Our Informer

As communities scramble to re-build or expand their economic bases, some are learning that protecting current assets should be a top priority. Political leaders in Concord and Cabarrus County are likely to pay dearly for antagonizing their greatest asset—Lowes Motor Speedway. Owner Bruton Smith has threatened to move to another part of the country and whether he will change his mind still is up in the air.

Smith was infuriated when Concord rezoned property he acquired for a drag strip. The rezoning was in response to complains from neighboring property owners concerned about the noise. A volatile personality, Smith announced he would move the entire operation, which brings in millions to the Concord-Charlotte region. Political leaders scrambled, approved Smith zoning request, and put forth an expensive peace offering that would include:

• Building a pedestrian tunnel under U.S. Highway 29 at the main intersection in front of the speedway entrance;
• Lobbying state legislators for road improvements near the track. (Cabarrus’ GOP legislators consistently vote against the state budget).
• Launching public transit service between Charlotte and the speedway and Concord;
• Opening a multi-million dollar racing themed welcome center off Interstate 85 at Speedway Boulevard.

To keep Lowes Motor Speedway as a money machine for Concord will be an expensive proposition for taxpayers. To lose LMS would be even more expensive. Brian Hiatt, former assistant city manager of Hickory and currently Concord city manager, is working overtime, friends say.

HORSE RACE: Republican contenders in the North Carolina gubernatorial race are in a dead heat, according to an Elon College poll. Former Supreme Court Justice Bob Orr, State Sen. Fred Smith, and attorney Bill Graham of Salisbury each have 11 point preference rating among GOP voters. Most are undecided.

At the first debate for the Republicans last weekend at High Point University, the sparring was strong and sometimes personal. “The governorship is not an entry level position for public service,” Smith asserted in reference to Graham’s candidacy. Catawba County, which has been a Republican stronghold, has not hosted any of the candidates for a public event.

On the Democrat side, Lt. Gov. Beverly Perdue and State Treasurer Richard Moore continue to exchange charges and personal jabs. They will have their first debate Nov. 6 in Greensboro at the annual meeting of the N.C. School Boards Assn. Lt. Gov. Perdue will meet with Catawba County supporters Nov. 9 at CVCC and the Catawba Country Club.

HEY…WE’RE RICH! : State officials were surprised to learn that revenue collections during the first three months of the current fiscal year –July-September—exceeded budget projections by $75 million. Apparently the negative impact of the housing crisis was offset by higher sales tax collections and more revenue from employee income tax withholding. Last year, the state enjoyed a $2 billion budget surplus due to conservative budgeting and higher than expected revenue. Over $500 million was put in the “rainy day fund”, the state’s savings account. The university system and public education received increases for personnel and capital improvements.

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Lt. Gov. Beverly Perdue, who will be in Catawba County November 7, has been the target of relentless attacks from her Democratic primary opponent. State Treasurer Richard Moore’s campaign has accused Perdue of “tailoring” her resume to fit her audiences. They have complained that her endorsement from the NCAE was rigged. And they have pulled out quotes from the past to indicate she has “waffled” on abortion rights.

Perdue has been a teacher. She does have a Ph.D. The endorsement from the NCAE came from the association’s leadership. With a 10 percentage points lead in polls, she has been able to ignore Moore’s attacks, although she did point out that one of his aides used a fake name and state computer to obtain information from her office.

Perdue’s visit to Catawba County, including a talk with the Democratic Party’s Century Club, is expected to focus on gaining ground in 2008—and not on the primary battle.

ARTS AND ECONOMIC DEVELOPMENT: Representatives from the Western Piedmont Symphony recently attended a national conference for orchestras in Nashville, TN, and were impressed by the mayor’s focus on arts as a tool for economic development. The mayor said recruiting top companies, including the headquarters of CVS pharmacies and scores of others, came about because of the active arts communities. The city also boasts of a multi-million performing arts center.

Other Unifour area leaders have noted the success of Charleston SC and its strong commitment to the arts. Hickory and Catawba County’s arts program have expanded in recent decades due to generous patrons in the private sector. But public investments will be necessary to reach the next plateau and those investments will be linked to economic growth and jobs, according to the Nashville and Charleston models.

LENOIR-RHYNE COMPETITORS: “Which top university is investing over $225,000,000 in academics, study life, and facilities?” This question dominated a full-page advertisement in a leading Charlotte publication this week. Answer: High Point University. High Point now boasts of 2,700 students and is in the midst of a major campus expansion program. About 25 miles east is Elon University which has an enrollment of almost 6,000 graduate and undergraduate students with a law school to open next year in Greensboro. Twenty years ago, both were smaller than Lenoir-Rhyne, which recently has begun to expand its vision and outreach.

THOMPSON LEADS IN NC—Among Republicans, presidential candidate Fred Thompson leads in fund raising. He has pulled in $106,200 in Tarheel contributions, just ahead of $105,800 raised by Mitt Romney and $96,800 from Rudy Giuliani. John McCain trails with $66,700. These are third quarter reports.

Hillary Clinton leads Democrats, have raised $287,400 in the third quarter, followed by John Edwards with $265,250. Barack Obama trails with $98,750 in the Democratic field.

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It seems all but certain that Daniel Johnson, military hero, former UNC basketball player, and Hickory native will seek the Democratic nomination for the chance to oppose incumbent Republican Patrick McHenry. Steve Ivester of Hickory also has announced as a Democratic candidate.

Johnson is the son of the Rev. Wallace Johnson, minister at First Presbyterian Church in Hickory. He also is an attorney, now practicing in Raleigh.

McHenry, a Catholic, has galvanized the conservative evangelical core of the Republican Party to defeat moderate candidates in GOP primaries. Some of his animated television interviews which embarrassed mainstream Republicans can be seen on YouTube.com. Johnson’s campaign will attract fiscally-conservative Republicans and unaffiliated voters.

RECRUITING HEATS UP: Democrats are pushing forward to recruit 2008 candidates. In a rock-solid GOP region, this is not an easy task but national polls have given local party activists some hope. Reportedly a popular municipal officeholder is considering a bid for the state legislative seat held by ultra-conservative Mark Hilton. Hilton has announced a fund-raiser for Oct. 27 in Conover with Patrick McHenry as the featured guest.

LENOIR-RHYNE OUTREACH: The visit by nationally-famous author Walter Isaacson to Hickory was another example of how Lenoir-Rhyne College fits into the quality of life of the community. Isaacson spoke to top leaders of the business community at the LR Business Council luncheon. Some 450 persons gathered later Thursday evening at P.E. Monroe Auditorium to hear the articulate writer interviewed by WFAE personality Mike Collins. Most of the evening covered Isaacson’s books on Albert Einstein, Benjamin Franklin and Henry Kissinger. But the former editor of Time magazine and CNN News also expressed his views about today’s political climate.

In response to a question from the audience, Isaacson agreed that media is driving the divisiveness in U.S. politics. Commentators are focusing on “their audience” which can be either very liberal or far-right conservative. Politicians, too, are trying to galvanize their core constituencies instead of appealing to the voters in the middle, he allowed. His comments about the need to pull away from divisive politicians drew loud applause.

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Six articulate business leaders, including three developers, affirmed their commitment to Hickory and its region during a Chamber of Commerce Business Expo luncheon this week. But obstacles they face are access to investment capital and support from local government.

Glancing around the room, it was obvious that not one member of the Hickory City Council or Catawba County Board of Commissioners was present. That included Hickory Mayor Rudy Wright who first ran a campaign on jobs and economic development. The lack on interest on the part of elected officials was discouraging to some of the people in the room.

Harry Pilos, who projects include the Mosteller Mansion property and transformation of the old Lyerly-Elliott Hosiery Mill, said Hickory has all the ingredients to make a beautiful cake. “We just need a chef to make the cake….if we don’t grow, we die,” he said. He added that what is lacking is “synergy within the leadership of Hickory.”
Areas to the north, south, east and west of Hickory are growing. “We’re the hole in the doughnut and we can’t live on the air in the hole,” he insisted.

…BUT THE CREATIVE SPIRIT IS ALIVE: Despite the lack of interest on the part of elected officials, the presentations had an upbeat flair. Peter Zagaroli, who is developing the old Woolworth Building, affirmed his “passion” for downtown Hickory. He cited the Salt Block, the Hickory Community Theater, and the character of downtown which can be used more extensively. But again, he cited lack of private equity capital and government vision. He said potential clients recently visited Hickory city offices to inquire about a five-year plan for the city. There is none, he was told.

Zagaroli talked about a downtown hotel with extensive meeting facilities and residential complexes.

An animated Dale Mull of Flowers Baking Co. in Newton said the letter “C” should define Hickory’s challenges: change, commitment, compassion. He also warned that changes must be addressed for Hickory and the metro to move forward.

‘WE’RE MOVING AT HICKORY SPEED’: Andy Wells of Prism Development was the most outspoken in citing the challenges and opportunities, and he was unapologetic in his support for a public university in the Hickory Metro. He argued a 5,000-students campus would have a $100 million a year impact on the local economy. That would replace the manufacturing jobs that have been lost. He noted that Hickory Metro still has 33 per cent of its employment in manufacturing—three times the national average—and is still vulnerable to more job losses.

On his Viewmont Square project, he said it was originally a five-year plan, but now in its sixth year it is two-thirds complete. “We moving at Hickory speed,” he told an amused audience.

ANNOUNCING CEMS: While some were looking at life after manufacturing, CVCC President Garrett Hinshaw announced an initiative for the transition of manufacturing.
The Center for Emerging Manufacturing Solutions (CEMS) will be established on the Catawba Valley Community College campus in the building for the N.C. Center for Engineering Technologies. The engineering center will open in Spring 2008 with courses offered by Western Carolina University. Appalachian State University will serve as its fiscal agent for the University of North Carolina system.

CEMS will be created from the model established by the Hosiery Technology Center which last year had a $23 million economic impact for the hosiery and textile industries, Hinshaw reported. It will serve food, furniture, hosiery and textiles as a research and development center, with other services in employee training, marketing and testing.
Hinshaw’s presentation represented the vision other speakers insisted is vital to the future of the region.

AN EARFUL: As expected UNC system President Erskine Bowles and members of the UNC Board of Governors heard about rumblings for an UNC-Hickory. The stop in Hickory was part of the Board’s “Listening Tour” across the state.

Bowles and members of his board heard some persuasive arguments: “The Hickory Metro with its 400,000 residents is the only metro in the state without a state university”…”We need affordable access to higher education to regain our economy”…
“Driving out of the region is not an option for struggling young married people seeking a higher education….”

Lenoir-Rhyne College wasn’t even mentioned until reports of participants were presented. Catawba County Chamber of Commerce President Danny Hearn lauded the contributions of L-R to the life of the region. Jerry Phillips, an L-R graduate, said the days have long passed when it was possible to work part-time and pay for an L-R education. No one mentioned that the mission of Lenoir-Rhyne and the role a state institution could play are not in conflict. Nor was the estimated cost of $100 to $200 million dollars a year for another UNC campus discussed. Most of the area’s legislators have voted against the state budget and its appropriations to UNC over the years. Yet Sen. Austin Allran of Hickory, who consistently votes against state appropriations, appeared to voice his support for an UNC-Hickory. So did Ms. Kitty Barnes, chair of the Catawba Board of County Commissioners.

But the meeting wasn’t all about Catawba County and Hickory. Jim Dean, chair of the Watauga County Board of Commissioners urged establishment of a School for Math and Science in Western North Carolina. Mike Fulenwider, a Morganton businessman, said a university-level program to train entrepreneurs is needed in the region. Others urged more funding for ASU to graduate more nurses and teachers.
CLIMBING OUT OF THE PAST: The Hickory Metro doesn’t have a state higher education campus, but it also has another dubious distinction: it has the state’s lowest educational attainment level. Nationally, 27 per cent of adults have a college degree. In North Carolina, it is 24 per cent. In the Hickory Metro: only 16 per cent. these figures indicate the metro’s challenge in order to share in the state’s growth. Note: 62 per cent of the state’s growth since 2001 has occurred in only four North Carolina counties. Catawba is not among them.

PERDUE CAMPAIGN: Lt. Gov. Beverly Perdue this week met with foothills area business and civic leaders at the home of Mike Fulenwider in Morganton. Among those attending the regional kickoff for her gubernatorial campaign were Mr. And Mrs. Clem Geitner, Mr. And Mrs. Hugh Boyer, Ann Gaither, Buck Shuford, Lyndon Helton, Oliver Noble, Steve Thomas, Paul Fogleman III, Dan St. Louis and Mr. And Mrs. Paul Fogleman Jr. Burke County notables included Rep. Walter Church, Valdese City Manager Jeff Morse and Mr. And Mrs. Jim Richardson.

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