Moving megasite funds to Burke Business Park may have quicker economic payoff

The North Carolina General Assembly did what Burke County Commissioners asked it to do.

With its 72-46 vote Wednesday to override Gov. Roy Cooper’s veto on NC Senate Bill 382, the N.C. House opened the door for Burke to reallocate state funding originally intended for the Great Meadows industrial megasite to construct an industrial shell building at the Burke Business Park.

An industrial shell building is a structure where the basic exterior and structural components are completed, leaving the interior available for customization to fit future occupants.

County Manager Brian Epley said the Burke Board of Commissioners came up with the idea for the project last spring when inadequate funding delayed the Great Meadows deal. 

The board did not make the strategy public, and the request was not mentioned publicly until the bill was filed. 

North Carolina's open meeting laws allow discussions about economic development projects to be held in executive sessions to preserve confidentiality, provided the discussion is limited to matters where public disclosure would harm the state or local government's competitive position.

The $35.8 million state grant for the megasite specifically designated $22.3 million for the land purchase. This amount fell short of the $33 million price on the property. The remaining $13.5 million in grant monies wouldn’t be enough for infrastructure, which Epley estimates would cost north of $50 million.

“We always talk about the highest and best use (of resources), and I think that’s what this is,” Epley said. “Burke Business Park is a really good asset that has been underutilized. This is a result of the board working as a team and asking how we can benefit the community.”

The board said the project is a way to generate revenue in the short term by moving funds from what it considers a long-term project into a plan that would result in a faster payoff.

QUICK TURNAROUND?

The project could move forward quickly once the initial steps begin.

Epley said Thursday no timetable is in place for starting the project, but a building could go up as soon as six months after the design phase is completed.

Burke Partnership for Economic Development, Inc., (BDI) the county’s industrial development arm, which includes the county, City of Morganton, and Towns of Valdese, Drexel, and Rutherford College, is in charge of both industrial sites and will play a major role in their development. 

The Paper contacted BDI President and CEO Alan Wood Thursday afternoon. He did not elaborate on the veto override. 

Officials are optimistic the shell building will sell quickly.

Epley said Burke receives around a dozen requests for information from companies every month. Counties without existing modern industrial spaces are quickly eliminated by many potential clients.

Commissioner Randy Burns said the building would allow the county to appeal to a broad range of industries.

“Our inventory of suitable manufacturing sites is gone,” Burns said. “Modern manufacturing requires high ceilings and many of our old furniture and textile plants just don't fit that bill.”

Newly elected commissioner Brian Barrier said he’s in favor of the project.

“I like the idea,” Barrier said. “I’ve said it publicly many times that I think we need to finish what we started where the business park is concerned. It would be great to get some manufacturing in there, both for the tax base and the potential to produce jobs.”

Fellow board newcomer Mike Stroud is on board as well.

“This is a way of saying, let’s jump-start something right now,” Stroud said. “We don’t have the funding for the (Great Meadows) site, so let’s show some movement.”

Rep. Hugh Blackwell (R-86) was part of the majority vote Wednesday. He said Burke County would profit from the commission’s plan in the long run.

“Rather than letting substantial funds sit idle while major questions remain unresolved with regard to the development of a possible megasite, the county will have the ability to complete and sell projects at the long-existing Burke Business Park,” Blackwell said. “If that goes well, hopefully it will enhance the county’s credibility in promoting economic development.”

TERMS OF THE DEAL

The state gave BDI $35.8 million for the megasite in October 2023, with $22.3 million dedicated to purchasing the land from owners Great Meadows, LLC. 

The $13.5 million earmarked for infrastructure at the site is not part of the new legislation. Burke Development holds an option on Great Meadows until 2033, Epley said.

The county has three years, until Dec. 31, 2027, to sell the speculative building and place the $20 million back in the Great Meadows fund, but there would be no punitive measures from the state if that doesn’t happen. 

The deadline could then be extended as long as the county acts in good faith with legislators by continuing to support the Business Park project. “But we wouldn’t agree to that expectation (three years) unless we thought we could accomplish it,” Epley said. 

In essence, the county would be borrowing money from itself, and the loan is collateralized, with the asset changing form from capital to property.

Most prospective companies are looking for a facility of between 80,000 and 150,000 square feet, according to the county manager. Epley said a building on the upper end of that scale would fit nicely on the 83-acre site, which has attracted only one tenant, Unix Packaging, since opening in 2005. Unix is nearing completion of its 500,000-square-foot distribution center. The structure occupies nearly 12 acres.

More than one building could be built with $20 million, but Epley said the county’s plans call for only one initially. Burke Business Park is pad-ready, with water, sewer, and electrical utilities in place.

Although Great Meadows is currently unfunded, the project itself is still active and could move forward if the General Assembly provides more money in the future, according to commission chair Jeff Brittain. Officials have repeatedly touted the megasite as a generational economic opportunity.

Epley said it’s still early in the game where the future of the megasite is concerned, and said the shell building is a creative way to generate tax revenue and potential jobs in the near future.

“We need economic development,” Epley said Thursday. “There's lots of ways to accomplish that at this point. The General Assembly has graciously given this region a substantial grant of $35.8 million, but that doesn't fund the full development of that site. And so, we're looking for alternative ways to serve our community.” 

As part of the legislation, BDI must deliver a progress report to the state every three months, updating legislators on the Burke Business Park project.

The bill was initially ratified by the Senate Nov. 19 and vetoed by Cooper later that day because it contains measures that weaken the power of the governor, particularly in elections. The Senate voted to override the veto last week, and the House followed suit Wednesday. 

Republicans currently hold a veto-proof majority, but will lose it after the first of the year. Democrats have accused N.C. Republicans of a power grab with the bill, which also included funding for western North Carolina’s recovery from Hurricane Helene.

In a developing story, Cooper and Governor-Elect Josh Stein, the state’s attorney general, have filed suit against Speaker Tim Moore, President Pro Tempore of the N.C. Senate Philip Berger, and Commander of the NC State Highway Patrol Freddy Johnson, over a portion of the bill that transfers significant powers over the NC State Highway Patrol (SHP) from the governor to the legislature.

It wasn’t immediately clear if the lawsuit will have any bearing over other portions of the 132-page bill, which includes a number of requests similar to the one Burke County made.