THE VIRGINIAN-PILOT
Copyright (c) 1997, Landmark Communications, Inc.
DATE: Friday, January 17, 1997 TAG: 9701180376
SECTION: LOCAL PAGE: B1 EDITION: NORTH CAROLINA
SOURCE: STAFF AND WIRE REPORTS
LENGTH: 80 lines
Dave Phillips' last day as North Carolina's commerce secretary was an eventful one.
First came word Wednesday that the state landed a record $7.4 billion in new and expanded industrial investments in 1996, with 1,215 projects across North Carolina creating nearly 55,000 new jobs.
Then came the news that Phillips, the state's top industrial recruiter, was leaving his post after four years to take over as chairman of the North Carolina Economic Development Board.
No successor has yet been named to take over Phillips' job, but The News & Observer of Raleigh reported Thursday that state Rep. Norris Tolson, D-Edgecombe, will get the post.
Among the finalists for the job was R.V. Owens III of Manteo, 39, a leading fund-raiser for Gov. James B. Hunt Jr. and a member of the board of transportation.
``Somebody has to win, somebody has to lose,'' Owens said philosopically Thursday, adding that he is giving up his highway post as announced earlier, and probably will curtail his political activities.
Phillips said it was ``the perfect time for me to make this transition. The bottom line is we are getting the projects. We have turned it around.''
He was referring to the Tar Heel state's rebirth as one of the nation's top corporate recruiters following a string of high-profile losses like the Mercedes-Benz and BMW auto plants and a protracted legal battle that put North Carolina's recruiting efforts in limbo.
In the early 1990s, North Carolina lost out to other states in the sweepstakes for recruits like the Mercedes-Benz plant, which went to Alabama, and a BMW factory, which went to South Carolina.
In 1995, Virginia topped North Carolina's bid for a Motorola semiconductor plant. It was becoming painfully apparent that recruiters in North Carolina were handcuffed by the state's modest inducements, Phillips said.
``When we first came on board, the approach to economic development was changing,'' he said. ``Mercedes-Benz was a high-profile example of what was happening.''
Last August, lawmakers in Raleigh approved a sweeping package of economic development measures, including a reduction in the state's corporate income tax to 6.9 percent, from 7.75 percent starting in 1997.
The $183 million package was dubbed the William S. Lee Quality Jobs and Business Expansion Act in honor of the late Duke Power Co. chairman, who died suddenly one month earlier.
Lee had served as chairman of the state Economic Development Board, which drafted the legislation. The bill provided funds for worker training, research and development, business investment and job creation.
According to Phillips, it put North Carolina back in the ball game.
``We were playing defense for four years,'' he said Wednesday. ``In the last six months, we got to play some offense and it made all the difference in the world.''
Phillips, who succeeds Lee as chairman of the powerful board that advises the governor, will be getting right to work.
``I'm chairing my first board meeting tomorrow (Thursday) in Wilmington,'' he said.
One obvious topic of discussion will be the numbers unveiled Wednesday by the Commerce Department, which position North Carolina to challenge Ohio and Texas as the nation's top recruiting state.
``Based on the number of projects that were announced across the state last year, we think we have a real chance at being No. 1 when Site Selection magazine releases its state-by-state comparisons next month,'' said Phillips.
The 1,215 projects represent a 56 percent increase over the 780 corporate relocations and expansions in North Carolina last year. And the $7.4 billion is about 33 percent higher than 1995's total corporate investment.
``These numbers send a very clear message,'' said Hunt, who announced Wednesday that Phillips was taking over as head of the economic advisory panel. ``We are committed to doing all we can to help business locate and expand here, and we are seeing real results from all the hard work we have done to improve North Carolina's environment for business.
``Dave Phillips has been an exceptional leader at one of the critical times in North Carolina's economic development history,'' Hunt said. ``He has helped create an economic development strategy and incentives that moved us back to the top in investments and jobs.''
Phillips also was appointed by Hunt last year to chair the 1999 Special Olympics World Summer Games, which will be the largest sporting event ever held in North Carolina.