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Moogfest and taxpayer money: What have we learned? – Asheville Citizen

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Much has been made of the announcement that Moogfest, an electronic music festival held in Asheville the past few years, is relocating to Durham. By all accounts Moogfest brought a lot of energy to Asheville and featured an amazing lineup of musicians.

But Moog Music, the parent company of the festival, lost a whopping $1.5 million on the 2014 version of the festival. As local musician Andrew Fletcher wrote in response to the festival leaving, Moogfest was “spending money like a college kid with a credit card.” After the Buncombe County Board of Commissioners unanimously denied a $250,000 grant request for the 2016 festival, the writing was on the wall.

Moog Music, in an open letter to the community explaining the move, wrote, “Unfortunately, it’s just not possible to sustain the festival here, and Moogfest isn’t the only festival to learn this lesson. An event of this scope needs public and private partners in order to thrive, and we couldn’t find enough of those partners in Asheville.”

Despite their accusatory break-up letter, Moog as a company has done a lot for the community and we’re lucky they aren’t moving their entire operation to Durham.

The rationale put forth by our high-level, regional economic development players that spending taxpayer dollars on events like Moogfest will somehow attract the tech industry to Western North Carolina never made much sense as an economic development plan. (The city and county chipped in a combined $180,000 for the 2014 festival.)

Just because SXSW, a hugely popular music and now tech conference, helped grow Austin doesn’t mean a tech-related festival can turn any location into a tech hub. Caltech and Stanford gave rise to Silicon Valley the same way Duke, UNC, and N.C. State fueled Research Triangle Park.

The Triangle has one of the highest concentration of Ph.D.s in the country and a major airport with direct flights to SFO and New York multiple times a day. That’s the kind of infrastructure needed to attract decent-sized tech firms and Asheville simply can’t compete with that. Oh, and ask the locals in Austin what they think of SXSW these days.

While Asheville has a great thing going hosting the Southern Conference basketball tournament, that doesn’t mean we should host the Final Four. Likewise, Moogfest was way too big in ambition for what Asheville was able to provide.

That’s OK, there are limits to what our town can be and while Asheville lacks a few things, live music isn’t one of them.

The larger point about Moogfest is that the city and county need to distinguish between supporting cultural events and the arts with yearly funding of tax dollars and a strategy that seeks to bring in larger employers that pay good wages. Music festivals may drive up the price of AirBnB rentals, but they’re not going to attract large-scale investment. Bele Chere is missed, but do we think the local economy has suffered in its absence?

By and large Buncombe County has been savvy about offering tax incentives to attract businesses. Linamar and New Belgium are large and long-term investments that grow our community in a sustainable way. (County Commission Chair David Gantt provided a steady hand in recruiting companies to Buncombe County and his leadership will be missed.)

The formula for economic development as I heard Gantt explain it was this: first a good public school system is crucial; then businesses will look at what infrastructure is in place and can be leveraged, like I-40 as a transportation corridor and A-B Tech as a job-training hub; and then sell the reason everyone wants to move to Buncombe County: the quality of life and natural beauty here are amazing.

Hotel occupancy rates are sky-high, but far too many locals are stuck in low-paying jobs. Let’s be smart and leverage our advantages to invest in jobs, infrastructure and education with the goal of building a regional economy that isn’t so heavily dependent upon the boom and bust cycles of tourism.

“Coming here was a no-brainer,” a Moogfest spokesperson told the Raleigh News Observer about the decision to head down I-40 for hopefully greener pastures.

I think that may indeed prove true for Moogfest, let’s hope our economic development gurus in Buncombe have learned their lesson as well.

Aaron Sarver is a politics and news junkie who grew up in Wilmington and graduated from North Carolina State University. He has called Asheville home since 2009.

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NC Senate backs jobs incentives, sales tax distribution change

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The Senate voted 36-12 Monday night to approve an economic development bill that features new money for jobs incentives and a controversial plan that changes how sales taxes are distributed.

The bill softens the impact of earlier proposals on the sales tax revenue plan, which had prompted outcry from some urban and tourism counties that would lose substantial money. The effort in the Senate is aimed at pumping more state money into areas of the state, generally smaller and more rural, that have not seen the same prosperity as in larger counties.

As it is now, the majority of sales tax revenue in each county stays where the sale occurred. Senate Majority Leader Harry Brown had earlier called for distributing 80 percent of revenues based on population and only 20 percent based on the sale location.

The Senate’s new proposal would split revenues, with half staying in the county where the sale took place and half then distributed based on county population. The change would take effect in 2016. Brown says it’s a fair approach.

“Gosh, guys, don’t be so greedy,” he said of urban counties that have protested the change. “Give these counties some.”

A breakdown of the revenue impacts for each county shows about 80 counties would gain money and 20 counties would lose, compared with revenue projections made under current law.

Mecklenburg County and Charlotte would lose an estimated 5 percent of its sales tax revenues.

Rural lawmakers said the change is crucial to help funding as jobs and retail shift toward urban areas.

“We have areas of this state that aren’t growing, that are declining in population,” said Sen. Ralph Hise, a Mitchell County Republican. “We have to make sure that our rural areas are sustainable. We’re trying to change a system so that we can become one North Carolina.”

But Senate Minority Leader Dan Blue questioned how much the sales tax change will help rural counties, some of which would get a boost of several hundred thousand dollars – hardly enough to build new schools.

“It’s still not going to provide the services that these counties deserve,” he said.

Jobs incentives

The economic development bill approved Monday also includes the Senate’s plan to raise the cap on the Job Development Investment Grant, or JDIG – the state’s main jobs incentive tool.

The latest Senate proposal would cap JDIG spending at $20 million per year, with an additional $5 million for the current year. The awards would be more generous in poorer counties and most generous for companies investing at least $750 million while creating at least 2,000 jobs.

The Senate bill has also added tax credits for jet fuel and technology data centers that the House has already approved. And it phases in the single-sales factor for calculating corporate income taxes – effectively an additional corporate tax cut that favors companies with extensive property and payroll taxes in the state.

“It is everything that folks who are looking at economic development have been asking for,” Senate leader Phil Berger said of the bill.

That portion of the bill didn’t get much debate, but it did win praise from Blue. “This bill does an excellent job in dealing with five out of six issues,” he said. “You’ve even convinced me that the single-sales factor is something we needed to look at.”

A final vote is set for Tuesday afternoon.

Campbell: 919-829-4698

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STUDY: Tourism up in North Carolina, sixth most-visited state in U.S.

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State officials announced Tuesday that 97 of the state

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Good news this week for North Carolina’s economy.

Governor Pat McCrory and Department of Commerce Secretary John E. Skvarla announced Tuesday that 97 of the state’s 100 counties saw increases in visitor spending last year.

Here in the east, Carteret County had the third largest increase in visitor spending in 2014 at 7.3%.

“We love this area because it feels more like what the Outer Banks used to be back when we were kids,” said Rhonda Carpenter, whose family vacations in Morehead City. “More residential, more family oriented, a lot less tourism and touristy type attractions, but still you get the nice restaurants, the fishing.”

Data from Visit North Carolina showed that visitor spending neared $5 billion in Mecklenburg County, topped $2 billion in Wake County and topped $1 billion in Guilford and Dare counties.

“Tourism is a major force in North Carolina’s economic development,” said Gov. McCrory. “The industry is fueling a continued growth in jobs and contributing substantial sums to the state budget and local economies in every corner of our great state.”

Secretary Skvarla added, “We can take pride in North Carolina’s position as the sixth most-visited state in the nation with nearly 50 million overnight visitors in 2014.”

The study shows tourism employs more than 3,000 people in Carteret County alone.

The visitor spending figures come from an annual study commissioned by Visit North Carolina and conducted by the U.S. Travel Association. The study uses sales and tax revenue data, employment figures and other industry and economic data to determine the overall impact of visitor spending in North Carolina.

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Duke Energy installs new Asheville team to support controversial power line

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Residents from Campobello, S.C., where the line would start, through Henderson and Polk counties to its end in Buncombe County, have mounted protests and bridled at the public-information meetings Duke has organized to date.

Opened file

On July 27, the S.C. Public Service Commission opened a file on the power line even though Duke had not applied for a permit. The file was just to handle the objections the commission was receiving from residents. To date, there are 117 objections filed and on Aug. 11, the S.C. Department of Natural Resources became an intervenor in the file.

On Aug. 10, the Polk County Board of County Commissioners adopted a resolution opposing the proposed line, the Spartanburg Herald Journal reports:

Polk’s resolution states that locating the lines within the county would negatively effect “current homeowners, potential homeowners, tourism dollars, and business revenue.”
The resolution also states that the lines would hurt the county budget through lost property tax revenue of $16,000 to $200,000 each year. The lines may also encroach on the water supply classification area of Lake Adger and Farmland Preservation easements.

Power imports

Layne says the new power line is an important part of the project. Duke Progress projects the Asheville region will need to import 400 megawatts of power to meet growing demand over the next 10 years, even with the new plant. The local grid, which is a small satellite of Duke Progress’ much larger operations in the eastern part of North Carolina, does not have the capacity to import that much power.

The high-voltage line will connect the Asheville grid to Duke Energy Carolinas’ grid in Upstate South Carolina, making power sharing among the two utilities easier.

Lloyd Yates, Duke executive vice president and president of its Carolinas Region, says Sipes and Walls make a perfect team for the region.

“‘Both Robert and Jason have extensive industry experience and they live in the area,” he says. “Their passion for their work and community will ensure strong collaboration with all stakeholders as we identify the best solutions to modernize the electrical infrastructure to reliably serve the area’s growing energy needs.”

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Proposed sales tax shift heads to NC House

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After the Senate took a final 34-12 vote Tuesday, a controversial plan to change how sales tax revenues are distributed among counties is headed to the House.

The Senate’s handling of the proposal will leave the House with limited flexibility. The sales tax change – which benefits rural counties at the expense of some urban and tourism counties – is attached to a jobs incentives bill that has widespread support.

But because House Bill 117 has already passed in the chamber, House leaders must first decide to agree with the Senate’s version. The House would not be able to change the legislation before taking that vote. If the House votes against agreeing with the bill – likely given the strong opposition from many Republican legislators there – the two chambers would appoint a conference committee to resolve the differences.

The negotiating process would mean more delays in funding the state’s main jobs incentive program, Job Development Investment Grants, or JDIG. That program has been out of money for months, and a House member said Tuesday that the standoff means about 7,000 potential jobs are on hold.

Senate Republicans said the sales tax change fits well in the larger economic development package. “If you’ll look at the incentive piece of it, you (urban counties) are huge winners,” said Senate Majority Leader Harry Brown, who developed the sales tax plan. “The sales tax piece gives some of those small counties – that will never get an incentive – a little piece of the pie.”

Currently, the majority of sales tax revenue in each county stays where the sale occurred. The proposed formula would split revenues, with half staying in the county where the sale took place and half distributed based on county population. The change would take effect in 2016.

A breakdown of the revenue impacts for each county shows about 80 counties would gain money and 20 counties would lose, compared with revenue projections made under current law. Wake County, for example, would lose $6 million, or 4 percent of its sales tax revenues.

Those projections prompted nine Democrats and three Republicans – most representing urban areas – to vote no. “Our cities are not our adversaries, they are our partners in economic recovery,” said Sen. Terry Van Duyn, an Asheville Democrat. “Sales tax redistribution stifles growth, and not just for rich counties.”

But while Republican Sen. Bill Rabon’s Brunswick County would see a 6 percent drop in revenue, he argued that the change is good for the state.

“This is the best economic package that we’ve brought forward in decades,” Rabon said. “I think it’s something where we should stop bickering about whose ox is being gored.”

Also among those voting yes: Democratic Sen. Floyd McKissick of Durham County, which would lose $6 million, or 11 percent, under the sales tax plan. McKissick said after the vote that he supports other elements of the bill and wants legislators to add a “hold harmless” provision that would keep counties from seeing revenues drop.

“I hope that I will be in a position to mitigate the damages it will have on our large urban areas, which I have deep concerns about,” he said.

Jobs provisions in the Senate bill

While much of the debate on the Senate’s version of House Bill 117 has focused on sales tax distribution, the bill would also:

▪ Add an immediate $5 million to the state’s main jobs incentive fund (JDIG) and direct $20 million a year to the program

▪ Allow the state to offer more generous incentives to companies that invest at least $500 million and create at least 1,750 jobs

▪ Phase in, over three years, the “single sales factor” formula for calculating corporate taxes. It would calculate companies’ tax liability based entirely on sales – instead of also factoring in their payroll and property value. It’s effectively a corporate tax cut that favors companies with extensive property and payroll taxes in the state

▪ Extend tax credits for jet fuel and technology data centers

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N.C. tourism spending tops $21 billion in 2014

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Tourism spending increased in 97 of 100 North Carolina counties in 2014, the governor’s office and state Commerce Department reported Tuesday. Domestic visitor spending statewide topped $21.32 billion for the year, up 5.5 percent from 2013.

Visitor spending in Mecklenburg County totaled $4.89 billion in 2014, up 6.1 percent from 2013, according to a study from Visit North Carolina and the U.S. Travel Association. Elsewhere, visitor spending was just over $2 billion in Wake County, $1.26 billion in Guilford County and $1.02 billion in Dare County.

Visitor spending directly supported 204,909 jobs in North Carolina and generated more than $4.9 billion in payroll income across the state, the study showed.

Ninety out of 100 counties saw direct tourism employment growth last year. With 48,327, Mecklenburg County had the largest number of direct tourism employees in 2014 with the biggest payroll total of $1.6 billion. It was followed by Wake County with 21,143 tourism employees, and Guilford County with 12,761.

“Tourism is a major force in North Carolina’s economic development,” Gov. Pat McCrory said in a statement. “The industry is fueling a continued growth in jobs and contributing substantial sums to the state budget and local economies in every corner of our great state.”

Tourism spending decreased in 2014 from 2013 in three counties: Swain, Granville and Davie.

State tax receipts as a result of visitor expenditures topped $1 billion in 2014, and local tax revenues directly resulting from visitor spending totaled more than $636.3 million. In Mecklenburg County, state tax receipts from visitor spending totaled $223.3 million in 2014, and local tax revenues from visitor dollars totaled $117.9 million.

“We can take pride in North Carolina’s position as the sixth most-visited state in the nation with nearly 50 million overnight visitors in 2014,” said Commerce Secretary John Skvarla.

The North Carolina visitor spending figures come from an annual study commissioned by Visit North Carolina and conducted by the U.S. Travel Association. The study uses sales and tax revenue data, employment figures and other industry and economic data to determine the overall impact of visitor spending statewide.

The state doesn’t yet have statistics on international visitors for 2014. In 2013, about $437 million in spending was associated with these visitors.

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‘Alliance’ of local governments, businesses blasts sales tax change

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A group representing dozens of counties, municipalities and businesses has formed to oppose a controversial change in how sales tax revenues are distributed among counties.

The “Alliance For A Prosperous North Carolina” sent a two-page letter to legislators blasting the plan. Favored by Senate Republican leaders, the change would shift from a point-of-sale revenue allocation to a population-based system, which would help rural counties but result in less money for some urban and tourism counties.

The proposal passed the Senate Monday night as part of a larger economic development bill; a final vote is set for Tuesday afternoon before the proposal heads to the House.

Members of the group represent communities of various sizes spread across the state, from the Blowing Rock Chamber of Commerce in the mountains to the Town of Nags Head on the Outer Banks. On the list from the Triangle: the Wake County Board of Commissioners, the City of Durham, Durham County, the Greater Raleigh Chamber of Commerce, the Greater Durham Chamber of Commerce, the Town of Chapel Hill, and Raleigh bow tie retailer High Cotton.

“We share a common concern,” the letter says. “We have concerns about how proposals to change the distribution of sales tax revenues will harm our communities and our state.”

Most of the counties represented by the group would lose revenue or see sales tax receipts stagnate under the plan. The roughly 80 counties projected to gain revenue aren’t part of the group.

“We are concerned because a change in the formula could negatively affect the attraction of economic development prospects due to already higher-than-average costs of housing in many of the affected counties,” the letter says. “Having to increase property taxes to compensate for the shifting sales taxes will place us at a further disadvantage, harming the jobs market for entire regions.”

Proponents of the sales tax distribution plan offered a new argument this week: They say the change would rob Attorney General Roy Cooper of the ability to make the state’s urban-rural divide into a gubernatorial campaign theme.

Bob Harris of the Carolina Partnership for Reform – a conservative advocacy group with ties to Senate Republicans – said Cooper might try a “One North Carolina” campaign similar to former Democratic Gov. Mike Easley. Harris said the sales tax changes could keep Cooper from gaining momentum in suburban and rural counties that would benefit from the Republican-led plan.

“Just looking at the politics, the Senate’s compromise plan might be the last chance to stop Roy Cooper and the Democrats before they sweep to victory next year under the Easley ‘One North Carolina’ strategy,” Harris wrote.

The problem with using sales tax distribution in a campaign for governor? Gov. Pat McCrory strongly opposes the change and has vowed to veto it.

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‘The Coolest Corner’ expo set for Sept. 1

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First Posted: 9:00 pm – August 10th, 2015 – Views


 

The second annual “The Coolest Corner” Tourism Expo, sponsored by the Ashe County Chamber of Commerce Tourism Development Committee will be held Tuesday, Sept. 1, from 4-6 p.m. at Boondocks Brewing Brew Haus, 302 S. Jefferson Ave. in downtown West Jefferson.

The expo will feature 20 exhibitors from Ashe County Chamber of Commerce businesses and non-profit organizations for attendees to learn about the many resources, events, and area attractions that make Ashe County “The Coolest Corner of North Carolina” to live and visit.

Wendy Painter, member of the Tourism Development Committee, states, “Our primary goal is to support businesses and “frontline” staff that interact with visitors and local residents to know what resources are available locally such as events, activities, sites, the arts, and more–anything that will encourage visitors to keep coming back to spend money and time here. The information provided at the Tourism Expo will further support local businesses in providing great customer service. Staff will be able to engage with visitors, helping them to explore everything that we think is wonderful about the Ashe County experience.”

The general public is also welcome. Admission is free. Attendees will enjoy networking and filling their complementary “Coolest Corner” Tote. Free refreshments will be provided along with a cash bar. And there will be chances to win lots of “Cool” Door Prizes!

Ashe County Chamber of Commerce has over 380 members with a 3-percent increase in membership over the past year, indicating the continued economic growth that is happening in the county.

“The Coolest Corner of North Carolina” became a registered trademark of Ashe County Chamber of Commerce in June of 2012. The Chamber is excited to build on this branding that captures the essence of Ashe County – its people, its towns, and its natural mountain beauty.

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Top Democrats greet Hillary Clinton in Raleigh

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RALEIGH, N.C. (WNCN) – Democratic presidential candidate Hillary Clinton appeared in Raleigh on Wednesday, speaking to a group of supporters that included some of the state’s top Democrats.

Former Gov. Jim Hunt, former Gov. Bev Perdue and former Sen. Kay Hagan were among those at the event.

Jim Hunt arrives for Hillary Clinton event
SEE PHOTOS FROM CLINTON VISIT

This is Clinton’s first trip to North Carolina since announcing she will run for president.

“This seems to be, come in, rake in some money and leave, where she could do some things, even on a short visit, to make herself more well-known to people who don’t know her all that well,” said Meredith College professor David McLennan.

“At some point, she’s got to come back to North Carolina and meet the masses, so to speak. This just seems, given what’s going on on the Republican side with a lot of bickering between [Donald] Trump and other candidates, an opportunity for her to come in and be kind of a gracious candidate.”

But Bruce Thompson, a Raleigh attorney who is attending the event and a member of Clinton’s national finance committee, said focusing on raising money for the primary is critical for Clinton.

“If you look at the 16 candidates on the Republican side and the three or four candidates on the Democratic side, they all have to raise money,” Thompson said. “They all have to do fundraisers. They all do events like this. And I often think she gets unfairly criticized for doing that.”

Thompson said those attending Wednesday wanted to hear Clinton’s views on the North Carolina’s role in the general election.

As for having a more public appearance, Thompson said, “Today is a fundraiser in Raleigh. But I’m sure the next time she’s here, she’s going to be doing a lot of retail campaigning. She did a lot of that in 2008. She really reached out directly to voters in the Democratic primary. You’re going to see her doing that again.”

The visit comes in the midst of a political firestorm between other presidential candidates.

Clinton has traded words with several of the presidential candidates, including Republican candidate Donald Trump.

During her first national television interview with CNN , Clinton slammed Trump after he called many Mexicans rapists and criminals.

“I’m very disappointed in those comments,” Clinton said. “I feel very bad and disappointed with him.”

Clinton said Trump’s view on immigration was the same for most of the GOP.

“They are all in the same general area on immigration range across a spectrum: welcome or hostile,” Clinton said.

Those comments did not sit well with Republicans, including Jeb Bush, who said Clinton would say anything to get elected.

Wednesday’s event is closed to the public. Tickets to the event are $2,700 a piece, which is the maximum allowed during a primary campaign.

Clinton ran for president in 2008 but lost to Barack Obama in the race for the Democratic nomination. Obama carried North Carolina decisively.

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NC Senate backs jobs incentives, sales tax distribution change

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The Senate voted 36-12 Monday night to approve an economic development bill that features new money for jobs incentives and a controversial plan that changes how sales taxes are distributed.

The bill softens the impact of earlier proposals on the sales tax revenue plan, which had prompted outcry from some urban and tourism counties that would lose substantial money. The effort in the Senate is aimed at pumping more state money into areas of the state, generally smaller and more rural, that have not seen the same prosperity as in larger counties.

As it is now, the majority of sales tax revenue in each county stays where the sale occurred. Senate Majority Leader Harry Brown had earlier called for distributing 80 percent of revenues based on population and only 20 percent based on the sale location.

The Senate’s new proposal would split revenues, with half staying in the county where the sale took place and half then distributed based on county population. The change would take effect in 2016. Brown says it’s a fair approach.

“Gosh, guys, don’t be so greedy,” he said of urban counties that have protested the change. “Give these counties some.”

A breakdown of the revenue impacts for each county shows about 80 counties would gain money and 20 counties would lose, compared with revenue projections made under current law.

Wake County would lose $6 million, or 4 percent of its sales tax revenues. While the percentages indicate a softer blow to urban counties under the latest plan, Wake actually fares worse under the new proposal. That’s because the compromise bill doesn’t include any new sales taxes on services initially proposed.

Rural lawmakers said the change is crucial to help funding as jobs and retail shift toward urban areas.

“We have areas of this state that aren’t growing, that are declining in population,” said Sen. Ralph Hise, a Mitchell County Republican. “We have to make sure that our rural areas are sustainable. We’re trying to change a system so that we can become one North Carolina.”

But Senate Minority Leader Dan Blue questioned how much the sales tax change will help rural counties, some of which would get a boost of several hundred thousand dollars – hardly enough to build new schools.

“It’s still not going to provide the services that these counties deserve,” he said.

Jobs incentives

The economic development bill approved Monday also includes the Senate’s plan to raise the cap on the Job Development Investment Grant, or JDIG – the state’s main jobs incentive tool.

The latest Senate proposal would cap JDIG spending at $20 million per year, with an additional $5 million for the current year. The awards would be more generous in poorer counties and most generous for companies investing at least $750 million while creating at least 2,000 jobs.

The Senate bill has also added tax credits for jet fuel and technology data centers that the House has already approved. And it phases in the single-sales factor for calculating corporate income taxes – effectively an additional corporate tax cut that favors companies with extensive property and payroll taxes in the state.

“It is everything that folks who are looking at economic development have been asking for,” Senate leader Phil Berger said of the bill.

That portion of the bill didn’t get much debate, but it did win praise from Blue. “This bill does an excellent job in dealing with five out of six issues,” he said. “You’ve even convinced me that the single-sales factor is something we needed to look at.”

A final vote is set for Tuesday afternoon.

Campbell: 919-829-4698

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