North Carolina makes mega room for industry

North Carolina makes mega room for industry

CNBC has named North Carolina as America's Top State for Business in 2023 for the second year in a row. Sweeping tax reforms over the past ten years accelerated the state’s ability to support flourishing businesses. The state’s popularity rose quickly, requests for information about potential sites rose just as quickly, and North Carolina had phenomenal success attracting mega projects including Toyota’s electric vehicle (EV) battery project in Liberty, VinFast’s EV assembly and battery project in Moncure, and Wolfspeed’s semiconductor project in Siler City.

That's the good news. The not-so-good news is that North Carolina's megasites were filling up. The number of companies seeking megasites across the nation is at an all-time high, driven by factors including the needs of emerging industries (primarily EV assembly & batteries and semiconductor fabrication), as well as lingering Covid-related supply chain issues and geopolitical tensions that accelerated reshoring for domestic production.

Adding to the inventory

Knowing that having a ready site becomes a key differentiator between competing communities when working to attract a new company, North Carolina leaders began looking at ways to fund site development by identifying future megasites and even some smaller sites. Product development has become a focus.

Since 2001, North Carolina has offered an official Certified Sites program to provide a statewide inventory of industrial sites that have undergone a rigorous prequalification process to ensure they are ready for development. But that was only the beginning.

The North Carolina General Assembly in 2022 allocated $l million to the Economic Development Partnership of North Carolina (EDPNC) to establish a Megasite Readiness Program. Five sites in the state were identified as having potential to become “hot spots” for industrial development. In 2023, another $10 million was allocated to conduct due diligence on the sites to determine if they are viable candidates to add to the state’s economic development inventory. Also in 2024, the General Assembly allocated another $100 million for site development to the Megasite Readiness Program and $10 million to fund a Select Site Program, asking EDPNC to identify 15 smaller locations with potential for successful development.

Moving fast in western NC

But these programs aren’t the only resources for building the state’s list of megasites, and the General Assembly can act quickly to help secure a deal.

In 2008, Duke Energy evaluated a site in Burke and McDowell counties for potential development as a megasite. Burke County and Burke Development, Inc. (BDI) have been working on it since, and announced some significant progress earlier this year, having received $35.8 million from the General Assembly in October 2023.

“The money was a direct distribution from the Legislature and was separated into two separate grants: $12.3 million for infrastructure development and expansion and $25.5 million for site development and procurement,” said BDI President/CEO Alan Wood.

Named the Great Meadows Industrial Site, the footprint is about 1,100 acres in Burke County and 300 acres in neighboring McDowell County. Industrial zoning is already in place for about 440 acres with another 130 acres zoned for general business. BDI is currently working toward rezoning the rest of the developable property, which would allow a significant portion of the site to remain undeveloped to buffer against noise and light pollution, and to provide setbacks for stream remediation and maintenance of wildlife habitat.

Part of the excitement around the possibilities for the Great Meadows site is that the site has access to significant water/sewer, power, natural gas, and Norfolk Southern rail, along with an existing highway interchange via 1-40. In fact, the site also recently became one of four recipients of a $2 million Build Ready Sites (BRS) program grant from the North Carolina Railroad Co., one of Norfolk Southern’s partners, to complete improvements at rail-served sites in preparation for future industrial development. BRS funds can be used for land preparation, such as clearing and grading, and extending water and sewer capabilities.

"Knowing how few sites there are that have all these attributes left not only in North Carolina but the Southeast, that makes this site really valuable," Wood told WCNC Charlotte. It doesn’t hurt, either, that the Great Meadows property may be the only potential megasite in western North Carolina since the topography of mountainous areas is challenging.

The site is currently being considered for the state’s Select Sites program.