Organizing for Economic Development

Community and Economic Development – Blog by UNC School of Government

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Organizing for Economic Development

By CED Guest Author

Published May 17, 2012

Counties in North Carolina carry out economic development activities through a variety of different organizational structures. Some counties create a department within the unit of local government to implement economic development activities.  On the other hand, some counties delegate completely their economic development activities to chambers of commerce, committees of 100, or other private nonprofit corporations. Hybrid organizations exist as well, with more or less local government funding, oversight and influence.

In the upcoming weeks, a series of blog posts will  illustrate different ways that counties in NC organize to carry out economic development activities. Each post will profile a different county’s economic development entity, including its structure, funding, staffing and reporting requirements. Pros and cons of each organizational structure will be discussed along the way.

A detailed discussion of the options and legal authority available to North Carolina counties and cities to carry out economic development is available at this link to a forthcoming article by Jonathan Morgan and Tyler Mulligan (to be published in the second edition of County and Municipal Government in North Carolina.)

Additional resources on measuring the results of economic development are available here.

Cabarrus County

by Vincent Monaco, graduate student in the UNC Department of City and Regional Planning and Kenan-Flagler Business School

Located in the Charlotte metro area, Cabarrus County is known as the Center of American Motorsports and is home to the Charlotte Motor Speedway in Concord, the county seat. Cabarrus County, which includes seven incorporated municipalities, has a population of 178,000. The county had an annual operating budget of $284 million in 2010.

County-level economic development in Cabarrus County is carried out through two independent, non-profit organizations: the Cabarrus Economic Development Corporation the Cabarrus Regional Chamber of Commerce. A single executive serves as CEO of both organizations and reports to an independent board of directors. In 2003, the county manager retained a consultant to help the county improve the effectiveness of its economic development organization and diversify its funding, which at the time was entirely county-funded. The current structure is the result of the consulting study, which established new priorities in terms of soliciting private-sector participation in the county’s economic development activities.

The Cabarrus EDC operates with an annual budget of approximately $815,000, half of which comes from the county government. The City of Concord also contributes toward the EDC budget. The organization includes three full-time employees. Each year the EDC sets very specific goals for itself and measures its success at achieving those goals. The EDC provides regular progress reports on its activities to the city (monthly) and to the county (quarterly). The independent board of directors includes thirteen members: five city appointees, one county appointee, and seven private sector representatives of major businesses and industries in the county. Elected officials do not serve on the board. Private entities in Cabarrus County can purchase a seat on the EDC board with a $15,000 donation.

Additional case studies and lessons learned to come….

Will Lambe authored the NC Rural Center report, Small Towns, Big Ideas, and he served as Director of the Community and Economic Development Program at the School of Government from 2009 to 2014.