It is easy to see how Wilmington Business Development CEO Scott Satterfield’s gregarious personality is effective with perspective clients and local leaders.

Satterfield is quick with a handshake and smile. He knows how to tell a story, and it is easy to envision him talking about the virtues of the Wilmington area during a guided tour, a round of golf or over a dinner. As an ambassador, he leaves an impression. But the CIA would admire Satterfield’s ability to keep his activities out of the public eye.

Satterfield does very little publicity, relying on word of mouth and his clients to talk him up. The latest new jobs announcement promoted on WBD’s website is nine months old, and unlike other communities that tout their participation in trade and industry shows and keep the community abreast of development goals via social media, WBD’s work generally stays behind the scenes. Satterfield said he is often bound by nondisclosure agreements with perspective companies, and WBD has a reputation for being discreet, which his clients appreciate.

“We do deal in a business fortunately and unfortunately that requires you to keep your mouth shut,” Satterfield said. “That is just the way it is. I’m not saying I always like it.”

But WBD and Satterfield’s silence is often his undoing.

WBD is the face of Wilmington’s economic development efforts, and Satterfield is the poster boy. When things are going well, the group’s CEO is able to operate with little to no scrutiny. But the slow economy made economic development a political issue. Now New Hanover County has commissioned a report on the state of economic development in the area. The report, completed by Atlanta-based consulting firm Garner Economics, found the area lacking and called for changes in how the Wilmington area attracts new industries.

The report has highlighted questions about whether Satterfield and WBD is doing enough to make Wilmington competitive or providing the leadership necessary to attract new, modern industry at a time when local leaders are struggling to reform the current system.

The Business Journal spoke to three former members of WBD, including a former board member, and several business leaders who expressed frustration over WBD’s practices. The former WBD members, who only agreed to speak anonymously for fear of alienating their businesses, said the group’s fundamental mission to recruit and retain businesses is good but lacks vision or community leadership.

“WBD doesn’t really have a strategy, of course, but I’m more concerned that we – county government, city government, the business community, etc. – don’t have a clearly articulated strategy,” said a former WBD member. “Instead, our community strategy is to give money to WBD and then say ‘WBD is supposed to be doing the economic development work.’”

But Satterfield’s supporters argue he is an effective closer who hasn’t communicated all that WBD is doing. WBD chairman Dickson McLean said the WBD board is happy with Satterfield’s performance.

“If you ask the people that give money, they are confident,” McLean said. “They know what WBD is doing. I think Scott does a great job.”

Wilmington Business Development is a private-public partnership that recruits and helps companies looking to move to Wilmington and New Hanover and Pender counties. It is under contract with the city of Wilmington, New Hanover County and Pender County to serve as the area’s primary economic development group. Founded in 1956, the bulk of WBD’s annual budget – $876,096 in the 2012-13 fiscal year – comes from private investors. According to figures from the group, last year about 32 percent came from contracts with Wilmington, New Hanover and Pender counties.

“We do have an organization that lays it out and brings everything they can to the table,” Satterfield said.

“We maintain a heck of a lot of great contacts because of that. Our No. 1 job is to seriously bring exemplary customer service.”

Satterfield started working at WBD in 1993 after doing marketing and fundraising for the Boy Scouts. He became CEO of WBD in 1995. Satterfield’s greatest hits include the Verizon call center, securing incentives for CastleBranch to build a new headquarters and helping GE keep its operations in the region. His most recent success story is Acme Smoked Fish Corporation, a fish-processing company that will create 120 jobs in Pender County. The 100,000-square-foot seafood processing plant is slated to open in November.  The lead came from Duke Power, and Satterfield said the region beat out locations up and down the East Coast.

“That is what we try to do,” Satterfield said. “This is a time-intensive business. One client can put you and your staff completely dedicated to them for a 12-month period of time just like that.”

But for all of Satterfield’s salesmanship, he is an elusive interview, rarely answering questions with direct answers. When pressed to name some of WBD’s annual goals, Satterfield never provided any numbers or metrics.

“Our board makes it very clear what they want us doing is moving the ball forward,” he said. “They understand this isn’t an event of the day business.”

It is unclear where the board wants him to move the ball. But Mclean, a Wilmington lawyer who took over the WBD chairmanship in July, said strict goals are fair in business, but not in economic development.

“The goal is the mission,” he said. “If you do the basic things everyday, it is hard to have a goal of five companies move to Wilmington in the next 12 months. You don’t know when a company is going to move.

It is hard to come up with quantitative goals. Some of these things take years.”

But critics, including WBD members, say the group’s successes are sporadic and Satterfield tends to rest on past accomplishments like the Verizon call center, which opened in 2004. A former member WBD said Satterfield isn’t proactive.

“Once they have a lead, they close it,” said the former WBD member. “But I don’t think they do the marketing part. Our community needs to do the marketing part better.”
Another former WBD board member said Satterfield’s elusiveness in public was evident in the boardroom.

“You don’t learn a darn thing in those meetings,” the former board member said.

All of WBD’s critics complain about Satterfield’s salary. He is paid more than other business group peers in the area. He took home nearly $304,000 during the 2012-13 budget year including a bonus of about $52,000, according to the group’s most recently available Form 990 filing with the IRS. Retirement and deferred compensation was another  $25,500. In the 2012-13 period, Satterfield’s pay made up about 35 percent of the organization’s total revenue, according to its IRS filing.

And he is entitled to two years of salary and benefits if fired without cause, according to a financial report provided to board members. It is unclear at what rate he would be paid if fired. McLean did not comment on Satterfield’s salary.

“WBD reports what it is required to report in its audited financial statements and Form 990 [an IRS form for tax-exempt groups] regarding the same, and any other aspects of Scott’s contract are confidential,” McLean said.

McLean said the criticism of WBD is misplaced and inaccurate.

“There is not one particular person at fault for this area not having an economic development program,” he said. “It takes a lot of people to step up in both industry and government. There is not one group or person that is responsible for economic development not being as good as it could be.”

The nearly $105,600 Garner report, which was particularly critical of the area’s marketing and leadership, has only renewed the frustration over the area’s economic development record.

The report said local government and economic development groups like WBD must be more proactive and recommended WBD partner with Brunswick County (Brunswick County Economic Development Commission) to market a “three-county micro region” including Pender County. The Garner report also recommends the creation of a county department of economic development with a director who can act as an ombudsmen and coordinate with the various economic development groups.

“The point, as far as I am concerned, is that economic development needs to be the responsibility of the people’s governments, either through direct government employees, or through private partnerships with private organizations, which we have with WBD, with strong, metrics-driven oversight by full-time government employees who can hold the private partners accountable, which we don’t have right now, because people see this as another layer of bureaucracy,” a former WBD member said.

But New Hanover County manager Chris Coudriet said the county has no plans to create the economic development department. He said additional government bureaucracy isn’t going to help.

Overall, the Garner report is being held up as a blueprint for reform in the region. Robin Spinks, vice chairwoman of the Coalition for Economic Advancement and a site selection consultant, thinks the Garner report will spurn some change.

“I think the Garner report and all the discussion around it has elevated the awareness within the public that the business community, and the stakeholders are going to hold the elected officials accountable to make something happen,” Spinks said.

But some business leaders aren’t so sure. No one in local government or industry has taken the lead. A meeting between city and county leaders was moved from July to August, according to officials.

“The Garner study was intended to give us a starting point for developing such a strategy,” a former WBD member said. “However, it’s not clear that anything will come of Garner, as the two governments have been extremely and unnaturally slow in rolling out an implementation committee and are currently bickering over how to move forward to study and analyze Garner’s recommendations.”

The Garner report places blame beyond WBD. It found New Hanover County lacks any consensus on the type of economy it wants and no coordinated way to attract desired companies. The report concludes that Wilmington needs to break out of its tourist mold and target industries in a variety of sectors ranging from life and marine science research and development to precision manufacturing and aircraft assembly.

“The Garner report gives us a place to start to determine where we are as a community, what our goals are and how we are going to achieve those goals,” said Connie Majure-Rhett, president and CEO of the Wilmington Chamber of Commerce.

“While all may not agree with Garner’s recommendations, it is incumbent upon all involved in economic development to commit to an honest and fair appraisal of those recommendations and to take an honest look to ensure we are all doing our part. Our community deserves that. It is the responsibility of all involved in the business. This is not a time for finger-pointing.”

Coudriet said the county needed an honest assessment of its economic development strategy.

“I think [consultant] Jay Garner helped us focus on what it is New Hanover County is trying to achieve,” Coudriet said.

Coudriet has a five-year economic development plan and expects WBD to assist in reaching the county’s three goals of raising $1 billion in new business investment, adding 6,000 new jobs in target industries like life and marine science, regional headquarters, precision manufacturing and aerospace and increasing weekly wages by 10 percent.

“Our role is to articulate what we want to achieve,” Coudriet said. “We are in the early days of a holistic approach.”

It is not the first time the county has declared economic development a focus area. In 2011, the county made the issue the county’s top priority. But in the three years since that announcement, the county has done little to solve the lagging infrastructure problems nor presented a cohesive strategy.

Satterfield said Wilmington has a lot of attractive qualities, but its site selection suffers from a dearth of locations with essential utilities such as water and sewer so companies can start building immediately – a problem also highlighted in the Garner report.
 
McLean said WBD is intent on working with local government to discuss the Garner report’s recommendations. Mclean said he has three goals for the coming year. He wants WBD to work closely with New Hanover County and Wilmington to implement parts of the Garner report, coordinate efforts with Brunswick County to market the region and help improve the area’s water and sewer infrastructure.

But McLean warned that each of Garner’s suggestions come at a cost.

“I think it is a good conversation starter,” he said. “I think there are some good ideas there.”

Despite concerns from both critics and the Garner report, WBD still has the support of county leaders who called the group the region’s main economic development partner.

“WBD is a critical part of this,” said Woody White, chairman of the New Hanover Board of Commissioners. “Our success will be dependent on the success of WBD.”

Both the county and City of Wilmington earmarked additional funds for economic development initiatives such as WBD, Wilmington Downtown Inc. and the Wilmington Regional Film Commission. The additional funding passed in June by New Hanover County includes an increase to WBD of about $50,000 per year for three years, for a total boost of $150,000.

McLean said WBD did not ask for more money.

“It’s something the county told us they were going to do,” he said. “They value what we do.”

White is happy with WBD, for now.

“I give them a mid-term grade that is very favorable,” White said. “The final grade will be determined. We are not increasing funding to do it. The increased funding carries with it having WBD implement portions of the Garner report.”

Even the city and county aren’t sure what portions, but Satterfield is ready with a handshake and a story when the time comes.

GARNER REPORT
To read the Garner Economic's report about the area's economic development approach and recommendations, click here.

ECONOMIC DEVELOPMENT PROGRAMS: WILMINGTON AND BEYOND
Wilmington, NC
Lead economic development agency: Wilmington Business Development
Top official (compensation): Scott Satterfield, CEO ($303,924*)
Program details: Contracts with New Hanover and Pender counties and City of Wilmington; private, not-for-profit organization
Annual budget: $876,096*
Annual public funding: $309,231 (in 2013)
Project announcements in 2013: Existing company expansions: CastleBranch, GE Aviation, Live Oak Bank; New company additions: RC Creations LLC
Number expected from jobs in 2013 announced deals: 695
Goals: (according to WBD chairman) Improve infrastructure around county with a focus on 421; coordinate and work with Brunswick County to market region; work closely with county and city to implement Garner report
Website: www.wilmingtonbusinessdevelopment.com
Source: WBD, *IRS 990 form FY2012-13
 
Greenville, South Carolina
(Greenville used as benchmark community in Garner report)
Lead economic development agency: Greenville Area Development Corporation
Top official (compensation): Kevin Landmesser, interim president and CEO (his predecessor in 2012: $125,066*)
Program details: Nonprofit, set up by Greenville County
Annual budget: $1.1 million
Annual public funding: $977,299
Project announcements IN 2013: New companies-SC Tool, TIGGES USA LLC, in-tech Automotive Engineering, Project Apostle, Integro Earthfuels, Bonadent Dental Labs, ACS, Project Abby, US Waffle Company, Crown Group, Roding Technology, Project Marvel, KI Logistics, Material Sciences Corporation and Sweet Street Desserts. Expansions-Project Commodore, Fitesa Simpsonville, Project Drake, Milliken, BMW and Advanced Composite Materials
Number expected from jobs in 2013 announced deals: 1,001 and $238.9 million in announced investment
Website: www.gogadc.com
Source: Greenville Area Development Corporation
Source: GADC, *IRS 990 form FY2011-12
 
Mobile, Alabama
(Mobile used as benchmark community in Garner report)
Lead economic development agency: Mobile Area Chamber of Commerce
Top official (compensation): Bill Sisson, president and CEO (his predecessor in 2012: $246,255*)
Program details: Contracts with City of Mobile and Mobile County “to provide measurable economic development activity”; private business organization
Annual budget: About $6 million
Annual public funding: Less than 10 percent
Project announcements over past 18 months: Airbus, AM/NS Calvert, Amvac, Alabama Steel Terminals, AT&T, Austal USA, BAE Systems, BASF, Callis Communications, Continental Motors, Crow Shields Bailey PC, Goodwyn Mills & Cawood, Hargrove Engineers + Constructors, Horizon Shipbuilding, Kloeckner Metals, Safran Engineering Services, Marine Well Containment Co., Masland Carpets, Master Marine, Myer Marine Services, NAI Mobile, Outokumpu, Red Square Agency, Rural Sourcing Inc. (RSI), Safe Archives, Southern Light, SSAB, ST Aerospace Mobile, The SSI Group, Thompson Engineering, Tube City, UOP A Honeywell Company, Vickers Riis Murray and Curran LLC, Walter Energy and Wilkins Miller Hieronymus
Number expected from jobs in past 18 months announced deals: 2,900 and more than $1 billion in announced investment
Goals: Five-year goals for 2013-2017: 4,000 new jobs with average wage of $40,000, $1.5 billion in capital investment
Website: www.mobilechamber.com
Source: Mobile Area Chamber of Commerce, *IRS 990 form CY2012
 
Charleston, South Carolina
Lead economic development agency: Charleston Regional Development Alliance
Top official (compensation): David Ginn, president and CEO ($301,000)
Program details: Public/private, not-for-profit corporation; public-sector investors include Berkeley, Charleston and Dorchester counties as well as the municipal governments of Charleston, Goose Creek, North Charleston, Mount Pleasant and Summerville
Annual budget: $3.1 million
Annual public funding: $1 million
Project announcements in FY 2013-14: Weber Automotive, American Tactical Imports, FEV Inc., Molina Healthcare, Kaman Engineering Services, Aeterna Zentaris, Pacific Rim Aerospace, New World Pharmaceuticals LLC & New World Consumer Products LLC, JBE Inc.
Number expected from jobs in FY 2013-14 announced deals: 582 jobs and $77.2 million in announced investment
Goals: Annual plans aligned with region’s five-year economic development strategy, Opportunity Next (www.opportunity-next.com), which identifies high-value targets and guides region’s efforts “to strengthen the local economy, improve average wages and create new jobs over the next three-to-five years.” Has an annual Regional Economic Scorecard (www.crda.org/economicscorecard) to track collective outcomes over time and “provides unbiased data to help focus a collective effort to address our weaknesses and maintain positive momentum.”
Website: www.crda.org
Source: CRDA, *IRS 990 form FY2012-13
 
Savannah, Georgia
Lead economic development agency: Savannah Economic Development Authority
Top official (compensation): Trip Tollison, president and CEO (not provided)
Program details: Independently funded organization, constitutional created authority
Annual budget: $6.6 million
Annual public funding: Independently funded
Project announcements in 2013: 17 announcements, including LMI Savannah Inc./Valent Aerostuctures expansion, Axens, Johnson Matthey Process Technologies Inc., Benton Global, Coastal Empire Beer Company, Outlet Mall of Georgia, OnBrand 24, The REGUS Group, Shaw Industries, BFG Communications, River Street Sweets, Great Dane Trailers, Southern Aviation Parts and Services
Number expected from jobs in 2013 announced deals: 1,353 job opportunities and capital investment of $330 million
Goals: In 2014: Target 18 expansions or announcements, 625 new job opportunities and $135 million in capital investment (Full 2014 business plan available on SEDA’s website)
Website: seda.org
Source: SEDA