New Wake Forest Town Manager Kip Padgett “hit the ground running” when he took over the position in July, Mayor Vivian Jones said at the start of the town board’s mid-year retreat Friday. Later she said, “I’m really excited about the future of economic development in Wake Forest because Kip is going to take a more active role than we’ve had in the past.”
Padgett said the goal for economic development is more industry, job creation, job retention and a stable tax base. He said he wants to focus on the town’s existing industries and try to increase the percentage of commercial property in the town’s tax base.
In many towns the percentages are 60 percent residential, 40 percent commercial or 70 percent residential, 30 percent commercial. Wake Forest’s numbers are 80 percent residential and 20 percent commercial.
The concern is not retail, Padgett said: “Retail is coming as we get more rooftops.” The need is to entice more industry, particularly in the technology sector. The goal will be to improve the quality of life because those desirable industries look at parks, greenways, schools, churches, and the number of people with high degrees. He illustrated that by saying a company in Wake Forest is looking at another tract of land in the town to be closer to a greenway “because the employees want to walk to work.”
Currently the town partners with the Wake Forest Area Chamber of Commerce and pays it $98,500 to manage the town’s economic development program, 0.26 percent of the $38 million budget. Chamber President Marla Akridge spends 80 percent of her time on economic development. “Other towns pay more but their economic development is inhouse,” Padgett said. “It seems to be working out very well here, partnering with the chamber.” In the years 2010 to 2015, there were 28 new or expanded businesses and 480 jobs created.
Holly Springs, lauded last week as leading Wake County’s economic development with new businesses, spends $397,037, 1.22 percent of its $31 million budget. Commissioner Anne Reeve noted that not all of that money was going to economic development activities; much of it is for salaries, overhead and benefits.
Moving forward, Padgett said, the Economic Development Committee will present its strategic plan soon. “The decisions you make on land use determine what business can go where. Land use is the basic decision, and you need to know the strategic plan.” He will make a presentation about the plan each winter and summer. “We will do a better job of coming back to the board with what’s going on in economic development.”
He stressed that doing economic development well does cost money – “We’re going to have to look at increasing the amount of money you are spending” — and that the economic development scenario is always changing and full of uncertainty. Right now, Padgett said, there are 14 possibilities which together would bring 1,000-plus jobs – but nothing there is certain. It may be that not even one company chooses Wake Forest.
Partnering with other entities – other government agencies, schools and utilities – is critical, Padgett said. There are three parcels of land that would be suitable for industry and he is planning to partner with the state Department of Commerce and ElectriCities to try to interest industries.
“Economic development is an ever-changing animal,” Padgett said, “and you have to be adaptive.”
He stressed the importance of the downtown area in providing a fabric, a framework, which builds community. “Your downtown is that fabric, where people want to gather, walking around enjoying an event downtown. If you don’t have that, you’re going to dry up.”
Jones said she had heard concerns about the town working with the chamber. “We need to talk about that.”
Commissioner Margaret Stinnett said she wondered about the 80 percent of her time that Akridge spends on economic development and that Akridge is on the board for the Future Fund but not a voting member. “I’m just very unsure about that.”
“Time spent on the Future Fund is part of economic development,” Jones said.
“I go to almost all the ribbon cuttings sponsored by the chamber,” Reeve said. “I want those businesses to know how much we appreciate their bringing their businesses to Wake Forest.” She said the chamber has the tools and the resources for the job.
Stinnett expressed her dissatisfaction with the arrangement in general terms. “I want you to tell us what the problem is,” Jones said, and Stinnett replied, “The other four of you are happy with the relationship. I’ve told you many times, but it’s fallen on deaf ears.”
