New Hanover County must build consensus about what type of economy it wants and move in a coordinated way to attract desired companies and industries, according to the final version of a report the county commissioned from Garner Economics Inc.

At the same time, the report’s summary states, the county must undo or mitigate policies that inhibit economic growth and greater investment.

At the firm’s presentation Tuesday afternoon to New Hanover County commissioners, CEO Jay Garner specifically mentioned the special use permit (SUP), which he believes New Hanover County must either eliminate or mitigate, expanding its table of permitted uses.

“Site location consultants like us are site elimination consultants,” he said, noting that the presence of a vague SUP could be a deterrent to any business looking at the county.

Asked by commissioner Jonathan Barfield how the elimination of the SUP would affect the environment of the Cape Fear area, which was under threat of being labeled a non-attainment area because of sulfur dioxide emissions, Garner said his firm does not recommend that the area target industries that would have such emissions issues.

“None of the 25 recommended industries in our report are intensive industries,” he said.

The firm’s recommendations include the creation of a county department of economic and community development and the hiring of a director for the department. The report also recommends the formation of a three-county micro-marketing alliance for New Hanover, Brunswick and Pender counties, consolidation of services and possibly even the governments in the county and better support for small and new businesses.

Once the county has a clear idea of its economic development goals and targets, it should create “realistic” incentive packages to lure attractive companies, the report states.

In his presentation, Garner emphasized the importance of creating a structured and predictable incentives policy so that companies would have a good idea of what kind and size of incentive they might garner. He also pointed out that the film business is an incentives-driven business and urged the county officials to advocate for the continuation of North Carolina’s film incentives program.

Among the industries the county should target, Garner said, are life and marine science research and development, high-value office operations such as specialized outsourced business services, precision manufacturing and aircraft assembly, modification and maintenance.

To improve competitiveness for the target industries, Garner recommended actions including the addition of relevant educational and training programs at Cape Fear Community College and University of North Carolina Wilmington, advocacy for the continuation of film incentives, provision of free high-speed Internet throughout the county and development of facilities at Wilmington International Airport to attract aircraft-related industries.

The report also recommended that marketing efforts for New Hanover County should encompass the region and should involve other economic development partners, presenting a united front and cohesive message that would help the area compete against other regions in an economic development landscape in which talent and high-quality companies are increasingly mobile.

One of the firm’s recommendations is to create a sustainable funding stream for economic development.

Saying he knows that the mention of taxes is not popular, Garner nevertheless strongly urged the county to consider levying a sales tax amount that would do that.

“I am a Pied Piper for the Texas economic development model,” he said, explaining that the state of Texas allows municipalities to levy sales tax increments to support the level and nature of economic development. “This is the reason why Texas has led the U.S. in job growth."

Garner also recommended that the county create a talent pipeline, coordinating K-12 and higher educational resources to ensure that students have educational and training opportunities aligned with economic growth goals and realities.

Commissioners chairman Woody White said to Garner that while he did not agree with all of the recommendations, the report provided a good starting point for further discussion.

To read the final report, click here. For the firm's report looking at comparative regions, click here.