2002 - 2005 Accomplishments

• e-NC created
• 7 communities awarded Entrepreneurial Incubator Provisional grants through CDBG to improve infrastructure for new business activities
• 21st Century Communities program underway in 19 counties
• Additional state funding for rural infrastructure attained

 
Next Steps

• Prioritize entrepreneurship actions
• Fund 21st Century Communities program
  

Along with Governor Easley and the General Assembly, the following organizations are partners in the Economic Development Board's Rural Development Initiatives:

Boards and Commissions:

• State Infrastructure Council
• The North Carolina Utilities Commission
  
   
  

Public Organizations and Educational Institutions:

• The North Carolina Department of Agriculture
• The North Carolina Department of Commerce
• The North Carolina Department of Environmental and Natural Resources
• The North Carolina Department of Transportation
• The University of North Carolina
• The North Carolina Community College System
• The North Carolina Cooperative Extension Service
  

Private and Non-Profit Organizations:

• e-NC (The Rural Internet Access Authority)
• The North Carolina Rural Economic Development Center
• Ag Advancement Consortium
• The North Carolina Association of County Commissioners
• The North Carolina League of Municipalities
• The North Carolina Institute for Minority Economic Development
• North Carolina Regional Partnerships
  
  .

Explore Strategies that Would Increase Localities’ Ability to Pay for Infrastructure and Services. 

Action 5.1.1: Evaluate funding formulas that utilize ability to pay (ATP) measures and suggest how the General Assembly and local governments can streamline and alter programs with problematic funding formulas.

1. Responsibility: Department of Commerce (lead agency), Rural Center, the School of Government and local and state economic developers
2. Deadline: April 2006
3. Funding Source: existing resources
4. Expected Outcome/Return on Investment: Revised funding formulas with enhanced ATP measures

2006 Update

This action step has not yet been completed.

Action 5.1.2: Encourage the Local Government Commission to provide outreach and technical assistance to municipal governments through cash management workshops, fiscal management assessments, and recommendations for strengthening accountability and fiscal controls.

1. Responsibility: Local Government Commission, the School of Government
2. Deadline: June 2006
3. Funding Source: existing resources
4. Expected Outcome/Return on Investment: Delivery of technical assistance and knowledge to local governments

2006 Update

This action step has not been implemented.

Action 5.1.3: Increase the capacity of local governments to effectively communicate with the General Assembly regarding needs and ability to pay, and increase awareness of existing funding programs such as CDBG and others.

1. Responsibility: League of Municipalities, Association of County Commissioners, Department of Commerce
2. Deadline: ongoing
3. Funding Source: existing resources
4. Expected Outcome/Return on Investment: Higher priority for need improvements in funding decisions

2006 Update

The Small Cities Community Development Block Grant (CDGB) program was granted $1,750,000 in funds for fiscal year 2006/2007 to help support the construction and expansion of entrepreneurial incubator facilities in small cities and towns.

Action 5.1.4: Increase the capacity of major local investors to communicate with the League of Municipalities, Association of County Commissioners, the School of Government, and Local Government Commission about fiscal management difficulties that are encountered when working with local governments.

1. Responsibility: Department of Commerce, Rural Center, USDA Rural Development, local and state economic developers
2. Deadline: April 2006
3. Funding Source: existing resources
4. Expected Outcome/Return on Investment: Roundtable for identifying difficulties and expediting training and technical assistance for local governments

2007 Update

No action has been taken on this step

Provide comparable infrastructure to make rural North Carolina competitive for economic development.

Action 5.2.1: Increase rural competitiveness and sustainability by creating a dedicated source of funding for rural water and sewer improvements, updating and maintaining the existing rural water and sewer database to assist with local planning, and establishing an incentive program for rural local governments to support regional water and sewer initiatives. Designate a significant portion of the water and sewer funds for initiatives that are regional in scope and directly support the broader “economic development center.”

1. Responsibility: Rural Center, Department of Commerce
2. Deadline: 2008
3. Funding Source: General Assembly, CDBG
4. Expected Outcome/Return on Investment: Better sewer and water systems in rural areas

2007 Update

The North Carolina Economic Infrastructure Program received $13.44 million in appropriation funds in FY 04-05. Eligible applicants are units of local government in North Carolina. The Program will assist a unit of local government by funding up to $10,000 per job created, for up to one half of water and sewer infrastructure costs, or a maximum of $500,000, in projects that result in the creation of private sector jobs. Jobs must be full time, and must pay at least minimum wage. A local match of 5% of the total cost of the infrastructure is required.

 

Community Development Block Grant money also may be used for sewer and water system improvements.

 

The RuralCenter’s WATER 2030 Initiative completed an extensive assessment of the state’s water resources and engaged state leaders and citizens in the discussion of water issues and the development of a statewide water management plan. (ongoing)

 

The investment of approximately $9 million in 34 water and sewer projects created 1,466 new, full-time jobs, involving 44 businesses in 27 counties.  With the FY06 investment, the RuralCenter helped to create 403 jobs.  801 customers will benefit from new or improved sewer service.  One community will create new jobs due to a sewer line extension in that community.
 

Action 5.2.2: Provide natural gas service to four remaining unconnected counties in North Carolina.

1. Responsibility:  Department of Transportation
2. Deadline:  2010
3. Funding Source:  Highway Trust Fund/Legislature/Dept. of Transportation
4. Expected Outcome/Return on Investment: Increased access and more realistic opportunities for economic development.

2006 Update

This action step has not been completed.

Action 5.2.3: Increase access to rural areas by funding and implementing the NC Department of Transportation’s 25-year Statewide Transportation Plan. Prioritize the completion of interstate corridor projects that help connect communities in rural areas to regional economic centers.

1. Responsibility:  Department of Transportation
2. Deadline: 2010
3. Funding Source: Highway Trust Fund/Legislature/Dept. of Transportation
4. Expected Outcome/Return on Investment: Increased access and more realistic opportunities for economic development

2007 Update

The Strategic Highway Corridors Initiative, adopted by the Department of Transportation as part of their 2004 Statewide Transportation Plan, is an ambitious plan to improve transportation infrastructure in critical areas. When finished, fifty-five critical highway corridors will efficiently transport people and goods across the state. This enhanced transportation system will better integrate rural counties with the rest of the state.

Action 5.2.4: Continue to ensure that rural communities have affordable access to information/Internet technology and other related advances.

1. Responsibility: RIAA and the Department of Commerce
2. Deadline: Dec. 2007
3. Funding Source: RIAA and the Department of Commerce
4. Expected Outcome/Return on Investment: Eliminate the digital divide and increase the number of rural citizens who have access to high-speed Internet technology from 77 percent to 95 percent by 2008

2006 Update

Seventy-five percent of rural households in North Carolina have access to high-speed internet service. Senate Bill 1741 in 2006, reaffirming North Carolina’s commitment to improving economic opportunity and quality of life by addressing technology needs. The bill extends the work of the e-NC Authority for five additional years, from Jan. 1, 2007 through Dec. 31, 2011.

 

HB 2645 (SB 1964) Internet Data Center Facilities Sales Tax Exemption: This bill makes large Internet data centers in Tier 1-3 eligible for a sales tax exemption on purchases of electricity and equipment.

Build Social Capacity to enhance community livability.

Action 5.3.1: Continue promoting citizen involvement in the design and implementation of economic development projects by providing statewide access to programs that support broad-based collaboration. The Civic Ventures Fund, which is offered by the Rural Center, is an example of an existing program that facilitates forums in which different interest groups work together on specific projects aimed at overcoming a community’s economic challenges. The Fund is sponsored by the Appalachian Regional Commission, and thereby limited to communities within the Arc’s territory.  Establishment of the South East Crescent Authority (SECA) could provide similar resources and support to North Carolina communities that are outside of the Appalachian region. Use these forums to establish a statewide dialogue that builds a vision of the “regional center” and how it fosters more comprehensive and sustainable economic development opportunities and prosperity.

1. Responsibility: Department of Commerce and Rural Center
2. Deadline:  2006
3. Funding Source: General Assembly
4. Expected Outcome/Return on Investment: Innovative approaches to economic development in rural areas.

2006 Update

An extensive effort has been made to include individuals and communities in state economic development initiatives. The Small Town Main Street Program, the 21st Century Community Program, CDBG projects, and several Rural Center programs have intensified focus on local involvment in rural development.

Action 5.3.2: Continue promoting participative and comprehensive approaches to economic development by making a refined 21st Century Communities Initiative available to 50 percent of rural communities.

1. Responsibility:  Department of Commerce
2. Deadline: 2007
3. Funding Source: General Assembly and the Department of Commerce
4. Expected Outcome/Return on Investment: Begun in 2001, the 21st Century Communities initiative creates collaboration between DOC and counties affected both by the recent national economic slowdown and by long-term changes in the state's economic base. Improved coordination among the public, private and non-profit sectors in economic development planning projects

2007 Update

Through 2006, the Department of Commerce’s successful 21st Century Communities Program assisted 20 counties across North Carolina. Additional funds of $244,699 dollars were appropriated by the General Assembly to hire 3 full time 21st Century Community planners to help expand this program across the State. In January of 2007 the Department designated 6 new 21st Century Communities, bringing the total number of counties to 26. The new communities have completed their initial orientation process, and community level economic development planning will begin in later this spring.

 

In 2007, those planners were hired and the program expanded to six more counties, five of which are Tier I. It is anticipated that additional counties will be added every year and reach the goal of 50% of rural communities by 2011.

Action 5.3.3: Emphasize technical assistance to enhance the organizational capacity of rural local governments to engage in economic development. Programmatic efforts would include infrastructure, small town development (e.g. the Main Street Program and the Small Towns Development Program) and leadership development. Establish a training program that include a focus on defining the regional center concept and demonstrates the benefits of building the region, as opposed to the town or county.

1. Responsibility: Department of Commerce and Rural Center
2. Deadline: 2006
3. Funding Source:  Existing resources
4. Expected Outcome/Return on Investment: More sustainable economic development in rural communities.

2007 Update

The Division of Community Assistance's Offices of Urban Development and Community Planning continue to provide technical assistance to enhance the economic development capacity of small towns through community development programs. The Division also has five regional planning offices across North Carolina daily providing technical assistance in downtown revitalization, strategic and land use planning, and growth management to primarily small rural communities. Often, projects are done jointly with other partners such as the Councils of Government and the Rural Center.

Action 5.3.4: Develop a core set of community livability/readiness indicators that can be used to inventory and benchmark rural communities within the context of regional centers

1. Responsibility: Department of Commerce Division of Policy, Research, and Strategic Planning
2. Deadline: June 2005
3. Funding Source:  Existing resources
4. Expected Outcome/Return on Investment: a more consistent basis for internal and external assessment of rural development within a regional context.

2006 Update

The Division of Policy, Research, and Strategic Planning is in the process of identifying resources to be used for this project.

Stimulate and support entrepreneurial activities

Action 5.4.1: Create and support a Micro enterprise State Association/Network that would enhance existing agencies’ capacity to serve rural communities and conduct research on the impact of small business on the state’s economy.

1. Responsibility: Department of Commerce, North Carolina Institute for Minority Economic Development and the University of North Carolina
2. Deadline: Ongoing
3. Funding Source: Public and Private Sector sources
4. Expected Outcome/Return on Investment: Increased capacity at the local and state levels to spur entrepreneurial activity.  Standardization for service delivery and continued data collection to monitor impact

2006 Update

This action step has not been completed.

Action 5.4.2: Utilize technology applications to make entrepreneurial training and assistance available on-line.

1. Responsibility: Community Colleges, the University of North Carolina, Rural Internet Access Authority, and the Department of Agriculture
2. Deadline: 2005
3. Funding Source: Foundations or Private Sector
4. Expected Outcome/Return on Investment: Increase reach and options for education and technical assistance leading to increased entrepreneurial and small business activity.

2007 Update

In 2006 the Department of Agriculture along with other state agencies hosted a series of entrepreneurial and business development training sessions for agribusiness service providers. These training sessions, entitled “Creating Business Opportunities,” drew approximately ninety individuals from various regions around the state. A web site was developed as a training tool and resource guide for future agribusiness entrepreneurs.

 

The NC Rural Center provided community leader training, Energizing Entrepreneurship, in the West during June 06 and in the East December 06.  They have now trained nearly 150 participants from rural communities across the state.The Rural Center also developed a Business Resources Directory and a companion “Where To Go For What” guide for small businesses and entrepreneurs in NC on resources for start-ups, established businesses and those in the growth phase. In addition, the Rural Center executed 2007 Entrepreneurship Policy Summit with 565 participants with an announcement of the new legislative standing committee on Commerce, Small Business and Entrepreneurship.

Action 5.4.3: The Department of Public Instruction should continue promoting entrepreneurship as a viable career pathway across all 11 established pathways and make youth entrepreneurship training programs available to all students through on-site and on-line instruction. The Department of Public Instruction should explore the feasibility of providing seamless entrepreneurial training from K-12 to expose students at an early age to entrepreneurship as a potential career/life path.

1. Responsibility: Department of Public Instruction the University of North Carolina, and the Community College System
2. Deadline: Ongoing
3. Funding Source:  Public and Private Sector Funding
4. Expected Outcome/Return on Investment: Youth workforce prepared for jobs in rural North Carolina.

2006 Update

This action step is being undertaken.

Action 5.4.4. Enlist entrepreneurial service providers to participate on Rapid Response Teams that work with displaced factory workers. 

1. Responsibility: Department of Commerce, the University of North Carolina, and the NC Institute for Minority Economic Development
2. Deadline: Ongoing
3. Funding Source: Existing Resources
4. Expected Outcome/Return on Investment: Increase the number of resources and choices that displaced workers have available for transitioning back into the work place

2006 Update

This action step is being undertaken.

Action 5.4.5. Continue providing financial institution lending for business start-ups, expansions and modernization through additional investments in the NC Rural Center’s Capital Access Program and Department of Commerce programs. 

1. Responsibility: General Assembly, Rural Center, and Department of Commerce
2. Deadline: Ongoing
3. Funding Source: Public and Private Sector Funding
4. Expected Outcome/Return on Investment: Increased entrepreneurial activity and business/job retention statewide

2007 Update

The North Carolina Rural Center has taken measures to provide financial institution lending for local businesses. As part of an ongoing effort, the Rural Center runs the Capital Access Program - which has made over $41 million available in covered loans to serve approximately 800 businesses and to create and retain over 7,000 jobs since its inception in October 2002.

 

DOC’s Small Cities Community Development Block Grant Program (CDBG) has $1,000,000 in funds for 2007 for a new program to aid in the growth and expansion of small businesses/entrepreneurs in the State’s small cities and towns.  Another $1,000,000 in funds has been requested in the draft CDBG Investment Plan to continue this economic development program in 2008.

 

The NC Rural Center continued a program with the NC Department of Commerce to support rural business incubation as a tool to strengthen economic development through entrepreneurship.  There were seven new sites awarded CDBG money in 2006.

Utilize agriculture and natural resources for economic development.

Action 5.5.1: Coordinate the utilization of existing public and private infrastructure and resources to assist entrepreneurs in the production of value-added agricultural commodities and products.

1. Identify existing public and private infrastructure and resources
2. Develop a mechanism to assemble available resources
3. Develop and pilot an information resource center in North Carolina

1. Responsibility: the Department of Agriculture, the Department of Commerce, Rural Center, Regional Partnerships, Community College System, the University of North Carolina, Cooperative Extension Service and SBTDC
2. Deadline: January 2006
3. Funding Source: existing sources: NCDA&CS, the Department of Commerce, Ag Advancement Consortium, Rural Center, USDA and other grants
4. Expected Outcome/Return on Investment: Enhanced ability to provide quality assistance to entrepreneurs establishing value-added agricultural and natural resources based businesses.

2006 Update

In 2006 the Department of Agriculture along with other state agencies hosted a series of entrepreneurial and business development training sessions for agribusiness service providers. These training sessions, entitled “Creating Business Opportunities,” drew approximately ninety individuals from various regions around the state. A web site was developed as a training tool and resource guide for future agribusiness entrepreneurs.

 

In collaboration with other agencies, the Department of Agriculture and the Department of Commerce continue to provide assistance to agricultural products processors in rural North Carolina. The 2006 General Assembly approved a special provision that directs the Department of Commerce to study and report on agribusiness funding and programs as a means of assessing the economic potential of agriculture-based industry in North Carolina. In recognition of the potential of agriculture-based tourism in rural areas of North Carolina, the Department of Agriculture has maintained an agritourism office in Raleigh since 2003.

Action 5.5.2. Continue to provide business, marketing and technical assistance to entrepreneurs in value-added agricultural commodities, natural resources and products.

1. Provide product development facilities, technology and regulatory compliance training
2. Provide business development assistance and training
3. Locate flexible debt financing for entrepreneurs after start-up
4. Provide marketing promotions to create and expand markets
5. Develop a venture fund to assist in establishing or expanding businesses

1. Responsibility: the Department of Agriculture, the Department of Commerce, the Rural Center, the University of North Carolina and the Community College System, other non-profit and for-profit entities
2. Deadline: Ongoing
3. Funding Source: existing sources: NCDA&CS, NC Department of Commerce, Ag Advancement Consortium, Rural Center, USDA and other grants
4. Expected Outcome/Return on Investment: Build new businesses to help diversify and increase agricultural and natural resource economic development and increase this business base

2006 Update

As an emerging catalyst for rural economies, agriproduct incubators continue to be developed and supported at North Carolina’s community colleges. In 2006 the Department of Agriculture, working primarily with Advantage West, established a value-added food business incubator in Asheville. As a result of this project more small food business incubators are being planned and have opened throughout North Carolina. The Department of Commerce, through the Community Development Block Grant program, is supporting a kitchen incubator in Ashe County and another incubator in Pender County.

 

In 2006 the Department of Agriculture along with other state agencies hosted a series of entrepreneurial and business development training sessions for agribusiness service providers. These training sessions, entitled “Creating Business Opportunities,” drew approximately ninety individuals from various regions around the state. A web site was developed as a training tool and resource guide for future agribusiness entrepreneurs.

 

In collaboration with other agencies, the Department of Agriculture and the Department of Commerce continue to provide assistance to agricultural products processors in rural North Carolina. The 2006 General Assembly approved a special provision that directs the Department of Commerce to study and report on agribusiness funding and programs as a means of assessing the economic potential of agriculture-based industry in North Carolina. In recognition of the potential of agriculture-based tourism in rural areas of North Carolina, the Department of Agriculture has maintained an agritourism office in Raleigh since 2003.

Action 5.5.3. Assist additional value-added agricultural products processors with expanding or locating in rural areas of North Carolina.

1. Responsibility: the Department of Agriculture, the Department of Commerce and the regional partnerships
2. Deadline: 2008
3. Funding Source: NCDA&CS, Department of Commerce, regional partnerships, Grants
4. Expected Outcome/Return on Investment: Create new jobs while increasing rural income and state revenues

2006 Update

Agricultural processing and manufacturing activities are eligible for 3J tax credits. As an emerging catalyst for rural economies, agriproduct incubators continue to be developed and supported at North Carolina’s community colleges. In 2006 the Department of Agriculture, working primarily with Advantage West, established a value-added food business incubator in Asheville. As a result of this project more small food business incubators are being planned and have opened throughout North Carolina. The Department of Commerce, through the Community Development Block Grant program, is supporting a kitchen incubator in Ashe County and another incubator in Pender County.

Action 5.5.4. Continue to support the establishment of satellite agri-products incubators in rural areas of the state at existing facilities such as community colleges and county business incubators and continue to advocate for program funding

1. Responsibility: Department of Agriculture, the Department of Commerce, Regional Partnerships, the universities and the Community College System
2. Deadline: Ongoing
3. Funding Source: Existing Resources, Grants
4. Expected Outcome/Return on Investment: increased access to knowledge, business skills and business development assistance necessary for success for agricultural and natural resources economic development

2006 Update

As an emerging catalyst for rural economies, agriproduct incubators continue to be developed and supported at North Carolina’s community colleges. In 2006 the Department of Agriculture, working primarily with Advantage West, established a value-added food business incubator in Asheville. As a result of this project more small food business incubators are being planned and have opened throughout North Carolina. The Department of Commerce, through the Community Development Block Grant program, is supporting a kitchen incubator in Ashe County and another incubator in Pender County.

Action 5.5.5. Continue to develop and implement an e-agriculture strategy to increase the rate at which farm operators and employees utilize Internet resources.

1. Develop a web-based portal for channeling timely information to farm operators.
2. Provide access to resources & information needed for value-added business development.
3. Target innovative methods for increasing farm operator and employee Internet usage

1. Responsibility: Rural Internet Access Authority, Department of Agriculture, Community College System, Cooperative Extension Service
2. Deadline: 2008
3. Funding Source: existing sources: RIAA, Ag Advancement Consortium, Rural Center, NCDA&CS
4. Expected Outcome/Return on Investment: Increased rate of farm Internet usage, increased capacity to provide information to farm operators and producers via the Internet, increased capacity for producers to access federal programs on the web.

2006 Update

The Rural Internet Access Authority has made significant strides to ensure that people in rural areas have access to high-speed internet services. Currently 75 percent of rural households in North Carolina have access to high-speed internet services. This is a considerable improvement over 2002 numbers. In 2006 the Department of Agriculture along with other state agencies hosted a series of entrepreneurial and business development training sessions for agribusiness service providers. These training sessions, entitled “Creating Business Opportunities,” drew approximately ninety individuals from various regions around the state. A web site was developed as a training tool and resource guide for future agribusiness entrepreneurs.

Action 5.5.6. Continue to promote the diverse roles of agriculture in our economy, culture and environment and agriculture’s contributions to improving the quality of life.

1. Promote to the consumer the farm operator’s role as steward of the environment and the opportunities for natural resource-based tourism in rural settings.
2. Advocate for federal and state incentive programs targeted at farm operators to conserve, preserve and restore wildlife habitat, wild areas, streams and rural landscapes.

1. Responsibility: Department of Agriculture, NCDOC Division of Tourism, Ag Advancement Consortium, Cooperative Extension Service, Wildlife Resources Commission
2. Deadline: Ongoing
3. Funding Source: existing sources: NCDA&CS, Ag Advancement Consortium, Wildlife Resources Commission
4. Expected Outcome/Return on Investment: increase producers’ margins through participation in federal conservation programs, increased incentive for farmland preservation and wildlife habitat resulting in maintenance of rural landscape, improved climate and increased opportunity for agri-tourism operations (including increased on-farm marketing), raised awareness of positive contribution of agriculture to North Carolina’s economy, environment and culture.

2006 Update

In an effort to promote environmental sustainability, the Department of Agriculture continues to offer a variety of programs that support alternatives for farm families who wish to practice farmland preservation.  Agriculture Commissioner Steve Troxler has identified himself as an advocate of federal and state incentive programs targeted at farm operators who conserve and restore wildlife habitats, streams and rural landscapes.In recognition of the potential of agriculture-based tourism in rural areas of North Carolina, the Department of Agriculture has maintained an agritourism office in Raleigh since 2003.

Action 5.5.7. Encourage state economic development agencies to allocate significant additional points in funding formulas for projects that commit to the sustainable use and protection of critical natural resources.

1. Responsibility: Department of Commerce
2. Deadline: Ongoing
3. Funding Source: existing sources
4. Expected Outcome/Return on Investment: projects that sustain the rational use of rural natural resources are encouraged, rural communities benefit from the wise use of natural resources

2006 Update

This action step is underway.