TOWN OF MOUNT PLEASANT, SOUTH CAROLINA ECONOMIC DEVELOPMENT COMMITTEE Monday, Municipal Complex, Building A, Public Meeting Room 1 100 Ann Edwards Lane Mount Pleasant, SC 29464 Minutes Members Present: Staff Present: Mark Smith, Chairman; Will Haynie, John Burn Eric DeMoura, Town Administrator; Amy Livingston, Business & Tourism Manager Mr. Smith called the meeting to order at 10:00 a.m. 1. Approval of Minutes from the January 3, 2017 meeting Mr. Haynie moved for approval; seconded by Mr. Burn. All present voted in favor. 2. Public Comments [None] 3. 2017 Berkeley County Economic Development Strategy Berkeley County Councilman Josh Whitley, stated that he often says that he is from East of the Cooper, as he resides on Daniel Island. He stated that he is very fond of his neighbors in Mount Pleasant and believes it is a partnership that goes unspoken, but important. He stated that this is a wonderful gesture to have Berkeley County report on their economic development status. He stated that Barry Jurs has been their Director of Economic Development since January 1, 2015. After that time, Volvo came, and from Secretary of Commerce Robert Hitt on down, they all love working with Mr. Jurs. He comes from an economic development background at Santee Cooper and is also a conservationist. He stated that Berkeley County, much like Mount Pleasant, suffers from economic
Page 2 of 12 growing pains from infrastructure and traffic that comes from 45 people per day moving to the area. Mr. Jurs, also soil and water conservationist, has been President of the Lord Berkeley Conservation Trust. Barry Jurs stated that conservation and economic development are not opposing forces, but complementary. He stated that what we rely on is the ability to have an economy where families can have the type of jobs and income where they are able to have a good lifestyle and quality of life. The other side is that we have growth, because we have the most beautiful part of the world right here in the Lowcountry. We must plan accordingly so that as we grow, we manage our growth and those things that make our area so special. He stated that it is very important that we continue to be connected, whether it is Mount Pleasant, Berkeley County, Dorchester County or downtown Charleston. He stated that we are connected economically and integrally entwined culturally. He stated that Berkeley County is experiencing a wonderful growth period. They are able to look at this growth, select what they would like to have and a very diverse portfolio that is coming in. Berkeley County is bringing in a variety of jobs with different skill levels geographically spread across their county. It is an exciting time with a great deal of growth and many moving here; however, the question is why? He reviewed the following:
Page 3 of 12 He stated that in the last two years, you will see that there has been a lot of investment and a lot of jobs. They are not jobs just for Berkeley County, which is very large. He stated that what they are discovering is that with the quality of jobs available, and becoming available, people will drive up to an hour for them. When they put a drive ring around the Volvo project for instance, the parameter hit 13 counties and 1.2 million people within one hour s drive to work at Volvo. These are some of the industries that they have announced over the last few years. Audio-Technica is a very high-end audio company that does stage equipment. They moved their southeast distribution center into Berkeley County. He stated that Benefitfocus and Blackbaud are both familiar companies located very close to Mount Pleasant. He stated that Blackbaud expanded last year with 300 additional employees. Evonik is another tremendous industry which makes a sodium silicate that goes into the tread of tires to increase the durability of the tire and improve gas mileage. He stated that it is a very interesting project. He stated that Fruit of the Loom and Gerber have huge distribution projects on I-26; Mankiewics is located off Clements Ferry Road, an advanced coatings company that does work with Boeing. A few years ago they made a $5 million dollar investment, and last year, they completed a $25 million dollar expansion. Stoba creates high-end engineering parts for BMW
Page 4 of 12 injectors, and they supply Robert Bosch. He stated that Thorne Research, which is in the life sciences industry, recently announced they will build along I-26. They make nutraceuticals and additives and wanted to be close to universities, and particularly, medical facilities. As a headquarters move, this was a big project. He stated that it is a great place for pharmaceutical companies to locate; landing one in that sector is drawing others. Viva is a plastic extrusion plant locating in St. Stephen, which is the far northern region of Berkeley County. They plan to hire approximately 169 people by the end of their first year and will be opening their doors in November 2017. Their five-year plan could potentially have over 400 employees in the northern portion of Berkeley County which is in critical need of jobs. Volvo is the pride of the fleet on I- 26 in the northwestern portion of Berkeley County. This is not a Berkeley County project, but a regional project. He stated that this effects the commerce in the State of South Carolina, with South Carolina being a leader in the automotive industry with BMW, Daimler and now Volvo. He stated that South Carolina is the leader in the United States for the automotive class and with Evonik, South Carolina is a leader in tire manufacturing. He stated that Berkeley County is very fortunate to be in the center of this activity.
Page 5 of 12 Mr. Jurs stated that they did an analysis of where Berkeley County fits into the state. He stated that they are only one of 46 counties which represents 2.1%. He stated that this 2.1% is producing 13% of the total projects coming into the State; 11% of the total jobs over the last year; and 20% of the capital investment coming in to the State. He stated that what you are seeing is a large portion of Berkeley County; however, what you do not see on the right side is the National Forest. Approximately 30% of Berkeley County consists of National Forest; however, Berkeley County is larger than the State of Rhode Island, so they are a large county. He stated that there are three corridors that run through their county and go straight to the Port of Charleston, which is vital to the State. The Port is the economic driver of all commerce in South Carolina. He reviewed all the areas that are state certified sites and ready for investment. Spec buildings are beginning to come up with full infrastructure.
Page 6 of 12 He stated that at Carnes Crossing and Cane Bay, there are over 13,000 acres under planned development. These are three high-end planned development subdivisions and over 30,000 homes currently permitted to be built in this planned development. Part of what makes Berkeley County attractive is that it is within the same metropolitan umbrella as the City of Charleston which is known all
Page 7 of 12 over the world. He showed the Highway 52 corridor that runs all the way to downtown Charleston and runs north through Berkeley County out to the north end of Berkeley County, a recently improved four-lane US Highway. There is gas, power, sewer and heavy rails (a CSX main line). He stated that this is known as a successful corridor already, with several thousands of acres of shovel-ready land. He stated that Google is located next to the Mt. Holly site, which is their original park. This leads to the right over to the Cooper River Corridor to Mount Pleasant. On the eastern side is where they have the DuPont site and 311 acres of certified industrial property yet to be developed and Bushy Park, which is now Charleston International Commerce Park, where they have tremendous property. He stated that this is where Evonik recently located. He stated that you look at this infrastructure that has all the buildable amenities; however, these are also bargeable sites. There are only a few left in South Carolina. He stated that there are also buildings in the Hanahan area and the Charleston Regional Business Center, which is where Stoba recently located. Mr. Jurs stated that what we are seeing here is geographically across their county; there are a lot of sites and products and certain features
Page 8 of 12 and amenities that businesses want to find whether it is logistics on the interstate, or heavy industry that needs to be on the Cooper River, or something that needs heavy rails that could be in the center of the county, or on Highway 52. This affects us all in a very positive way. What does this mean to us, either as a government or a citizen? It is jobs, investment and tax base for government. He stated that money comes in and it flows through the economy, into the government and at the same time it goes back out to citizens and services, but we also have jobs that provide the ability to have income for families. This is what it does when you bring an industry in. For $1 million of capital investment, there are two things. The first is the capital investment. For example, a $50 million dollar industry buys the land, builds the industry, gets the doors open and operating, this is a one-time investment into the local area. However, for every million dollars that this company brings in, it produces approximately $1.5 million dollars back into the economy locally. The other 50% goes back out into small business. So, why do we bring big companies? Because you recirculate money that is already in the economy, which goes to the drycleaners, power company, the bowling alley, the grocery store and recirculates. The way you grow your local economy is to bring industry in that brings in
Page 9 of 12 a lot of money from the outside but generates impact locally that goes into the small businesses. Mr. Jurs stated that investments put millions of dollars into the local economy, into small businesses, and raise the economy. Small businesses
Page 10 of 12 are the backbone of this country. He said that if anyone would like to see more, visit their site www.berkeleymeansbusiness.com to see where they are with industry and the county. Mr. Smith thanked Mr. Jurs for a wonderful presentation. He stated that the #1 issue in the region is traffic and infrastructure. He stated that Berkeley County has done an incredible job communicating to Berkeley County residents regarding infrastructure improvements through signage when driving on the roads. He asked Mr. Jurs his thoughts on the traffic concerns. Mr. Jurs stated that traffic is certainly an issue because we can grow faster than we have the ability to adapt. He stated that it takes a long time to plan, finance, design, permit, and construct the things that solve road issues. The tri-county region is working together through CHATS and the various Councils, but it is a massive effort and requires money. He stated that Berkeley County has the 1 sales tax and this helps the County solve many of their road needs. On I-26 between the Volvo interchange and down to Summerville, 187 is the existing Ridgeville exit and 199 to Summerville. There are 12 miles in there, and they will have a new interchange, which is 189, being built by the State with an estimated completion in 2019. Then, you come down to 194 which is being improved; the next interchange, which is Sheep Island Road, which is being constructed now to go out to I-26 to Summerville, is slated for completion in 2018. Over the next two to three years, there will be two new interchanges and three improved interchanges in that 12-mile stretch which will help relieve traffic. They will also be adding an extra lane to each side of I-26 between that same stretch so that it will not be the bottleneck of traffic as it comes in. Highway 52 in Berkeley County was improved recently to a four-lane highway. He stated that on Clements Ferry Road, there is work planned and underway for improvements. The challenge is that it gets harder before it gets better. He stated that they are targeting a lot of their 1 sales tax money to solve these issues and helps with matching funds from the state and federal sources.
Page 11 of 12 Mr. Smith stated that as a small business owner, not only in Charleston County, but also Berkeley County, his employees concerns are always housing affordability. He asked how Berkeley County is overcoming these issues. Mr. Jurs stated that in 2008 they had an abundance of houses and now, housing is in high demand. He stated that developments are underway and these developments are for a variety of price ranges, from starter homes to high-end homes, condominiums and townhomes and apartments. These are multi-faceted planned developments. He stated they are seeing requests to County Council on a number of different things, from rentals to housing. On the employment side, Berkeley County works very closely with the Charleston Regional Development Alliance, and they have been providing a great deal of data. He stated that one of the first questions he deals with from every company is about labor; do they have the skills needed and the answer to that is yes. He stated that the unemployment rate is down to 4%. He stated that there is a very good population here in the tri-county area that is skilled and educated. He stated that one of the most interesting statistics is the veteran population. He stated that in their area, they are gaining 75 people retiring from the military per month. These are people that are skilled, disciplined, educated and looking for a second career path. This is one of their strongest employment gains. Mr. Burn asked if a funding source had been identified for the Clements Ferry roadwork, and if so, when would this begin. Also, the Cainhoy Plantation, the Guggenheim Property Development that is coming up Cainhoy Road, will that roadwork be completed prior to the development of that large tract. Mr. Jurs stated that he believes the funding is largely there for Clements Ferry; however, he is not certain. He stated that you can see that the work has started, and they are moving forward. He stated as far as Cainhoy Plantation, he does not know about the road situation, but only where they are in the development scenario. This is more of a commercial and residential development.
Page 12 of 12 Mr. Burn asked if this expansion or improvement will begin sooner than later. Mr. Jurs stated that he hopes so. He stated that this is not just about local traffic, but regional. He stated there are a lot of businesses in the Cooper River corridor, such as Nucor Corporation and BP on the eastern side of the river. He stated that their employees live here in Mount Pleasant and drive to and from work every day. He stated that the Nucor employees always ask about road improvements, which is important to Berkeley County on the industrial side. He said that a good benefit in terms of transportation in Berkeley County is that as jobs are being located north of Charleston, it draws people to drive away, so there will be reverse travel. Mr. Haynie thanked Mr. Jurs for his presentation and said that heavy rail is something that needs consideration regionally when the Port gets deepened. He stated that they have a committee looking into this, as there will be a large volume of trucks coming through Berkeley County. He stated that as Mr. Jurs mentioned, we are economically and culturally connected, and when the new Wando Bridge opens, people will see just how connected we are. Mr. Jurs stated that he will extend the commitment from the administration at Berkeley County to work together to make everything better for all of us. 4. Adjourn There being no further business, meeting adjourned at 10:41 a.m. Respectfully submitted, Barbara Ashe