[slideshow_deploy id=’115346′]
By Erin Smith
The Bladen County Commissioners and the members of the Bladen’s Bloomin’ Agri-Industrial Board met in a joint session on Tuesday morning.
Bladen County Economic Development Director Chuck Heustess said this was the first time both full boards have met together. He said 13 of the 18 Bladen’s Bloomin’ members present at the meeting either have been or currently are serving as Bladen County Commissioners. Two current County Commissioners serving on the Bladen’s Bloomin’ board are Ashley S. Trivette and Commissioner Chairman Ray Britt replaced Commissioner Charles Ray Peterson.
Heustess gave those present a history of Bladen’s Bloomin’. It is a private, non-profit real estate and lending entity and much of the business conducted by BBAI is done with private companies.
BBAI was started as a revolving loan fund. When the money which is loaned to a particular company is repaid, the funds can be loaned out to yet another company. Heustess said the money in the revolving loan fund must stay there, but the interest it earns can be used for other projects.
Heustess said over the years of doing business, BBAI began to learn that loans by themselves were not enough. Instead, they learned that the needs were greater.
“It struck me that real estate was an issue,” said Heustess. He said BBAI began to work to find ways to make buildings available.
“We are trying to find ways to generate the funds we need without going to the county,” said Heustess.
He explained that when BBAI was first begun, the Institute of Government was consulted regarding how best to set it up.
“We were told it needed to be private,” said Heustess.
BBAI has been making an impact in Bladen County since its beginning in the 1990s. The recurring income last year was $164,000. This year it is estimated to be $200,000. The impact in the Elizabethtown Industrial Park alone is between $24 million to $28 million, according to Heustess.
Most significant input by the County is the purchase of the Inman land which connects the Elizabethtown Industrial Park to Mercer Mill Road. Another significant investment is the DMV Call Center which saw the Bladen County Commissioners commit $40,000 towards the temporary location. BBAI absorbed all of the costs for the current DMV Call Center location, according to Heustess.
Currently, BBAI is working to develop a healthcare facility in Bladenboro. Heustess said this project is a high priority because of the need for healthcare in the town.
Heustess said BBAI can handle projects with all types of risk.
“We take on things that are more risky than the market will support,” said Heustess.
Commissioner Michael Cogdell asked if BBAI has any programs for small businesses and entrepreneurs.
“When we started we only envisioned ourselves doing industrial type projects. We were very specific and very diligent in staying away from commercial development,” said Heustess.
He said BBAI did not want to compete with local people who were already developing commercial real estate. Over time, that changed. The first commercial project for BBAI was the NC DMV call center.
Currently, BBAI is working to complete a small business incubator in downtown Elizabethtown. Heustess said he met with the local commercial developers and learned they welcomed the idea.
“If this is successful, we have identified a space in Bladenboro to do something similar,” said Heustess.
He added Boost the ‘Boro has asked to partner with BBAI. They are discussing projects for Bladenboro.
Heustess said BBAI is just one economic development tool. There is also the Small Business Center at Bladen Community College and Advancement is another revolving loan fund with more funds for projects than BBAI.
“We are one tool in the belt,” said Heustess.
He explained the one who benefits the most from the activities of BBAI is the Bladen County community through the jobs which are created.
He said Bladen’s Bloomin is a private board and its members have no ownership in any of the projects. The board members do not receive salaries.
BBAI is unique from other places. Heustess said over the years, BBAI has had 16 construction projects.
BBAI board member Robert Hester said not all projects are always successful. For example, BBAI built a building to house a boat plant and ended up losing thousands of dollars on the project. Heustess explained that after the boat plant was built the recession hit and about 80 percent of the boating industry went out of business.
He said the laws about how BBAI can show its assets and liabilities has also changed over the years. Heustess said in the past, BBAI had to list the assets at what they have invested in them (actual construction costs), but with the changing of the law, BBAI now has to list their assets at their appraised value.
“What this does is give a more accurate picture of health of Bladen’s Bloomin’,” said Heustess.
Heustess also discussed the information from the Nexson/Pruet agreement. He said Attorney Ernie Pearson, who specializes in economic development, has devised a package and a plan whereby the county can legally contract with Bladen’s Bloomin’ to construct spec buildings.
Some of the benefits from the County contracting with BBAI include:
*Limiting the County from liability;
*Bladen’s Bloomin’ has a strong track record for leveraging additional funds for larger projects;
*The private sector is a more effective and efficient entity for construction;
*Confidentiality issues. Heustess said, in dealing with businesses, corporations do not want their competitors to know they are planning an expansion. They also have reasons for not wanting their customers or employees to know about expansions until they are to open.
Heustess said the way the agreement will work is as follows:
*The County and BBAI enter into a separate contract per project. Heustess said Pearson will give the County contracts which can be filled out for each project they partner to build.
*Every project will have a separate contract and every contract have an exact description of the project and its projected economic impact and the amount of funds to be appropriated. It will also show the commitment from Bladen’s Bloomin’ for their portion of the needed funds.
Heustess added, if the project does not take place, the County’s money must be returned and reallocated for a future project.
“The money identified in the contract can only be used for that project only,” said Heustess.
Administrative fees can also be paid including engineering fees and such. Heustess said the County can pay those.
Any money that comes back will be reinvested in non profit 501 c 3 economic Development project in county, according to Heustess.
He explained the money from the reduced sale or lease price of a building is an incentive to an industry. Bladen’s Bloomin’ is not benefiting from it. The end user is the one benefitting.
Heustess itemized three upcoming projects. They are:
*The completion of the small business incubator at the former Post Office building in Elizabethtown.
*A healthcare project in Bladenboro. He said a Golden Leaf grant application has been submitted for that project.
* Construction of a spec building. Heustess said the county needs an industrial building started before the end of 2018.
It was the consensus of the group to have Pearson draw up the necessary documents for the partnership.
In other business: Ann Garrett was voted as the newest member of Bladen’s Bloomin’ Agri-Industrial (BBAI). She replaces outgoing board member, Linda Croom.
Bladen’s Bloomin’ members Greg Taylor and Mr Beatty were not able to attend the meeting.
About Author
