The Virginian-Pilot
                             THE VIRGINIAN-PILOT 
              Copyright (c) 1995, Landmark Communications, Inc.

DATE: Thursday, December 14, 1995            TAG: 9512140365
SECTION: LOCAL                    PAGE: B1   EDITION: NORTH CAROLINA 
SOURCE: BY MASON PETERS, STAFF WRITER 
DATELINE: HERTFORD                           LENGTH: Long  :  103 lines

ECONOMIC PANEL HIRES WARD AS ITS TEMPORARY ADVISER

Alvah Ward, a politically connected Dare County business booster, was hired as a temporary trouble-shooter Wednesday by the Northeastern Economic Development Commission.

Ward will get $1,500 a month under a 90-day renewable contract to advise the commission while the pump-primers decide on a full-time executive director.

The hiring of Ward bounced Vernon G. James, a veteran Elizabeth City Democrat who for years served in the state legislature, out of a job. James had been on the commission's payroll as a $1,500-a-month lobbyist, but the commission decided to replace him with Ward on Jan. 1.

Both Ward and James are gilt-edged Democrats, but in recent years Ward has been more closely identified with the administration of Democratic Gov. James B. Hunt Jr.

Commission Chairman Jimmy Dixon, a Pasquotank County commissioner, said he would announce ``early next week'' whether the commission will also hire one of two candidates for the director's job who were interviewed before Ward was hired.

The commission met in closed session for two hours to talk to the two nominees - Alf Barnette, an industrial developer from Jackson, Tenn., and Richard Watson, a Bladen County, N.C., economic expert.

``I haven't talked to Alvah yet,'' said Dixon, ``So we won't be in a position to discuss a new executive director until early next week.''

When the commission first discussed hiring the 66-year-old Ward last month, Ward said at his Manteo home that his ``heart was in economic development and I'd like to give the commission a year or so if things work out that way.''

But Ward also said he hoped he could work out an arrangement that would prevent him from ``driving four hours a day'' to work at the commission's headquarters in a Hertford bank building.

Ward retired recently as director of business and industry development for the state Department of Commerce. He was then named as a consultant to the governor's highly regarded Global Transport Park project at Kinston's airport. The air transport plan envisions a huge international aviation terminal at Kinston that would funnel airborne commerce all over the world.

The commission received another lecture from Charles Shaw, a retired Edenton businessman who has often chided the pump-primers for, he said, not priming many pumps because of endless parliamentary discussions.

``Every time we turn around, we have another meeting and all of our commissioners get $100 for attending,'' Shaw said.

``I think we ought to cut the price to $10 a head.

``That might prevent us from holding a meeting and then having another meeting the next day to rehash the same thing.''

Chairman Dixon moved swiftly to table Shaw's proposed by-law changes until the January meeting.

The panel also considered an audit of the commission's books completed in November by J.P. Timberlake III, an Edenton accountant.

The audit showed that the commission was steadily getting richer on accumulated interest on unspent funds handed to the group by the General Assembly.

When the commission was created in l992, the legislature endowed it with nearly $2 million to operate through June 30 of this year. On that date, the commission had $1,098,196 on hand as ``current assets,'' the audit showed.

Interest accumulated on the commission's unspent cash amounted to $42,921, according to the audit. Counting ``fixed assets'' and depreciation, the audit showed that the commission was worth a total of $1,151,022 on June 30.

The audit urged the developers to clean up expense procedures:

``The commission should adopt policies relating to payment of per diem and expense allowances,'' the auditor's report said. ``There are some inconsistencies among the commission members relating to meetings to which per diem expenses apply.''

``The commission should adopt policies (that) clearly include the method of compensation for services beyond the normal responsibilities of board members.''

``Approval of significant contracts and significant events should be properly reflected in the . . . minutes. During the past year there were significant events that were not recorded.''

But the rosy book balance didn't charm Chairman Dixon. Before the meeting adjourned, he urged the commission to appoint ``a committee to explore outside funding.''

Several members of the panel have predicted a less generous General Assembly when the next session takes up additional funding for the commission.

``We have to be ready for that,'' said Dixon.

Earlier, the commission received a pledge for $10,000 from P.A. ``Bert'' Carter, an economic development expert with the North Carolina Municipal Power Agency. The agency supplies power to several cities and counties in the Albemarle.

It was the first major contribution made to the commission by a private agency, and Dixon urged the new fund-raising committee to go forth and multiply similar business support.

The commission also adopted a retirement pension plan for paid employees. The action followed a ruling by North Carolina Attorney General Mike Easley that the commission was only a ``quasi'' state agency and not entitled to regular state benefits.

There was no public discussion of a pending lawsuit filed by Estelle ``Bunny'' Sanders, the commission's former director of tourism. Sanders was fired last summer along with James Lancaster Jr., the former executive director. Both were paid $58,000 a year.

Sanders' suit charges the commission violated the state's open meetings law when it met privately to hatch a plan ``to get rid'' of Sanders. by CNB