposed regulations to implement the Medicare Modernization Act (MMA). The regulations, which are now available for public comment (until 10/4/04), implement the essence of the MMA that creates a new voluntary prescription drug benefit and flexible assistance for employers under Medicare -- including prescription drug savings of more than 50 percent for the average senior without coverage -- as well as new health plan choices, improved health care for rural America and improved preventive care benefits. The new regulations will help transform Medicare from a mere payer of services to a catalyst for disease prevention and wellness promotion. Final regulations are expected to be issued this winter. The timing of the final regulations will help determine whether employers who sponsor retiree coverage will have access to the full array of coverage options envisioned under the MMA in 2006.

President Signs U.S.-Australia FTA: On 8/3, President Bush signed the U.S.-Australia Free Trade Agreement (H.R. 4759). Eliminating these tariffs will increase the export of manufactured goods by nearly $2 billion per year. Separately, negotiators in Geneva reached agreement on a framework for advancing the World Trade Organization’s (WTO) Doha Round negotiation. The talks had broken down at earlier WTO ministerials in Cancun and Seattle. This framework provides a road map for these ongoing talks and preserves the ability to negotiate the elimination of tariffs in specific industrial sectors and achieve steeper cuts for higher tariffs. Also, it commits WTO members to the elimination of export subsidies on agricultural products, among other things.
 
 
A new meaning to the term ‘Lawsuit Lottery’
Hold onto your seats and wallets. Trial lawyers have found a new “innovative” way to entice people into filing personal injury lawsuits and drain money from businesses. The scheme is called “advanced litigation funding,” which actually means that specialized businesses are now investing in pending personal injury lawsuits for a chunk of the winnings.

The idea was born in Las Vegas and has been cropping up in states like Florida. “Investors” bet on the possibility a personal injury lawsuit will win a settlement or judgment in court, and in return the investors will share in the booty. If the lawsuit loses, the investor forfeits any funds it has advanced. So much for the notion preached by trial lawyers that lawsuits were pursued for the good of the claimant. Now that “investors” have a stake in the claims, it appears a stake can be driven through that hyperbole.

Among others, the Florida Bar Association has approved the practice, which amounts to allowing attorneys to help clients obtain advance money from businesses that then seek a percentage of the client’s legal winnings.

There seems to be more reason than ever to seek a date in court, since advanced litigation funding makes bankrolling a lawsuit part of the equation. Here’s what one online practitioner pitches to potential clients: “Our cash advances typically range from $1,500 to $5,000, for personal injury cases although we can potentially lend much more. For commercial litigation cases the amounts can be much higher and can go into $100,000's of dollars. The plaintiff’s needs and potential value of the case combined with the probability of a victorious outcome, determine the amount advanced. Each case is reviewed on its own merits, although we generally advance money to clients only where liability is clear and coverage is sufficient.”

Better than asking Visa for a cash advance.