CONNECTING THE DOTS TO A BRIGHTER FUTURE. 2006

CONNECTING THE DOTS TO A BRIGHTER FUTURE. 2006 2006 The Western North Carolina Regional Economic Development Commission shall promote and advocate the creation of improved economic opportunity in our region, while encouraging stewardship of the culture, heritage and natural resources of Western North Carolina. Just like any business, we see a strong relationship between planning, setting positive, yet ambitious goals, and then establishing carefully detailed steps to achieve them. Look around Western North Carolina, and chances are, if you see business growing and expanding, you will also find AdvantageWest Economic Development Group working hard behind the scenes to create a brighter future for our region. 1 A Letter From Our Chairman………………...Page 4 Board of Directors…………………………....Page 5 We’re AdvantageWest……………………......Page 6 A Future Filled with Hope and Promise…...….Page 7 Counties Served Largest Private Supporters…………………....Page 10 Our Success Stories………………………..…Page 12 Five-Year Vision Plan……………………….....Page 17 Our Team and Complete Network……….....Page 21 Corporate Partners…........……………….…Page 24 Public Partners………………....…………….Page 26 2 3 A LETTER FROM OUR CHAIRMAN: A PROMISE OF POSITIVE CHANGE IS A CIRCLE. IT COMES BACK TO YOU. As you may have noticed, AdvantageWest has a new identity. At its very heart, it is meant to represent the beauty of the Western North Carolina region we all feel privileged to be a part of, and a clear path pointed toward the future — one filled with positive change. Since the North Carolina General Assembly created AdvantageWest in 1994, we have been driven to build the economy, grow industries and cultivate the crafts and heritage of the western 23 counties of our state. The diverse program of work that has grown within our organization covers literally every aspect of life here in Western North Carolina. From helping apple farmers process their cider at Blue Ridge Food Ventures, to the former furniture worker transitioning to become a machinist, we at AdvantageWest understand what it is to be a grassroots organization. We’re not afraid to roll up our sleeves and get involved. We believe that vision, integrity and hard work can improve the quality of life in our part of the state. In today’s society, I think we sometimes lose sight of what it means to be passionate about our work. And in that regard, AdvantageWest (including our dedicated Board and hardworking staff, supported by the public and private partners that we collaborate with) stands in stark contrast. We clearly have you, the citizens, in mind. Just let us know what we can do for you today. Sincerely, Gordon S. Myers Chairman of the Board 4 5 WE’RE ADVANTAGEWEST ECONOMIC DEVELOPMENT GROUP . Whether it is working with Congress to establish national recognition for this special place, tirelessly looking for innovative ways to attract new companies, or working with front line employees to save their closing manufacturing plant, AdvantageWest is pulling people together to create jobs and new economic growth for our region. We are proud of our work. We are even prouder of the people of Western North Carolina, who are driving our economy, investing in their region, and helping North Carolina become a better place to live. We are grateful for the opportunity to make a difference in the lives of our people. A model for rural economic development, AdvantageWest is one of the best investments of public funds in North Carolina. We have created partnerships and provided leadership in almost every aspect of the economy in North Carolina. PUBLIC AND PRIVATE INVESTMENT. THE FUEL OF THE MODERN BUSINESS MACHINE. AdvantageWest’s story is one of hard work, innovation, collaboration and prosperity. We go about our job each day to promote economic opportunity in the 23 counties west of Hickory and Interstate 77. We are driven to succeed because our small business owners, our farmers, our artisans, our manufacturers and our entrepreneurs are depending on us. Western North Carolina has a work force of more than 500,000 people, 21% working in manufacturing and 41% in service-related jobs concentrated in health care and the travel and tourism industry. The area is known for its boldness, its unprecedented beauty and its diverse heritage. In fact, in 2003 the United States Congress designated the region as the Blue Ridge National Heritage Area, one of only 37 designations across the nation. The people of this region have always been visionary and determined. They don’t crack under pressure or give up until the job is done. That heritage and history is helping Western North Carolina lead the way for a stable economy in our state. 6 OUR FUTURE IS FULL OF HOPE & PROMISE. AdvantageWest has a story to tell. Since 1995, our AdvantageWest matching grants program has awarded more than $4 million, which has leveraged over $458 million, in financial commitments for economic development in Western North Carolina. We have worked hard to build a record of success, reaching to meet the goals set forth by our leaders. We are glad to be held accountable. Our governing board, appointed by elected state officials, has chosen to govern on the side of caution. Our finances are audited by both state and federal standards and multiple agency guidelines because AdvantageWest has aggressively pursued and secured federal funds and private contributions to match state dollars for job creation and development programs. 7 SUPPLYING THE O2 REGIONAL BUSINESSES REQUIRE. The AdvantageWest region spans 10,000 square miles of North Carolina, making it larger than eight other states. In 2005, the taxpayers of North Carolina provided us with an investment of $1.8 million. The top industry announcements that year averaged over 135 employees and $18 million of equipment per project for a total of 1,782 new manufacturing jobs and over $246 million in additional tax base in rural communities throughout the region. During 2006, deal flow from AdvantageWest industrial marketing efforts have averaged eight new company projects generated per month and support to another six companies per month. Overall job creation in the region in 2005 stood at 10,500 including manufacturing. In addition, AdvantageWest’s cooperative marketing program, conducted with over 700 private tourism businesses, has helped to increase tourism revenues by 53% since 1995. In late 2004, AdvantageWest was the first regional partnership to complete and begin implementation of a Five-Year Vision Plan, which had been mandated by the North Carolina General Assembly. This effort was led by the Kenan-Flagler Institute of Private Enterprise at UNC-Chapel Hill and included not only the three regional universities, but 11 community colleges, and six private colleges. The ten industry clusters of innovation identified in the plan guide and shape the program of work at AdvantageWest as well as the curriculum and continuing education programs in our region. 8 9 10 11 A LAND WHERE INDUSTRY IS CONSTRAINED ONLY BY YOUR IMAGINATION. AdvantageWest created the Certified Industrial Site (CIS) Program in 1995, which was later adopted by the North Carolina Department of Commerce statewide. Most CIS parks in the AdvantageWest region are now completely filled with manufacturers, including the McDowell CIS Park that recently secured the 300-employee Cobia Boats Plant. In 2000, AdvantageWest implemented the Master Planning for Future Industrial Parks Program. This effort to proactively identify and evaluate promising tracts of land has led to over 1,800 acres of industrial sites being optioned in WNC. Moreover, this program contributed to what is believed to be the first dual-state industrial park in the US. The Clay/Towns Regional Industrial Park straddles the North Carolina and Georgia border. In 1999, AdvantageWest worked tirelessly with the employees of Champion International Paper to help purchase the company through an employee buyout, saving 1,600 manufacturing jobs in the Town of Canton. Today, Blue Ridge Paper Products is still in operation. We have used this retention success story as motivation to lead the effort to retain a Gates Rubber Company Plant in Ashe County, and restart former OMC plants in Cherokee and Mitchell counties. Manufacturing 12 Born out of the desire to “grow our own,” AdvantageWest secured Appalachian Regional Entrepreneurship Commission (ARC) funds to establish the Blue Ridge Entrepreneurial Council and the Blue Ridge Angel Investors Network in 2002. These programs provide education, networking, mentoring and access to capital for entrepreneurs. In two short years, our success is showing through the creation of new companies that have announced over 75 new, high-paying jobs and received $10 million in angel/venture capital investment. AdvantageWest holds the only venture capital conference outside of the Research Triangle Park. In cooperation with A-B Tech and Buncombe County, AdvantageWest opened the regional Technology Commercialization Center in 2006. Further collaboration with ARC has led to the expansion of BREC and BRAIN to Appalachian State University and Western Carolina University and all 23 counties in the AdvantageWest region. 13 Life Sciences In 2004, AdvantageWest raised over $1.2 million in non-state funds to establish North Carolina’s first food-related, business incubator, Blue Ridge Food Ventures. This 11,000-sq.-ft., shared-use facility located on the Enka campus of A-B Tech has provided space, expertise and opportunity for family farmers and 41 food-related entrepreneurs to produce their products and take them to market. In 2003, we combined our resources with ARC and the NC Biotechnology Center funds to establish the first biotech coordinator in Western North Carolina. The commitment increased in 2004 with AdvantageWest partnering financially with Buncombe County and A-B Tech to prepare and open the first life sciences wet-lab incubator in the region. In 2001, AdvantageWest established MountainSouth USA, a multi-state International Destination Marketing Partnership for America’s Southern Highlands. Research indicates that international visitors enter our region through Atlanta or Washington, DC. It is logical to work with partners along those natural travel corridors. MountainSouth USA received the only tourism grant in the US Cooperative Export Program in 2003. In 2005, we continued our leadership in the film industry by being the first regional film commission to implement “Reel Scout,” a web-based electronic inventory and fulfillment system for promoting film locations. In 2001, AdvantageWest spearheaded the initiative to secure the Blue Ridge National Heritage Area designation by Congress in 2003. Over $2.6 million of federal funding has been awarded to the region for cultural and heritage development under this designation. This federal funding has been matched by $2.9 million in state and private funds. 14 15 16 FIVE-YEAR VISION PLAN WHERE THINGS STAND TODAY. The AdvantageWest Five-Year Vision Plan was published in November of 2004 and implementation began in early 2005. We have Senator Walter Dalton of Forest City to thank for originating the idea of joint planning for the future by regional partnerships like AdvantageWest and higher education institutions. The consultant for the development of the plan was the Kenan-Flagler Institute of Private Enterprise at UNC-Chapel Hill. This effort was co-chaired by WCU Chancellor John Bardo, Isothermal Community College President Bill Lewis, and AdvantageWest Chairman Gordon Myers. Participants included the leadership of the three regional universities, 11 community colleges, and six private colleges in Western North Carolina, AdvantageWest Board members and staff. The central theme in the Vision Plan relates to ten clusters of innovation that offer the greatest potential for growth and job opportunities based on the unique assets and strengths of the AdvantageWest region. These clusters help shape and guide all of our programmatic and resource priorities at AdvantageWest. The Blue Ridge Industrial Council (BRIC), comprised of the 25 local economic developers in the AdvantageWest region, meets on a regular basis to pursue implementation of the Vision Plan. With each cluster in mind, we have designed our marketing plan, recruiting strategies and tactics. We continue to make progress in every industry cluster because of the collaborative work of the AdvantageWest staff and BRIC members and each of our other advisory groups. These include the Blue Ridge Entrepreneurial Council, Western North Carolina Film Commission, Blue Ridge Food Ventures and MountainSouth USA. We also appreciate the support from our strategic partners consisting of the NC Department of Commerce, Blue Ridge Angel Investors Network and the Blue Ridge National Heritage Area. Public and private partners at the national, state, regional and local levels provide crucial resources to sustain this effort. Please join us, if you have not already, in rallying behind the AdvantageWest Five-Year Vision Plan. Together we can continue to make a difference in the lives of our fellow citizens. Dale B. Carroll President & CEO AdvantageWest Economic Development Group Scott T. Hamilton Executive Vice President AdvantageWest Economic Development Group AdvantageWest addresses our region’s economic development needs through a diverse array of programs and services. AdvantageWest programs include: Strategic partners co-located at the AdvantageWest Economic Development Group offices: NC Department of Commerce Blue Ridge Angel Investors Network Blue Ridge National Heritage Area 17 A FIVE-YEAR PLAN AS AMBITIOUS AS THE TEAM THAT PUT IT IN PLACE. Since 2005, AdvantageWest began implementation of a Five-Year Vision Plan that includes ten “clusters of innovation”. Significant and tangible progress continues to be made in each of these enterprises. Advanced Manufacturing • Held Advantage 2005 and 2006 industrial marketing events with trade associations and site consultants. • Hosted NC Commerce FAM Tour of WNC with Blue Ridge Industrial Council. • Played a key role in attracting capital intensive, high-tech manufacturing like Altec, Raflatac, Continental Teves, Smiths Aerospace and Excelsior Packaging. Communications and IT • Worked with Appalachian Access, Rural Internet Access Authority and ERC Broadband to build telecom broadband networks in WNC. • Launched Advantage Fund with the Media Arts Project. • Led major proposal for software R&D Center. Food • Established and operates Blue Ridge Food Ventures, LLC, at A-B Tech Enka. • Collaborated with other kitchen incubators at Stecoah Valley Center, Marshall Extension Center and Ashe Family Central. • Participated in Wine Industry Initiatives at ASU. Life Sciences & Agribusiness • Established first life sciences wet-lab in WNC at A-B Tech Enka campus with Buncombe County. • Teamed with ARC and NC Biotechnology Center to open a regional center in WNC. • Participated in Bio 2006 as part of the NC delegation to promote WNC. 18 Retirement • Leading the effort to establish the Center for Health & Aging in WNC. • Participant and presenter with the Leadership Asheville Seniors Program. Arts, Crafts & Design • Co-founded Blue Ridge National Heritage Area along with Handmade in America and Congressional Delegation. • Supported Friends of Mountain History projects with Museums in Partnership across WNC. Environment • Collaborated with State of NC Energy Office, ASU Energy Center and Sustainable Now on green enterprises growth strategy for WNC. • Co-sponsored Brownfields Redevelopment Project with Land of Sky COG, EPA and EDA. Health Care • Facilitated and supported MARC, Inc., custom medical kit manufacturing project across WNC. • Pursued diagnostic lab testing business model for WNC along with private- and public-sector partners. Recreation and Tourism • Provided cooperative tourism marketing support to three host organizations. • Supported and helped establish Heritage Tourism Development Officers across WNC. • Established MountainSouth USA to target and attract international travelers. Security • Helped attract Homeland Security and DoD SBIR grants for BREC/BRAIN clients NavSci and Mariner Container. • Supported and participated in WCU’s Homeland Security and Crisis Management workshop for CEOs. 19 A COMPLETE NETWORK. Whether we’re helping a major manufacturer find a new facility that’s right for them; helping an entrepreneur get things started through raising capital; helping a farmer develop value-added food products; or helping to scout locations for Hollywood’s next blockbuster, we’re committed to providing the best service possible. Feel free to contact any member of our staff today to learn more about how we can work for you. 20 YOUR ADVANTAGEWEST TEAM. Dale Carroll, President & CEO Scott Hamilton, Executive Vice President Betty Huskins, Sr. VP - External Relations Kathy Neall, Sr. VP - Finance & Grants Elizabeth Voorhees, Director Marketing & Communications Jim Roberts, Executive Director Blue Ridge Entrepreneurial Council Mary Trimarco Western NC Film Commissioner Amanda Baranski Office Manager & Asst. Corp. Secretary Pam Lewis Events Coordinator Alice Wilder Administrative Professional Mary Lou Surgi, Executive Director Blue Ridge Food Ventures, LLC STRATEGIC PARTNERS OF ADVANTAGEWEST Cindy Messer, Manager - Western Region NC Department of Commerce Penn Dameron, Executive Director Blue Ridge National Heritage Area Meridith Elliott, Director Blue Ridge Angel Investors Network 21 OUR PROGRAMS At AdvantageWest, our staff works with a wide array of professionals from many different backgrounds to help them achieve business and life goals. Our clients regularly include: BLUE RIDGE INDUSTRIAL COUNCIL Industrialists Site consultants Commercial real estate professionals Business owners, CEOs and decisionmakers BLUE RIDGE ENTREPRENEURIAL COUNCIL Entrepreneurs Small-business owners WESTERN NC FILM COMMISSION Local crew base Film industry professionals Casting agents Ad agencies Media-arts professionals BLUE RIDGE FOOD VENTURES, LLC Food entrepreneurs Caterers Bakers Farmers MOUNTAINSOUTH USA UK and German tourists Group-tour operators Public & private attractions REGIONAL CAPACITY BUILDING Telecom broadband partners Higher education partners 22 23 24 25 FEDERAL AGENCIES, FOUNDATIONS AND EDUCATIONAL INSTITUTIONS THAT PROVIDE FUNDING: North Carolina General Assembly Golden LEAF Foundation North Carolina Department of Justice Asheville Merchant’s Fund of the Community Foundation of Western North Carolina US Congress, with special thanks to Rep. Charles Taylor, Rep. Virginia Foxx, Rep. Patrick McHenry, Sen. Richard Burr and Sen. Elizabeth Dole Western Carolina University Institute for the Economy and the Future Appalachian State University Walker College of Business BioNetwork BioBusiness Center Appalachian Regional Development Institute Cherokee Preservation Foundation National Park Service NC Rural Economic Development Center, Inc., Agricultural Advancement Consortium The Rural Internet Access Authority North Carolina Small Business and Technology Development Center USDA/NC Farm Bureau Foundation National Endowment for the Arts Janirve Foundation Z. Smith Reynolds Foundation NC Tobacco Trust Fund Commission NC Rural Economic Development Center, Inc. NC Department of Agriculture and Consumer Services US Department of Commerce Appalachian Regional Commission 26 27 AdvantageWest Economic Development Group 2006 Annual Report “CONNECTING THE DOTS TO A BRIGHTER FUTURE,” and Annual Meeting made possible by support from our title sponsors: Annual Report creative and design services provided by The Alpha Group. 28 3 General Aviation Drive • Fletcher, NC 28732 • Asheville Regional Airport 828-687-7234 • 828-687-7552-fax • web site: www.advantagewest.com • e-mail: info@awnc.org