Hickory Area News
Courtesy of the Hickory Daily Record and Charlotte Observer
Why locate in Catawba County?
Expert says area has much to offer prospective companies.
BY ANDREW MACKIE - HICKORY DAILY RECORD - Thursday, July 17, 2008
HICKORY - A .300 batting average is the benchmark of success for baseball players. In economic development, a community is fortunate to land one in 10 projects for a 100-average.
“Batting 300 is not even in the realm of possibility in economic development,” said Mark Sweeney, a senior principal with McCallum Sweeney Consulting.
While a major new business with hundreds of jobs and millions in investment draws attention, the vast majority of economic development projects fail to come to fruition.
Sweeney outlined the economic development game Wednesday at the Catawba County Economic Development Corp.’s annual meeting with its theme of “The Art of the Deal.”
The Greenville, S.C.-based Sweeney assists companies in finding appropriate locations for their businesses.
Catawba County holds several strengths, he said, notably its proximity to Charlotte. In economic development, the larger the community, the more notice one will receive. Catawba County should market its accessibility to Charlotte through Interstate 40 and U.S. 321, Sweeney said.
“Don’t be afraid to link yourself to Charlotte,” he said. “It will be a strength.”
In contrast, the perception by some that Hickory is in the mountains and relatively separated from Charlotte is a challenge to overcome.
Cultural diversity in recreation and the arts also play a large role in the attractiveness of an area and serve as another reason to link to the closeness of Charlotte.
Another positive, Sweeney said, is the growth of manufacturing on the U.S. 321 corridor. Overall, Catawba County offers much to prospective companies.
“You have a real future here,” Sweeney said. “You’re going to continue to see manufacturing opportunities and they’ll be substantial.”
Tax incentives are a necessary part of luring companies, he said. Free land with graded sites and existing utilities is the norm.
“You are in the major leagues of economic development incentives in the Southeast,” Sweeney said. “These are serious decisions on both sides of the table. You won’t land many projects if you don’t offer incentives.”
Sweeney urged the several dozen government officials of the more than 200 people in the audience to join together in a planned multi-jurisdictional park off U.S. 321. Splitting the investment and revenues of such a project shows local cooperation and makes the area more competitive for larger developments, Sweeney said.
Catawba County has been able to lure many companies in the past year, diversifying the region’s economic base in the process, said Catawba County Economic Development Corp. President Scott Millar. That process began with the manufacturing sector several years ago and now includes other areas.
“We feel like we’re doing a good job of diversifying the economy here in Catawba County,” Millar said.
RECENT ANNOUNCEMENTS INCLUDE:
• Convergys announced plans in June to locate a 450-person call center in the former Joan Fabrics office in Hickory.
• Graystone Ophthalmology and Northwest Oncology opened new medical offices in McDonald Crossing business park off Tate Boulevard.
• Sutter Street, a division of Williams Sonoma, announced in April plans to create 820 jobs in Hickory.
• Target completed grading and shell work at its 1.6 million-square-foot facility in Newton off U.S. 321 and N.C. 10.
55 New Jobs Coming to Lenoir
By JOHN DAYBERRY - Hickory Daily Record - July 2, 2008
LENOIR -- A Virginia-based pharmaceutical company is opening a plant here, creating 55 new jobs. Galexe Pharma Sciences, a subsidiary of Excela PharmSci Inc., is investing $8.6 million in the plant over the next three years.
North Carolina helped attract the plant with a $250,000 grant from the One North Carolina Fund, which provides financial assistance through local governments to attract business projects that will stimulate economic activity and create new jobs.
Galexe plans to purchase the former Cytosol Inc. building at 1325 William White Place, off Nuway Circle. The 19,135-square-foot building, which has been vacant for nearly four years, will be remodeled and expanded to house 55 new employees.
Phanesh Koneru, president and chief executive officer, intends to locate the company headquarters at the site, as well as use the space for manufacturing and research and development. Among Galexe’s products are eye drops and injectable medications.
The new jobs will include a management team, research scientists, research and manufacturing employees, as well as staff for facilities and maintenance.
Wages for the new positions vary by job experience and responsibilities, but the overall average pay will be $58,455 plus benefits. Average pay in Caldwell County is $28,184.
Koneru is hopeful many of the employees can be hired locally.
“We are enthusiastic about the future of Galexe as well as the positive contribution we hope to make to the community,” he said.
Galexe considered opening the plant in India or in Virginia before choosing Lenoir.
Koneru said the affordable cost of living in North Carolina, economic incentives, an available pool of talent and the region’s mild climate were all factors in Galexe’s decision to locate in Lenoir.
Caldwell County officials welcomed the announcement.
“We need these jobs and many more like them,” said Lenoir Mayor David Barlow.
“If we are successful in recruiting industries of this type, we will continue to see improvement in our economy. When you add 55 good-paying jobs, it is bound to have an effect.”
The North Carolina grant requires a match from Caldwell County and Lenoir of $250,000.
The local match, which has to be approved in a public hearing by both the county and city, is based on the anticipated increased tax base provided by the expansion of the facility and new equipment in the plant.
The company is also seeking a grant from the North Carolina Rural Economic Development Center to help with the renovations to the building. The NC Rural Center’s mission is to develop, promote and implement sound economic strategies to improve the quality of life of rural North Carolinians.
New to N.C., Solar Heating System Saves More than 90 percent of Water Heating Costs
By Julie N. Chang - Hickory Daily Record - June 29, 2008
MORGANTON - The installation of their new solar water heating system is set to save the McNallys over 90 percent in water heating bills.
Stephen and Judy McNally of 205 Tate St. decided to install the solar heating system because of their concern for the environment and to decrease heating costs. Judy said with the savings the couple would see their investment return in approximately three years.
Combined with their water boiler, the system serves the second purpose of supplementing the heating system for the house, Judy said.
Stephen, a licensed general contractor, said he started researching solar water heating systems over a year ago. Stephen said he chose the Genersys PLC system because of the construction quality of the solar panels, the two-year warranty and the company's swift and direct involvement in the process.
Michaela Wheeler, of Slovakia, a technical manager for Genersys, was on the scene Friday as the McNallys installed the solar panels.
As Genersys expands to throughout the U.S., Wheeler is training Stephen and brought two other trainees to learn the installation process.
Wheeler said the solar panels heat antifreeze, which pumps through the heating system and exchanges heat in the hot water tank. The McNallys' home is the first in North Carolina to have this particular solar water heating system, Wheeler said.
Stephen said the Genersys system eliminates a lot of deficiencies found in other heating systems. For example, problems with most systems require assistance from technicians rather than relying solely on homeowner maintenance.
As a contractor, McNally said he hopes to install these systems throughout the area with his company, LGM Solar Development.
McNally explained that the solar panels do not have to be affixed to the roof of the home, but can collect solar energy from atop the garage roof or in the garden.
The cost of these systems range from $8,000 to $12,000, McNally said.
Busy Builders -
New Construction Going Up Across Hickory
BY ANDREW MACKIE - Saturday, June 14, 2008 - Hickory Daily Record
HICKORY -- Construction crews are hard at work around Hickory with a new hotel and three new restaurants. More development is on the way, including a retail/condo building in Viewmont and another hotel planned.
A look at some of Hickory’s latest developments:
Hotels: One under construction, another planned, two will change names
Construction will begin soon on a new Hampton Inn adjacent to the parking lot for Carrabba’s Italian Grille, near the front of the Hickory Metro Convention Center.
The Lail family, which owns several hotels in the Hickory region, is developing the property. The 5-story, 121-room building will include an indoor pool, breakfast area and meeting room. Guest rooms will offer a flat screen television and high-speed Internet service. A summer 2009 opening is expected for the $10 million project. The existing Hampton Inn, located a few hundred yards away, will be converted into another hotel brand.
Meanwhile, a Hilton Garden Inn hotel is planned adjacent to the existing Courtyard by Marriott and behind J & S Cafeteria. The hotel is in the design stage. Construction will begin near the end of this year. The Garden Inn is a Hilton upper-level-price hotel targeted at business travelers. The hotel will likely be four stories and contain between 100 to 140 rooms. “We’re excited about this opportunity,” said Brad Lail. “It is designed for the business traveler who wants more of a full-service experience.” A 2010 opening is projected.
Finally, the Holiday Inn Select on Lenoir-Rhyne Boulevard will change to the higher-end Crown Plaza hotel next month. Renovations over the past few months involved public areas, all guest rooms and communications systems upgrades. “This hotel will become the market leader,” Lail said.
Restaurants: Three expected to open in July
Flat Rock Grille will soon greet customers at the old - and at one time extremely popular - McGuffey’s Grill and Bar location on U.S. 321 between Arby’s and Lowes Foods. Construction is running about 60 days behind original schedules. The building’s interior was gutted and remodeled. The main entrance will face U.S. 321. A mid-to-late July opening is planned. The restaurant will offer mid-priced casual dining with an eclectic menu that includes fresh fish, prime beef, fresh salads and soups. McGuffey’s Grill and Bar operated at the site from the early 1990s to 2006.
Across town on Lenoir-Rhyne Boulevard, a new Starbucks Coffee will open within weeks.
The 8,300-square-foot building will include a drive-through window. Starbucks purchases and roasts high-quality whole bean coffees and sells them along with fresh, rich-brewed espresso beverages, pastries and coffee-related accessories. The store will be Hickory’s fourth.
A Cook Out restaurant originally planned as part of a redevelopment of the property will not be built. There is, however, a new Cook Out being built in Hickory at the former Circus Hall of Cream location on N.C. 127. Cook Out serves hamburgers, chicken sandwiches, hot dogs and barbecue. The Greensboro-based chain is known for low prices and late hours, making it popular with young people. Officials expect the restaurant to open sometime in July.
Other developments: CarMax, FedEx, and More
CarMax will open its first location in the region this fall at 19th Street Drive, SE, near the Verizon Wireless store on U.S. 70, SE. The used-car superstore is known for high quality cars and low pressure selling tactics. The company has eight locations in North Carolina, including three in Charlotte and one in Winston-Salem.
Moving from used cars to package deliveries, FedEx will open a new location in the Fairgrove Business Park. The internationally-known company plans a $5 million expansion of its local FedEx ground division operations. The new location will be 109,000-square-feet and employ about 120 people, double its current work force, at its Conover West Business Park location.
Finally, developer Pete Zagaroli plans a $6 million redevelopment at 12th Avenue, NW, off N.C. 127. Zagaroli will renovate a restaurant on the 2.3-acre site and construct two adjacent 30,000-square-foot buildings. Retail stores will comprise the first floor of both buildings. Ten upscale condominiums are planned for the second floor. The condos will sell for $300,000 to $400,000. The project will go to the Hickory Regional Planning Commission on June 25 for final approval. Zagaroli expects the entire development to be complete by fall 2010.
Lenoir Receives All-American City Title
Also, entrepreneurs at West Caldwell High have quite the project.
Charlotte Observer - June 22, 2008 - BETTY STONE
When the last Caldwell column went to press, the Lenoir delegation to the All-America competition was returning from Florida -- victoriously.
Yes, Lenoir has received the All-American City title.
The 42-member team returned to a surprise welcome by members of the community with a live band. The celebration blended with Fifties Night at the Lenoir Cruise-In on June 6.
Lenoir was one of 16 cities selected for the competition. Suspense built since Lenoir was the last city announced at the awards banquet. It was ranked first.
Congratulations to the team and to the city.
Bluegrass Farmers Market
A new and different farmers market opened in downtown Lenoir, at Hogwaller Stage next to the county office building. Music is a key part of this market, in addition to locally grown produce. And craftsman may also vend, but no mass produced items are permitted.The Lenoir Bluegrass Farmers Market opened June 14. It's scheduled to be open 7 a.m. to noon Saturdays, with music beginning at 10 a.m.
Broadcasts of bluegrass music from the market can be heard live on 1080 AM Foothills Radio Group's Bluegrass Station WKGX.
A separate operation, the Lenoir Farmers Market that sets up in the Lenoir main library parking lot continues on Saturdays from 6 a.m. to noon.
West Caldwell High
"Rocking Warriors Design presents handcrafted needle felted treasures!"
That is a quote from the marketing campaign from a new production company based at West Caldwell High School.
The occupational tract in the Exceptional Children's department at the school developed a school-based enterprise for students to learn business skills. They created a school-based factory in which to create and market a product.
Students are required to earn 300 hours in school-based work and 240 hours in community-based work hours.
This past school year, the craft of needle felting became the means of production. For this fiber art, barbed felting needles are used to sculpt wool fiber for 3D results. Unlike felting knitted projects, no water is used in needle felting.
The students chose the name Rocking Warriors Design. Male and female students brought their varying abilities to the different tasks to be done in the factory. Jobs included creating the product, sorting supplies, inventorying, labeling, pricing and marketing.
As a part of the marketing theme, each item produced was named and given a birth date by the person who created the item. Prices vary, depending on the detail, materials and time involved in making each product.
The Rocking Warrior Designs are available for purchase through Satie's Gift Shop in the Caldwell Arts Council.
Details and orders: Meg Shoupe, mshoupe@caa.k12.nc.us.
Special sale at Satie's
Speaking of Satie's Gift Shop, a special sale will take place in July. All items displayed on the porch will be offered at half price.
The sale is 9 a.m. to 2 p.m. July 19. There is a Preview Party the night before from 6 to 9 p.m.
And here is an additional opportunity: "art by the inch." This offering is "a truly unique way to buy an original painting in any size you choose," according to the Arts Council Web site.
Visitors should be aware that there will not be an exhibition in the main gallery for July.
All sales of these original pieces by local artists and craftsmen benefit the Caldwell Arts Council.
Satie's Gift Shop is in the art museum at 601 College Ave. in Lenoir. Details: 828-754-2486 or info@caldwellarts.com. Betty Stone
GLOBAL TRADE CASUALTIES
Making New Purpose for Deserted Spaces
Filling industrial buildings with other uses becomes issue for area economic and government officials.
HANNAH MITCHELL - Hickory Daily Record
HICKORY - As manufacturers moved their operations offshore over the past decade, they left behind the empty shells of the industries that used to propel the local economy.
Across Hickory and the rest of the Catawba Valley, the old buildings sit silent, reminders of a lost period when most people took manufacturing and ample jobs for granted.
Mostly old textile and furniture mills, they border railroad tracks and routes leading in and out of town. They're sometimes interspersed among surviving businesses, other times part of a collection of vacant structures that make up ghost manufacturing districts, as though a large segment of the population had decided to find their fortunes somewhere else.
Filling the buildings with other uses has become a new problem for area economic and government officials. The puzzle is all the more tricky in an economy that can't seem to find its legs.
The city of Hickory, where about 100 such buildings -- plus another 200 empty storefronts -- pock the landscape, is taking on the challenge with a new, broad approach that aims to improve the neighborhoods surrounding the structures, as well as the old plants themselves.
At Hickory City Council's planning retreat in February, council member Sally Fox suggested a program to help owners and developers re-use empty commercial and industrial buildings.
Fox called the concept "Operation No Vacant Buildings." She expressed concern that so many empty shells can hurt surrounding neighborhoods and that taking a proactive approach to the "fairly depressing" problem could put Hickory on the "cutting edge."
In response to Fox's idea, city staff are developing a program to address the problem. They started by dividing Hickory into six districts, then took one of those districts -- West Hickory -- and determined what type of vacant buildings exist there and how to market them, which spots might qualify for grant assistance or historic preservation tax credits, and then looked at how the city could improve sidewalks and other infrastructure in the neighborhood to make it attractive to developers.
"We're trying to gather all the resources available to the city and property owners so that when a potential investor comes in, we can say, `In this area, here's what have. Here's the tools we know would work,' " said Assistant City Manager Andrea Surratt. "We'll have a menu of things an investor can look at.
"The dollars we spend on people are just as important as improving vacant buildings because you're trying to bring people back into the neighborhoods."
Each year, the city will budget money for the program and also offer economic development incentives targeted toward building re-use projects. The City Council last week approved new incentive programs that would award money for projects that re-use vacant buildings.
It may be impossible to re-use every such building, Surratt said, and some may have to be demolished.
Hickory developer Jimmy Mitchell is intimately familiar with the obsolescence that can get in the way of marketing many of the vacant structures: low ceilings, asbestos, low garage door heights, multiple stories and lack of sprinkler systems, firewalls and other features required by today's codes.
"The question is how much will it cost to put the building back in a safe operational condition," he said. "We can't answer that until we get a prospect and they tell us what they want."
Surratt said it could take about two years to come up with plans for the entire city.
Mitchell said he's glad the city is trying to help, particularly since he's getting fewer inquiries these days for the dozens of commercial and industrial properties he manages. Some of the older buildings on his list have sat empty for several years.
But he's cautiously optimistic. "Other than the marketing, I'm (not sure what the city could do). Just because we'd love to have it happen doesn't mean it's going to happen," he said. "You've got to have consumer demand out there. That's the biggest thing I wish we had."
The city's recent interest in partnering with other municipalities and even other counties in a regional business park being studied by the Catawba County Economic Development Corp. moved Fox to suggest the vacant buildings program.
Fox said she's conflicted about public business parks competing with the private sector and that she knew there were vacant buildings that could be re-used but that were sitting idle and thereby dragging down neighborhoods.
"I'm a believer in adapting what you have. To keep from gobbling up land over the long haul we're going to have to look at some other ways of doing business," she said. "If a building is vacant, it just invites all sort of crime ... and that spills over and has a negative effect on the people living around there."
Learn more
The city of Hickory lists known vacant buildings on its Web site. Go to www.ci.hickory.nc.us and click "Vacant Building List." Details: 828-323-7412.
Hot Market - Hickory Bucks National Housing Trend
BY JENNIFER MENSTER - Hickory Daily Record - February 2, 2008
NEWTON -- The Yount family has called Newton home for the last several years, but now it’s time to pack up and move back to the Valdese area where their son grew up.
About six months ago, Jim Yount put his house on the market. It’s become too big for him and his wife. He said he’s ready to sell to the next family ready to start their own memories. The asking price for the 2,590-square-foot, four bath, four bedroom home is $214,500. He said three potential buyers have looked at his home since it went on the market. Yount isn’t frustrated his home hasn’t sold yet; he’s being patient.
“We knew it might take a while,” Yount said. “We’re in no hurry. We’ve moved around a lot and sold houses in Wilkesboro and Morganton.”
Officials say it’s a good time to sell for people like Yount because Hickory is considered hot among the nation’s housing market. According to the Office of Federal Housing Enterprise Oversight, the Hickory metro area ranks 14th among cities in the hot housing market. The area saw an 8.6 percent gain in the market over the last four quarters and a 22.5 percent gain in the last five years. A hot market is good for sellers because they have more bargaining power, says Andrew Leventis with the Office of Federal Housing Enterprise Oversight. Sellers will most likely sell their home close to their asking price in a hot market.
Yount isn’t sure he agrees. He believes it’s a buyer’s market because of the large number of houses buyers have to choose from. But Leventis says a hot market leaves buyers frustrated, not only because they have less negotiating power, but also because the overall housing market is weak. “The market has been deteriorating rapidly over the last six months,” Leventis said. “Prices are falling in many areas.”
Kim Smith, president of the Catawba Valley Association of Realtors, said the housing market is the best it’s ever been in the Hickory metro area, especially compared to four or five years ago when the manufacturing industry slowed. In 2006, Smith said 3,757 homes sold on the Catawba Valley multi-listing service. That was nine more than in 2007, but houses tended to sell a little quicker in 2007, an average of 129 days on the market compared to 138 days on the market in 2006.
Business has picked up at RE/MAX A-Team since the holidays, says Sandy King-Eller, a broker/owner. She said that’s typical for the beginning of the year since people postpone looking for a home until after the holidays. She said the drop in interest rates also contributed to the surge in activity. “According to a publication by National Association of Realtors, existing home sales in 2007 was the fifth highest on record,” King-Eller said. “That should offer some encouragement to sellers.”
Mike Kelly Jr. is an agent at Prime Properties, A Discount Broker. He said fewer houses were sold in the area last year compared to 2006, but selling prices were up. Overall, Kelly describes business as good, but he isn’t sure he’d say it’s hot. “I feel like it’s steady,” he said. “I don’t feel it’s up or down.”
Smith said the market has slowed since the summer, but North Carolina is still doing well, especially compared to Florida. She expects sells to pick up during the spring months, and she blames media hype for people worrying about the housing market. “The media has the public a little scared,” she said. “I think the market is suffering in Florida, but we’re still doing very well. “Housing is still great,” she said. “People in the area need to know that.” Leventis says the housing market typically reflects the local economy.
Kelly says Hickory is a great place to live and, with a steady housing market, he feels outside folks are realizing the value of homes in Hickory. “This is a great place to live,” Kelly said. “We live within miles of the mountains and (are located at) a great place in the state.”
LATEST DEVELOPMENTS:
FedEx Facility could be coming to Hickory.
Annexation OK may pave way for ground venture -- and jobs.
HANNAH MITCHELL - Hickory Daily Record
Hickory may get some more good job news.
The City Council last week approved a voluntary annexation for property on Amity Street in its Fairgrove Business Park for the future site of a FedEx Ground facility.
City Planning Director Brian Frazier said he understands that dozens of jobs could result from the venture.
When contacted about the project, developer spokesman Doug Snyder of Scannell Properties said it's still a proposal and won't be a done deal until a lease is signed for the property.
A 110,000-square-foot building is being discussed, though Snyder wouldn't elaborate on details of the project.
City Planner Cal Overby said Scannell typically builds facilities and leases or sells them to occupants.
He said the facility would be the site of receiving and processing of packages.
FedEx Ground, the ground shipping division of FedEx, was founded in 1985 as RPS and rebranded as FedEx Ground in 2000.
The division, headquartered in Pittsburgh, has 70,000 employees and independent contractors. It provides service in the U.S. and Canada.
LATEST DEVELOPMENTS
Have a tip?
Call Hannah Mitchell at 828-324-0055, e-mail hmitchell@charlotteobserver.com, fax 828-327-3480 or mail it to Catawba Valley bureau, P.O. Box 2464, Hickory, NC 28603. Hannah Mitchell
Latest Developments appears Sundays with Catawba Valley growth and business news.
