News

Center gets hurricane recovery under way with planning grants for flood-damaged business areas
The Rural Center has awarded the first round of grants under the Hurricane Recovery Business Area Redevelopment Program, a $5 million initiative to redevelop commercial property and repair public infrastructure damaged in a series of 2004 storms. The initiative is part of the Hurricane Recovery Act of 2005, a $247.5 million relief package to help rural homeowners, businesses and local governments in half the counties in the state rebound from flooding and related storm damage. Rural Center President Billy Ray Hall met with western lawmakers and other officials in Asheville on March 28 to announce planning redevelopment grants of $20,000 each to the hardest-hit western communities of Clyde, Canton, Newland and Asheville’s Biltmore Village. Those communities will now begin the process of assessing the structural condition of damaged buildings and infrastructure, determining restoration needs and evaluating repair costs. Once the plans are submitted, each community will be eligible for up to $700,000 in grants to carry out their projects. To find out more about the Hurricane Recovery Business Area Redevelopment Plan, contact Bill McNeil at the Rural Center, (919) 250-4314, bmcneil@ncruralcenter.org

Lawmakers consider revolving loan fund and grants to help communities meet water, sewer and stormwater needs
Local governments in rural and low-wealth areas of the state may soon have a new source of funding to pay for costly water, sewer and stormwater infrastructure improvements. Sen. John Kerr has introduced the Clean Water Act of 2005, which would establish a revolving loan fund to help municipalities and local water systems pay for system upgrades and expansions as well as water conservation and reuse projects. The fund – financed by doubling the state’s current deed tax on real property – would offer deferred interest loans as well as grants. Kerr said the bill is a critical piece of legislation this session, as record population growth places unprecedented demands on the state's water resources at a time when federal loan and grant programs are diminishing and local governments are struggling to comply with heightened regulations. The Rural Center released findings last year that revealed North Carolina is facing infrastructure needs of $7 billion in just five years and $15 billion by 2030. Senate Bill 1091 awaits a hearing in the Senate Agriculture, Environment and Natural Resources Committee. To read the full text of the bill, click here.

Bill to exempt tobacco buyout payments from state taxes includes funding for value-added agriculture
Sen. Martin Nesbitt has introduced legislation to exempt tobacco buyout payments from state income taxes by raising the excise tax on cigarettes, beer, wine and liquor. Senate Bill 1017, the Rural Enhancement and Sustainability Act, would also set aside $30 million for each of the next two fiscal years to fund agricultural market research, commodity development projects and investments in value added products and businesses. The bill directs the center’s Agricultural Advancement Consortium to administer the funding. The bill would set aside another $25 million annually for the state’s Mental Health, Developmental Disabilities, and Substance Abuse Services Trust Fund. To read the full text of the bill, which has been referred to the Senate Finance Committee, follow this link: http://www.ncga.state.nc.us/Sessions/2005/Bills/Senate/HTML/S1017v1.html

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Reports and Research

Leandro summaries offer insight on landmark education ruling
The North Carolina Child Advocacy Institute has prepared three one-page summaries on the Leandro case, the landmark 1997 state Supreme Court ruling that found the state is ultimately responsible for ensuring that all North Carolina children, regardless of where they go to school, receive a sound education. The ruling stated that neither school districts nor counties have any constitutional right to equal funding from the state, but that school children do have a constitutional right to the equal opportunity to receive a sound and basic education. The summaries are available on the institute’s website, http://www.ncchild.org/education.htm, along with the two key N.C. Supreme Court rulings.

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Meetings and Events

Farm transition workshop set for April 25 in Statesville
The North Carolina Farm Transition Network is conducting a workshop April 25 in Statesville to help farmers learn how to successfully transfer a farm business between generations. The network, supported by the state Department of Agriculture, N.C. Farm Bureau, the center’s Agricultural Advancement Consortium and others, works to preserve farming and farmland at a time when more than 75 percent of farmers are aging out of the business and may not have a family member to pass the operation on to. The workshop will guide farmers through the process of estate planning and help them develop business operating agreements and leases. The workshop will also offer information for beginning farmers interested in securing an existing operation and for established farmers interested in expanding their businesses. To register online, visit the website at: http://www.ncftn.org/workshop_registration.html The cost of the workshop is $10 for single registrants, with discounts for two or more members of the same farm family or operation. For other questions, call (919) 782-1705.

Council for Entrepreneurial Development to hold venture capital conference April 26-27 in Pinehurst
North Carolina-based entrepreneurs seeking venture capital are encouraged to attend the Council for Entrepreneurial Development’s Venture 2005 conference, held this year at the Pinehurst Resort and Country Club. The annual conference provides an opportunity for entrepreneurs to present their investment opportunities to early and main-stage technology development companies. Since 1999, companies who presented at CED's annual conference have raised more than $1.6 billion in venture capital. Approximately 25-35 companies will be selected to present to an audience that will include more than 300 expected investors. The application deadline to present at the conference has already passed, but entrepreneurs are still encouraged to attend, network, and learn about strategies for seeking out investment capital. To find out more, or to register, visit their website.

Save the Date: Southeast Wireless Symposium to be held Nov. 16-17 in Asheville
The e-NC Authority’s annual conference on wireless technology will be held in Asheville on November 16-17. The third annual Southeast Wireless Symposium will present the latest developments in the wireless industry with a special focus on increasing broadband deployment in rural areas. Last year’s symposium was titled, “Broadband for Everyone - The Role for Wireless and Deploying Wireless.” The event drew some of the nation’s foremost Internet technology leaders, as well as political officials, educators and local economic development officials. For more information on the 2005 symposium, call Donna Sullivan at (919) 250-4314.

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At the Rural Center

April 18 is deadline for local governments with business-related hurricane damage to apply for planning grants
Local governments in 28 counties are eligible for funding under the Rural Center’s Hurricane Recovery Business Area Redevelopment Program, a $5 million initiative to redevelop commercial property and repair public infrastructure as part of a broader statewide hurricane recovery effort passed by state lawmakers. Those counties include: Alleghany, Ashe, Avery, Beaufort, Buncombe, Burke, Brunswick, Caldwell, Columbus, Dare, Haywood, Henderson, Hyde, Jackson, Macon, Madison, McDowell, Mitchell, Moore, New Hanover, Pender, Polk, Rutherford, Stokes, Swain, Transylvania, Watauga, and Yancey. Applications for redevelopment planning grants are due by April 18, with award decisions on April 26. Funding will be awarded in three phases: grants of up to $20,000 to prepare redevelopment plans; implementation grants of up to $700,000 to help grantees complete their projects; and additional funding to projects with critical unmet needs, depending on available funds and other factors. Grantees awarded redevelopment planning grants will submit their plans by mid-July, with implementation grants announced in mid-August. For more information on eligibility, or to learn how to apply, contact Bill McNeil at (919) 622-3303, mailto:bmcneil@ncruralcenter.org

Microenterprise Loan Program offers new lending model for aspiring entrepreneurs
The Rural Center’s nationally recognized Microenterprise Loan Program is demonstrating a new lending model that will boost the number of small business loans made to aspiring entrepreneurs in rural North Carolina. Through the ‘express loans’ model, the center will target individuals who want to go into business for themselves and who have the potential – with the help of technical assistance, financial literacy training and start-up capital – to stimulate jobs in their communities down the road. Those who qualify will receive low-interest loans of up to $5,000 to get their ventures up and running. The center has committed $250,000 in Microenterprise Loan Program funds through this pilot program for ventures that aren’t quite ready for a larger business loan and on borrowers who carry slightly more risk than the average micro borrower. To find out more, contact program director Carolyn Perry at (919) 250-4314, mailto:cperry@ncruralcenter.org

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Funding Sources

Local Initiative Funding Partners program to provide support for community-based health projects
Local Initiative Funding Partners, a partnership program between the Robert Wood Johnson Foundation and local grantmakers, supports innovative, community-based projects designed to improve the health and healthcare for society's most vulnerable people. To be eligible for this program, projects must offer collaborative, community-based services that are new and innovative. Significant program expansions -- such as a major expansion into new regions or to new populations -- may also be considered. Applicants may be either public entities or nonprofit organizations. Projects must be nominated by a local grantmaker interested in participating as one of the funding partners. Local funders must be willing to work with grantees to obtain sufficient dollar-for-dollar matching funds throughout the grant period. Up to $6 million is available for the 2006 grant cycle, in which up to 18 matching grants of $100,000 to $500,000 will be awarded for each project. Visit the website at http://www.lifp.org/ for more information or to apply online.

USDA offers new round of value added producer grants
The U.S. Department of Agriculture is now accepting applications for its 2005 Value Added Producer Grant Program, a $14.3 million initiative designed for tapping into new and emerging markets. The program requires a 50-50 match in cash or in-kind contributions. Eligible applicants include independent farmers and ranchers, farmer and ranch cooperatives, and majority-controlled, producer-based business ventures. USDA has improved the application criteria for this competitive grant program. The grants program has been modified this year to provide new web-based information for applicants, to discourage multiple years of funding for the same applicant, and to provide a pre-review of applications. The deadline to apply is May 6. To find out more, or to apply online, visit the website at: http://www.rurdev.usda.gov/ga/vadg.htm.

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From the N.C. Press

Carteret County News-Times: County’s economic success may affect EDC efforts
The county’s economic successes in recent years may in the future make it more difficult to compete with less prosperous parts of the state in attracting new industry. Those successes, as measured by the N.C. Department of Commerce, puts the county in the same class as Durham, Mecklenburg, New Hanover, Orange, Wake and other booming counties. The new ranking is also the first time that Carteret County has been upgraded since the program began in 1996. State tax credits created under the William S. Lee Act and intended to encourage job creation, industrial expansion, worker training, research and development and other investment in economically challenges counties vary in amounts depending on each county’s classification under a statewide five-tier system. After years of ranking as a tier 4 county, Carteret County has been upgraded to a tier 5 county for 2005. The new ranking places the county among the top 18 most prosperous counties in the state.

Gates County Index: Future is bright for Northampton
Moving into the future can be a daunting task, but with the way things are progressing in Northampton County, you’d never know it. Over the last three years the county has achieved marked accomplishments and is continuing to strive toward a better future for its residents. Having successfully maintained an ad valorem tax rate of 88 cents over a three-year period, county officials were able to increase the undesignated general fund balance from 7.59 percent in 2000 to 18 percent in 2003. That increased the fund balance from $2.85 million to $5.78 million, thereby placing the county in a position to set aside $250,000 in Capital Reserve Funds. It also provided improved wastewater services to approximately 125 families in the recently created Northampton-Lincoln Park Sewer District. Approximately 800 additional families benefited from the completion of Phase IV Water Project. Northampton County citizens have also benefited from the creation of hundreds of jobs at the new Lowes Distribution Center near Garysburg and, at last count, added over $30 million to the tax base from industrial and commercial development.

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Copyright by N.C. Rural Economic Development Center, Inc. 2002. We encourage you to share this UPDATE with interested individuals, organizations, or agencies. Material may be reproduced in electronic or print form. We ask that you please cite the Rural Center as the source.

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The mission of the North Carolina Rural Economic Development Center is to develop, promote, and implement sound economic strategies that improve the quality of life of rural North Carolinians, with a special focus on individuals with low to moderate incomes and communities with limited resources.

N.C. Rural Economic Development Center
Michelle Taylor, UPDATE editor
Kelly Tucker Griffin, UPDATE production manager
Elaine Matthews, vice president for communications and development
4021 Carya Drive, Raleigh, NC 27610
(919) 250-4314 Fax: (919) 250-4325
http://www.ncruralcenter.org/