1. Recommendations for Transylvania County Economic Development Approach to Marketing Targeted Industries Independent Economic Development Task Force March 19, 2014

2. Why is this process undertaken 1.Times have changed for Transylvania, especially in the last decade. 2.Current efforts, while hard-fought, have not met ever-rising expectations. 3.County Commissioners hired Jeannette Goldsmith, a consultant with significant experience with corporate relocation. 4.Ms. Goldsmith’s recommendations can be found: http://www.transylvaniacounty.org/content/independent-economic-development-task-force http://www.transylvaniacounty.org/content/independent-economic-development-task-force 5.She recommended a new economic development organization and a list of targeted industries. 6.This task force volunteered, and was commissioned to analyze her approach and develop independent recommendations for: a.Economic Development Organization b.Mission/Vision for the new organization, and c.Targeted industries with an initial marketing plan.

3. Agenda 1.Re-Introduce Team 2.Purpose and Scope of tonight’s discussion 3.Marketing approach recommendation 4.Targeted industries recommendation 5.Next steps Transylvania = all of county, city, towns

4. Independent Economic Development Task Force Members David Bradford Karen Gleasman, Chair Ruth Harris Billy Higgins David Neumann David Watkins Jackie Whitmire Local business owners & leaders, executives, lawyer, agribusiness, manufacturing, strategy, marketing, quality, large and small business experience, community leaders, not afraid of a little confrontation, active learners, good listeners, able to leap tall buildings….

5. Purpose/Scope of Tonight’s Discussion On January 29 th, 2014 we discussed: Recommended Economic Development Organization structure (and how we got there) Initial mission and vision Tonight we’re here to discuss:  Targeted industries  Initial marketing approach vimeo.com/85673809 video of first presentation, courtesy of Daily Waterfall & Michael Trufant

6. Recommended Approach to Marketing David Bradford ….created the proposal modified (ever so slightly) by rest of the task force….

7. Changing gears – targeted industries, but first… Remember J. Goldsmith indicated that initially and mostly, economic development growth would come from existing business retention and expansion  Must do this well! Some terminology clarification for this presentation Welcomed industries – those who approach us and are consistent with our Transylvania vision Targeted industries – those which we actively recruit  next discussion

8. Recommended Targeted Industries - Process Brainstormed 27 (+7 from J. Goldsmith) Sorted via North Carolina Department of Commerce Targeted Growth Clusters, eliminating retention & growth of current businesses Ranked via: Wages & Likelihood of Attracting, and Fit with Transylvania and Ease of Investment Selected industries ending up in both positive quadrants NOT a completely thorough, fine-tuned selection process Good list from which to start

9. Brainstormed Targeted Industry List 10/9/2013 Goldsmith Industries Industries Target Company Profile NutraceuticalsAerospace industry partsCut & SewMedical care recovery Rev range: $50K - $50M Outdoor Recreation EquipmentComposites3D Printing Number of employees: 1-150 Food and Beverage Consider methods of mfg: e.g. precision maching, web based Environmental industries, e.g. recycled matls -> t-shirts Retention/expansion of current businesses Automotive PartsBrevard CollegeBRCC Quality of place is big draw Sports, Health, and WellnessBambooCamps Potential for above average pay Solo WorkerDestination spaMedical equipment TourismDestination health clubLabs e.g. biomedical Research lab: e.g. farm/agriBuild musical instruments Food processing, e.g. applesMore movies here Artisanal agriculture, e.g. mustards, Do More barsMusic recording studios Expansion of TVSEvents Parts/supplies for existing comp., e.g. cans for OSKAR BLUESContinuing care More like Everett Farms, Busy Bee NOT in conflict with quality of place 9/9/20159

10. 1 st Sort: NC Targeted Growth Clusters From Report Released 1/24/14: North Carolina Economic Development Board Recommended Strategies for Economic Growth 2014- 2024 North Carolina Jobs Plan December 2013

11. NC Targeted Growth Clusters – Wage Rate & Growth Our List Fit with TheseNot a Good Fit with These ************ ManufacturingTransportation Logistics ***** Agriculture, Forestry & FoodEnergy *** IT/SoftwareKnowledge Creation ****** Hospitality, Tourism, EntertainmentMilitary ***** Bio Pharma **** Business Services * a targeted industry; some duplicates

12. Comparative ranking of brainstormed industry list 2/19/201412 Wages Fit with Transylvania Ease of investment Likelihood of attracting

13. Our Ranking was Subjective – Gut Feel Wages – Potential of approaching Hendersonville/Buncombe average ~$18/hr Career advancement potential with wage growth Likelihood of Attracting Size was about right Decent reasons to be here and not elsewhere Some supporting industries would need demand first before relocating here (sequencing issue), e.g. precision machining

14. Higher Wage Industries We Can Attract Wages Likelihood of attracting * Notes:  Detailed upper right quadrant industries will be revealed  Though brainstormed, the group had a natural bias for higher probability results  Nothing significant with position within a quadrant  Yes, we could debate the details ALL NIGHT LONG  Yes, the Economic Development Organization needs to build on these conclusions * a targeted industry

15. Our Ranking was Subjective – Gut Feel Fit with Transylvania Consistent with community assets and demographics Started looking a lot like “likelihood to attract” Ease of Investment (for new business) Do we need major infrastructure modifications? Are buildings/property available? Note: this one could change with focused pre-investment by Transylvania

16. * targeted industry Easier to bring in/good fit for Transylvania Fit with Transylvania Ease of investment Notes:  There is a strong sequencing conclusion to this one, e.g. if we had more industries requiring precision machining it would “fit” better, now.  Population demographics influenced “fit”  Community assets, e.g. music and nature, also had a strong influence on “fit”  Yes, we could debate the details ALL NIGHT LONG

17. Decent waged, good fit, easier to bring in and attract industries – (all upper quadrants) Small/Medium Manufacturing, e.g. Outdoor recreation equipment manufacturing Build musical instruments Destination health club/spa Camps Sports Health & Wellness Events/Conferences Music recording industries Motion picture industries

18. Decent waged, less “unique” fit, easier to bring in and attract industries Bio Pharma/Tech Medical equipment Artisanal agriculture Solo workers including tele/internet customer service from home

19. Details here for you to peruse, judge, and debate…. later.

20. Let’s Review our Deliverables… Your Independent Economic Development Task Force has delivered: under budget (budget - $130,000, actual <$5,000) ahead of schedule (target – 12 months, actual – 8 months) this is the 26 th meeting of the task force Detailed initial marketing approach – Developed/presented by David Bradford TC NC

21. Deliverable Review Recommendation for a modified Economic Development Organization

22. Economic Development Organization Structure New Business Development Account Executive Asst to Account Executive Marketing Marketing Specialist/ Community event coordinator Heart of Brevard Tourism Development Authority Business Retention/Expansion Workforce Development BRE/WD Leader Heart of Brevard Chamber of Commerce Economic Opportunity Network Transylvania Schools Blue Ridge Community College Executive Director Board of Directors – 11 members 5 new (3 net) positions highlighted in bold

23. Deliverable Review An initial mission and vision for the new organization

24. Mission Orchestrate through engagement of investors, elected officials, existing organizations, and businesses, an attractive climate for creation, retention, and reinvestment of wealth within Transylvania County which is complementary to the long-term vision of Transylvania County and its residents. Orchestrate – all look to the conductor, play their position, know what to expect from their partners Engagement – active two-way participation Creation, retention, and reinvestment – that cycle we loved from the definition of Economic Development Long-term vision – required to set context and guidelines

25. Vision To achieve a dynamic and robust business climate resulting in stable well-paying incomes and growing opportunities allowing residents to live fulfilling lives in a thriving place

26. Transylvania Economic Development Vision: What Do We Want To Be? Community – Transylvania County is noted for it’s vibrant, diverse community where there is something for everyone--retirees, young families, and everything in-between. Residents are attracted to our top-rated schools, low crime rate, recreational opportunities, and economic growth. Business Climate– Transylvania County businesses, from new startups to established businesses, from retailers to manufacturers, from agribusinesses to construction, grow and thrive. There is a “positive echo chamber” in the county that describes the environment as a great place to start and grow a business. Brevard, Rosman, and TC governments collaborate to create a “business friendly” environment while preserving our “sense of place”. Our community has a ready workforce trained at all levels of the economic ladder to support this economic growth. Investment – Our community attracts businesses that are relocating and retains local businesses that are expanding because we offer amenities achieved through creative private and public capital investments in business ready sites, telecommunications, utilities, and workforce development. Preservation – While TC residents enjoy increased economic opportunities, conserving the county’s natural beauty and resources is a priority. To the extent possible, each decision to expand or relocate a business to TC is made while preserving and enhancing the county’s “ecology of place” and enhancing its quaint, family-oriented, small-town atmosphere.

27. Deliverables And a list of targeted industries

28. Decent waged, good fit, easier to bring in and attract industries – (all upper quadrants) Small medium manufacturing, e.g. Outdoor recreation equipment Build musical instruments Destination health club/spa Camps Sports Health & Wellness Events/Conferences Music recording industries More movies (…but to be honest, we liked the process of developing the list perhaps more than the list itself.)

29. Wrapping up No changes have been made in the organization structure recommendation after careful consideration of feedback The need for orchestration and collaboration with existing organizations has been reinforced Not starting from scratch, allows the new organization to build on the strengths of existing organizations Transylvania wide vision and comprehensive planning are essential to providing context for economic development efforts

30. It’s been our pleasure to serve and we look forward to amazing progress. David, David, David, Ruth, Billy, Jackie, and Karen QUESTIONS?

31. Next Steps  Organizations independently considering this proposal. Task Force has assisted. Provide additional feedback to County Commissioners.  Voluntary commitment to the proposed structure from each organization – new leadership needs engaged followers.  Create oversight Board of Directors (Task Force work is done).  Write contractual agreements.  County budget appropriation for fiscal year 2014-2015.  Convert Transylvania Partnership, Inc. into this new entity.

32. Successful Economic Development Requires something from everyone! What should you expect from your elected officials Increased investment in economic development Transylvania-wide longer term vision to provide context and guidelines

33. Successful Economic Development Requires something from everyone! What we need from you – Constructive participation Ever-ready workforce

34. Successful Economic Development Requires something from everyone! What you can expect from the Economic Development Organization Orchestration of Transylvania Economic Development A marketing effort that grabs the attention of new investors Transylvania existing businesses are growing with fabulous stories New businesses are investing here that are consistent with our community vision

35. Thanks for listening

36. Anticipated Questions – Next Steps 1.Cost and funding of new organization? 2.How is this different from today’s structure? From J. Goldsmith’s proposal? Why are so many of the existing economic development organizations remaining within the structure? 3.What large businesses will be targeted so we can get healthy wages? 4.Besides the new organization, what else is recommended? 5.Why will this be more successful? Is there a guarantee of new jobs? 6.When will we see new jobs? How will I know what’s available? 7.How can I best prepare to be a good candidate for new jobs? 8.What will be done to make things more friendly for current & incoming businesses? 9.Will this recommendation keep our younger family members in the area? 10.How does Transylvania compare with Henderson and Buncombe relative to wages and unemployment?

37. Recommended Budget & Funding?  Increase county investment in Economic Development to a total of $530 – 640K in operating costs o Salaries to attract professional staff o Travel, e.g. trade shows o Rent o Marketing materials o Contracts for professional services  Competitive market rent is paid to the Chamber, allowing/incenting the Chamber to provide greater service for Business Retention and Expansion effort  Leveraging Tourism Development Authority’s marketing expertise and funding to embrace the value of a community marketing position and coordinator of a community calendar.  No additional funds for workforce development – leverage excellent efforts of Transylvania County Schools & Blue Ridge Community College (more active partnership)  We recommend increasing the capital reserve of the Transylvania Partnership to $500,000 in order to enhance the ability to facilitate significant investment in our community. The money should be privately managed.

38. How is this different? From today’s effort More investment New focused, functional responsibility – sales, marketing, and business retention & expansion Co-Location in central, optimistic looking site Better, more efficient coordination, & shared resources Accountability to new measurable goals – e.g. $ invested/net job, increase per capita income Formal orchestration of all economic development efforts by recognized economic development leader Private employees accountable to agreed upon metrics From J. Goldsmith recommendation Lower cost through preservation of subset of existing organizations More directly leveraging our valuable, effective volunteer base More focus on business retention & expansion why we’re keeping existing organizations

39. Large businesses with healthy wages? Public money should be spent on recruiting successful, compatible businesses. Smaller businesses are more likely to come here (Jeanette Goldsmith says <50 most likely) We recommend welcoming larger businesses which are compatible with the county’s vision Target companies with wages comparable to Buncombe and Henderson counties

40. What else is recommended?  Convert Transylvania Partnership Corporation into this new entity.  Significant investment in comprehensive Transylvania strategic plan: Transylvania embark on a robust planning effort to better comprehend and anticipate change, while preserving the community character and values. This provides a contextual framework for the Economic Development Organization to operate, strategize, and ensures that future investment is compatible with the values of our community.  Formal collaboration across contributors  Unified marketing look & feel, extending work of Tourism Development Authority

41. Why more successful? Job guarantee?  Increased collaboration with everyone pulling in same direction will be a major factor for success.  More investment in resources focused on specific measurable goals: e.g. $ invested/net job, increase per capita income  Increased focus on business retention and expansion more likely to yield jobs sooner  Time (2 – 5 years) and concerted effort (forever) required to gain momentum of new business development  No guarantee of jobs, but we believe jobs are more likely with this approach.

42. New jobs, when? How will we know?  We are not starting from scratch – and will build on current successes  Increased focus on business retention and expansion more likely to yield jobs sooner  Time (2 – 5 years) and concerted effort (forever) to gain momentum of new business development  To keep informed: o Periodic formal review of progress to measures – net job increase, new investments, per capita wage o Establish relationship with supporting organizations: BRCC/JobLink o Expect organization to announce successes o Marketing team focuses externally and internally

43. How can I best prepare?  Believe in yourself, do not underestimate your capabilities  Be ever-ready mentally and physically to take on new job  Grow by investing in yourself  Seize opportunities  Connect to JobLink, Blue Ridge Community College, Transylvania County Schools – job ready program  Demonstrate ability to work hard with good work practices every chance you get

44. Making Transylvania more business friendly?  “Concierge” position will guide new investors through our processes.  Create attitude of facilitation: “how we can rather than why we can’t”  New organization is expected to identify and help eliminate barriers to incoming investment  All of us need to eliminate the negative feedback loop by working together to resolve issues.  All of us need to create the positive feedback loop. Find reasons to share the good news.  Increase credibility of Transylvania through effective local and regional partnerships – business retention and expansion  Keep our county worthy of investment – ready workforce, clean, charming, inventory of buildings, land, and/or infrastructure

45. Keeping younger family members here?  Jobs keep and attract people who share our values  With success, additional jobs in this area lessen the need to commute to Buncombe, Henderson or beyond  A diverse, healthy mix of small businesses leads to a more predictable future which is less sensitive the success of any one company  Maintaining our wonderful quality of place is an important factor

46. Business Retention & Expansion Step 1 Research  Systematic survey of local business needs/problems  Business “listening visits” by EDO and local government leaders  Data analysis: identify red flag factors causing local, high growth potential businesses to leave/fail/not grow. Step 2 Prioritize/Plan  Develop Projects/Plans to respond to problem areas  Form project teams using contract services and volunteers  Full participation of businesses in planning/prioritizing process Step 3 Implement Example projects:  Simplification of government regs  Dept of Commerce assistance in overseas marketing  Training in Lean Mfg  Online Marketing Training  Develop tailored workforce development

47. NC County Comparison Data from NC Dept of Commerce, Labor and Economic Analysis Div CountyAverage Wage/HrEmployedUnemployedUnemployment Rate Tier Henderson$17.9148,89126085.1%3 Buncombe$18.47120,66964265.1%3 Haywood$17.7926,82616385.8%2 Jackson$19.5720,05412515.9%1 Macon$16.6114,63311377.2%2 Transylvania$15.4311,3768356.8%2 NC$20.074,315,3663056.9% 9/9/201547

48. Preliminary Conclusions Transylvania’s unemployment rate ~1.7% higher than Buncombe and Henderson Matching the rates would result in additional 212 people in Transylvania working (assuming no changes in workforce) Wages are significantly lower Do we have a higher percentage of lower paid occupations? Matching occupation, how do wages compare? 9/9/201548

49. Rough* Conclusions from wage data *See Slide 47 Transylvania has a higher percentage of Education, Training, and Library Occupations 16% TC compared to 5% HC and 6% BC Wages for this occupation ~15% lower in TC compared to HC & BC We have a comparable percentage of food service occupations 9% TC compared to 11% HC and 13% BC We have a lower percentage of production occupations 4% TC compared to 13% HC and 7% BC Average and Experienced Wages are 16 – 23% lower in TC compared with HC and BC 9/9/201549

50. Transylvania – establishments by industry sector 9/9/201550

51. Some wage data 9/9/201551

52. Interesting to note for Transylvania County Zero working in the following occupations: Architecture and Engineering Legal Farming, Fishing, and Forestry Installation, Maintenance and Repair Only 81% of total employed included in wage data Of those included in wage data, 8% not assigned to an occupation Therefore these conclusions are not precise 9/9/201552

53. Unexplained Differences 9/9/201553