Tuesday night the Wake Forest commissioners had a lot of questions about the town’s Futures Fund after Deputy Town Manager Roe O’Donnell explained the fund’s operations and what has happened since the fund was established in 2010 to aid and promote economic development and enhancing the town’s nonresidential tax base.
Large loans and grants will be made to high-impact larger businesses and loans of $1,000 up to $10,000 will be made to small businesses. Businesses apply and are judged by the Futures Fund committee, which includes O’Donnell and engineer Jim Bell, who was also at the meeting. Only if the committee approves of the applicant’s business plan and other information are the requests handed on to the town commissioners, who make the final decision.
The commissioners have approved two grants: one of $14,300 to Riverplace LLC, owner of the former Burlington Mills plant on Capital Boulevard, for a boundary survey of the 56 acres it owns next to the plant, envisioning a future tech business park; and one of $294,000 to the North Carolina Wireless Research Center as start-up funding.
They have also approved two loans. One, just last month, was to the town for $200,000 to complete funding to build a 500-foot section of Grandmark Avenue that will connect Capcom Avenue to Rogers Road and signalized intersections. The other was $949,000 to the wireless center for continuing operations. The entire loan matures on Dec. 31, 2016.
The fund currently has a balance of $939,000 which is on deposit at Wake Forest Federal Savings & Loan.
O’Donnell said there are 12 applications waiting on approval by the Futures Fund board. “One company has come back several times. We haven’t really denied any yet,” he said. That company has apparently been growing and each time needs to add to or improve its business plan.
Commissioners Zachary Donahue, Jim Thompson and Margaret Stinnett questioned how the Futures Fund board monitors the wireless center’s progress. “What’s the likelihood they will be paying the full amount?” Thompson asked. “They’ve been paying monthly,” Finance Director Aileen Staples said, $3,000 at first and now $5,000 for a total of $58,000.
“Whose decision will it be [after Dec. 31, 2016] if they have not made any principal payment and can’t make the full payment?” Donahue asked. That will be the board of commissioners, O’Donnell said. “They are abiding by the terms of their agreement,” Staples said.
Bell said the agreements, arrived at by negotiation between the fund board and the applicant, were “meant to be loose, to allow those agreements to flex and grow.”
Mayor Vivian Jones pointed out that the wireless center is having an economic impact on the town with all the firms which bring people and equipment here to use the test equipment. From three people on staff there are now seven or eight with another 15 or 16 working in the independent incubator firms which use the center’s facilities and expertise.
One concern was how the fund will be replenished, with one possibility being the incremental tax value of the business. The commissioners agreed they want at least quarterly updates about the fund’s activities.
Some background about the Futures Fund
The Futures Fund was made possible by a gift of $2.2 million to the town by the two remaining members of the Industrial Development Corporation, John E. Wooten Jr. and John Rich, in 2009. The IDC was set up in 1964 after Wooten and others helped lure Shrader Bros., a valve manufacturer, to town to help the ailing local economy after Wake Forest College moved to Winston-Salem in 1956. The IDC bought part of the Jenkins farm to the east of town on the new U.S. 1 bypass around town and sold bonds to construct the first building on land along Wake Union Church Road. Shrader paid off the bond debt in 20 years, but the town board at the time refused to accept the property, preferring the property tax revenue. Shrader was purchased by Bellows which in turn was acquired by Parker-Hannifin, but manufacturing ended in 2002. The IDC marketed the property but it was not until 2006 that local developer Jim Adams, through his company St. Ives 220 Commercial LLC, purchased the 30.5 acres and buildings for $2.9 million. He later added other land for a total of 67 acres. After fees and other claims, the IDC received $2.2 million, donated it to the town and dissolved itself.
Adams marketed the site and Weingarten Realty Investors developed a plan – and later another plan – for the site, which required sensitive consideration because of the land contaminated by TCE (trichloroethylene) which was used as a solvent and dumped. There is a brown fields site agreement in place between the State of North Carolina and Parker-Hannifin, which is continuing with the abatement process.
The town board voted not to approve the first shopping center plan for Wake Union Place because of traffic considerations, a judge upheld the town vote, and Weingarten drew a slightly different plan which won approval from the town in early 2011. However, by that time the economy and perhaps other considerations forced Weingarten to walk away from construction, leaving Adams with considerable debt. He lost control to an unnamed bank but continued to market the site where the approved plan is still in effect. In mid-summer 2012 a Miami, Florida, firm – RREF BB NC SICP LLC — purchased the land and still holds it, waiting for the right market conditions.
One Response
Carol, thank you for the report. Just a small clarification on my part. I indicated that the Future’s Fund Document/Guidelines were meant to be lose. The agreements/contracts with each applicant can be as tight as the Town Board would like. The Town Board makes the final agreement. The Future Funds Committee makes a recommendation. Thanks.