    [From the U.S. Government Printing Office, www.gpo.gov]

    Economic Development Assessment
    for the
    H:AR-    OR  PE- ........  I
    HARBOR PROJECT
    Phase I of II
    Prepared by

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    ian4ng
    In Cooperation with
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    NOAA Grant # NA NA270ZO0105

    TABLE OF CONTENTS
    LETTER
    EXECUTIVE SUMMARY

    TRENDS AFFECTING DEVELOPMENT
    Section 1
    Section 2
    Introduction ......;..
    2-2
    Competition .................
    Initial Prospect Contact .........
    Information Needs ............
    Improving Probability of Success  . .
    National Trends ...............
    Plant Locations .............
    Smaller Communities and Suburbs
    Urban Decline in Central Cities
    Corporate Downsizing .........
    Flexible Manufacturing Networks ..
    Industrial Development Bonds ....
    NAFTA ..................
    Power Industry Changing .......
    Labor ...................
    ISO 9000 .................
    Union Presence Declining .......
    Job Growth Generators .........
    The Economy ..............
    Defense Cutbacks ............
    Service Sector ..............
    Manufacturing Sector ..........
    State Competition ............
    Alabama ................
    Georgia ................
    North Carolina ............
    .... 2-2
    .... 2-2
    .... 2-3
    .... 2-6
    .... 2-8
    2-8
    ... 2-12
    ... 2-12
    ... 2-13
    ... 2-15
    ... 2-16
    ... 2-16
    ... 2-17
    ... 2-18
    ... 2-19
    ... 2-20
    ... 2-22
    .. 2-24
    ... 2-25
    . .. 2-28
    ... 2-29
    ... 2-30
    ... 2-30
    ... 2-32
    ... 2-35
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    CHARLESTON HARBOR
    Overview ..............
    Location ...............
    Government .............
    Transportation ..........
    Highways/Interstate ........
    Climate ................
    Colleges & Universities ......
    STUDY AREA
    Section 3
    ...... . 3-3
    ...... 3-3
    ...... . 3-3
    ...... . 3-3
    ...... 3-4
    ...... 3-4
    ...... . 3-4
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    Table of Contents - Continued
    CONSTRAINTS AND POTENTIAL
    Section 4
    Bas Closure..........................4-2
    Economic Impact - Charleston Arma..................4-4
    Military Base Reuse ........................4-7
    Organization .........................4-8
    Planning .......................4-12
    Summnary of Complete Military Base ..................4-16
    Economic Adjustment Projects ....................4-16

    INDUSTRIAL RECRUITMENT RESOURCES ASSESSMENT    Section 5
    Workforce Talent Surplus.......................5-2
    Infrastructure Availability.......................5-7
    Water & Sewer.........................5-7
    Electricity..........................5-11
    Natural Gas .........................5-12
    Port of Charleston .......................5-13
    Real Estate Development Potential ...................5-14
    Local, State and Federal Inducements ..................5-14
    Federa Funding........................5-14
    State & Local Incentives .....................5-17

    BIBLIOGRAPHfY                                                                                                    Section 6
    APPENDIX

    TABLES AND GRAPHICS

    Description                                                               Page

    1. Initially Contact ......................................2-2
    2. Who Makes Contact? ..................................2-3
    3. Facility Siting Process ..................................2-4
    4. Combined Ratings of Site Selection Survey ..................... 2-5
    5. Identifying Competitors .................................2-6
    6. Job Growth versus Tax Burden .............................2-8
    7. 1993 Top Business Climates ..............................2-9
    8. New Corporate Facilities and Expansion - 1991-1993 .............. 2-10
    9. New Corporate Facilities and Expansions ..................... 2-11
    10. Technology Driven Vertical De-Integration at IBM ............... 2-14
    11. U.S. Exports to and From Mexico ......................... 2-17
    12. Labor Union Membership ............................... 2-20
    13. Labor Force Assessment Categories ........................ 2-21
    14. Job Growth Generators ................................ 2-23
    15. Reductions in Defense Outlays ............................ 2-25
    17. Estimated Private Sector Job Loss .......................... 2-26
    18. Select Key Industry Outlook ............................. 2-27
    19. Trends in Selected Service Industries ........................ 2-28
    20. Fastest Growing Manufacturing Industries in 1994 ................ 2-29
    21. Ten Slowest Growing Manufacturing Industries in 1994 ............ 2-29
    22. Tri County Region ....................................3-2
    23. Occupational Employment ...............................3-6
    24. Population Projections ..................................3-7
    25. Educational Information .................................3-8
    26. Labor Force ........................................3-9
    27. Projected Growth Rates ................................ 3-10
    28. Hourly Wage Rates by Occupation ......................... 3-11
    29. Cost of Living Index - Charleston MSA ...................... 3-26
    30. Employment Impact ...................................4-4
    31. Payroll Impact .......................................4-5
    32. Indirect Economic Impact ................................4-6
    33. A Survival Guide to Base Closings .......................... 4-7
    34. Base Closure Process ................................. 4-11
    35. Planning Process .................................... 4-15
    36. Former Military Base Sites in North America .................. 4-17
    37. Summary of Completed Military 4-17 ....................... 4-18
    38. Base Economic Adjustment Projects - 1961 to 1991 ................ 5-2
    39. GSO - Target Industries .................................5-3
    40. Comparative Analysis by SIC Code .......................... 5-4
    41 Comparative Analysis by SIC Code - Manufacturing ............... 5-5
    42. Major Employers .....................................5-9
    43. Waste Water Treatment Summary .......................... 5-10
    44. Water System Treatment Summary ......................... 5-11
    45. Comparative Electric Power Rates ......................... 5-12
    46. Ranking of Gas Utilities by State .......................... 5-13
    47. Spot Market Natural Gas: Posted Price ....................... 5-13

    EXECUTIVE SUMMARY
    1-4

    EXECUTIVE SUMMARY

    Planning Services Group, Inc. (PSG) was given the charge to perform an Economic Development
    Assessment for the Charleston Harbor Project for the greater Charleston area comprised of
    Berkeley, Dorchester and Charleston counties. The study is a two phased assessment with the
    following document representing Phase I. The evaluation process was centered around four
    distinct steps: 1) Document National, Regional and State Trends Affecting Development, 2)
    Research the Charleston Harbor Study Area and its Economy, 3) Analyze Constraints and
    Potentials, and 4) Develop an Industrial Recruitment Resources Assessment. The crux of the
    study, however, is centered around economic development issues, base reuse precedents and
    some of the competitive features inherent to the Tri-County region.

    In order to understand the forces at work that will shape the future economy of the Tri-County
    region is important to identify the dynamics of the local economy. First, it is important for the
    greater Charleston community to realize the premier position that the state economic
    development agencies play in industrial recruitment. Over two-thirds of industrial prospects
    contact the stte first. Usually the state has been asked to respond expeditiously to an inquiry
    and the relative success of any one community will rest on its ability to respond quickly,
    thoroughly and precisely according the requests tendered by the prospect. It is critical to
    establish very close relations with the state economic development agency for future success.
    By and large education and quality of life are becoming increasingly more and more important
    and in many instances outweigh cost considerations.

    More and more industries are being recruited to the South. In spite of what several studies have
    professe regarding various incentives, the research literature demonstrates clearly that lower
    taxes have created more job recruitment at a rate of 65. 0% higher than the higher taxed states.
    Don't be fooled that industry does not look at excessive tax burdens as a disincentives. This is
    merely propaganda promulgated by those states whose economies are hemorrhaging.
    Furthermore, three major factors will influence site selection in the coming years:

    * Just In time (JIT expectations will shift to the consumer
    * Products will be massed customized
    * Political policy will become more dynamic and unpredictable

    In addition, smaller communities and suburbs are becoming more competitive than their larger
    city counterparts due to trends in decentralization, technology, minimalist philosophies and
    quality-of-life factors. As a result of this flight from the cites, urban decline is symptomatic of
    the problems facing many large communities.  The greater Charleston region should be
    encouraged by this trend.

    Corporate downsizing and reengineering will continue to affect location decisions as a result of
    increased global competition, lower profit margins, changes in technology and greater
    effectiveness of production processes because of mechanical and robotics advances. Virtual
    1-2

    companies will become more and more apparent and the distinct lines between company
    structures will become more fuzzy as the interdependence of manufacturing networks steadily
    increae. The North American Free Trade Agreement will only serve to accelerate this process
    even more.

    A significant event on the horizon is the changing role of the electric power system. In the not
    to distant future, companies will be able to purchase power from virtually any source in the
    country to acquire the best deals. Simnilarly, the changing role of the American workforce will
    require increase slill levels and productivity improvements to counter the exodus of U.S.
    manufacturers shopping for cheaper labor costs off-shore. The challenge facing the Charleston
    region, as in many areas across the country, is to drastically improve the educations process and
    worker sldlls. Here again, the state can be instrumental in providing training sldlls; however,
    only the local communities can solve the education dilemma.

    Labor union clout has been declining over the past decade as smaller, leaner companies are
    required to hire workers and maintain and environment that fosters flexibility, quality and
    productivity. The Charleston region, as well as the state, enjoy a very low incidence of union
    membership and activity which is mnost attractive.

    A significant statement regarding the old adage that 80.0% percent of job growth is provided
    by small industries is probably on e of the most damaging concepts that has come out of well
    intended academic research. There is no evidence to support this statement. While small
    business startups should be encouraged as a matter of goodwill and responsible economic
    development strategies, they should not be favored at the expense of large industrial recruitment
    prospects. The fact is that most jobs are provided by large companies and are usually better
    paying with far greater security. If members in the community feel that they can curb the
    pending economic challenges associated with the base-closure with a "grow your own"
    philosophy, they will find that the problem will only worsen and deteriorate quickly. Large
    companies must be recruited.

    The national economy, as well as the Charleston economy, is in a state of flux and headed for
    some very significant changes. Reductions in military spending will have the greatest impact
    on the Charleston area - as have already occurred in other areas around the country. Areas
    providing opportunities for potential recruitment due to expansions and/or relocations in the
    coming years will include mnachine tools (SIC 3541), electronic components (SIC 367), surgical
    appliances (SIC 3842), automotive parts and accessories (SIC 371A) and surgical and medical
    instruments (SIC 3841). These industries range in growth potential over the next years from
    7. 0% to over 24. 0%.

    The recruitment industry by the Tri-County region will face stiff competition form the
    surrounding states of North Carolina, Georgia and Alabama. Alabama's tax increment bonding
    and revenue bonding programs are one of the most attractive in the country with only
    Mississippi and Kentucky having anything similar. In addition, Georgia is matching many of
    1 -
    3

    the job and investment tax credits that have been the forte of South Carolina for many years.
    Furthermore, North Carolina, long averse to providing hard incentives, has been considering
    passing legislation that would allow several types of incentives to compete with her more
    generous neighbors.

    The economic impact of the Charleston region due to the military is significant. At present there
    are over 22,000 jobs that will be lost with a corresponding offset of only about 6,000 jobs from
    NAVALEX and the military hospital. The economic impact annually in terms of lost wages
    is staggering. Over $1.0 billion dollars in direct and indirect wages will disappear.

    There is an abundance of precedents throughout the country where communities have
    successfully used a realignment or base closing as an opportunity to stimulate economic
    development. The attached document devotes and entire section to discussing the process to plan
    for the pending closure as well as providing a summary of over 100 examples of such
    occurrences. Probably the most significant information in this section is the contact at each
    respective community who was, or still is, involved in the economic development activities.

    The challenge facing the greater Charleston area is twofold. First the onset of the base closures
    and realignments will create a vacuum that will be difficult to fill in the near future.
    Additionally, the economy has traditionally relied on the military and tourism to provide jobs
    and general funds for the local tax base. As a result, the Tri-County economy is imbalanced and
    should concentrate its efforts not so much on recruiting industries that will be easy to attract but
    devote considerable effort in attracting companies that can provide greater balance to the
    economy in the long run. Arma where significant deficiencies exist include food & kindred
    products (SIC 20), paper and allied products (SIC 26), printing and publishing (SIC 27),
    Fabricated metal products (SIC 36), electronics and other electrical equipment (SIC 36) and
    instruments and related products (SIC 38). It should be noted that fabricated metal products,
    instruments and electronics are all poised for significant growth in the coming years.

    Infrastructure capacity in the greater Charleston region is adequate, although the assimilative
    capacity of the rivers will be a concern to large users who wish to perform their own primary,
    secondary and tertiary treatment. It appears that this is a cause for concemn with many of the
    existing industries. The electric power rates in the region are some of the lowest in the country
    although natural gas rates are some of the highest. The relationship between these two energy
    commodities is no doubt influenced by the fact that there is single ownership, distribution rights
    and control by one utility. While natural gas can be purchased on the spot market and
    transported at a reasonably low rate, most manufacturers will prefer to enter into long term
    contracts instead. This is a problem in the region.

    The availability of both CSX and Norfolk Southern to service the region is an outstanding
    attribute. Both companies are considered premier operators in the rail industry who compete
    actively against each other. The result is lower costs and excellent service. Of Considerable
    note is the short-line rail owned by the S.C. Rail Commission. The ability of the state to recruit
    1-4

    rail dependent firms by providing an economic rate structure is a strength that is unique to the
    region. Obviously, the port of Charleston only enhances these services. It is considered one
    of the best ports on the East Coast.

    Federal funding is available for continued studies and economic development activities from the
    Office of Economic Adjustment. Additional funds can be obtained from a variety of sources and
    are itemized on page 5-17. Finally, the region should look at the Section 4-1-170 of the South
    Carolina Code of Laws and regulations regarding the establishment of multi-county business
    parks were the unique economic incentives available to one county can be offered in the county
    where the park resides, whether the latter is eligible or not.

    The challenges facing the region are many; however, the opportunities are great to minimize the
    impact of the pending closures. The success of this will require a better understanding of the
    challenges facing the greater Charleston region and the magnitude of activity and effort which
    will be required to effect change.
    1-5

    I
    I
    I
    TRENDS AFFECTING DEVELOPMENT
    . .      .
    2-1

    TRENDS AFFECTING DEVELOPMENT

    INTRODUCTION

    Understanding the trends affecting development must be considered in the context of how it
    affects local economic development. It is critical to understand not only the advantages and
    disadvantages of your particular region , but also identifying the strengths and weaknesses of the
    competition. As a result, the following text will address trends from the viewpoint of both the
    economic developer and the site selector.

    Competition

    Competition between development agencies is continually increasing in both the complexity and
    sophistication of services offered to prospective clients. South Carolina's State Development
    Board is recognized as one of the top economic development organizations in the country"2;
    however, having an excellent state development group is not enough. It is crucial for local and
    regional development agencies to realize: 1) who is contacted for information, 2) the types of
    information required and 4) the conditions necessary to enhance the probability of success in
    recruiting a prospect.

    Initial Prosmect Contacts

    State Development Groups are by far the preferred first point of contact during a site
    search. According to a recent study performed to determine who is contacted first in the
    siting process, 63.0% stated that state development organizations are the first point of
    contact."2 As the following chart displays, a close working relationship between all
    development agencies is necessary in order to recruit prospects successfully.

    INITIALLY CONTACTED
    State Development Groups ................................... 63.0%
    Regional Development Groups ................................ 13.0%
    Non-Metro Development Groups ................................ 11.0%
    Metro-Area Development Groups ............................... 5.0%
    Utility Companies ........................................... 2.0%
    Others (e.g., banks, railroads) ............................. 5.0%

    Source:  Conway Data Au,ey of corporate real estate e.ecutiva,Decamber 1992-January 1993.
    Peremages do not total 100.0% due to rounding

    This graph indicates clearly that a community that elects to pursue economic development
    efforts without using all the available resources of the state, regional, utility and the
    adjoining local development groups will probably fail. Even if a community has an
    2-2

    outstanding program with highly capable individuals, the statistics prove without a doubt
    that the majority of potential leads will never materialize.

    The above chart illustrates who is the first point of contact usually is; but, it does not
    indicate who usually makes the initial contact on behalf of the prospect nor who provides
    a referral contact regarding a potential contact. As the following charts illustrate, third
    party consultants are playing a greater role in the process. Furthermore, it demonstrates
    that no contact can be taken lightly.

    WHO MAKES THE CONTACT?	WHO PROVWDES THE CONTACTS?

    Company president or CEO ..... 48.0%	Referral from other development group...  46.0%	33.0%	21.0%
    Real estate or Consg. dept...	22.0%	Unsolicited leter or phone call ........ 43.0%	37.0%	20.0%
    Consu:am acting as agent...	16.0%	Referral from Consulant ................0%	46.0%	21.0%
    Humtan resources dept ........ 2.0%	Advertisement response ..................0%	46.0%	21.0%
    Other ....................... 12.0%	Direct-Mail response ....................0% 36.0%	54.0%

    Source: Conway Data stuvey of economic developneum organizations, Januay 1993.

    Information Needs

    The allocation of resources necessary to pursue viable company prospects should be
    reviewed periodically to determine the most effective and efficient means to promote
    development. A tracking system dedicated to collecting data for later analysis in order
    to gauge the performance of recruitment efforts and to provide statistical insight into key
    recruitment activities will serve to focus development efforts. Powerful computer
    programs are available now that have changed an arduous, time consuming task into a
    rather routine administrative function.
    Many development agencies have a problem understanding the information needs of the
    client at a particular point in the site selection process. This is particularly true of
    technical issues regarding specific information requested of the client. In general, the
    information needs of the client begin with broad criteria that progress toward detailed
    specifics as the study progresses. A failure to recognize at what point the prospect is
    currently situated in the site selection process can greatly undermine the effectiveness of
    recruitment efforts.

    Development groups have a wealth of data available to promote their respective areas.
    The amount and complexity of detailed information is an ever increasing phenomenon.
    The combined resources of the state, local utilities, railroads and local development
    groups has created a proliferation of site selection data that is extremely comprehensive.
    Unfortunately, many agencies measure the effectiveness of their development efforts by
    the volume and weight of the promotional literature that they disseminate. Very few
    agencies understand that prospects find excessive volumes of information almost
    overwhelming and at times disconcerting when the focus of their inquiry is very specific.
    2-3

    According to Fluor Daniel's Siting and Consulting Services Group, a typical site
    selection study is a series of sequential events that occur in a logical and orderly
    process"4 The following graphic illustrates the site selection process they use:

    THE FACILITY SITING PROCESS
    PHASE I    I           PHASE 11         I PHASE III
    I
    K
    STE   \
    AcouIsmoON )
    ASSISTANCE /
     Objective
    To negotiate the
    beast financial
    package for final
    site and back-up
    site and ensure
    avelability of all
    earvicet by
    required date
    OR DANIEL
     '

    Objective
    To evaluate Identified
    locations and sites
    In sufficent detail to
    permit final location
    decIsion
    Objective
    To Identify those
    locatlons In a limited
    number of atatewa
    oeuntres that boat m~t
    th obecats
    FLU
    C
    information Needs Continuum
    SPECIFIC
    BROAD
    Not only is it essential to understand where the prospect is in the siting process, it is also
    important to understand the types of information that is needed. "Too many times state
    and community economic development agencies provide information they feel is
    important as a substitute for the information requested by the client.3

    Generally speaking, the importance of specific location criteria usually depends on where
    the prospect is in the site selection process. As the previous graphic illustrates, certain
    information is needed at certain times in the site selection process. Inundating a client
    with information regarding incentives or site data while ignoring other key information
    needs is often construed as a lack of cooperation or an absence of the particular location
    ingredient. A study performed to determine the relative importance of location factors
    illustrate the importance of certain criteria:
    2-4

    COMBINED RATINGS OF SITE SELECTION SURVEY
    SITE SELECTION FACTORS
    Labor Costs	90.3
    Availability of long-termfinancing	88.9
    Availability of skilled labor	88.8
    Highway accessibility	87.1
    Occupancy or construction costs	85.5
    Energy availability	83.2
    Tax Exemptions	83.0
    Stte and local incentives	83.0
    Availability of telecommunications services	80.7
    Environmental regulations	77.4
    Nearness to major markets	76.9
    Low union profile	75.9
    Availability of land	72.5
    Right-to-Work state	70.6
    Cost of land	70.2
    Worker/technical training program	60.8
    Raw materials availability	60.1
    Nearness to suppliers	58.8
    Accessibility to major airport	57.Z4
    Availability of unskilled labor	54.2
    Nearness to technical university	32.6
    Railroad service	28.6
    Waterway or ocean port accessibility	20.6

    Allfigures are percentages of individuals reponding 'imponan' and 'very imponwa'.
    See Appendis ?

    QUALY OF LUFE FACTORS
    Low crime rate	86.6
    Health facilities	81.1
    Housing costs	81.0
    Ratings of public schools	80.5
    Housing availability	76.8
    Climate	62.0
    Recreational opportunities	60.0
    Cultural opportunities	59.3
    Colleges and universities in the area	56.6

    Source: Area development 1993 survey. Referene 1993 Site Selection Survey in Appendix ?.

    The information needs of the prospect are straight forward and simple.  "It is the
    information that has been requested" - at a minimum. Any other information, while well
    intended, should not be an attempt to second guess or substitute the specific needs of the
    prospect. It can be a difficult task to determine where the prospect is in the site selection
    process, understand the technical requirements of their particular industry and answer
    inquiries succinctly,accurately and in simple easy to understand terms. Nevertheless,
    more information is not better and is actually detrimental if it does not address the
    prospect's specific information needs.
    2-5

    ImDrovine Probability of Success
    Competition between development agencies is continually increasing with new entrats
    causing a dramatic improvement of the quality and professionalism of economic
    development.   The key to successful recruiting is more than simply providing
    information. Understanding your community or region and all the inherent strengths and
    weaknesses associated with it are equally as important. This basic understanding is the
    first key step to assessing the competition in order to develop an effective counter-
    marketing plan. The graphic
    to the right illustrates a
    schematic   representing   an
    assessment and identification
    of competitors. Column A
    represents   the   general
    information typically evaluated
    when   looldng   at   one's
    community." Essentially, this
    is an assessment of the
    economy, industry, market
    potential, level of technology,
    and local attributes.                                                      .dtn

    The next column (Column B)                        E
    represents a more regional
    perspective which evaluates

    4-1 ~ ~ ~    -       ... 4-
    the potential synergies with
    adjacent regions that have
    either  similar or complementary  location  attributes. From  an   analysis of the
    comnmunity, the region and adjacent regions the assessment identifies the potential for
    investment by commercial and industrial prospects (Colunin C) to determine if a
    community\region has the essential ingredients necessary to successfully recruit industry
    and commerce. Column E is the crucial step in the assessment which is to understand
    who the competition is and their focus. Typically, most development agencies do not
    take a full accounting of their own strengths and weaknesses, and as a result spend too
    much time trying to recruit industries that they have little chance of landing. As a result,
    a significant number of communities end up targeting the same sectors, for example,
    pharmaceutical, automotive, telecommunication, electronics and computers.'5 Most
    development groups do not fully assess the competitive advantage their community
    possesses so that the development st-rategies usually are neither well defined nor target
    industry focused.
    To successfully combat the increased level of competition, communities/regions need to
    fully understand (in and objective and unbiased manner) their won community. This
    must be accomplished first before any attempt is made to assess another competitor
    2-6

    community. The assessment must include both the positive and negative. Then, an
    economic development strategy focused on the inherent competitive advantages of the
    community will be an obvious and natural outgrowth of this process.
    2-7

    NATIONAL TRENDS
    Plant Locations

    The epicenter of new business activity seems to have shifted to the southern United States with
    indications that the midwest will have a resurgence.) The reasons given for this shift vary
    depending on whose asks the question. In years past, the prime motive to move south was
    centered around labor issues and an avoidance or organized labor. Textiles were the catalyst
    of this movement. In a few remote instances this is still true; however, important issues such
    as work ethic, business climate, changing technology, education and quality of life are becoming
    increasing more important. Whatever the reason, the fact is that industry shifts are occurring.
    According to a business analysis performed by Business Week in February of 1994, job growth
    in the low-tax states over the last eight years has been a stunning 65.0% higher than in high tax
    states! The following table illustrates the creation of jobs from 1985-93 as compared to the
    average state and local taxes as a share of personal income.

    JOB GROWTh- VERSUS TAX BURDEN

    ANNUAL PERCENTAGE CHANGE IN PRIVATE EMPLOYMENT FROM 1985 TO 1993
    13.3%	12.1%          12.7%	16.0%	21.9%

    Alaska	California Idaho	Colorado	Alabama
    Arizona	Connecticut	Kansas	Delaware	Arkansas
    Hawaii	Iowa	Louisiana	Georgia	Florida
    Maine	Kentucky	Massachusetts	Illinois	Missouri
    Minnesota	Michigan	Nebraska Indiana	Montana
    New Mexico	New Jersey	North Dakota	Maryland	Nevada
    New York	Oregon	Ohio	Mississippi	New Hampshire
    Vermont	Pennsylvania	Oklahoma	North Carolina South Dakota
    Wisconsin	Rhode island	Utah	South Carolina	Tennessee
    Wyoming	Washington	West Yirginia	Texas	VirgLn

    13.9%	11.6%	11.1%	10.5%	9.5%
    AVERAGE STATE AND LOCAL TAXES AS SHARE OF PERSONAL INCOME IN 1992'

    HIGH TAX	LOW TAX
    STATES	STATES

    SOURCE: Commerce Departmen, DRl/McGraw Hill. Business Week
    __~.. * Entimates
    Political and economic pundits can argue the effectiveness of a lower tax burden as a means of
    stimulating economic development, but the statistics speak for themselves.

    Other factors have contributed to the migration of industry to the south and southeast.
    Obviously,the perception of key decision makers in the site selection process has a great deal
    of influence. The following table provides interesting results regarding actual facility locations
    versus the perception of corporate executives.
    2-8

    1993 TOP BUSINESS CLIMATES
    1990-92
    Facilities Per
    1 Million Pop.
    1
    5
    9
    22
    10
    13
    4
    12
    15
    2
    14
    8
    11
    21
    18
    27
    3
    17
    30
    38
    1990-92
    Facilities Per
    1,000 SO. Mi.
    2
    6
    14
    27
    12
    8
    9
    7
    5
    10
    23
    37
    3
    30
    18
    36
    16
    21
    19
    26
    Caa
    Survey
    1
    3
    4
    2
    5
    8
    10
    12
    15
    16
    13
    7
    26
    9
    19
    6
    22
    21
    18
    22
    1992
    Facilities
    1
    11
    9
    1
    13
    8
    12
    10
    4
    15
    14
    21
    3
    23
    6
    27
    19
    7
    20
    5
    1990-92
    Facilities
    2
    12
    6
    1
    11
    10
    9
    8
    3
    7
    13
    28
    4
    24
    18
    26
    15
    16
    14
    5
    Overall
    Ranking
    1
    2
    3
    4
    5
    6
    7
    8
    9
    10
    11
    12
    13
    14
    15
    16
    17
    18
    19
    20
    State
    North Carolina
    South Carolina
    Georgia
    Texas
    Tennessee
    Indiana
    Kentucky
    Virginia
    Florida
    Alabama
    Missouri
    Nevada
    Ohio
    Iowa
    Louisiana
    Arizona
    Mississippi
    Wisconsin
    Illinois
    California
    Source: Conway Data'a New Plant databue and June-July survey of corporale real estte director.

    Of those manufacturers who plan to relocate or expand their companies in the next 4 years there
    seems to be a definite preference for the South Atlantic and the Midwest"7 according to another
    recent study. The reasons for this vary, but by and large labor cost and availability of skilled
    work force seems to be one of the major forces shaping future plant locations. In addition,
    lowering capital investment is another important factor due to the increased competitiveness
    between states and communities regarding incentives. All this points toward the maintaining
    lower costs and achieving higher quality to remain competitive. State and local developers are
    not only competing among themselves, they are competing on a global scale.

    The rankings in the above chart clearly illustrate that corporate executives expect significant
    growth in the southeast much greater than any region. Similarly, the preceding chart illustrates
    the increase in economic activity on a regional basis seems to indicate a cause and effect
    relationship. Interestingly enough, the most recent survey to determine where new corporate
    facilities and expansions took place from 1991 through 1993 clearly show that the trend will
    probably continue with reasonable certainty.
    2-9

    New Corporate Facilities and Expansions - 1991-1993
    93	91-93	1993	91-93	1993	93-93	1993
    NEW	NEW	MFG.	MFG.	OTHER	OTHER	NON-
    MFG.	MFG.	EXP.	EXP.	FACIL.	FACIL.	U.S.
    91-93	1993	1993
    NON-	TOTAL	TOTAL
    U.S.
    NEW ENGLAND
    Connecticut
    Maine
    Massachusetts
    New Hampshire
    Rhode Island
    Vermont
    Region Total
    MIDDLE ATLANTIC
    New Jersey
    New York
    Pennsylvania
    Region Total
    EAST NORTH CENTRAL
    Illinois
    Indiana
    Michigan
    Ohio
    Wisconsin
    Region Total
    WEST NORTH CENTRAL
    Iowa
    Kansas
    Minnesota
    Missouri
    Nebraska
    North Dakota
    South Dakota
    Region Total
    SOUTH ATLANTIC
    Delaware
    Dist. of Columbia
    Florida
    Georgia
    Maryland
    North Carolina
    South Carolina
    Virginia
    West Virginia
    Region Total
    EAST SOUTH CENTRAL
    Alabama
    Kentucky
    Mississippi
    Tennessee
    Region Total
    WEST SOUTH CENTRAL
    Arkansas
    Louisiana
    Oklahoma
    Texas
    Region Total
    MOUNTAIN
    Arizona
    Colorado
    Idaho
    Montana
    Nevada
    New Mexico
    Utah
    Wyoming
    Region Total
    PACIFIC
    Alaska
    California
    Hawaii
    Oregon
    Washington
    Region Total
    US Totals
    2	9	2	5	2	10	0	0	6	24
    2	3	1	2	0	2	0	0	3	7
    7	14	5	7	4	16	0	2	16	37
    7	10	0	6	2	0	3	3	9	17
    1	9	0	5	1	3	0	3	20	17
    2	6	1	3	2	5	0	3	5	14
    21	51	9	27	10	38	2	11	40	116
    12	25	6	35	27	57
    13	67	38	81	36	96
    38	72	22	46	51	109
    63	164	66	162	114	262

    17	65	17	54	30	88
    41	119	60	227	21	70
    29	75	35	75	26	449
    153	355	314	594	222	360
    39	149	27	121	12.	62
    279	763	453	1,071	311	629
    3	5	45	117
    5	16	87	244
    6	15	111	227
    14	36	243	588

    5	18	64	207
    2	24	122	416
    2	14	90	199
    20	41	689
    	1,309
    1	7	78	332
    30	104	1,043
    	2,463
    23	69	22	61	23	54	0	5	68	184
    10	34	6	31	6	18	0	2	22	83
    8	25	10	21	10	15	0	0	2	61
    46	106	35	107	14	53	1	3	95	266
    3	13	6	15	2	5	1	2	11	33
    3	13	6	15	2	5	1	2	11	335
    5	14	6	18	4	10	0	0	15	42
    98	273	85	256	60	157	4	12	243	686

    1	6	0	3	1	6	0	1	2	15
    0	.0	0	0	3	9	0	0	3	9
    88	237	64	215	134	381	16	50	286	833
    39	162	25	108	39	162	11	34	103	432
    28	46	5	11	18	41	3	6	51	98
    118	375	165	467	93	247	27	110	376
    	1,089
    58	144	55	172	18	54	22	48	131	370
    40	108	53	134	51	143	7	26	144	385
    11	33	23	60	5	16	0	1	39	109
    383	1,111	390	1,170	362	1,059	86	276	1,135
    	3,340

    29	103	32	215	12	36	3	15	73	354
    39	133	106	332	21	51	2	9	166	516
    16	84	34	254	14	45	0	1	64	383
    40	113	46	108	25	78	9	21	111	229
    124	433	218	909	72	210	14	46	414
    	1,552
    26	64	36	90	4	15	2
    27	93	128	246	11	43	1
    26	86	23	103	8	30	0
    120	356	92	319	174	378	7
    196	599	279	758	198	466
    	10
    7	66	169
    9	166	382
    2	54	219
    43	386
    	1,053
    61	672
    	1,823
    11	40	1	11	12	31	2	4	24	82
    6	25	3	8	9	23	2	5	18	67
    2	7	4	5	2	8	0	0	8	20
    0	1	0	0	0	0	0	0	0	1
    11	53	1	11	11	49	2	2	23	113
    9	12	2	5	6	10	2	3	17	27
    12	35	2	10	14	24	0	0	28	69
    1	6	0	2	1	2	0	1	2	10
    52	179	13	52	55	158	8	15	120	389
    0	0	0
    70	232	25
    0	0	0
    12	31	5
    16	44	7
    98	307	37
    0	2	7	1
    59	103	296	10
    0	0	0	0
    12	4	17	2
    19	7	36	3
    90	116	356	16
    2	2	7
    30	198
    	587
    0	0	0
    7	21	60
    10	30	99
    49	251
    	753
    1,314    3,880    1,550    4,495       1,297    3,335
    184      610      4,161     1,170
    SOURCE:	Sito Slectica Magazine, Fdebruay 1994, pp 19.
    NOTE:	NON-U.S. facilisa     bolakn oca  sepmatly Toe analysls ptpees. Hower, NON-US failites abo are included in the talos for NEW MFG., MFG., MFG.
    2-10

    EXP. and OTHEI  faeiltias. a  well as  in tl omlUl tols for 1993 and
    1991-93.
    Faci I ties and
    1991-1993
    NUMBER OF FACILITIES
    CThouaancd)
    2
    New Corporate

    0
    Expans ions
    3
    I

    el=
    ._
    Now Sg land

    Mlddle Atlantic

    Eat Nrth Centra I

    West North Central

    South Atlantic

    Est South Ctantral

    West South Cntra I

    Mountrln

    ctif ic

     _-
    -
    ___
    mi -
    - I

    - _
    A recent study by Barkley and Hinschberger confirms this continuing trend stating that
    "locational changes from traditional industrial areas tend to favor the south and the West"s and
    will continue to do so for the next decade.

    As few as 15-20 years ago most site selection decisions were based on costs and cutting costs
    meant cheap labor, utilities, transportation and taxes. Today, however, location factors are
    shifting from quantitative issues to qualitative issues. These issues include labor skills,
    experience and attitude, quality of life, business climate, political risk, government regulations
    and customer requirements.24 According to Shriner of PHH Fantus there are three major issues
    that will influence future site selection decisions:

    *      Just in time (JIT) expectations will shift to the consumer. As differences between products and
    services continue to evaporate, customer service will even more important. Customers will have
    to be serviced overnight which will require multiple, interdependent production/service centers.

    *       Products will be mass customized. To remain competitive, organizations will need to deliver
    precisely what customers want. This will in turn require far more interaction between product
    design and production. Organizations will require extreme flexibility of all employees and
    management in adapting to near constant change.

    *       Political policy will become more dynamic and unpredictable.   Continually changing
    government policy can put unwary organizations at risk
    2-11

    Smaller Communities and the Suburbs
    A new trend is emerging in corporate locations and relocations. This trend or concept
    is called "edge cities."5 It includes a subset of about 200 to 300 small and mid tier
    cities that are becoming significant location alternatives in preference to major
    metropolitan areas. According to a book called The New Corporate Frontier: the Big
    Move to Small Town U.S.A5, four significant features characterize this phenomenon:

    *      More and more companies are locating in small towns. That location pattern reflects the larger
    global trend of decentralization, political, economic and organizational power.

    �      Technology is another major factor facilitating the move to small towns.  A new electronic
    heartland is emerging, where high powered technology allows companies in even the remotest
    locations to careful monitor world-wide operations

    *      The small town location strategy reflects the minimalist revolution, the recognition that size and
    verticality are no longer automatically positive attributes.

    *      The proximity of the company and community allows firms located in small towns to more directly
    address quality-of-life problems and issues.

    No longer are large metropolitan areas such as New York, Boston, Los Angeles,
    Houston or other large conurbations considered the standard by which communities are
    measured.

    Urban Decline in Central Cities

    Economic conditions in the largest urban centers have been and are continuing to
    deteriorate. As of October 1993, the unemployment rate in the nation's largest 25 cites
    stood at 7.8% compared to a national average of about 6.4-6.5%?   Lost jobs in these
    same cites is estimated to be approximately 850,000 over the last four years.

    Large cities face two disadvantages in attracting jobs today. The first is the ever upward
    spiraling level of competition from the states which have a tendency to lure
    manufacturers to more urban or rural areas. Fiscally troubled cites have trouble
    matching the incentives offered by competing states. Since 1980, federal aid to cites has
    been sliced in half from $47.0 million to $24.0 million. This decline has caused an
    exodus of residents which has further compounded problems by further erosion of the tax
    base. In 1980, cities derived 63.0% of total revenues from local sources. This has
    grown to about 71.0% today.

    The second problem, a direct result of economic erosion of the cities, is crime. The
    crime rate was 62.0 higher in the major cities compared to the national average. This
    2-12

    difficult problem to correct is, nonetheless, an essential ingredient in stemming the flow
    of urban decline for cities wishing to promote economic development. Referencing
    Appendix I titled " 1993 Site Selection S urvey ", 85. 0% of respondents con sidered a low
    crime rate either very important or important.

    Corporate Downsizing and Restructuring

    The corporate buzzword for company restructuring these days has been called "re-engineering,
    downsizing, streamlining" and a host of other names which all mean the same thing. companies
    of all sizes are looling for "salvation not just in new locations and smarter workforces but in
    the reinvention, or reengineering of how they produce their products and relate to their
    customers. "I Greater emphasis has been placed on total quality management, customer service
    and increased competitiveness in the market place. Corporate America is constantly searching
    in an effort to streamline operations to increase profitability and competitiveness in the
    marketplace.

    "The investment boom of the 1990's has been a distinct anti-job bias. A lot of the spending has
    been for labor saving, productivity enhancing and information technologies. "20 The trend for
    many existing industries is to incorporate a relocation into the their quest for achieving greater
    competitiveness. Opportunities present themnselves to economic development professionals for
    companies who have announced or who are potential candidates for reorganizations and\or
    restructuring.
    There are various reasons for industry restructuring with the following among the most
    prominent19:

    *	Increased International trade has exposed consumers to a wide variety of products.

    *	Increased competition has reduced profitability, and thus the availability of capitalfor integrated,
    mass production methods, an alternative most advantageous to the specialized producer.

    *  Technological change and the changing preferences o the consumer have greatly shortened the
    product life cycles of many products.

    *   he diffusion of microprocessors and robotics technology has reduced the minimum efficient size
    of plants with respect to employees.

    "American manufacturing is restructuring toward smaller, more specialized firmns. This shift
    toward vertically disintegrated organizations and small batch flexible production techniques has
    altered the input and location requirements of firms. A greater premium is now placed on labor
    and proximity to markets and business services." 18

    Unfortunately, one of side effects of the last decade has been the diminishing role of skilled
    workers. Examnination of the table on page 2-27 titled "Select Key Industry Outlook" shows that
    the only industries showing substantial gains are primarily in the services sector, although health
    2-13

    care, softwareldata processing, pharmaceutical and food\tobacco have shown modest increases.
    The profile of job creation in the United States in the last decade has been skewed toward low
    value-added services with low pay, poor benefits and little knowledge generation.2'

    The best analogy of what is happening in industry is the representative graphic below. At one
    time IBM was a totally vertically integrated industry with research and development,
    manufacturing, sales and other organizational and operational functions completely contained
    within the IBM corporate structure. They produced their own equipment,wrote their own
    programs and were almost a virtual monopoly In 1975 IBM mainframes required the total
    commitment of user resources toward IBM product support. Of course, in the 1990's, personal
    computers and the proliferation of quality competition has totally restructured the industry.
    Changes in technology have not only changed the market place, it has changed the way IBM
    must conduct business if it is to survive. This same vertical deintegration has happened in the
    automotive, heavy equipment and electronics manufacturing sectors and is steadily gaining
    momentum in the non-traditional sectors such as pharmaceuticals and biotechnology with contract
    research organizations(CRO's) and contract manufacturing organizations (CMO's).

    Technology Driven Vertical
    De-Integration at IBM

    Intel CPU
    WordPerfect	IBM
    Peripherals    Applications	Assembly/
    Applications	Sales
    Operating SysternS
    CPu
    Quantumn Drives   Microsoft OS
    Mailnframes	PCs
    -1975-	-1990-
    2-14

    Flexible Manufacturing Networks
    A manufacturing network is a group of firms that cooperate in order to compete - that
    collaborate to achieve together what each cannot alone. While they have not materialized in the
    classic sense in the US economy, they are a reality in the most prosperous regions of Europe.
    For example Jutland in Denmark, Saarland in Sweden, Baden-Wurttenburg in Germany and
    Emilia-Romagna in north-central Italy. These regions are dissimilar in their cultures, legal
    systems, politics and patterns of industrialization."5

    Economics in the United States has been dominated by the concept of mass production that
    achieves stability in fthee ways:

    *	Its very size maximizes economies of scale in production and commercializtion.

    *	It is powerful enough to create demand for the products it supplies, using
    sophisticated marketing strategies.

    *  Its high and predictable rate of profit enables it to invest steadily in the
    development of new products and labor-savings technology.

    As discussed in the previous paragraphs, downsizing is the result of the ever present onslaught
    of technology and global competition that has made obsolete the notion of standard-product life
    cycles and self contaned US dominated markets. The principles of achieving "flexible
    manufacturing networks" is centered around the following concepts3

    BENEFITS OF FLEXIBLE MANUFACTURING NETWORKS

    *	Share the mounting costs of research and development,
    *	Meld capabilities to produce new goods and services,
    *	Aggregate production to serve to serve large markets
    *	Reduce costs through joint purchases of raw materials or management services
    *	Acquire the expensive technologies they all need, and
    *	Incrase market share and export earnings

    ACTION STEPS TO ACHIEVE CONCEPT IN THE US
    *	Sectoral research to target potential networks,
    *	Identify and training 'brokers' who are capable of bringing firms together to face and solve
    commnon problems,
    *  Public-private cooperation to create new industry 'hubs' - the sectoral service projects around
    which manufacturing networks coalesce.
    Examination of the previous chart showing the deintegration of IBM as well as knowledge of
    the advent of automotive assembly versus manufacturing is testimony to the validity of this
    concept. It would be wise for communities to substitute the word "broker" with the word "local
    economic development professional". No longer can a community recruit firms to locate in their
    2-15

    community simply by offering cheap land, taxes and labor. Instead, communities must sell those
    factors that provide an advantage to manufacturers wishing to compete in a global economy.

    One simply has to review relatively recent economic historical developments to understand that
    this concept is not as new as they may seem. The Silicon Valley is an example of the
    proliferation of similar industries that thrived due to both formal and informal manufacturing
    networks. In addition, the Boston, Massachusetts region has shown a concentration of biotech
    startups and joint-ventures that have been the result of both intellectual concentrations and
    business research and development. Finally, the multitude of automotive suppliers along the 1-75
    corridor in both Tennessee and Kentucky are the result of automotive assembly practices of
    Toyota and Nissan as well as the presence of GM and other manufacturers in the region. The
    only difference is that the impetus for this development trend occurred as a result of business
    and industry initiatives as opposed to a public policy statement to pursue "flexible"
    manufacturing network" development.

    Industrial Development Bonds

    The United States Congress passed the Omnibus Budget Reconciliation Act of 1993 on August
    5, 1993 which restored the authority for fully tax-exempt manufacturing industrial revenue bonds
    (IDB'S). Industrial Development Bonds have a ceiling of $10.0 million far short of the $20.0
    million limit ffany had hoped for. A new provision waives the requirement that the bonds must
    be issued within one year after the facility is placed in service. Specifically, the provision states
    that the one-year placed-in-service period does not expire before January 1, 1994 for property
    with respect to which this one year period otherwise would expire after j une 30, 1992 and before
    January 1, 1993. The restoration of IDB's will be retroactive to July 1, 1992. It should be
    understood that these bonds are no longer available to the banling industry and that the recipient
    of the bond cannot have total investment of over $10.0 million dollars and must pass the
    principal benefactor test.

    North American Free Trade Agreement

    According to Gary C. Hufbauer and Jeffrey J. Scott of the Institute for Intemnational Economics
    a net increase in American jobs will be realized amounting to about 170,000.' Their rational
    is in order for the United States to be more competitive globally, U.S. firms will be encouraged
    to make capital investments. Even though much of this investment would be in Mexico, the
    investment would be concentrated in the field of machinery and other capital equipment.
    Consequently, greater exports to Mexico and correspondingly new jobs in these sectors. The
    following graphic illustrates certain broad product categories expected to have significant growth
    rates to the year 2000?1
    2-16

    U.S. Exports to Mexico

    lI            I I  I
    - Q-.-  t

    I.1	I,    ~ I
    ILl=	=-
    *a1wV

    ,g I..
    MM a     ,        49nn .
    U.S.  Exports from Mexico

    rcct__.. _.__ _

    .... g.a.l
    _-_t~~~~~~I *.                            S..
    . �           _    _ w m	4,            I.
    MM"" i	I.I
    4.           ..       *.R
    Nofte: AveraoSe growth Rates (percent) 1993-2000	Note: Average growth Rates (percenm) 1993-2000
    Source: DRI McGraw Hill	Source: DRI McGraw HillU
    Within the United States, industries along the border will probably gain the most from NAFTA.
    It is expected that those regions of the United States with higher than average concentrations of
    labor intensive manufacturing sectors may have limited growth opportunities.16 This will
    probably affect parts of New  England and the southeastern United States.   Traditional
    manufacturing sectors such as textiles, leather and lumber will be forced to compete with low
    cost Mexican labor.

    NAFTA will create the world's largest market with a combined 6.5 trillion economy and 370.0
    million people. This should accelerate the growth of U.S. Exports to Mexico.

    Power Industry Changing

    Large users of electricity may have the potential of locating in one state (such as South Carolina)
    yet purchasing power not from the local utility, but from a low cost producer in another state.
    This concept is known as "retail wheeling" and has been a considerable source of debate with
    the passage of the 1993 Energy Policy Act (EPACT). Retail wheeling is somewhat analogous
    to what is currently in place with the natural gas industry. In this scenario the end user
    purchases natural gas on the spot market at a given price per therm and pays a transportation
    fee for transmission of the gas along existing pipelines. In a similar fashion, it is assumed that
    large volumes of electricity will be purchased from utilities and transmitted across existing
    transmission lines with an associated fee.

    The Energy Policy ACT specifically forbids the federal government from ordering "retail
    wheeling". The act, however, did not specifically spell out whether state utility commissions
    have the right to order retail wheeling without specific enabling legislation.7 It is expected that
    the states will take up the issue which may lead to a patchwork of experimental programs among
    and within states. Nevada lawmakers recently passed legislation which ordered the public
    service commission to consider retail wheeling. In Michigan, an administrative law judge's
    opinion in a case before the state regulators has questioned whether they have the authority to
    2-17

    order two detroit area utilities to create retail wheeling tariffs.
    Law makers and utility regulators are currently considering retail wheeling in California, Illinois,
    Massachusetts, New Mexico, New York, Pennsylvania, South Carolina and Texas.
    The problem now is one of regulation jurisdiction. According to the National Association of
    Regulatory Utility Commissioners, "It's very unclear as to who is supposed to have regulate
    what, and how in the way of direct transmission service by an electric utility to an end user or
    a group of end users."`7

    The states that are prepared to address this issue early up in the event that retail wheeling is
    allows will have a tremendous advantage recruiting and attracting energy intensive users,
    provided the toLal mix of location criteria are acceptable. In ten years it is expected that no
    significantly sized industrial customer will be served under the regulatory format as we know
    it. Instead, they will be negotiating contracts much like they do now with their telephone service
    now.'0

    Labor

    Labor issues are not only a regional concern but a national one as well. Changes in the United
    States industrial composition and global competition coupled with advancing technology and
    corporate restructuring drastically affect the supply and demand curves of the U.S. workforce.
    According to a series of Wall Street articles there a four imperatives that will mold the contours
    of employment in the 1990 's25:
    0 Global Competition

    a Technology Applications

    * Reengineering/restructuring
    Lower compensation . levels combined with
    reasonable work-force quality will expand the
    movement offshore. Well trained professionals,
    especially scientists, engineers and computer
    specialists are available at a fraction of their U.S.
    counterparts in countries such as India, China,
    Malaysia, Eastern Europe and Russia.

    Increases in technology is drastically reducing the
    need for workers in the distribution, manufacturing
    and service sectors. Increased automation is not
    only increasing productivity, it is also decreasing
    the demand for corresponding employment growth.

    Restructuring due to str-uctural shifts in the industry
    (i.e. defense industry shrinkage, shifts away from
    mainframes,etc..) has cut out a significant number
    of jobs.   In addition, reengineering leading to
    flatter, less hierarchical organizations with less costs
    2-18

    and increaed profits are gaining impetus and being
    encourage by stockholders and Wall Street
    indicators.
    * Temporary Work-force              Employment  at  temporary  help  agencies  has
    increased by pearly 250,000 over the past year
    (1993). And the trend is not reserved only to
    clerical and low-skilled jobs.

    The implications of the four imperatives portend the areas where economic development efforts
    must focus. Increased automation as a result of technology and the increased opportunity for
    lower cost offshore manufacturing capabilities are steadily replacing low slilled and semi-skilled
    manufacturing jobs in an ever-increasing insidious fashion. The future for low skilled and semi-
    skilled jobs is not good in spite of recent projections of increased hiring. According to
    Manpower, Inc. 'hiring in U.S firms is expected to reach the highest level in five years by the
    second quarter of 1994""3   The  most prominent gains are expected to be in vehicle
    manufacturing, heavy equipment and aircraft manufacturing. This increase demand for these
    types of labor will full states into thinking that economic development efforts with regard to
    work skills development can take a temporary respite. In contrast, the increased hiring activity
    will only be a short lived occurrence. Low sldlled and semi-sldlled manufacturing jobs are
    migrating offshore or attributing their demise to increased technology. Emphasis on upgrading
    the technical sldlls of the existing workforce through increased investment in vocational
    education and technical training will become an imperative. States and communities who invest
    in education, particularly regarding advanced technology processes and control systems will reap
    the benefits of this foresight.

    ISO 9000 Certif'ication

    Increased interest in quality management is a key interest to companies* wishing to relocate or
    expand. The latest quality initiative is the ISO 9000, developed by the International Standards
    Organization in 1987 and adopted by the European community in 1990 in an attempt to
    standardize the many different product-certification criteria of its member countries. In the face
    of globad competition, many American companies will have to gain !SO 9000 certification or risk
    being shut out of the enormous European market. There are only a few hundred U.S. firms that
    have ISO 9000 certification compared to tens of thousands in Europe. ISO 9000 standards
    require that suppliers establish and maintain procedures to identify training needs and to
    implement work-force training programs for all personnel who perform activities that may affect
    quality. In those states that have an active jobs-training program integrated closely with an
    effective vocational training educational infrastructure, bridging this gap will be relatively easy
    even for smaller companies with limited resources. The same cannot be said for those states that
    do not.
    The ISO initiative may not provide sufficient justification for the restrcturing of local and state
    educational programs in and of itself, however, this is one of the many initiatives that is slowly
    2-19

    but steadily leveling the playing field against the United States in the global arena. Heretofore,
    U.S manufacturers have controlled the technology as well as the inputs into its development.
    This has already begun to change and will only accelerate in the future.

    Sobering statistics that should cause local and state governments cause for extreme alarm are
    those two statistics:

    1)     25.0% of the U.S. workforce lacks the basic reading, writing and math skills
    necessary in today's market.

    2)     More than 20.0% of Americans of working age have failed to complete high
    school.
    These two factors alone are an embarrassing indictment of the U.S. labor force and education
    system when compared to other industrialized nations.

    Union Presence Declining

    At the end of World War II, union members accounted for more than 35.0% of all employed
    Americans. That figure stands at about 16.0 percent. According to Leo Troy of Rutgers
    University, labor union membership will decline to some 7.0 percent by the turn of the
    century.26 If one takes an even closer examination of union membership, only about 11.0% of
    the private industry workforce is organized. The American Federation of State, County and
    Municipal Employees (AFSCME) and the American Federation of Teachers (AFT) makes up
    the other 5.0%.
    Labor Union Membersh i p
    Canrm 'llll-l2l

    -a=X .2  -111  Ws=
    p

    S To1oe ffp. s l                    l

    AutO, AWO.s   & .V. lo        p   .  f_

    M. Fd. of Toh.r.bw

    Brot   h. of Eloc. |t             km_
    '.'	o. '.	u ., I 11 fl

    ""'-	n_r-l	_-   flBlfl
    2-20

    Examination of the above chart shows the general trends in the traditional private sector
    manufacturing labor representation ranks. United Food and Commercial (UFCW), Auto,
    Aerospace and Agricultural Implement (AAAE), International Brotherhood of Electrical Workers
    (IBEW), Machinist and Aerospace Workers (MAW) and the Unites Steel Workers have all
    shown a steady decline since 1981 - 1991.

    In spite of the decline of union membership and the perception of diminished clout, this factor
    is still important for manufacturers. In fact, it's more important now than ever. The increased
    competitiveness between firms requires a high degree of flexibility and mobility. Even though
    membership is declining, the importance of organized labor as a critical site selection factor is
    becoming increasingly more important.

    Typically the types of data required and the level of investigation effort when assessing the labor
    force include 7 broad areas as indicated below:z

    LABOR FORCE ASSESSMENT CATEGORIES
    Salarv and Benefit Practices
    Private Surveys
    Bureau of Labor Statistics
    National Data Services
    State & Local Surveys
    Proprietary Data Base
    Labor Force Character
    Population
    Work Force Demographics
    Employment
    Unemployment
    Skill Base
    Industrial Mix
    Companies Present
    Emp. Service Registrants
    College Graduates
    Vo-Tech Graduates
    Local Quality Programs
    Work Force Flexibilitv
    Local Mfg. Techniques
    Labor Laws
    Strike History
    NLRB Election Results
    Union HQ's
    Local Quality Programs
    Transfers and out of
    Area Recruits/New Hires
    Alternate Emp. Opportunities
    Housing Availability
    Cost of Living
    Educational System
    Advanced Educational Opportunities
    Health Care
    Quality of Life
    Crime
    Labor Oualitv/Productivitv
    Intercompany Comparisons
    Experience of Local Mgt.
    Testimonials
    Trahnine Sunoort
    State Programs
    Local Facilities
    Relocation Expenses
    While all these factors are important, "workforce flexibility" and "labor quality and productivity"
    are key indicators of the ability of the indigenous workforce to change, adapt and grow within
    the dynamics of the market place.

    It has been stated that changes in the "business world mindset - cooperation instead of
    confrontation, improvement over enforcement - are combining to render traditional unions
    2-21

    obsolete.""8 Mounting evidence, however, contradicts this assertion. The perception that the
    current Clinton Administration is "labor friendly", and the recognition that organizations efforts
    will have to change with the times is creating a "new breed of labor organizer"'7 The AFL-CIO
    has trained over 160 college educated "union recruiters" in 1993 whose methods have become
    more sophisticated and aggressive. The statistics for union membership will change; however,
    the importance of maintaining flexible workforce environment may be the most important issue
    facing manufacturers in the future.

    Job Growth Generators

    A question that has been the source of considerable debate in communities across the United
    States for the past decade is "Should we recruit large companies or stress the grow your own
    economic development philosophy'. This same question should be asked in the Charleston
    region. The widely held notion that small companies amount for over 80.0% of job growth in
    the United States is simply not true'. Unfortunately a study by David Birch, an MIT researcher
    in 1987, concluded that 88.0% of all jobs generated betwe'en 1981 and 1985 were spawned by
    companies with fewer than 20 employees3. Since that stunning announcement, a flurry of
    economic development policy initiatives have ensued to promote the development of small
    business. While this is commendable and, in the opinion of the consultant, should always
    remain a prime economic development policy objective of Charleston, it should not be
    emphasized to the detriment of policies that target large manufacturing firms. Several studies
    performed over the past 5 yeas have come to the same conclusion - large firms not only provide
    over 70.0% of new jobs but the new jobs provided by these firms are on average higher paying
    with better benefits and greater job security than their smaller company counterparts."9

    The implications of this study are clear, not only for Charleston, but for the surrounding
    counties as well. The greatest gains in job growth will be achieved through the active
    recruitment of firms who employ over 100 employees. Examination of the following graphic
    points out, even to the cynic of these studies, that regardless of how you define a "small versus
    large company", most jobs are in fact the result of large companies.
    2-22

    Job Creation 1972 - 1988
    Companies with less
    than 50 employees
    Companies with greater
    than 500 employees
    Companies with less
    than 500 employees
    Companies with greater
    than 50 employees
    Source: Harvard Business Review, May-June 1994
    FDGV-MKSV\1 1 1\204\05509002.DRW-1 09064

    The Economy
    "The United States economy is not as robust as in prior years. Twenty years ago, the United
    States was still the world's dominant economic power. Now it is under challenge as never
    before from extremnely able foreign competitors (principaly Japan). United States commercial
    manufacturing is particularly under siege and will be hard put due to additional pressures as a
    result of defense spending cutbacks to take the place of defense industries, which are heavily
    tilted toward  manufacturing.    Declines  in this sector are particularly costly because
    manufacturing provides well paid jobs, supports mostly privately funded research and
    development (R&D) and domninates international trade "I According to the Institute of Trend
    Research, the period of 1993 is a period of consolidation between two unequal rising trends.
    They project that there is a strong probability of significant economic gains in 1994 and 1995;
    however, 1996 and 1997 are likely to be years of back to back recession. Their advice to
    industry is to reduce debt and avoid over-expanding resources in 1995, and to reduce debt as
    much as possible between now and early 1996.

    Business investments in new capital equipment and growth in demand for consumer durables are
    the major forces that will drive. manufacturers real shipments in 1994 to the fastest rate of
    growth in 6 years. In addition, shipments of instruments and medical equipment will contribute
    to an escalation of manufacturing growth in 1994.

    Factors considered to be the key constraints to combined growth in the United States are:

    * Further corporate restructuring, limiting growth in employment and wages
    (related to this are uncertainties about the costs of businesses associated with the
    proposed health care reform package):

    � Continued weakness in the commercial real estate market, which was heavily over
    built in the 1980's.

    � Continued cutbacks in defense purchases, possibly on an accelerated basis, and
    limitation on spending by governments at all levels due to budget constraints; and

    * Weaker than expected recoveries in the economies of some major U.S. trading
    partners, especially Japan and Western Europe.
    2-24

    Defense Cutbacks
    The dissolution of the Soviet Union and the end of the Cold War have significantly affected
    defense needs. This reduction in defense spending will have a dramatic affect on many state and
    local economies. Approximately half the defense related job losses in the United States are in
    eight states and many communities will be devastated by current and proposed military base
    closings. The following graphics indicate the level of defense spending cut backs and the
    private-sector job losses by category:

    From an national perspective,
    comparatively   speaking,   far
    greater job displacements occurredRectosTnDeneOtay
    during 1985-1989. During this
    period significant structural shifts
    in the economy occurred which
    resulted in 9.2 million workers
    losing their jobs due to plant
    closings, relocations, elimination	1
    of a position or shift, or slack	=1
    work.3'The Office of
    Technology Assessment estimates
    that defense related job losses
    from 1991 to 1995 including ffie
    armed forces and the Departmnent          Me III                         ftrOlyUCuel
    of Defense employment will
    approximate  1.4 million.   The
    Defense Conversion Commission,
    however, estimates more
    conservatively that about 960,000
    private sector jobs will be lost
    between 1991-97.32 From this viewpoint the reductions do not seem as ominous. This is little
    solace for communities that will be affected. Nevertheless, from a comparative macro-
    perspective the cutbacks are not as dramatic they seem. The following graphic illustrates the
    private sector job losses that will be most affected.

    Those communities who experience massive layoffs in the private sector froni companies losing
    large government contracts as well as communities whose economic base consists of
    manufacturing and service sectors dedicated to supporting the operations and maintenance
    activities of a military base will suffer the most with the former will be much more dramatic that
    the latter.

    The severity of economic impact will depend to a large degree on the industrial diversity of the
    affected community and the amount of planning which has been initiated to absorb displaced
    workers. This includes both economic development and recruitment efforts and the conversion
    2-25

    of  military  oriented
    industries/facilities to fulfill a
    private sector needs. Phase II of
    this study will address suggestions
    for ways to adjust to the loss of
    jobs   as	well	-as	potential
    utilization	of	the	remaining
    facilities. There is an abundance
    of examples and precedent setting
    experiences throughout the United
    States of military conversion
    activities   that   have   been
    successful.
    Est imated Pr Tvate-Sector Job Loss
    issi31kw7 by Owuoolonti  t
    M rtinAIls  C3.1M

    AMln, &gwt CIN..4h

    awgc C5.4RO \

    TE'1O1GArt5U& kielM
    8~~~~Eno. & tki
    tIUI C1,t.

    BMGLULlvdvmat. 02.1.)
    ClroiiOnl Prod. C2I.
    In addition, there is a considerable                                       ACu IlWar.."try (o.
    level   of   Defense   Economic                                       . ',nF.,rt'c-t*rWLa,. C17.=
    Adjustment Programs (See
    Appendix   ?)   that   provide
    information, planning assistance
    and grants to assist in the
    transition. For those communities
    who take advantage of the
    available funding and link into the information network on how to best utilize the infrastructure
    left behind, there will be unparalleled opportunities. In many cases the infrastructure left behind
    such as airports, docking facilities, buildings and low-cost or free land is an asset that would
    probably never have been funded on its own. Furthermore, the specialized skills inherent to
    many military activities are another asset that can greatly enhance economic recruitment and
    development efforts.
    2-26

    SELECT KEY INDUSTRY OUTLOOK
    Thousands of 1993
    $'s per worker
    Pr6ductivit
    1989      1994
    Millions $
    Output
    Sector                                   1989      1994
    Employment
    1989     1994
    MANUFACTURING
    Motor vehicles & parts
    Defense
    Machinery
    Steel
    Chemicals
    Food & tobacco

    HIGH TECHNOLOGY
    Computers & office equipment
    Software & data processing
    Semiconductors
    Telecommunications
    Pharmaceuticals

    NATURAL RESOURCES
    Energy
    Agriculture
    Forest products

    SERVICES
    Retailing
    Wholesaling
    Health care
    Transportation
    Restaurants
    Utilities
    Entertainment

    FINANCE
    Banking
    Insurance
    Securities
    Real Estate

    Source: DRIIMccmw BHI.
    257.2
    77.8
    416.5
    80.6
    226.7
    422.5

    40.7
    74.4
    21.2
    127.4
    57.5

    281.8
    220.2
    228.7

    1,677.4
    1,801.5
    58.3
    364.2
    282.0
    265.4
    117.7
    282.5
    53.9
    448.1
    83.5
    243.9
    457.9
    0.86
    0.59
    3.23
    0.46
    0.84
    1.69
    0.78
    0.37
    2.86
    0.40
    0.81
    1.69*

    0.37
    2.27*
    0.22
    1.07*
    0.27*

    0.59
    3.79*
    1.39

    14.67*
    6.50
    10.16*
    3.76*
    7.24*
    10.35*
    2.00*
    299.7
    131.8
    129.1
    174.6
    269.3
    249.4

    88.6
    40.2
    84.7
    123.7
    248.0

    412.7
    59.3
    157.5

    115.3
    274.2
    69.4
    96.3
    41.8
    226.2
    65.0
    362.4
    144.1
    156.6
    209.7
    300.3
    271.1

    218.2
    40.3
    144.7
    143.2
    279.0

    479.5
    66.6
    176.8

    125.2
    288.5
    67.9
    107.7
    41.4
    274.1
    62.8
    80.8
    91.4
    32.3
    153.2
    75.1

    284.8
    252.4
    245.8

    1,843.9
    1,940.4
    690.3
    405.0
    299.8
    283.7
    125.5
    0.46
    1.85
    0.25
    1.03
    0.23

    0.68
    3.71
    1.45

    14.55
    6.57
    8.36
    2.78
    6.72
    9.97
    1.72
    187.3
    228.0
    104.1
    1,083.0
    199.7
    245.7
    137.9
    1,058.1
    2.27
    2.26
    1.60
    8.86
    2.12
    2.24
    1.80*
    6.74
    82.4
    100.9
    69.8
    150.4
    94.0
    109.2
    76.4
    156.9
    Note: * rrprmomt n asnpoymt ieruaea
    2-27

    Service Sector
    It is expected that during the next three years, the service sector will be more active than the
    manufacturing sector. In addition, two-fifths (40.0%) of service companies plan a move by the
    end of 1995, as opposed to about one quarter of manufacturing companies.3 This is no surprise
    to economic forecasters. In a study performed by Expansion Management which solicited
    responses from over 34,000 readers, there are indications that the retail industry (department
    stores, clothing stores, supermarkets, restaurants, and bars) will expand significantly. Of those
    polled, 29.0% stated that they plan to expand in the next year and 55.0% stated they planned
    to move within the next 3 years.

    TRENDS IN SELECTED SERVICE INDUSTRIES
    (In billions of current dollars)
    Item
    Accounting
    Advertising
    Banks
    Cable television
    Computer professional services
    Credit unions
    Data processing
    Education & training
    Electronic & info. services
    Equipment leasing
    Health services
    Legal services
    Life & health insurance
    Management consulting
    Motion picture theaters
    Prerecorded music
    Property & casualty insurance
    Railroads (class 1)
    Retail Sales, total
    Apparel & accessories
    Gen. merchandise stores
    Eatingldrinking places
    Food retailing
    Savings institutions
    Space commerce
    Telecommunications services
    Travel services
    Trucking & courier services
    Venture capital
    Wholesale sales, total
    Unit of Measure
    Receipts
    Receipts
    Loans
    Revenues
    Revenues
    Loans
    Revenues
    Expenditures
    Revenues
    Orig equip. cost
    Revenues
    Receipts
    Premium receipts
    Receipts
    Receipts
    Manufacturer's value
    Net premiums written
    Revenue
    Sales
    Sales
    Sales
    Sales
    Sales
    Mortgage loans
    Revenues
    Revenues
    Expenditures
    Revenues
    Capital Commitments
    Sales
    Value
    38.8
    21.9
    2,420.0
    28.8
    66.7
    157.6
    53.6
    529.3
    15.6
    128.7
    1,060.5
    97.0
    316.8
    77.0
    5.3
    11.8
    245.0
    29.4
    2,232.0
    112.0
    320.0
    216.0
    399.0
    710.0
    6.5
    193.1
    420.4
    331.0
    2.7
    1,973.0
    90-01
    3.4
    -3.8
    -0.9
    11.1
    12.2
    5.9
    14.1
    8.2
    13.2
    -3.3
    11.4
    1.3
    -0.1
    4.7
    -4.4
    3.9
    2.4
    -2.5
    2.2
    3.2
    7.5
    5.9
    1.3
    -9.5
    29.1
    6.1
    3.4
    2.6
    -31.2
    -1.2
    91-92
    4.1
    0.5
    -0.3
    9.1
    12.1
    5.1
    14.3
    6.3
    14.7
    1.2
    11.6
    1.5
    6.9
    5.0
    1.5
    15.2
    2.0
    2.2
    5.1
    8.2
    8.3
    2.5
    1.9
    -6.8
    11.2
    5.0
    5.2
    6.5
    100.5
    3.2
    92-93
    5.0
    1.0
    2.0
    9.6
    9.7
    4.4
    14.0
    5.6
    16.0
    2.8
    12.1
    3.3
    6.0
    5.9
    4.5
    15.0
    3.5
    1.4
    6.3
    2.9
    13.4
    2.5
    0.8
    -6.8
    9.0
    6.0
    4.8
    5.7
    11.6
    3.8
    93-94
    5.6
    3.8
    4.0
    9.5
    9.6
    7.0
    15.5
    5.8
    14.7
    3.0
    12.5
    4.3
    6.0
    6.9
    3.1
    13.5
    4.0
    2.4
    7.0
    3.7
    14.3
    4.4
    3.1
    -5.1
    22.6
    7.7
    5.8
    5.8
    -6.8
    4.0
    Source.: U.S Indurial Outlook, 1994, U.S. Deparmo   of Commerce, Inteatonal Trade Admnistration.
    2-28

    Manufacturing Sector
    According to Office of Trade and Economic Analysis at the U.S. Department of Commerce
    "high-technology industries dominate the list of fastest-growing industries, with semi-conductors
    at the top of the list - despite weaknesses in the Japanese markets"4 for 1993 and 1994. Top
    growth companies also include the production of health-related equipment, companies that
    produce computers and peripherals and those involved in the production of household appliances.
    In addition, the automotive sector in general is where modest growth is expected as well.

    TEN FASTEST GROWING MANUFACTURING INDUSTRIES IN 1994
    (% changes based on 1987 dollar shipments)
    SIC	Industry	1993-94
    3541	Machine Tools, metal cutting types	12.8
    367	Electronic components and accessories	11.1
    3842	Surgical appliances	10.0
    2451	Mobile homes	9.4
    371A	Automotive parts and accessories	7. 7
    3841	Surgical and medical instruments	7.0
    364A	Lighting Fixtures	6.6
    2515	Mattresses and bedsprings	6.4
    3111	Leather tanning andfinishing	6.0
    3826	Analytical instruments	6.0

    Source: U.S Indasial Ouiook, 1994, U.S. Depanmaw of Commerce, International Trade Administradon.

    All of 10 of the fastest growing manufacturing industries are being propelled by the domestic
    demand for automobiles, housing, computerization, health care and environmental equipment.5
    By contrast, 7 of the most sluggish industries are defense related. In the other 3 industries,
    changing business practices and foreign competition have eroded markets. U.S exports are still
    being restrained by the sagging economies of continental Europe and Japan. At the same time,
    foreign rivals form China to Germany are competing fiercely for business in the U.S. Continued
    tough competition will prevent any let up in corporate restructuring and downsizing and is
    expected to continue well into 1995.11

    TEN SLOWEST GROWING MANUFACTURING INDUSTRIES IN 1994
    (% Change based on 1987 dollar shipments)
    SIC	Industry	1993-94
    3728	Aircraft parts and engines, nec	-24.3
    3724	Aircraft engines and engine parts	-20.0
    3721	Aircraft	-11.3
    3812	Search and navigation equipment	- 6.6
    3831	Ship building and repair	- 6.6
    3764	Space propulsion units and parts	- 5.3
    3172	Personal leather goods, nec	- 5.2
    2761	Manifold business forms	- 5.0
    2874	Phosphatic fertilizers	- 4.8
    3769	Space vehicle equipment	- 3.9

    Source: U.S lndus  Oullook, 1994, U.S. Deparment of Commerce, International Trade Administration.
    2-29

    STATE COMPETITION
    The state of South Carolina is recognized both regionally as well as nationally as one of the
    prermier states for aggressive and innovative economic development. The recent decision by
    BMW to locate in Greenville-Spartanburg, expansion plans by Rhone Poulenc in Florence and
    the selection of Charleston as one of three finalist for the much sought after Mercedes Benz
    project is testimony to their success. This is due in part to the leadership exhibited over the
    years at the statehouse and the Department of Commerce and to the cooperation of local
    communities. These activities have not gone unnoticed by surrounding states, particularly North
    Carolina and Georgia, acting as a wake-up call for many states. Recent legislation, either past
    or pending, by these states have either created similar incentives as South Carolina or enacted
    other legislation to become more competitive. The following text will address, these actions
    regarding three states: North Carolina, Georgia and Alabama.

    Alabama

    Alabama's recent success in luring the Mercedes Benz vehicle assembly plant to Vance,
    Alabama was due to several incentives, many of which were one time probably never to
    be seen again. Other incentives, however, were passed specifically to promote ongoing
    industrial recruitment with Mercedes Benz being the catalyst that spurred legislation.
    Probably the most significant recent incentive is the act allowing the State Industrial
    Development Authority to ability to finance new and expanding industries through Tax
    Increment Financing.33 Under the Act the State Industrial Development Authority is
    allowed to finance the cost of land, buildings and equipment for companies engaged in
    mnanufacturing, warehousing and distribution, and certain types of research and computer
    related services. The Authority is allowed to issue bonds and to loan the proceed to
    qualifying companies to finance project costs. The bonds are payable solely from private
    payments the State's credit will not be obligated and can be structured one of two ways:

    ODtion #1 - Industrial Revenue Bonds

    Under this option, the Authority enters into a Financing Agreement with the
    comnpany under which the company would agree to pay the principal and interest
    on the bonds. The company would receive a tax credit against its corporate
    income taxes for the amounts paid as principal and interest on the bonds. The
    company would also be permitted to collect a "Job Development Fee" of up to
    5.0% of gross wages from new employees and use these funds to pay the
    principal and interest. The employee would receive a tax credit against his or her
    personal income taxes for the Job Development Fee withheld. Under this option,
    the entire cost of the project could be financed if the company's credit is adequate
    to support the bonds.
    2-30

    Op)tion #2 - Tax Incrernent Bonds
    Under this option, the company would agree to make annual payments to the
    Authority in an amount equal to the total of (1) the amount owed as corporate
    income tax, and (2) the Job Development Fees collected from the employees.
    These amounts would be paid into a special "tax increment fund" held by a
    trustee and the amounts on deposit in that fund would be used to pay the bonds.
    The company would receive a tax credit against its corporate income taxes for the
    amount paid into the bonds. The company would receive a tax credit against its
    corporate income tax for the amount paid into the fund related to taxes and the
    employees would receive the same credit as under Option #1 for the Job
    Development Fee withheld from their compensation. UJnder tnis option, the size
    of the bond issue would depend on the amounts to be paid into the tax increment
    fund, the reliability of those payments and the availability of any forms of credit
    support from parties other than the Authority and the State.

    Certain criteria apply for Approved companies and Projects eligible for financing by the
    State Industrial Development Authority under Act No. 93-851 as follows:
    Types of Projects:

    Minimum Capital Investment:

    Minimum Number of Jobs:

    Minimum Wage Requirement:
    Any land, building or other improvement
    and all real and personal properties deemed
    necessary or useful in connection therewith,
    located in the State, for use as an "industrial
    or research enterprise" as defined in the
    Act.

    $5,000,000

    100

    The average hourly wage for full-time
    hourly employees must be at least $8/hr., or
    the average tota compensation (including
    benefits) for full-time employees at the
    Project must be at least equivalent to $ 10/hr..
    Creditworthiness of Company:

    Economic Viability of the Project:
    Subject to review and approval by the
    Authority.

    Subject to review and approval by the
    Authority.
    2-31

    it is not certain how long this act will remain in effect. In fact, when the law was passed
    on September 7, 1993 the criteria were called interim criteria with more definitive
    criteria to be defined and approved at a later date. The programn, nevertheless, is
    currently being used actively to recruit prospective firms throughout the state.

    Georgia

    Georgia, like South Carolina, has one of the better state training programs in the country.
    Incentives offered by the state focuses on the provision of either cheap or free land,
    utility extensions and freeport laws that exempted inventory from taxation according to
    county laws. Recently, however, the state has enacted legislation that will significantly
    alter the way the state is viewed.

    The first act is the use of proceeds from the sale of lottery tickets. Until now, the
    revenue went to the general education fund. Now, however, a significant portion of the
    funds are targeted to pay the full tuition to any state university in Georgia for high school
    graduates who maintain at least a B grade'average. For those who do not graduate with
    a grade average of at leat a B, there will be partial tuition assistance to a state supported
    university or a two year vocational school. This program, while not directly assisting
    prospective manufacturers, addresses the heart of current management concerns regarding
    the work force - education.

    The second act is called th e Georgia Business Expansion and Support Act of 19941 and
    consists of eight significant credits or exemptions:

    1. JOB TAX CREDIT

    Provides for a new statewide job tax credit for certain business enterprises.
    Applies to business or headquarters of a business engaged in manufacturing,
    warehousing and distribution, processing, tourism, and research and developmnent.
    Does not include retail businesses. Provides for three tiers of credits:

    Counties in the state of Georgia are ranked according to the following factors:
    1. highest unemployment for the most recent 36 month period;
    2. lowest per capita income for the most recent 36 month period;
    3. highest percentage of residents whose incomes are below the poverty level
    according to the most recent data available; and
    4. average weekly manufacturing wage according to the most recent data
    available.

    * Counties ranked Ist through 53rd are Tier I and represent the state's least
    developed counties. Companies creating 10 or more new jobs in a Tier
    I county will receive a $2,500 tax credit.
    2-32

    � Counties ranked 54th through 106th are Tier 2. Companies creating 50
    or more new jobs in a Tier 2 county will receive a $1,500 tax credit.

    * Counties ranked 107th through 159th are Tier 3. Companies creating 50
    or more new jobs in a Tier 3 county will receive a $500 tax credit.

    Credits are allowed for each full-time employee job for five years beginning with
    years two through six after the creation on the job. The credit cannot be more
    than 50% of the taxpayers total state income tax liability for that taxable year.
    A credit claimed but not used in any taxable year may be carried forward for a
    period of 10 years from the close of the taxable year in which the qualified jobs
    were established.

    The legislation also allows for a Tier I credit for less developed urban census
    tracts. In addition to the ten contiguous census tracts criteria already in place, a
    new section allows for the inclusion of one or more census tracts which have been
    adversely impacted by the loss of a business, jobs or residences related to an
    airport expansion or closing of a related business enterprise (i.e. E-astern
    Airlines). The law reduces to 30% the number of local residents required to
    access the credit.

    2. INVESTMENT TAX CREDIT

    Based on the same tiers as the Job Tax Program. Allows a corporation or person
    which has operated an existing manufacturing facility in the state for the previous
    three years to obtain a credit against income tax liability.

    * Companies expanding in Tier I counties must invest $1 million to receive
    a 5% credit. The credit increases to 8% for recycling, pollution control
    and defense conversion activities.

    * Companies expanding in Tier 2 counties must invest $3 million to receive
    a 3 % credit. The credit increases to 5 % for recycling, pollution control
    and defense conversion activities.

    � Companies expanding in Tier 3 counties must invest $5 million to receive
    a 1I% credit. The credit increases to 3 % for recycling, pollution control
    and defense conversion activities.

    The credit is a percentage of the total value of all qualified investment property
    and cannot be more than 50% of the taxpayer's total state income tax liability for
    that taxable year. An existing firm cannot take both the jobs tax credit and the
    2-33

    investment tax credit.
    3. RETRAINING TAX CREDIT

    Employees who provide retraining for employees are eligible for a tax credit
    equal to 25% of the costs of retraining per full-time student up to $500. The
    training must:

    a. enhance the functional slills of online and hourly employees otherwise
    unable to function effectively on new equipment:

    b. be approved by the Department of Technical and Adult Education; and

    c. be provided at no cost, direct or indirect, to the employee.

    The credit cannot exceed more than 50 % of the taxpayer's total state income tax
    liability for that taxable year.
    4. CHILD CARE CREDIT

    Employers who provide or sponsor child care for employees are eligible for a tax
    credit of up to 50% of the direct cost of operation to the employer. The credit
    cannot exceed more than 50 % of the taxpayer's total taxpayer's total state income
    tax liability for that taxable year.

    5. MANUFACTURING SALES TAX EXEMPTION

    Provides for an exemption from sales and use tax for manufacturing equipment:

    a. machinery used directly in the manufacture of tangible personal property
    when the machinery is bought to replace or upgrade machinery in the
    manufacturing plant presently existing in the state.

    b. machinery used directly in the manufacture of tangible personal property
    when the machinery is incorporated as additional machinery for the first
    time into a manufacturing plant presently existing in the state.

    6. PRIMARY MATERIAL HANDLING SALES TAX EXEMPTION

    Provides for the exemption from sales tax and use tax on purchases of primary
    raw material handling equipment which is used directly for the handling and
    movement of tangible personal property in a new or expanding warehouse or
    distribution facility when such new facility or expansion is worth $10 million or
    more.
    2-34

    7. JOB TAX CREDIT FOR JOINT DEVELOPMENT AUTHORITIES
    Provides for an additional $500 job tax credit for a business locating within the
    jurisdiction of ajoint authority of two or more contiguous counties. It also allows
    for the business to qualify for the greatest amount of job tax credits of any of the
    participating counties.

    8. ELECTRICITY EXEMPTION

    Electricity purchased for the direct use in manufacturing a product is exempt from
    sales tax when the total cost of the electricity makes up more than 50% or more
    of all materials used in maldng the product. This exemption will be phased in
    over five years beginning in 1995. It allows 20-40-60-80- 100 percent exemptions
    on the sales tax and is available for new and existing firms.

    Many of these new incentives have been pattemned after those of South Carolina,
    however, a good part of the program focuses on existing industry. In time it is expected
    that these exemptions and credits will extend to all industry whether new or existing.

    It is interesting to note that the state of Georgia has recently passed a constitutional
    amendment which authorizes the creation of multi-county industrial parks, convention
    centers, etc. This amnendment, also much like South Carolina's allows public or privately
    initiated projects to be contracted among contiguous counties and municipalities. Tax
    credits from any of the partners may be utilized.

    North Carolina

    North Carolina has traditionally relied on its employee training program, excellent road
    systems with the expectations that local governments will provide the bulk of the
    incentives. The state, however, does not allow local governments to abate or exempt ad
    valorem taxes so that local incentives are usually in the form the provision of free or low
    cost infrastructure to a prospect's site.

    There appears to be the rumblings of initiatives within the state to enact legislation
    allowing the state to become more c,ompetitive. For instance, the state in 1992 allowed
    a $2,800 Job Creation Tax Credit per manufacturing job created in economically
    distressed counties. The credit is taken ratably over 4 years but cannot offset more than
    50% of a firm's annual North Carolina Tax liability after other credits, if any.

    The legislature is considering a bill presented by the Governor's office known as the
    North Carolina State Competitiveness Fund. This incentive requires a funding allocation
    every year and a cash grant is used to entice prospective firms to locate in North
    Carolina. The grant is usually no greater than $250,000.
    2-35

    A groundswell of support is beginning in the statehouse to enhance the state's
    attractiveness to competitors due to the recent success of its neighbor to the south, South
    Carolina. The success of the Research Triangle Park and the Raleigh-Durham area will
    probably continue regardless of the incentives created. The same cannot be said about
    the rest of the state. It is expected that North Carolina will start adopting many of the
    same programs that other southemn states have recently enacted.
    2-36

    I-                    ~        ~                  -       -
    --- I  !  II
    CHARLESTON HARBOR STUDY AREA
    ]M    - !       III
    3-1

    Tri County Region
    caOLETN

    Overview
    The greater Charleston area is better known as the Trident Region and is comprised of three
    counties - Berkeley, Charleston and Dorchester. The economy is approximately 2,600 square
    miles and is influenced heavily by the military, tourism, the Port of Charleston and a few large
    industrial employers in the region.

    Location
    The Charleston Trident area is located along the central South Carolina coast and includes over
    90 miles of the Atlantic coastline and reaches some 50 miles inward towards the intersection of
    Highways 26 and 95. The area includes twenty-five incorporated communities ranging in size
    from Jamestown in Berkeley County with a population of approximately 84 to the City of
    Charleston with about 80,000 residents.

    Government

    Management of local government varies between city and county governments in the Trident
    area. In Berkeley County, county affairs are managed by a county council with an elected
    county supervisor serving as the chief administrative officer.

    Charleston County has a council-administrator form of government. Council members are
    elected at large to four yea terms. A county administrator is appointed by the county council
    to manage the day to day activities of the county.

    Dorchester County has a seven member county council, with each member elected to four-year
    terms. The council administrator is appointed by. the county council to administer the day to day
    activities of the county.
    The twenty five incorporated arma with the tree county region operate under separate
    mayor/council form of government although the day to day operations vary from city to city.

    Transportation

    Air Traffic           Charleston Intemnational Airport, located near the intersection of
    Interstates 26 and 526 in North Charleston, is an international
    facility providing commercial and military air service for the
    region. The airport currently services over 1.5 million passengers
    annually with four major airlines serving offering over 70 flights
    per day. Major airlines include American, Delta, US Air and
    United. There are six private airports located throughout the
    region that can accommodate both corporate and private aircraft.
    3-3

    Motor reightApproximnately 100 motor carriers serve the Trident
    region.
    Motor Freight
    Railroads            Norfolk Southern, the CSX System and the South Carolina Rail
    Road Commission serve the region.

    Hlighways/ Interstate       Interstate highways serving the region include 1-26 (east/west), I-
    95 (north/south) and 1-526 (east/west). The area is also served by
    four major U.S. highways and seven major state highways.
    Interstate 526 (the Mark Clark Expressway) has just been recently
    completed and is a 19 mile semi-circle beltway area the
    community. This expressway stretchies from US Highway 17
    South in the west, to US Highway 17 North in Mt. Pleasant.

    Climate                     Average Daiy Temperature:

    High ..........75.30
    Low...........54.20,
    Avg Precipitation .    ...51.59 inches
    Avg Relative Humidity... 75.0%

    Colleges/Universities

    Charleston Southemn - The only church affiliated college in the region. Ranked 2nd as the
    largest private university in the state of South Carolina. The curriculum consists of 28
    undergraduate degrees as well as a master's degree in Business Administration, E-ducation and
    Art in Teaching. Enrollment - 2,614.

    College of Charleston - Oldest institution of higher learning in the state'of South Carolina and
    the 13th oldest in the nation. The college is a four-year, state assisted, liberal arts institution
    offering 34 undergraduate degrees. In conjunction with the University of Charleston, 10
    graduate degrees are offered as well in education, history, marine biology, mathematics, public
    administration and professional development facilities and services. Enrollment - 9,660.

    Citadel - Largest non-federal military institution in the United States. The Citadel Evening
    College offers co-educational opportunities in limited undergraduate degrees. An MBA program
    and 15 graduate degrees, including civil engineering, are the major graduate degrees offered.
    Enrollment - 3,679.

    Johnson & Wade University in Charleston - A private, non-profit co-educational institution
    offering a Bachelors and Associate degrees in culinary arts, baling and pastry arts, and
    hospitality management. Headquarters are located in Rhode Island. Enrollment - 1,000.

    Medical University of Charleston - The oldest medical institution in the South and forms the
    3-4

    core of one of the State's largest medical complex. MUSC has six colleges - medicine, nursing,
    health related professions, pharmacy, dental medicine, and graduate studies. Enrollment -
    2,705.

    Trident Technical College - A public two year institution. The college emphasizes practical,
    marketable job skils by providing a wide variety of technical programs. Enrollment - 8,012.
    3-5

    OCCUPATIONAL EMPLOYMENT
    Berkeley, Charleston & Dorchester Counties

    Occupational Title

    Adminstrative Support
    & lefical

    AgiicuJtural, Forestry
    & Fishing

    Ewecutive, Managefial
    & Aministrative

    Maintenance & Production

    Marketing Sales

    Profesonal, Paraprofesional
    & Technzical

    Service

    Toft4 All Occupations

    Sourc:
    1986
    Estimated   Percent
    Employed Employed

    28,306    15.4%
    2000
    Estimated	Percent
    Employed Employed

    38,215    14.4%
    Projected %
    Anaual
    Growth Rate

    233%

    28%

    3.5%

    2.3%

    3.4%

    299%

    4.2%

    29%
    1,817

    13,917

    55,066

    21,135

    1.0%

    29.9%

    11.5%
    2,569
    1.0%
    21,292
    73880

    31,789
    278%

    120%

    18.4%

    18 5%

    120009
    %
    34,07	18.5%	48,774

    30,055	16.3%	49,172

    184,383	1 000%	265,691

    SC Employment Commission and Center for Business
    Research-TTident COC

    Population Projections
    Berkeley, Charleston & Dorcester Counties
    MSA
    1980

    94,727

    276,556
    1990

    129,900

    295,800
    2000
    2010
    Berkeley

    Charleston

    Dorchester

    Total
    183,600

    314,200
    259, 700

    332, 700
    214 700
    430, 044
    509,500
    712,500
    781,000
    Soucc:  US. Census Bureau, S.CDpartment ofRescarch and Statistical Services.

    EDUCA TION INFORMA TION
    Berkeley, Charleston & Dorcester Counties

    Berkeley     Charleston
    County	County   Dorcester I  Dorcesterr IV	State

    Student Population                    28,189	45,413          14,413           2,750	640,222

    Number of Public Schools	35	72	14	7	1071
    Elementary	17	44	9	4	621
    Middle	8	15	3	0	208
    High	0	13	2	3	242

    Per Pupil Revenues	$3,598	$4,049	$3,526	$4,356	$4,131
    Per Pul Expenditures	$3,484	$3,956	$3,442	$4,191	$4,052

    Expenditure per Pupil Breakdown
    instruction	67.6%	71.2%	72.8%	71.5%	71.0%
    Plant Operations	10.1%	9.5% '	9.0%	7.1%	9.7%
    SchoolAdministration	6.6%	71%	5.9%	7.4%	6.6%
    District Administration	6.9%	5.4%	4.7%	5.1%	4.6%
    Pupil Food	7.1%	5.2%	5.4%	6.8%	6.2%
    Pupil Transportation	1.7%	1.6%	2.3%	2.1%	1.8%

    Pupil/Teacher Ratio	19:1	19:1	201	18:1	18:1

    Teacher's Average Salaries
    0-10 years experience	$24,183	$22,534	$24,431	$24,030	$23,629
    11-17years experience	$30,651	$28,557	$30,889	$29,898	$29,629
    18+ years experience	$32,871	$31,295	$33,734	$32,359	$31,418
    All teachersDistrict Avg.	$27,989	$26,647	$28,661	$27,795	$28,068

    SAT Scores
    Math	453	422	460	376	437
    Verbal	408	396	410	341	394
    Total	861	818	870	717	831

    After Graduating, % Entering
    Junior & Senior Colleges	49.9%	55.7%	55.7%	43.6%	53.09%
    Other Postsecondary Schools	5.3%	3.5%	1.2%	5.7%	5.0%
    Workforce/Other	44.8%	40.8%	43.1%	50.7%	41.9%

    Drop-out Rate Grades 9-12	3.0%	2.9%	2.0%	1.9%	3.2%
    Soarce:  South Carolina Department of Education. 2/93.

    LABOR FORCE
    Berkeley, Charleston and Dorchester Counties
    Berkeley
    128,776

    10.9%
    20.0%
    20.8%
    15.7%
    28.2%
    .53,890
    52,210
    1,760
    .3.3%

    75.8%
    24.1%
    58.0%
    41.9%

    755

    2.9%9
    Charleston

    295,039

    14.4%
    19.2%
    19.7%
    21.6%
    30.4%
    145,400
    140,370
    5,030
    3.5%

    67.6%
    .32.4%
    54.5%
    45.4%

    830

    30.9%
    Dorchester
    83,060

    10.8%9
    19.4%
    22.2%
    17.8%
    29.8%
    37,890
    36,630
    1,260
    .7.3%

    75.8%
    24.1%
    58.1%
    41.8%

    .325

    28.2%
    MSA
    506,875
    Population
    % Population byAge Group
    18-24
    2-.35
    .35-49
    50+
    Median Age
    Civilain Labor Force
    Total Employment
    Total # Employed
    5% Employed
    Labor Force by Race/Sex (%)
    White
    Non - White
    Male
    Female
    # High School Graduates
    Entering Labor Force
    College/University Degrees Conferred
    Technical College Enrollment
    Estimated % Under-Employed'
    12.9%
    19.5%
    20.4%
    19.4%
    29.8%
    2.37,260
    229,200
    8,060
    .3.4%
    70.4%
    29.6%
    5.5.8
    %
    44.2%
    1,910
    1,960
    6,400
    29.4%
    Note: 'underemployed is an estimate of employed earning less than $10.000 annually
    Source: Center for Business Research. Charleston Trident Chamber of Commerce

    PROJECTED GROWTH RATES
    Charleston Harbor Study Area - Berkeley, Charleston & Dorchester Counties

    TOTAL                 MFG.	PERSONAL                    TOTAL
    DATE          EMPLOYMENT	EMPLOYMENT	INCOME	POPULATION	RETAIL SALES
    (thousands)	(thousands)	(millions)	(thousands)	(millions)
    Historic:
    1986	179.3	-	19.5	-	5,514.2	-	483.8	-                  -	-
    1987	185.8	3.6%	19.8	1.5%	5,937.0	7.7%	486.6	0.6%	6,075.7	-
    1988	193.0	3.9%	20.5	3.5%	6,436.6	8.4%	491.6	1.0%	6,691.0 10.1%
    1989	197.0	2.1%	20.8	1.5%	6,485.3	0.8%	530.6	7.9%	7,059.4	5.5%
    1990	195.6 -0.7%	21.1	1.4%	7,589.3 17.0%	509.3 -4.0%	8,079.1	14.4%
    1991	214.6  9.7%	21.0 -0.5%	7,666.9  1.0%	516.3  1.4%	8,001.0 -1.0%

    Projected:
    1992	205.1 -4.4%	20.3 -3.3%	8,095.7	5.6%	524.0	1.5%	8,392.5	4.9%
    1993	211.3	3.0%	20.4	0.5%	8,624.0	6.5%	531.8	1.5%	8,492.0	1.2%
    1994	216.6	2.5%	20.5	0.5%	9,181.1	6.5%	539.5	1.4%	8,676.0	2.2%
    1995	221.3	2.2%	20.7	1.0%	9,746.6	6.2%	547.1	1.4%	8,873.7	2.3%
    1996	226.7	2.4%	20.8	0.5%	9,965.8	2.2%	554.9	1.4%	9,260.8	4.4%

    Source:	South Carolina Economic Forecasting Service, 'The South Carolina Economic Outlook: Five-Year Projections for Counties', 1992-96
    Reference Appendix ? Consoldated Data for three county projections of Berkeley. Charlreson and Dorchester.
    3-10

    CHARLESTON TRIDENT SOUTH CAROLINA

    HOURLY WAGE RATES BY OCCUPATION
    CHARLESTON TRIDENT AREA, SC

    Charleston MSA
    Hourly Wage ($)
    Min.            Ave.             Max.
    Managerial and Administrative Occupations
    Admninistrative Services Manager	6.50	11.88	25.44
    Communications, Transportation and Utilities Managers	12.50	20.55	28.14
    Construction Managers	7.50	17.Z16	26.20
    Education Admninistrators	12.00	23.72	29.45
    Engineering, Mathematical and Science Managers	16.00	29.50	37.02
    Financial Managers	12.00	20.56	37.50
    Food Service and Lodging Managers	5.80	10.39	17.64
    General Managers and Top Executives	10.00	27.27	63.00
    Industrial Production Managers	12.15	18.70	33.03
    Marketing, Advertising and Public Relations Managers	10.00	21.16	40.89
    Medicine and Health Services Managers	14.40	21.43	21.80
    Personnel, Training and Labor Relations Managers	6.15	16.78	31.50
    Property and Real Estate Managers	16.47	18.03	21.15
    Purchasing Managers	7.50	13.52	19.50

    Professional, Paraprofessional and Technical Occupations
    Accountants, Auditors and Other Financial Specialist	8.00	13.16	22.00
    Announcers	4.63	7.86	8.40
    Artists and Related Workers	11.09	11.46	12.37
    Chemical Engineers	21.67	25.46	28.85
    Chemical Technicians and Technologists	11.92	13.63	17.33
    Chemists, except Biochemists	16.82	22.72	32.21
    Civil Engineers, including Traffic	14.17	16.86	21.00
    Computer Programmer Aides	5.00	11.37	19.39
    Computer Programmers	9.75	14.87	22.02
    Cost Estimators	12.50	16.79	20.55
    Designers, except Interior Designers	9.27	10.30	12.37
    Dietitians and Nutritionists	5.50	8.54	10.06
    Drafters	8.89	10.78	11.12
    Electrical and Electronic Engineers	17.33	20.70	23.60
    Electrical and Electronic Technicians	9.42	13.84	15.98
    Employment Interviewers Employment Service	9.00	10.88	11.50
    Human Services Workers	4.60	4.70	7.38
    Industrial Engineers, except Safety	12.50	17.19	19.89
    Instructors and Coaches, Sports and Physical Training	5.00	9.03	14.00
    Instructors, Nonvocational Education	10.25	10.96	16.64
    Interior Designers	10.00	23.33	30.00
    Lawyers	15.25	38.21	100.00
    3-11

    Charleston MSA
    Hourly Wage ($)
    Min.	Ave.	Max.

    Licensed Practical Nurses	9.90	10.31	12.45
    Mechanical Engineers	19.00	20.10	20.19
    Medical Records Technicians	6.00	6.88	zo7.00
    Medical and Clinical Laboratory	12.21	12.21	12.21
    Paralegal Personnel	9.80	11.59	13.50
    Personnel, Training and Labor Relations Specialists	14.42	16.30	18.15
    Pharnmacists	18.64	18.94	22.00
    Photographers	7.38	11.99	14.62
    Physical Therapists	16.64	17.73	22.00
    Physicians and Surgeons	32.93	63.52	100.00
    Professional Librarians	8.50	11.92	17.Z88
    Public Relations Specialists and Publicity Writers	6.34	7.56	10.00
    Purchasing Agents and Buyers	7.46	13.13	20.89
    Recreation Workers	5.50	6.20	10.50
    Recreational Therapists	6.25	10.35	11.09
    Registered Nurses	16.20	16.20	16.20
    Social Workers, except Medical and Psychiatric	8.25	12.39	13.60
    Surveyors and Mapping Scientists	10.00	10.37	10.92
    Systems Analysts, Electronic Data Processing	15.00	20.44	23.07
    Teachers, Elementary School	8.00	12.42	19.70
    Teachers, Preschool and Kindergarten	8.52	9.75	14.00
    Writers and Editors	13.68	28.41	35.35

    Sales and Related Occupations
    Cashiers	4.25	4.82	6.38
    Counter and Rental Clerks	4.25	5.07	6.00
    Door-to-Door Vendors and Solicitors	4.25	4.40	5.00
    First Line Sales Supervisors	6.25	10.35	22.00
    Sales Agents and Placers, Insurance	9.62	10.68	13.60
    Sales Agents, Advertising	12.00	17.69	20.65
    Sales Agents, Selected Business Services	7.50	10.81	15.00
    Sales Representatives, except Scientific Products	6.00	13.60	16.00
    Sales Representatives, Scientific Products	12.00	14.00	16.00
    Salespersons, Parts	5.97	Z 7.68	10.46
    Salespersons, Retail	4.56	7.80	20.00
    Stock Clerks, Sales Floor	4.40	5.33	9.00

    Clerical and Administrative Support Occupations
    Adjustment Clerks	5.93	6.82	8.91
    Bill and Account Collectors	7.50	8.33	8.41
    Billing, Cost and Rate Clerks	5.22	8.25	10.95
    Billing, Posting, Calculating Machine Operators	8.92	8.98	9.00
    3-12

    Charleston MSA
    Hourly Wage ($)
    Min.	Ave.	Max.
    Bookkeeping, Accounting and Auditing Clerks	6.00	8.90	12.38
    Computer Operators, except Peripheral Equipment	7.03	9.79	12.14
    Customer Service Representatives, Utilities	9.17	9.27	9.77
    Data Entry Keyers, except Composing	6.23	7.23	8.85
    Dispatchers, except Police, Fire and Ambulance	8.07	10.78	15.00
    File Clerks	5.25	5.92	o7.00
    General Office Clerks	6.02	7.93	10.47
    Hotel Desk Clerks	5.00	5.72	6.00
    Insurance Claims Clerks	5.32	7.26	9.20
    Insurance Policy Processing Clerks	7.87	7.87	7.87
    Loan Interviewers	7.51	8.22	10.40
    Loan and Credit Clerks	6.20	7.98	10.63
    Mail Clerks, except Mail Machine Operators	6.09	6.61	7.11
    Mail Machine Operators, Preparation and Handling	4.60	6.73	6.94
    Messengers	4.27	4.91	5.95
    Meter Readers, Utilities	9.95	11.79	12.48
    New Accounts Clerks	7.51	9.61	10.97
    Order Clerks-Materials, Merchandise and Service	5.60	8. 72	13.55
    Order Fillers, Wholesales and Retail Sales	4.75	5.94
    	zoo7.00
    Payroll and 7imekeeping Clerks	6.40	9.45	12.80
    Personnel Clerks, except Payroll and 7imekeeping	7.03	9.19	12.02
    Production, Planning and Expediting Clerks	5.00	10.33	14.50
    Real Estate Clerks	7.74	9.19	9.92
    Receptionists and Information Clerks	5.50	6.48	9.00
    Secretaries	6.75	8.41	12.12
    Shipping, Receiving and Traffic Clerks	5.71	8.91	10.33
    Stock Clerks Stockroom, Warehouse or Storage	4.50	6.61	9.62
    Supervisors, Administrative Support Occupation	5.85	10.67	17.45
    Switchboard Operators	4.63	6.12	7.88
    Teachers' Aides and Education Assistants	4.81	6.08	6.85
    Tellers	5.98	6.89	7.82
    Typists	4.42	7.61	9.04
    Typists, Word Processing Equipment	6.25	7.90	12.00

    Service Occupations
    Baggage Porters and Bellhops	4.25	4.26	4.35
    Bakers, Bread and Pastry	4.75	6.67	10.00
    Bartenders	2.13	4.27	6.00
    Butchers and Meat Cutters	6.50	9.02	12.50
    Child Care Workers	5.00	5.15	6.00
    Combined Food Preparation and Service	4.49	4.54	5.24
    3-13

    Charleston MSA
    Hourly Wage ($)
    Min.	Ave.	Max.

    Cooks, Institution or Cafeteria	5.00	6.66	7.10
    Cooks, Restaurant	6.00	6.89	8.00
    Cooks, Short Order	4.29	5.16	7.22
    Cooks, Specialty Fast Food	4.50	4.61	4.70
    Counter Attendants-Lunchroom, Coffee Shop or Cafeteria	4.50	4.97	5.15
    Dining and Cafeteria Attendants and Bartender Helpers	3.00	3.09	4.75
    Food Preparation Workers	4.46	5.15	6.83
    Guards and Watch Guards	4.25	5. 73	10.00
    Hosts and Hostesses	2.13	4.46	5.50
    Housekeepers	4.25	6.96	9.90
    Janitors and Cleaner, except Maids and Housekeepers	4.25	5.53	11.55
    Maids and Housekeeping Cleaners	4.35	5.38	16.67
    Medical Assistants	5.05	7. 08	10.25
    Nursing Aides, Orderlies and Attendants	4.80	5.56	6.73
    Pharmacy Assistants	4.75	5.97	7.O00
    Physical and Corrective Therapy Assistants	5.50	10.59	14.42
    Waiters and Waitresses	2.09	2.50	4.75

    Agricultural, Forestry, Fishing and Related Occupations
    Gardeners and Groundskeepers, except Farm	5.26	6.30	7. 75
    Log Handling Equipment Operators	6.00	8.74	9.42

    Production, Construction, Operating, Maintenance and Material Handling Occupations
    Aircraft Mechanics	10.25	16.70	23.14
    Assemblers and Fabricators	5.50	8.57	10.11
    Automotive Body and Related Repairers	Z 75	9.46	10.00
    Automotive Mechanics	8.00	12.55	16.35
    Boiler Operator/Tenders, Low pressure	10.22	14.59	16.17
    Bus Drivers	5.21	11.27	12.00
    Bus and Truck Mechanics and Diesel Engine Specialists	9.05	10.64	16.61
    Cabinetmakers and Bench Carpenters	9.38	9.69	10.00
    Captains, Water Vessel	10.50	12.38	15.20
    Carpenters	8.71	9.86	11.50
    Cementing and Gluing Machine Operators/Tenders	6.00	9.65	9.99
    Chemical Equipment Controllers/Operators	12.40	12.77	14.43
    Chemical Equipment Tenders	6.10	10.75	11.57
    Chemical Plant and System Operators	12.50	13.30	13.58
    Coating/Painting/Spraying Machine Operators	6.00	7. 97	10.00
    Concrete and Terrazzo Finishers	8.00	9.91	1I.
    00
    Conveyor Operators and Tenders	5.38	8.43	13.20
    Crane and Tower Operators	10.18	11.85	13.86
    3-14

    Charleston MSA
    Hourly Wage ($)
    Min.	Ave.	Max.

    Crushing/Grinding/Mixing Machine Operators	10.25	10.25	10.25
    Cutters and Trimmers, Hand	4.70	4.85	5.00
    Cutting and Slicing Machine Operators/Tenders	7.44	8.22	8.64
    Dragline Operators	8.00	11.67	13.50
    Driver and Sales Workers	9.80	9.92	10.10
    Electric Motor, Transformer and Related Repairers	7.15	7.67	10.00
    Electrical Powerline Installers and Repairers	15.28	16.08	16.50
    Electrical and Electronic Assemblers	7.07	7.24	8.42
    Electricians	8.68	15.69	1 7.08
    Extruding Machine Setters/Operators (Metal/Plastic)	7.12	7.90	8.38
    Extruding/Forming/Pressing Operators/Tenders	5.10	5.48	8.64
    First-Line Supervisors, Construction/Extractive	6.35	13.73	20.11
    First-Line Supervisors, Helpers and Laborers	4.35	10.50	14.90
    First-Line Supervisors, Mechanics	8.65	17.31	29.24
    First-Line Supervisors, Production	7.05	17.31	26.00
    First-Line Supervisors, Transportation	12.06	15.15	22.00
    Freight, Stock and Material Movers, Hand	5.00	6.50	14.71
    Furnace Operators and Tenders	9.80	11.89	13.99
    Furnace, Kiln, Oven, Drier or Kettle Operators	5.00	12.31	16.88
    Furniture Finishers	8.00	8.67	10.00
    Grader, Dozer and Scraper Operators	7.50	11.85	16.09
    Grinding and Polishing Workers Hand	4.98	5.39	5.60
    Hand Packers and Packagers	4.25	4.90	8.21
    Head Sawyers	9.00	9.52	9.78
    Heat Treating, Tempering Machine Operators	10.63	11.78	14.51
    Heating, A. C. and Refrigeration Mechanics	8.50	10.70	11.43
    Helpers, Carpenters	6.50	7.35	7.75
    Helpers, Electricians	6.03	8.54	11.00
    Helpers, Mechanics and Repairers	5.00	6.56	8.25
    Industrial Truck and Tractor Operators	7.25	9.02	11.57
    Insulation Workers	9.00	9.78	10.00
    Laundry and Drycleaning Machine Operators	4.50	5.34	6.53
    Machine Assemblers	7.99	9.26	9.52
    Machine Feeders and Offbearers	5.72	7.23	9.00
    machine Tool Cutting Operators (Metal/Plastic)	9.79	10.55	10.60
    Machinery Maintenance Mechanics	7.95	13.79	16.51
    Machinery Maintenance Mechanics, Sewing	8.00	8.09	8. 77
    Machinery Maintenance Mechanics, Textile	8.00	9.97	11.20
    Machinists	9.71	11.21	14.78
    Maintenance Repairers, General Utility	6.75	12.98	17.33
    Metal Fabricators, Structural Metal Products	6.00	9.66	10.88
    Millwrights	11.33	16.91	17.08
    3-15

    Charleston MSA
    Hourly Wage ($)
    Min.	Ave.	Max.

    Mobile Heavy Equipment Mechanics, except Engines	9.97	10.14	11.00
    Numerical Control Machine Tool Operators (Metal/Plastic)	8. 00	10.03	10.60
    Operating Engineers	8.00	11.82	14.50
    Package and Filling Machine Operators/Tenders	4.80	6.42	8.90
    Painters and Paperhangers, Construction	8. 75	10.18	10. 75
    Painters, Transportation Equipment	8.50	8.96	11.00
    Paper Goods Machine Setters/Operators	6.20	9.44	11.75
    Paving, Surfacing and Tamping Equipment	6.71	7.00	7.50
    Plumbers, Pipefitters and Steamfitters	9.80	12.66	13.55
    Precision Inspectors, Testers and Graders	8.53	11.51	16.17
    Precision Instruments Repairers	16.07	16.60	1733
    Precision Lithography and Photoengraving	7.05	9.22	10. 67
    Press, Brake Machine Setters/Operators (Metal/Plastic)	6.29	6.68	9.20
    Printing Press Machine Operators/Tenders	10.00	11.45	11.77
    Production Inspectors, Testers, Graders, Sorters	5.00	8.54	12.54
    Sawing Machine Operators/Tenders	5.91	8&16	9.92
    Sewing Machine Operators, Garment	6.27	6.27	6.27
    Sheet Metal Duct Installers	8.63	9.97	10.42
    Sheet metal Workers	9.45	10.92	11.11
    Shipfitters	10.97	10.98	11.00
    Structural Metal Workers	11.00	12.50	13.50
    Textile Machine Operators/Tenders	6.50	6.69	7.64
    Textile Machine Setter/Operators	13.45	13.45	13. 45
    Tire Repairers and Changers	5.25	6.48	710
    Tool Grinders, Filers and Sharpeners	8. 65	10.56	14. 78
    Tool and Die Makers	7.50	14.94	15.95
    Truck Drivers, Heavy or Tractor Trailer	6.10	10.19	16.26
    Truck Drivers, Light-including Delivery	5.06	9.70	13.28
    Vehicle and Equipment Cleaners	5.00	5.47	6.40
    Water and Liquid Waste Treatment Plant Operators	14.04	15.49	17.33
    Welders and Cutters	9.50	10. 70	11.37
    Welding Machine Setters/Operators	10.29	11.19	12. 60
    Wood Machinists	7.25	8.94	9.50
    Woodworking Machine Operator/Tenders	6.00	8.53	9.80
    Woodworking Machine Setters/Operators	6.50	8. 85	10.03

    Source: SC Employment Security CommLssion. The SC Wage Survey, 1992.
    3-16

    Berkeley and Dorchester Counties
    Hourly Wage ($)
    Min.           Ave.             Max.
    Managerial and Administrative Occupations
    Administrative Services Managers	4.55	14.61	34.20
    Communications, Transportation and Utilities Mangers	11.54	24.45	28.14
    Construction Managers	10.50	15.17	22.50
    Engineering, Mathematical and Science Managers	16.00	26.40	43.26
    Financial Managers	8.25	21.98	37.50
    Food Service and Lodging Managers	5.80	5.85	6.00
    General Mangers and Top Executives	9.00	23.95	62.50
    Industrial Production Mangers	14.00	19.69	33.03
    Marketing, Advertising and Public Relations Managers	6.50	22.80	44.94
    Medicine and Health Services Managers	12.50	17.75	23.00
    Personnel, Training and Labor Relations Managers	4.25	18.12	41.00
    Purchasing Managers	8.80	10.18	12.00

    Professional, Paraprofessional and Technical Occupations
    Accountants, Auditors and Other Financial Specialists	6.65	17.23	25.82
    Chemical Engineers	21.67	22.50	30.00
    Chemical Technicians and Technologist	11.92	13.66	17.33
    Chemists, Except Biochemists	20.20	24.24	32.21
    Computer Programmer Aides	5.00	9.36	11.00
    Computer Programmers	8.25	16.25	19.21
    Cost Estimators	13.00	15.64	20.55
    Dietitians and Nutritionists	5.50	8.54	10.06
    Electrical and Electronic Engineers	21.63	21.63	21.63
    Electrical and Electronic Technicians	13.50	15.05	17.30
    Industrial Engineers, Except Safety	12.74	17.84	19.89
    Instructors and Coaches, Sports and Physical Training	8.00	8.22	10.00
    Licensed Practical Nurses	8.13	9.30	10.00
    Mechanical Engineers	19.00	20.10	20.19
    Pharmacists	18.00	20.72	22.33
    Purchasing Agents and Buyers	8.00	17.11	36.83
    Recreation Workers	6.30	7.15	8.00
    Registered Nurses	10.00	12.37	15.03
    Social Workers, except Medical and Psychiatric	8.25	8.49	8.59
    Surveyors and Mapping Scientists	10.O0	10.37	10.92
    Systems Analysts, Electronic Data Processing	17.41	21.02	22.00
    Teachers, Preschool and Kindergarten	8.82	9.83	11.25
    3-17

    Berkeley and Dorchester Counties
    Hourly Wage ($)
    Min.            Ave.             Max.
    Sales and Related Occupations
    Cashiers	4.25	4.66	6.00
    First Line Sales Supervisors	6.25	11.03	35.00
    Sales Agents, Selected Business Services	7.70	9.09	13.24
    Salespersons, Parts	5.97	7.08	10.00
    Salespersons, Retail	4.59	8.65	20.00
    Stock Clerks, Sales Floor	4.35	5.18	6.12

    Clerical and Administrative Support Occupations
    Billing, Cost and Rate Clerks	5.65	9.70	13.75
    Bookkeeping, Accounting and Auditing Clerks	5.50	9.05	13.46
    Computer Operators, except Peripheral Equipment	7.03	10.94	12.14
    Customer Service Representatives, Utilities	9.76	9.76	9.77
    Data Entry Keyers, except Composing	6.23	8.24	9.05
    Dispatchers, except Police, Fire and Ambulance	7.00	10.53	15.00
    General Office Clerks	5.50	8.64	11.32
    Hotel Desk Clerks	4.25	5.38	5.75
    Loan and Credit Clerks	7.06	7.07	7.08
    Meter Readers, Utilities	9.95	11.13	12.48
    New Accounts Clerks	7.61	8.00	8.39
    Order Clerks-Materials, Merchandise and Service	6.00	6.58	7.15
    Payroll and 7imekeeping Clerks	6.40	9.19	12.09
    Personnel Clerks, except Payroll and Timekeeping	7.03	10.02	14.51
    Receptionists and Information Clerks	4.68	6.96	9.75
    Secretaries	5.75	9.83	12.31
    Shipping, Receiving and Traffic Clerks	6.15	9.01	11.26
    Stock Clerks-Stockroom, Warehouse or Storage	4.40	6.71	10.00
    Supervisors, Administrative Support Occupation	6.10	14.19	25.17
    Teachers' Aides and Education Assistants	4.81	5.93	6.85
    Tellers	5.68	5.88	5.98
    Typists	8.17	8.60	12.28
    Typists, Word Processing Equipment	5.25	5.94	6.25

    Service Occupations

    Bartenders	2.13	4.27	6.00
    Butchers and Meat Cutters	8.35	9.02	9.90
    Child Care Workers	5.00	5.15	5.00
    Combined Food Preparation and Service Workers	4.25	4.54	5.24
    Cooks, Institution or Cafeteria	4.81	6.66	5.50
    Cooks, Restaurant	4.90	6.89	14.04
    Cooks, Short Order	4.29	5.16	6.00
    Food Preparation Workers	4.46	5.15	8.00
    Guards and Watch Guards	4.02	5.73	10.00
    3-18

    Berkelev and Dorchester Counties
    Hourly Wage ($)
    Min.	Ave.	Max.
    Hosts and Hostesses	5.00	5.19	5.50
    Housekeepers	4.81	5.00	5.03
    Janitors and Cleaner, except Maids and Housekeepers	4.35	7.02	12.28
    Maids and Housekeeping Cleaners	4.25	4.48	4.81
    Nursing Aides, Orderlies and Attendants	5.00	5.25	7.54
    Pharmacy Assistants	4.75	5.15	5.63
    Waiters and Waitresses	2.13	3.70	4.25

    Agricultural, Forestry, Fishing and Related Occupations
    Gardeners and Groundskeepers, except Farm	7.75	8.03	10.00
    Log Handling Equipment Operators	6.00	8.74	9.42

    Production, Construction, Operating, Maintenance and Material Handling Occupations
    Assemblers and Fabricators	7.79	9.03	10.11
    Automotive Body and Related Repairers	9.34	9.67	10.00
    Automotive Mechanics	7.50	11.26	14.00
    Boiler Operator/Tenders, Low pressure	10.22	14.59	16.17
    Bus Drivers	4.40	5.06	5.21
    Bus and Truck Mechanics and Diesel Engine Specialists	9.05	11.86	16.61
    Cabinetmakers and Bench Carpenters	9.38	9.69	10.00
    Carpenters	10.00	11.03	11.50
    Chemical Equipment Controllers/Operators	12.40	12.77	14.43
    Concrete and Terrazzo Finishers	8.00	10.75	11.00
    Conveyor Operators and Tenders	5.38	8.48	13.20
    Crane and Tower Operators	11.26	12.43	14.50
    Crushing/Grinding/Mixing Machine Operators	10.25	10.25	10.25
    Electrical Powerline Installers and Repairers	15.28	15.87	16.50
    Electricians	12.85	15.97	17.33
    Extruding Machine Setters/Operators (Metal/Plastic)	7.12	7.90	8.38
    First-Line Supervisors, Construction/Extractive	13.63	15.61	18.33
    First-Line Supervisors, Helpers and Laborers	12.08	12.64	14.90
    First-Line Supervisors, Mechanics	8.75	18.48	29.24
    First-Line Supervisors, Production	7.05	16.18	21.84
    Freight, Stock and Material Movers, Hand	4.36	9.28	14.71
    Furnace, Kiln, Oven, Drier or Kettle Operators	5.00	12.31	16.88
    Grader, Dozer and Scraper Operators	14.46	15.04	16.09
    Grinding and Polishing Workers, Hand	4.98	5.39	5.60
    Hand Packers and Packagers	4.25	6.93	11.57
    Head Sawyers	9.00	9.52	9.78
    Heat Treating, Tempering Machine Operators	11.63	12.00	14.51
    Helpers, Carpenters	7.40	7.44	7.50
    Helpers, Electricians	6.03	6.78	8.33
    Industrial Truck and Tractor Operators	5.75	9.37	13.53
    3-19

    Berkelev and Dorchester Counties
    Hourly Wage ($)
    Min.	Ave.	Max.
    Laundry and Drycleaning Machine Operators	4.50	4.88	5.00
    Machine Feeders and Offbearers	5.25	8.90	9.00
    Machinery Maintenance Mechanics	11.55	15.01	16.51
    Machinists	9.75	11.54	14.78
    Maintenance Repairers, General Utility	8.33	13.98	17.33
    Metal Fabricators, Structural Metal Products	6.00	10.27	10.88
    Numerical Control Machine Tool Operators (Metal/Plastic)	8.00	10.04	10. 60
    Operating Engineers	8.00	9.21	11.63
    Precision Inspectors, Testers and Graders	8.53	11.51	16.17
    Press, Brake Mchine Setters/Operators (Metal/Plastic)	6.29	6.68	9.20
    Production Inspectors, Testers, Graders, Sorters	6.30	10.05	12.54
    Sawing Machine Operators/Tenders	5.91	8.16	9.92
    Structural Metal Workers	11.00	12.50	13.50
    Textile Machine Operators/Tenders	5.08	7.36	7.64
    Textile Machine Setter/Operators	13.45	13.45	13.45
    Tire Repairers and Changers	5.25	6.38	7.00
    Tool Grinders, Filers and Sharpeners	8.65	10.56	14.78
    Tool and Die Makers	750	15.30	15.95
    Truck Drivers, Heavy or Tractor Trailer	7.95	9.27	13.20
    Truck Drivers, Light-Including Delivery	4.75	7.15	13.20
    Vehicle and Equipment Cleaners	5.50	5.84	6.40
    Water and Liquid Waste Treatment Plant Operators	14.04	15.41	17.33
    Welders and Cutters	9.50	11.07	11.25
    Welding Machine Setters/Operators	10.29	10.87	12.60
    Woodworking Machine Operator/Tenders	6.00	8.53	9.80

    Source: SC Employmem Securily Commission. The SC Wage Survey, 1992.
    3-20

    Charleston County
    Hourly Wage ($)
    Min.           Ave.             Max.
    Managerial and Administrative Occupations
    Administrative Services Manager	6.55	11.07	20.54
    Communications, Transportation and Utilities Managers	12.50	16.54	21.63
    Construction Managers	7.50	17.55	26.20
    Education Administrators	12.00	23.99	29.45
    Engineering, Mathematical and Science Managers	12.00	29.20	37.02
    Financial Managers	12.00	20.29	36.00
    Food Service and Lodging Managers	7.03	10.76	17.64
    General Managers and Top Executives	10.00	28.57	63.00
    Industrial Production Managers	12.00	17.48	28.32
    Marketing, Advertising and Public Relations Managers	10.00	20.90	40.00
    Medicine and Health Services Managers	21.50	21.79	21.80
    Personnel, Training and Labor Relations Managers	6.15	16.74	28.25
    Property and Real Estate Managers	16.47	18.03	21.15
    Purchasing Managers	7.50	13.93	19.50

    Professional, Paraprofessional and Technical Occupations
    Accountants, Auditors and Other Financial Specialist	8.00	11.79	21.17
    Announcers	4.63	7.86	8.40

    Artists and Related Workers	11.09	11.46	12.37
    Chemical Engineers	25.63	28.56	28.85
    Chemical Technicians and Technologists	10.60	13.20	13.46
    Chemists, except Biochemists	16.82	17.48	18.30
    Civil Engineers, including Traffic	14.17	16.22	21.00
    Computer Programmer Aides	9.00	12.70	19.39
    Computer Programmers	9.75	14.12	22.02
    Cost Estimators	12.50	17.31	19.38
    Designers, except Interior Designers	9.27	10.30	12.37
    Drafters	8.89	10.78	11.12
    Electrical and Electronic Engineers	17.33	19.29	23.60
    Electrical and Electronic Technicians	9.42	13.78	15.98
    Employment Interviewers Employment Service	9.00	10.88	11.50
    Industrial Engineers, except Safety	12.50	13.94	14.90
    Instructors and Coaches, Sports and Physical Training	5.00	9.19	14.00
    Instructors, Nonvocational Education	10.25	10.96	16.64
    Interior Designers	10.00	23.33	30.00
    Lawyers	15.25	38.21	100.00
    Licensed Practical Nurses	9.90	10.31	12.45
    Mechanical Engineers	18.70	19.16	20.55
    Paralegal Personnel	9.80	11.84	13.50
    Personnel, Training and Labor Relations Specialists	16.13	16.93	18.15
    3-21

    Charleston County
    Hourly Wage ($)
    Min.	Ave.	Max.
    Pharmacists	18.64	18.67	19.93
    Photographers	7.38	11.99	14.62
    Physical Therapists	16.64	17.73	22.00
    Physicians and Surgeons	32.93	63.52	100.00
    Professional Librarians	10.05	12.26	17.88
    Public Relations Specialists and Publicity Writers	6.34	Z56	10.00
    Purchasing Agents and Buyers	7.46	11.50	16.00
    Recreation Workers	5.50	6.09	10.50
    Registered Nurses	16.20	16.20	16.20
    Social Workers, except Medical and Psychiatric	8.00	13.29	14.00
    Systenms Analysts, Electronic Data Processing	13.00	19.60	23.07
    Teachers, Elementary School	10.83	14.10	19.70
    Teachers, Preschool and Kindergarten	8.50	9.73	14.00
    Writers and Editors	13.68	28.41	35.35

    Sales and Related Occupations
    Cashiers	4.25	4.94	6.38
    Door-to-Door Vendors and Solicitors	4.25	4.40	5.00
    First Line Sales Supervisors	6.13	11.34	16.41
    Sales Agents and Placers, Insurance	9.62	10.68	13.60
    Sales Agents, Advertising	12.00	17.69	20.65
    Sales Agents, Selected Business Services	Z7.50	11.60	16.62
    Sales Representatives, except Scientific Products	6.00	13.66	16.00
    Sales Representatives, Scientific Products	12.00	14.00	16.00
    Salespersons, Parts	6.00	8.43	10.46
    Salespersons, Retail	4.56	6.89	11.00
    Stock Clerks, Sales Floor	4.88	5.30	6.15

    Clerical and Admninistrative Support Occupations
    Adjustment Clerks	5.93	6.82	8.91
    Bill and Account Collectors	8.38	8.41	8.44
    Billing, Cost and Rate Clerks	5.22	7.80	10.14
    Billing, Posting, Calculating Machine Operators	9.00	9.00	9.00
    Bookkeeping, Accounting and Auditing Clerks	6.12	8.89	12.38
    Computer Operators, except Peripheral Equipment	7.o00	9.46	12.77
    Data Entry Keyers, except Composing	6.23	7.21	8.74
    Dispatchers, except Police, Fire and Ambulance	8.87	10.69	14.38
    File Clerks	5.25	5.92	7.00
    General Office Clerks	6.25	8.01	15.00
    Hotel Desk Clerks	5.00	5.71	6.00
    Insurance Clainms Clerks	5.32	7.26	9.20
    Insurance Policy Processing Clerks	7.87	7.87	7.87
    3-22

    Charleston County
    Hourly Wage ($)
    Min.	Ave.	Max.

    Loan Interviewers	7.51	8.16	10.40
    Loan and Credit Clerks	6.20	8.62	10.63
    Mail Clerks, except Mail Machine Operators	6.09	6.61	7.11
    Mail Machine Operators, Preparation and Handling	4.60	6.73	6.94
    Messengers	4.27	4.90	5.95
    New Account Clerks	7.51	9.79	10.97
    Order Clerks Materials, Merchandise and Service	5.60	9.79	13.55
    Order Fillers, Wholesale and Retail Sales	4.75	6.01	7.o00
    Payroll and Timekeeping Clerks	6.25	9.51	13.79
    Personnel Clerks, except Payroll and Timekeeping	6.00	8.95	12.02
    Production, Planning and Expediting Clerks	5.00	9.91	14.50
    Real Estate Clerks	7.74	9.19	9.92
    Receptionists and Information Clerks	5.50	6.37	8. 67
    Secretaries	6.75	8.32	10.24
    Shipping, Receiving and Traffic Clerks	5.71	9.01	13.55
    Stock Clerks/Stockroom, Warehouse or Storage	5.00	6.64	7.58
    Supervisors, Administrative Support Occupation	5.85	10.17	15.63
    Switchboard Operators	6.00	6.12	8.&46
    Teachers' Aides and Education Assistants	6.00	6.95	6.50
    Tellers	6.23	7.53	7.82
    Typists	4.42	7.53	9.04
    Typists, Word Processing Equipment	6.75	8.00	12.00

    Service Occupations
    Baggage Porters and Bellhops	4.25	4.26	4.35
    Bakers, Bread and Pastry	4.75	6.67	10.00
    Bartenders	2.13	4.24	5.50
    Butchers and Meat Cutters	6.50	8.90	12.50
    Child Care Workers	5.00	5.67	6.00
    Combined Food Preparation and Service	4.49	4.51	4.88
    Cooks, Institution or Cafeteria	5.00	6.75	7.10
    Cooks, Restaurant	6.00	6.89	8.00
    Cooks, Short Order	4.50	5.40	7.22
    Counter Attendants-Lunchroom, Coffee Shop or Cafeteria	4.50	4.95	5.10
    Dining and Cafeteria Attendants and Bartender Helpers	3.00	3.09	4.75
    Food Preparation Workers	4.50	5.29	5.87
    Guards and Watch Guards	5.50	6.54	12.58
    Hosts and Hostesses	2.13	4.11	5.50
    Housekeepers	4.25	7.18	9.90
    Janitors and Cleaners, except Maids and Housekeepers	4.25	5.26	7.O00
    Maids and Housekeeping Cleaners	4.78	5.46	16.67
    Medical Assistants	5.05	7.08	10.25
    3-23

    Charleston Countv
    Hourly Wage ($)
    Min.	Ave.	Max.

    Nursing Aides, Orderlies and Attendants	4.80	5.58	5.91
    Physical and Corrective Therapy Assistants	11.90	12.04	14.42
    Waiters and Waitresses	2.09	2.65	6.91

    Agricultural, Forestry, Fishing and Related Occupations
    Gardeners and Groundskeepers, except Farm                        5.00            5.67              6.30

    Production, Construction, Operating, Maintenance and Material Handling Occupations
    Assemblers and Fabricators	5.50	5.55	6.00
    Automotive Body and Related Repairers	7. 75	9.18	9.90
    Automotive Mechanics	8.15	13.15	16.35
    Bus and Truck Mechanics and Diesel Engine Specialists	9.21	9.68	11.50
    Captains, Water Vessel	10.50	12.38	15.20
    Carpenters	8.42	9.56	10.00
    Cementing and Gluing Machine Operators/Tenders	4.50	6.00	9.93
    Chemical Equipment Tenders	6.10	7.39	8.14
    Coating/Painting/Spraying Machine Operators	6.00	7.97	10.00
    Concrete and Terrazzo Finishers	6.84	8.82	9.00
    Crushing/Grinding/Mixing Machine Operators	5.00	7.70	8.97
    Cutting and Slicing Machine Operators/Tenders	7.44	8.22	8.64
    Driver and Sales Workers	9.80	9.92	10.10
    Electric Motor, Transformer and Related Repairers	7.15	7.67	10.00
    Electrical and Electronic Assemblers	7.07	7.24	8.42
    Electricians	8.68	15.61	17.08
    Extruding/Forming/Pressing Operators/Tenders	5.10	5.48	8.64
    First-Line Supervisors, Construction/Extractive	6.35	13.43	20.11
    First-Line Supervisors, Helpers and Laborers	4.35	9.31	10.87
    First-Line Supervisors, Mechanics	7.50	15.09	23.17
    First-Line Supervisors, Production	8.00	19.20	26.00
    First-Line Supervisors, Transportation	12.64	15.52	22.00
    Freight, Stock and Material Movers, Hand	5.00	5.71	12.17
    Furniture Finishers	8.00	8.67	10.00
    Grader, Dozer and Scraper Operators	7.50	7.80	7.91
    Hand Packers and Packagers	4.25	4.85	6.00
    Heating, A.C. and Refrigeration Mechanics	8.50	10.70	11.43
    Helpers, Carpenters	6.50	7.32	7.75
    Helpers, Electricians	9.28	10.66	11.00
    Helpers, Mechanics and Repairers	6.00	6.98	8.25
    Industrial Truck and Tractor Operators	7.25	8.54	9.00
    Laundry and Drycleaning Machine Operators	4.50	5.40	6.53
    Machine Assemblers	7.99	9.26	9.52
    Machinery Maintenance Mechanics	7.95	10.41	12.50
    3-24 -.

    Charleston County
    Hourly Wage ($)
    Min.	Ave.	Max.

    Machinists	9.68	10.87	13.00
    Maintenance Repairers, General Utility	6.00	10.54	15.00
    Metal Fabricators, Structural Metal Products	8.25	8.97	14.00
    Millwrights	17.08	17.08	17.08
    Mobile Heavy Equipment Mechanics, except Engines	9.97	10.07	11.00
    Operating Engineers	12.00	12.31	14.50
    Package and Filling Machine Operators/Tenders	4.80	6.42	8.90
    Painters, Transportation Equipment	8.50	8.96	11.00
    Paper Goods Machine Setters/Operators	6.20	9.44	11.75
    Paving, Surfacing and Tamping Equipment	6.71	7.00	7.50
    Plumbers, Pipefitters and Steamfitters	9.80	12.66	13.55
    Precision Instruments Repairers	16.07	16.12	16.50
    Precision Lithography and Photoengraving	7.05	9.22	10.67
    Printing Press Machine Operators/Tenders	10.00	11.45	11.77
    Production Inspectors, Testers, Graders, Sorters	5.00	6.45	7.94
    Sheet Metal Duct Installers	8.63	9.97	10.42
    Sheet Metal Workers	9.45	10.92	11.11
    Tire Repairers and Changers	5.50	6.61	7.10
    Truck Drivers, Heavy or Tractor Trailer	6.10	10.34	16.26
    Truck Drivers, Light-Including Delivery	5.30	9.91	13.28
    Vehicle and Equipment Cleaners	5.00	5.18	5.88
    Water and Liquid Waste Treatment Plant Operators	16.50	16.65	16.80
    Welders and Cutters	9.50	10.58	11.72

    Source: SC Employment Security Commission. 7The SC Wage Survey, 1992.
    3-25

    Cost of Living Index
    Charleston MSA

    Item

    Composite Index

    Grocery Items

    Housing

    Utilities

    Transportation
    Index
    99.6
    93.6
    96.9
    96.7
    96.4
    Health Care

    Misc. Goods & Services

    .Sm: ARC(.o, .  iq lod.. Vil7. N/. I. IS7l 07-7O, I Q.i.r 19~k
    105.6
    104.8
    3-26

    CONSTRAINTS AND POTENTIALS
    I
    4-1

    CONSTRAINTS AND POTENTIALS

    BASE CLOSURE

    There has been much "ballyhoo" regarding the affects of the defense drawdown. According to
    the Report of the Defense Conversion Commission titled "Adiustina to the Drawdown", the
    conversion process is viewed in conflicting ways; "as an opportunity to convert the defense
    industry to peacetime uses, as a drain on the economy, as a budgetary source of "peace
    dividends", or as a reward for winning the Cold War."' Confusing, yes - enlightening, no.

    The cold facts are discouraging. The truth is that from the private sector the past record of
    defense conversion, according to Martin Marietta chairman and CEO Norman Augustine, is
    "unblemished by success. "I This is not only one'man's opinion. The 1990 report to Congress
    by the Arms Control & Disarmament Agency somberly agrees by stating, "detailed research has
    not identified a successful product in our economy today which was developed through a
    military-to-civilian approach."' Yet in spite of the inability of the private sector to adapt to the
    military drawdowns of the past, the public sector still feels compelled to attempt what the private
    sector has never been able to do.

    What are the implications for Charleston. It seems that based on the past, it is unreasonable to
    assume that present industrial operations can be salvaged in their present form. Those industries
    that have military contracts are specialized in their areas of expertise but probably can't compete
    outside of their own market niche, even though there may be some similarities. In short, accept
    the inevitable and start initiating economic development policies to recruit industry as well as
    to grow industry at home.

    The Defense Authorization Act of 1993 is an initiative from the current administration intended
    to "fast track" the reuse of closed bases by accelerating the process of transferring surplus
    military property into the hands of local development agencies and private sector developerS.4
    (Reference Appendix 5 - Executive Order 12788 and 12.607 Community Planning and
    Assistance Program) There are five components to this program as follows:

    *	Job-centered property disposal, with priority to economic redevelopment.

    P	ast-track cleanup relating to hazardous wastes and other environmental questions.

    *	Expedited transition and redevelopment assistance for both workers and their communities.

    *	Transition coordinators, assigned to bases to be closed or severely realigned.

    *	Economic adjustment grants for affected comnmunities
    Handled properly, a base closure can lead to new economic vibrancy. Closed facilities leave
    behind air strips and runway systems that adapt well to regional or private airport development -
    with plenty of developable land adjacent. In addition, they leave behind port facilities, already
    4-2

    in place, just waiting for companies that need adjacency to waterborne shipping. Furthermore,
    they leave behind a variety of facilities adaptable to may uses, including manufacturing, offices,
    laboratories, back offices and usually at very reasonable costs. So significant is the national
    economic impact of military cutbacks that the conversion of closed facilities is and industry in
    itself with its own trade association - the National Association of Installation Developers
    (NAIlD). On the public side, the Department of Defense has within its agency the Office of
    Economic Adjustment (OEA) that assists communities adversely affected by closures,
    realignments, and cuts in defense industry employment.'

    According to the President's Economic Adjustment Committee, there appear to be ten principles
    that have characterized successful economic conversion strategies:6

    Unity - Defense job losses, whether from military installations or from defense plants, are no respecter of
    city limits or jurisdictional county boundaries. The entire community is affected and the solution lies in
    cooperative efforts toward a common goal.
    Organization - The success of community efforts have been greatly enhanced by the early development of
    action committees dedicated to the formulation of policy objectives and goals.

    Plan - Organizational action without a charted direction is at best inefficient and at worst totally ineffective.
    Typically, the first task is to develop a strategy that will use the assets of the about-to-be deactivated base.
    The plans must, however, remain flexible.

    Leadership - The conversion of bases to civil uses or the filling of a former defense plant with new civil
    activity is almost always a grass roots enterprise that calls for strong, capable local leaders.

    Advice - There is a considerable amount of information available from consultants outside professionals
    and consultants that do not necessarily have to be from the Charleston Harbor Area. Similar experiences
    are an invaluable asset as well as an objective outside opinion.

    Acquisition - Expanding industry gravitates to localities that have suitable land and buildings to
    accommodate manufacturing and commerce. Most base closing offer this resource but should not be used
    to drive local economic development policy. Instead, available properties should be viewed as just another
    alternative.

    Development - Raw resources are seldom as attractive asfacilities specifically designed to meet the need
    of commerce and industry. Property acquisition and property development are not synonymous.

    Promotion - The hardest and most sensitive step in repopulating a former base of Defense plant is the
    campaign to attract industry. A good sales strategy tailored to a community's most convincing attributes
    is essential.

    Management - Industrial enclaves, whether on aformer military facility or located elsewhere, proper over
    the long term through good management. The same principles that guide commercial and industrial real
    estate development apply.
    Reflection - A sense of urgency that helps to strengthen the community's ties to the proper agencies in the
    state and federal government should always be pursued.
    4-3

    Economic Impact
    The economic impact to the Charleston area will be significant. Based on a study performed
    by the Charleston Trident Chamber of Commerce there will be a total of 21,902 jobs lost with
    a resultant annual payroll reduction of $644.0 million. This loss, however, will be countered
    by an expansion of 6,165 jobs and payroll of $251.0 million at the NAVALEX (Naval Electronic
    Systems Engineering Center). The following tables illustrate the various statistics associated
    with the base closure:
    EMPLOYMENT IMPACT

    FACIL177TIES TO CLOSE OR REALIGN:
    Active Civilian
    Contract
    Total
    Naval Shipyard
    14,990  1,071
    93
    16,154
    Shipyard

    Defense Distribution Depot
    64   5,000      0
    5,064
    5        291
    0
    296
    Supply Center
    17     357    14
    388

    21,902
    Tota
    l
    15,076 6,719
    107
    FACILITIES RETAINED OR EXPANDED:
    Active Civilian Contract
    Total

    4,380

    120

    136

    1,52
    9

    6,165
    NAVELEX

    Shipyard

    Supply Center

    Hospital

    Tota
    l
    10	1,051
    3,320

    0	120	0

    5	131	0

    898	427
    	204

    913	1,728
    3,524
    Source: Center for BuSineSS Research, Ouareston Trident Camber of Commere.
    4-4

    PAYROLL IMPACT (TIMES X $1,000)

    FACILITIES TO CLOSE OR REALIGN:
    Active
    Civilian

    27,567

    221,930

    10,047

    9,606

    269,150
    Contract

    2,519

    0

    0

    426

    2,945
    Total

    396,386

    226,502

    10,280

    11,049

    644,217
    Naval Shipyard

    Shipyard

    Defense Distribution Depot

    Supply Center

    Total
    336,300

    4,572

    233

    1,017

    372,122
    FACILITIES RETAINED OR EXPANDED:
    Active

    436

    4,572
    Civilian

    48,258

    5,326

    3,525

    12,072

    69,181
    Contract

    127,267

    0

    0

    9,305

    136,572
    Total

    175,961

    9,898

    3,824

    62,269

    251,952
    NA VELEX

    Shipyard

    Supply Center

    Hospital
    299

    40,892

    46,199
    Total
    Source: Cooerfor Business Resarch. Choreston Trident Omber of Commerce.
    4-5

    INDIRECT ECONOMIC IMPACT

    ($000)
    Indirect	Indirect
    Jobs	Earnings
    .($000)
    Total Indirect
    Economic Impact

    3,709

    11,182

    27,692

    49,010

    95,774

    93,978

    36,052

    114,898

    137,156

    569,451
    Sector
    Agriculture & Mining

    Construction

    Manufacturing

    Transportation, Communications
    & Public Utilities

    Trade

    Real Estate

    Health Services

    Other Services

    Households

    Total
    127

    251

    373

    431

    3,28
    7

    200

    806

    3,33
    4

    386

    9,195
    1,358

    5,068

    6,688

    12,174

    44,674

    3,344

    20,168

    41,068

    2,508

    137,050
    Source:    Center for Business Reserch. Charleston Trident Chamber of Commerce.- U.S Bureau of Economic Analysis, Regional Input-Output
    Modeling System
    4-6

    Military Base Reuse
    The Office of Economic Adjustmnent (OEA) has compiled a history of over 29 years of Military
    Base Reuse to identify military and civilian job losses, the replacement of civilian jobs and the
    principal industriallcommercial public reuse activities along with the industrial contacts who can
    provide additional information.   A  summary of this data is attached in the following pages
    which may provide insight into those types of activities which have been successful.

    The OEA has determined that the following collective experience has been recorded:'

    *   New Jobs Replace DOD Civilian Losses: A total of 158,104 civilian jobs are now located on the former
    Defense facilities to replace tlae loss of 93,424 former civilian DoD and contractor jobs.

    *   New Educational Opportunities:   A number of four-year colleges, and post-secondary vocational
    institutions or commaunity colleges, as well as high school vo-tech programs have been established on
    former military bases.

    *   Student Enrollnents: There are 73,253 college and post-secondary~ students; 25,055 secondary vo-tech
    students; and 62,156 trainees receiving education and training at 57 former military bases.

    *   Industrial and Aviation Uses: Office industrial parks or plants have been established at 76 of the former
    Defense bases. Forty-two of the former bases are being used as municipal or general aviation airports.
    The OEA has speculated that there is a transition period of between 3-5 years in securing the
    new civilian uses. Additionally they have provided a survival guide for base closings:

    A SURVIVAL GUIDE FOR BASE CLOSINGS
    1.	Don't fight it. Get on with the planing.
    2.	Create an effective local organization to set policy. But keep it small.
    3.	Take control of the planning.
    4.	Negotiate as much lead time as possible for the final date of closure, if possible.
    5.	Bargain as hard as you can with the federal government about what it will give you.
    6.	Beware of environmental hazards.  Old military sites are often sites of large underground tank
    farms and asbestos-ridden buildings. Make sure the federal government cleans them up or
    assumes liability for them.
    7.	Watch out for hidden costs.
    8.	If you don't have the expertise, hire it. But don't get involved in a long term contract.
    9.	Find someone in Washington who can act as a liaison between you community and the various
    federal agencies you must deal with.
    10.     Consider joining the National Association of Installation Developers.
    A  typical Base Closure can be illustrated on a generic time line on the following graphic
    showing the major actions that need to be established by the Department of Defense and the
    4-7

    community in order to close a base - and how they relate to each other.7 Even though this time
    line may not specifically apply to the current situation at Charleston, it is nonetheless
    representative of the sequential order of activities that will occur. The key element to success
    is organization. This necessarily includes overall coordination, planning and implementation.
    While this may seem on the surface to be a logical conclusion, it is not small undertaldng and
    requires the cooperation of the entire community - public and private.

    It is not necessary to recreate the wheel when faced with a base closure. Where appropriate,
    existing organizations can take on the lead responsibility.   For example, a chamber of
    commerce, are-wide planning/development council, local and regional economic development
    groups or special authorities (ie. Port authorities) already have the expertise and resources to
    perform the necessary recruitment activities. Usually, supplemental support to add staff and
    funding will provide a far greater return on effort due to the critical mass already present in
    these organizations as opposed to the creation of a separate entity. Furthermore, the sharing of
    resources with diverse groups toward a common goal further promotes the efficacy of these
    recruitment efforts. This has historically been a problem of many communities and is probably
    more severe in Charleston than in most.

    There is a general decline in Federal program resources, along with greater control of Federal
    block grants by states. As a result, the states will play a greater role in the development and
    implementation of economic development programs for communities hard hit by base closures.
    In addition, the responsibility of communities and their respective private sectors will be equally
    important. If the community has elected to perform recruitment in a vacuum without the
    assistance of the state, or conversely if the state has not provided the necessary support to the
    community the community will face an impossible task.

    The following excerpt from the Federal Planner's Network is an appropriate guideline to
    consider when determining the organization, planning and implementation of a program to
    counter the effects of base closures:"

    Organization

    What?         Large, urban communities usually have organizational mechanisms to deal
    with the problem. Often the responsibility for coordination, planning and
    implementation can readily be assigned to some existing agency or
    authority. Most communities need to establish a task force or council to
    coordinate activities and address the specialized issues a base closure
    creates.

    Who?          This organization should reflect a cross section of public and private
    sector leadership. It is not a "blue ribbon" committee created to give
    4-8

    visibility to certain individuals and no commnitment of action. It must be
    a core of dedicated, strong, knowledgeable, capable individuals that can
    get the job done quickly, with the communities future uppermost in their
    minds with a track record of accomplishments to prove it.  The
    organization must be structured to suit the mnagnitude of the problem and
    time frame for closure. About six to eight members is usually sufficient.
    The members should be non partisan and often should have memberships
    that are multi-jurisdictional to represent the impact area.

    Type?         Usually a new, often temporary or transitional, economic adjustment
    council, task force or steering committee is created. The initial committee
    is destined for replacement.

    Purpose?      The major function of the organization is to be the focal point for the
    community adjustment activities and for Federal Govemnment interaction
    with the community. It is also the foruni for community issues and
    concerns, provides policy guidance on local economic adjustment
    activities. It usually develops the economic recovery strategy (action plan)
    and base reuse plan.
    Goals?

    Authority?

    Operation?
    The organization must provide leadership and build consensus within the
    community to coalesce diverse interests. As a forum, it is a place to
    express ideas. The organization need to develop a strategy that sets the
    future development direction and provides vision.   This adjustment
    strategy needs to focus on job creation of a balanced base reuse plan that
    provides a reasonable mix of public and private uses with complementary
    land uses. A property acquisition plan and scheme for operation of the
    base must also be prepared. Vitally important is keeping momentum and
    interest by ensuring public awareness about recovery efforts. This ca be
    done through relations with the mnedia, and perhaps with a newsletter that
    describes activities of the organization.

    Typically the authority is advisory only. However, it could have limnited
    purposes, prescribed by the local, regional or state laws. These might be
    base reuse planning, redevelopment, and/or management and operations.
    If recovery responsibilities have been vested in legally established entities,
    like and airport, port or economic development authority, and agencies of
    local or state government, mandates and authorities are already
    established. These may require augmentation to undertake economic
    adjustment.

    To maximize citizen participation, a structure of subcommnittees in
    functional areas should be formed.   The number and titles of the
    4-9

    subcommittees should be determined according to the magnitude of the
    closure impact and extent of need. Their purpose is to expand the scope
    of the capabilities of the organization, broaden community participation
    in the economic adjustment process, explore, deliberate and make
    recommendations on approaches and base reuse options. Likely arma of
    concern would be:

    Education    Manpower Training
    Health	Base Reuse Planning
    Finance	Transportation
    Tourism	Environmental Quality
    Recreation	Economic Development
    Housing	Public Works (Utilities)

    StaMf         To function efficiently and be effective, the adjustment organization needs
    a small staff. A director or coordinator with one or two supporting staff
    members should be sufficient. However, its capabilities can be expanded
    by using or allying with existing organizations such as planning
    commissions, economic development agencies, airport and port
    authorities, or other local, county and state agencies. Professional help
    should be- sought by contracting for studies, economic adjustment
    strategies and base reuse plans
    4-10

    BASE CLOSURE PROCESS
    YEAR 1
    Military Actions
    Announcement and
    Congress Action

    Budget New Facilities
    Year 2
    Year 3
    Year 4
    Design & Construct New Facilities

    Identify Excess
    Holding Agency Property Actions

    Base Closing Process
    Base Propc
    -U.
    erty Disposal
    i
    Final Screening
    Relocate Mission

    Final Sale Conveyance
    Detailed  : Disposal Agency Actions

    Screening:
    X
    Operating Local, State, Federal Meeting

    on Community Base Reuse Plan
    Communitv Actions
    O:      _ar zea
    Pase Keuse Pan
    mm _n ___
    I,nol i
    Lloual FO
    ani_.i* _l    'tll.jfy   . Jl"_
    iai.[l r aIcL-v rI. L  Ll
    _MarIet rroperty
    Arrange Pinaning (irants:
    intenm Use
    i -
    Make Purchase
    X
    4-11

    PlanninL
    y
    The planning process is a complex undertaling that includes assessing the redevelopment
    potential of the base in the context of ongoing development (community and economic) and
    integrating the base with the community. This is an immense task that must be undertaken
    within a short time period. The planning challenge requires a rigorous approach, that starts with
    overall community goals and ends in the implementation of a plan broadly conceived, finely
    honed and supported by consensus. The Office of Economic Adjustment has created a diagram
    that is typical of the planning process in a sequential basis.
    The first step is determination of overall goals and objectives to guide the
    planning process. These should emanate from the economic adjustment
    organization established during the organization phase of the adjustment
    process. The goals for the base are a part of the overall economic
    recovery strategy developed by the organization. This strategy helps
    restore the private sector confidence and promises renewed business
    investment.
    Goal Formulation
    Usualty the major goal is job creation. Others might include economic
    viability of redevelopment, tax base expansion, diversification of the local
    economy, maintenance of a certain environmental quality, meeting
    affordable housing needs, or to create a certain redevelopment theme.
    Objectives
    The planning process also needs more specific site development objectives
    to guide planning. These usually include:
    *Replacement of civilian jobs lost;
    *Public use of portions of the site:
    *Highest and best use of land and facilities:
    *Phased development to meet short term goals, but not
    preclude long term goals;
    Ex&panded site access via roads, rail and water;
    *High quality appearance;
    *     ~Compatibility   with  existing   and  planned   off-site
    development,
    *image change form military to civilian; and
    *Minimum public cost
    4-12

    Analysis              Once the guiding goals and objectives have been adopted, considerable
    baseline data collection and contextual analysis needs to be completed that
    will allow the rational development and evaluation of feasible reuse
    alternatives for the base. Engineering drawings and information on the
    base operations are a crucial source of information. This is available
    form the base engineer. Unique buildings, physical features, or other
    major assets should be identified, as they may provide a marketing theme
    for the converted base.

    Redevelopment might fit neatly into an existing economic development
    strategy for the area, however, it is more likely that the base and its
    buildings bring a new competitive element to the area, a new marketing
    angle. This requires afresh look at area development assets, analysis of
    feasible business opportunities, and  a revision of the strategy.   The
    competitive niche must be identified.

    Each base has some unique facilities or capacities that expand local
    economic development horizons. In all places it is critical that community
    leaders have vision when they plan for redevelopment of the base.

    Uses                 The experience of over 100 communities that have successfully converted
    former military bases to productive civilian uses shows many common
    uses:

    *        Industrial and office parks are located on more than 75
    bases;

    *	Educational institutions are on 57 bases,

    *	Public airports are located on 42 bases;

    �	Public recreation facilities are located on 27 bases; and

    *	Health related activities are on 19 bases

    Potential and private uses are as broad as the imagination, practicality
    and feasibility permit. Typical categories include: aviation, commerce,
    industry, education, health, recreation, prisons, housing, and public
    administration. Facility surveys and market analysis will reveal which
    uses are possible. Public input through the subcommittee structure of the
    economic adjustment organization will also help to identify potential public
    and private uses.
    4-13

    Altemnatives
    A range of feasible, alternative concepts should be developed and
    evaluated, using the goals and objectives as a measurement. Throughout
    the development and analysis of alternatives, public participation is
    essential to help arrive at consensus on the development concept.

    An important ingredient to this part of the planning process is knowledge
    of land acquisition choices. If one of the major objectives is to minimize
    public costs, a balance of public benefit (no cost) acquisition and private
    sector redevelopment is a wise pursuit. Public or nonprofit use of
    portions of the base for aviation, education, recreation, wildlife
    conservation, and health purposes are generally at no cost. However,
    there will be public costs to redevelop and operate these facilities, with
    little or no tax revenue generated. Also, public benefit uses have 'st rings"
    attached. They must continue to be used for these public purposes,
    constraining long-range development fle-xibility.
    Detailed Plans
    After a consensus is reached in the overall development plan, and the
    federal disposal agent (either the department of Defense or General
    Services Administration) agrees with the acquisition proposals to
    implement the plan, work can begin on the details of the site layout,
    parcelization, phased redevelopment, design controls, and property
    management considerations. It will be important to establish the :new
    civilian look: for the base early in the conversion process. This may
    include the creation of a new entrance, demolition of obsolete buildings
    or structures and landscaping to achieve the desired image. Local
    comprehensive plans and zoning must be updated and adopted to reflect
    the reuse plan. It is imperative that the these decisions be made before
    the disposal of propert by the Federal Government, particularly those
    portions of the base that will be purchased by the private sector.
    4-14

    REUSE PLANNING PROCESS DIAGRAM
    ~~~Cmunity Goals
    I
    I
    IMarket Studies
    I
    m ~~~~I
    Facility Surveys
    I
    ~~~~~~~~~I
    I
    a

    National

    Regional'.
    Land Areas
    Buildings

    Infrastructure

    Da~~ve Pl~an
    Impleamentation'
    1
    wommm
    a
    Source: Office of Economic Adjustment

    Summary of Completed Military Base Economic Adjutnment Projects - 1961 to 1990
    The best indicator of the past can many times be determined by the events of the past. As
    mentioned previously on page 4-7, the OEA has compiled a history of over 29 years of Military
    Base Reuse to identify military and civilian job losses, the replacement of civilian jobs and the
    principal industrial/cornmercial public reuse activities as well as the industrial contacts who were
    involved with each of the respective reuse activities. The attached graphic illustration indicates
    the location of each of the bases in the United States.

    Many of the activities that occurred (and still occurring) can be looked at as a guideline to the
    development opportunities available in the Charleston region.   Of particular note is the
    concentration of economic developmnent activity that is synergized by the inherent strengths of
    either the particular comnmunity impacted or that of the manpower skills, infrastructure or other
    remaining activities as a result of the military installation itself. A typical example, though in
    the opinion of the consultant very much under utilized, is Donaldson Air Force Base in
    Greenville, South Carolina. The sheer size of the airport taxiway was instrumental in inducing
    Lockheed to maintain a presence there. In addition, as a general aviation center, the facility has
    the capability to land virtually any size cargo plane for logistics support. Magna International,
    a metal stamping parts supplier to BMW, though not attracted by any particular attribute of the
    base itself, will act as a catalyst for future development for the Air Park.

    In a similar fashion, Charleston has several major inherent advantages as a result of the urban
    concentration, natural harbor orientation and other important advantages that should be
    considered. The following are examnples of uses that could be instrumental in the future
    development of the base.
    4-16

    *  Military bases slated for closure, consolidation    k	/
    or realignment                                     t	#
     Former military
    bases

    Summary of Completed Military Base Economic Adjustment Projects 1961-1990
    April-June 1990

    Civilian Jobs
    Year	Lost	College
    Impact/Year	(Military	New Jobs	Major	Vo-Tech
    Community & Location	Acquisition	Transfers)	on Base	Firms/Activities	Students	Community Contact

    Coden, AL	1971/1972	26/(112)              45	Marine Environmental	167(C)	Dr. George F. Crozier, Director, Marine
    Dauphin Island	Science Consortium	16,000(S)	Environmental Science Consortium, P.O.
    Air Force Station	Box 369-370, Dauphin Island, AL 36528
    (205) 861-3702
    Mobile, AL                              1965-69/1969        12,300/(1,070)          3,000	Teledyne-Continental	1,400(c)	Larry Cook, Manager, Mobile Aerospace
    Brookley AFB and Mobile Air	Motors	20,000(T)	Industrial Complex, 1891 9th Street,
    Material Area	International Paper,	Mobile AL 35516 (205) 438-7334
    International Systems,
    University of South
    Alabama, Mobile
    Airport Authority
    Mobile, AL                                1965/1956               14/-              1,550	Degussa-Alabama Inc,	Jay Gamer, Mobile Alabama Chamber of
    Theodore Army Terminal	Kerr-McGee, Linde,	Commerce, P.O. Box 2187, Mobile, AL
    Ideal Basic Industries,	36652
    Mobile Paint Mfg Co,	(205) 433-6951
    Huls, Taylor Wharton,
    Ultraform
    Selma, AL                                 1997/1978           547/(1,863)            390	Superwood Inc, Tri	100(c)	Hugh Allen, Executive Director, Craig
    Craig Air Force Base	Tech Services, Beech	500(t)	Field Airport and Industrial Authority,
    Aero Spares Services	P.O. Box 1421, Selma, AL  36701
    Inc., American Candy	(205) 874-7419
    Co, Alabama State
    Trooper Academy,
    George Wallace
    Community College,
    Municipal Airport
    Thomasville, AL                           1970/1971             18/(110)             200	Thomasville Adult	Dr. Parker Edwards, Director,
    Thomasville Air Force Station	Adjustment Center	Thomasville Adult Adjustment Center,
    P.O. Box 309, Thomasville, AL
    (205) 636-5421
    4-18

    Civilian Jobs
    Year	Lost	College
    ImpactlYear	(Military	New Jobs	Major	Vo-Tech
    Community &  Location	Acquisition	Transfers)	on Base	Firms/Activities	Students	Community Contact

    Kenai, AK	1972/1974	63/(380)	116	Kenai Native Association	Willa Konte, General Manager, Kenai
    Wildwood Air Force Station	Inc, Wildwood	Native Association, Suite 203, 215
    Correctional Center,	Fidalgo, Kenai, AK  99611 (707) 746-
    Elderly Housing Center	4215
    Benecia, CA                               196411965          2,3211(32)           5,700	Exxon, Institutional &	Karen O'Dowd, Economic Development
    Benecia Arsenal	Financial Services,	Coordinator with the City of Benecia,
    Unysia Corp, Universal	250 East L Street, Benecia, CA  94510
    Engr Corp, Corey	(907) 2834851
    Construction Co,
    Lathrop Construction
    Inc, Sperry Mgt Sys,
    Huntway Refinery, Ace
    Hardware

    Los Angeles, CA                           1974/1975          1,306/(750)           685	Los Angeles Unified	John Keith, Principle, San Pedro-
    Fort McArthur (a)	School District, City Rec	Wilmington Skill Center, 920 W. 36th.
    & Park Dept, Cabrilla	Street, San Pedro CA  90731 (213) 831-
    Marina, San Pedro-	0295
    Wilmington Skill Center,
    CA Conservation Corp
    San Pedro District, Los
    Angeles Harbor Dept.

    Malibu, CA                                197411974            -/(142)              40	Los Angeles County &	John Haggenniller, Assistant Chief
    Nike Site 78	Fire Paramedic Center	Forrester. Los Angeles County Fire
    Department, 1320 N. Eastern Avenue,
    Los Angeles, CA 90063
    (213) 267-2481
    Palmdale, CA                              1974/1976            -/(142)              100	Los Angeles County Fire	John Haggenmiller, Assistant Chief
    Nike Site 04	Center & Correctional	Forrester. Los Angeles County Fire
    Facility	Department, 1320 N. Eastern Avenue,
    Los Angeles, CA 90063
    (213) 267-2481
    4-19

    Civilian Jobs
    Year	Lost	College
    Impact/Year	(Military	New Jobs	Major	Vo-Tech
    Community &  Location	Acquisition	Transfers)	on Base	Firms/Activities	Students	Community Contact

    Rancho Palos Verdes, CA	1974/1974              -/(91)              60	City Offices,	Bill Cornet, City Manager, 30940
    Nike Site 55	Dimensional Cable	Hawthorne Blvd, Rancho Palos Verdes,
    CA 90274
    (213) 377-0360
    Torrance, CA                            1973/1974               50/-               6	City of Torrance Park	Gene Barnett, Parks and Recreation
    Torrance Annex, Long Beach	Facilities	Dept, City of Torrance, 3031 Torrance
    Naval Supply Center	Blvd, Torrance, CA  90503
    (213) 618-2930
    Ventura County, CA                      1970/1976           293/(1,215)          1,300	Ventura County	210(C)	James O'Neill, Airport Administrator,
    Oxnard Air Force Base	Community College,	840(S)	295 Durley Avenue, Camarillo, CA
    Intersystems, George	210(1)	93010 (805) 388-4202
    Bannister Co, US Navy,
    Oxnard High School
    District, Camerillo
    Airport, FAA,
    Numerous County
    Agencies
    Colorado Springs, CO                  1971/1976-80               -                280	United States Olympic	Ronald Rowan, General Counsel, United
    Ent Air Force Base	Committee Hqtrs, USOC	States Olympic Committee, 1750 East
    Olympic Training.	Boulder St, Colorado Springs, CO
    Center, Hqtrs-National	80919
    Governing Body for 16	(719) 632-5551
    Sports
    Green Cove Springs, FL                  1962/1964           324/(1,281)           650	Kelsey-Hayes, Kuston	Ed Stewart, Manager, Clay County Port
    Atlantic Fleet Site	Karr, Sun State Marine,	Inc, P.O. Box 477, Green Cove Springs,
    Price Brothers,	FL 32043
    Composite Pipe, Willis	(904) 284-3676
    Barge, Pegasus
    Technologies, Great
    Lakes Dredge & Docks
    4-20

    Civilian Jobs
    Year	Lost	College
    ImpactlYear	(Military	New Jobs	Major	Vo-Tech
    Community & Location	Acquisition	Transfers)	on Base	Firms/Activities	Students	Community Contact

    Key West, FL	1973/1986	568/(3,356)             60	Hotel, Marina, Historic	Pete Mayer, Vice President, Director of
    Truman Annex(c)	and Residential	Development, 203 Front Street, Trumam
    Development	Annex, Key West, FL 33040
    (305) 296-5601
    Orlando, FL                               174/1975           395/1(2,812)           6,000	US Postal Service, Paige       600(C)	Boe Barrett, Government Services,
    McCoy Air Force Base	Avjet, Federal Express,	Greater Orlando Aviation Authority,
    UPS, Emery, D.H.L.,	P.O. Box 620004, Orlando, FL 32862
    Airborne Express,	(407) 826-2496
    Florida Southern
    College, Municipal
    Airport
    Sanford, FL                               1968/1969            230/646)             1,400	Cobia Boats, Hardie             975(1)	Stephen Cook, Director, Sanford Airport
    Sanford Naval Air Station	Irrigation, Scottys,	Authority, P.O. Box 818, Sanford, FL
    Lowes, Florida Gas &	32771
    Training Center, Central	(407) 322-7771
    Florida Regional
    Airpor, Codiso

    Albany, GA                                1974/1978          3411(3,217)            2,000	Miller.Brewery, Kroger         1,200(t)	C. Lamar Clinton, Senior Vice President
    Albany Naval Air Station	Peanut Butter, Jobs	for Economic Development, First State
    Corps	Bank & Trust Company, P.O. Box 8,
    Albany, GA, 31703
    (912) 432-8430
    Brunswick, GA                             1974/1976          344/(1,826)            2,500	Hyster, TPI International	400(C)	Randal Morris, Executive Director,
    Giynco Naval Air Station	Airways, Insteel	30,000(T)	Brunswick & Glynn County Development
    Construction, Systems	Authority, P.O. Box 10790, Brunswick,
    Inc, Interior Products,	GA  31521  (912) 265-2070
    Map International,
    Sossner Tap & Tool,
    Federal Law
    Enforcement Training,
    Municipal Airport
    4-21

    Civilian Jobs
    Year	Lost	College
    Impact/Year	(Military	New Jobs	Majior	Vo-Tech
    Community &  Location	Acquisition	Transfers)	on Base	Firnns/Activities	Students	Community Contact

    Decatur, IL	1962/1963	1,310/(27)	1,944	Bridgestone/Firestone	D.R. Sullivan, Plant Controller, P.O.
    Decatur Army Signal Depot	Inc	Box 1320, Decatur, IL 62525 (217) 425-
    1231

    Forest Park, IL                          1971/1973            1,600/(6)           2,400	Regional Shopping Mall,	Marlene Quandt, Village Clerk, Forrest
    Forest Park Naval Ordnance Plant	US Postal Service Bulk	Park, IL 60130
    Mail Center, Postal Bag	(708) 366-2323
    Repair

    Columbus, IN                             1970/1972            3181(61)             491	Cunmnins Engine,               1,878(C)	Wendall Ross, Manager, Columbus
    Bakalar Air Force Base	Indiana University,	Airport, Columbus, IN  47807 (812)
    Purdue University,	376-2519
    Rhoades Aviation,
    Flambeau, Indiana Vo-
    Tech, Municipal Airport

    Terre Haute, IN                          1966/1967             253/-              1,100	Accurate Glass Inc,	Phil Kesner, Redevelopment Specialist,
    Defense Industrial Plant	Allstate Mfg Co Inc,	Department of Redevelopment, 301 City
    Equipment Center	Amacet Corp, CBS/Sony	Hall, Terre Haute, IN 47807
    Music Club, Xon-way	(812) 232-0018
    Central Express, Digital
    Audio Disc Club,
    Distributors Terminal
    Corp, Eldred Van &
    Storage Inc, Ivy Hill
    Packaging, Jadcore Inc,
    Miller Business Forms

    Salina, KS                               1965/1966          326/(4,710)           4,200	Beech Aircraft, Tony's	735(C)	Tim Rogers, Executive Vice President,
    Schilling Air Force Base	Pizza Inc, Kansas State	410(S)	Salina Airport Authority, Salina, KS
    College of Technology,	67401
    Salina Area Vo-tech, SP	(913) 827-3914
    Plastics, Kansas Color
    Corp, Scientific
    Engineering,Municipal
    Airport
    4-22

    Civilian Jobs
    Year	Lost	College
    Impact/Year	(Military	New Jobs	Major	Vo-Tech
    Community & Location	Acquisition	Transfers)	on Base	Firms/Activities	Students	Community Contact

    Topeka, KS	1973/1976	4161(3,739)	1,600	Forbes Industrial Park,	Dennis Brock, Airport Authority, P.O.
    Forbes Air Force Base	State Dept of	Box 19053, Topeka, KS  66619
    Corrections, Lario	(913) 862-2362
    Enterprises, State Health
    Dept, Municipal Airport,
    National Guard

    Hournma. LA                              1972/1972              18/(112)            1,000	Terrebonne Parrish Vo-          820(S)	Mel Mallory, Airport Manager, Houma-
    Houma Air Force Station	Tech, Terrebonne Assoc	Terrebonne Airport Commission, Station
    for Retarded Citizens,	1, P.O. Box 10158, Houma, LA 70363
    Kentwood Water,	(504) 872-4646
    Texaco Inc, Air
    Logistics, ERA
    Helicopters, Houma
    Municipal Airport
    Lake Charles, LA                         1963/1964            252/(3,030)           4,000	Chennault Industrial	2,950(C)	Ernst Broussard, Director, Planning &
    Chennault Air Force Base	Airpark Authority,	35(S)	Development, P.O. Box 900, Lake
    Boeing Louisiana,	450()	Charles, LA  70602 (318) 491-1210
    Elsinore Aerospace,
    Sowella Technical
    Institute

    New Iberia                               1965/1966             85/(1,025)           1,220	Air Logistics, Univ of          350(S)	Rick H. Lasserre, Iberia Parish Airport
    New Iberia Naval Air Station	SW Louisiana Research	Authority, 510 Avenue C, Suite A, New
    Center, Teche Area Vo-	Iberia, LA  70560 (318) 365-7202
    Tech, Hulhnance Drill
    Co, Carorundum,
    Lofand Bros, ERA
    Helicopters, Otis Engr
    Corp, Pelican Aviation
    Corp, Acadania
    Criminalistic Lab
    4-23

    Civilian Jobs
    Year	Lost	College
    Impact/Year	(Military	New Jobs	Major	Vo-Tech
    Community &  Location	Acquisition	Transfers)	on Base	FinrmslActivities	Students	Community Contact

    Bangor, ME	1968/1968	3421(5,479)	2,500	General Electric, Anzac	2,000(C)	Donald Bugginton, Director Economic
    Dow Air Force Base	Electronics, Hqtrs Bar	Development, City of Bangor, Bangor
    Harbor Airways Inc, US	ME  04401
    Air Force, University of	(201) 945-4400
    Maine, State Dept of
    Human Services,
    Municipal Airport,
    Timberland Footware
    Charleston, ME                           1979/1981            23/(169)              97	Charleston Correctional         150(1)	leffrey Merril, Director, Charleston
    Charleston Air Force Station	Facility	Correctional Facility, RR,I, Box 1400,
    Charleston, ME 04422 (207) 285-3307
    Presque Isle, ME                         1961/1962           268/(1,259)           1,250	Biner Brothers, Indian          540(C)	Larry E. Clark, Executive Director,
    Presque Isle Air Force Base	Head Plywood, Wetterau	Presque Isle Industrial Council, P.O. Box
    Inc, Northern Maine	831, Presque Isle, ME  14769 (207)
    Technical College,	764-4485
    Northern Maine
    Regional Airport
    Baltimore, MD                            1973/1977          2,805/(1,335)         1,800	Holabird Industrial Park,	Larisa Salamacha, Project Director,
    Fort Haolabird	Universal Foods,	Baltimore Economic Development Corp,
    Thrashers Furniture,	36 South Charles Street, Suite 1600,
    Clean Air Inc, PPG,	Baltimore, MD  21201
    Riparus Corp, Gascoyne	(301) 837-9303
    Lab, HS Processing,
    John D Lucas Printing
    Co
    4-24

    Civilian Jobs
    Year	Lost	College
    ImpactlYear	(Military	New Jobs	Major	Vo-Tech
    Community &  Location	Acquisition	Transfers)	on Base	Firms/Activities	Students	Community Contact

    Boston, MA	1794-81/1977-83           (b)	3,600	Marine Industrial Park,	100(r)	Donald A. Gillis, Executive Director,
    Boston Army Base/Navy Annex	Boston Design Center,	Economic Development and Industrial
    Coastal Cement Corp,	Corp of Boston, 9th Floor, 39 Chauncy
    AuBon Pain, General	Street, Boston, MA  02111 (617) 725-
    Ship Corp, Emery	3342
    World Wide, Mass Bay
    Brewery, First Trade
    Union Saving Bank,
    Boston Tech Center,
    Stavis Seafood
    Boston, MA                              1974/1979          5,552/(553)           3,700	Boston Redevelopment	Bob Rush, Deputy Director, Harbor
    Boston Shipyard-Charlestown(c)	Authority, Inummobiliare	Planning & Development and John
    Ltd, Boston National	O'Brien, Navy Yard Project manager, 22
    Historic Park, Sail	3rd Ave, Charlestown Navy Yard,
    Maine, MA General	Charlestown, MA  02129
    Hospital, MA Water	(617) 722-4300
    Resource Authority,
    Commercial-Office
    Residential Complex
    Chelsea, MA                             197411979           326/(462)             130	Boston Architectural	Robert Luongo, Director, Community
    Chelsea Naval Hospital(d)	Team, DMC Energy	Development, City Hall, Chelsea, MA
    Inc, First New England	02150
    Consortium, Admiral's	(617) 889-0700
    Hill Development,
    Marina
    Chicopee, MA                            1974/1977        + 150(h)/(4,014)        2,900	Massachusetts Municipal	Alan W. Blair, President, Westover
    Westover Air Force Base	Electric Co, Procter &	Metropolitan Development Corp, 3911
    Gamble, Ludlow	Pendleton Ave, Chicopee, MA  01022
    Technical Papers,	(413) 593-6421
    Dennsison Mfg Corp,
    Emery World Wide
    4-25

    Civilian Jobs
    Year	Lost	College
    Impact/Year	(Military	New Jobs	Major	Vo-Tech
    Community &  Location	Acquisition	Transfers)	on Base	Firms/Activities	Students	Community Contact

    Springfield, MA	1968/1968	2,400/(20)	3,250	Digital Equipment Corp,	7,000(C)	Marc Hanks, Managing Partner with
    Springfield Arsenal	Smith & Wesson, Hano	Economic Development Partners, Bank
    Business Forms,	of Boston Building, 1350 Main Street,
    Springfield Technical	Springfield, MA  01103
    Community College,	(413) 787-1542
    Springfield Armory
    National Historic Site

    Watertown, MA                           196711968           2,3061(17)           1,360	Arsenal Mall, Lifeline	Mark Boyle, Director, Planning &
    Watertown Arsenal	Systems Inc, Arsenal	Community Development, Town of
    Apartments, Howard	Watertown, 149 Main Street, Watertown,
    Community Health Plan,	MA  02172
    Arsenal Park	(617) 972-6417

    Saulte Ste Marie, MI                     197711978          7371(3,014)          2,144	Five different	Kathy Noel, Executive Vice President,
    Kincheloe Air Force Base	correctional facilities,	Chippewa County Economic
    Chippewa County	Development Corp, 119 Culley,
    International Airport,	Kincheloe, Ml 49788 (906) 495-5631
    Olofson Fabrication
    Services Inc, Fabricor
    Inc, Eclipse Inc,
    American Kimross Corp

    Baudette, MN                            1979/1981            30/(100)             25	Rapid River Grain &	Larry Larson, President, Rapid River
    Baudette Air Force Station	Feed Company	Grain & Feed Inc, P.O. Box 458,
    Baudette, MN 56623
    (218) 634-2041
    Duluth, MN                              1982/1984           446/(1,040)           200	Duluth Prison Camp,	John Grinden, Executive Director,
    Duluth Air Force Base	Natural Resources	Duluth Airport Authority, Duluth, MN
    Research Institute, at	55811
    Louis County & Land	(218) 727-2968
    Dept, Planing
    Specialties, Minnesota
    Rust Proofing
    4-26

    Civilian Jobs
    Year	Lost	College
    Impact/Year	(Military	New Jobs	Major	Vo-Tech
    Community & Location	Acquisition	Transfers)	on Base	Firmnns/Activities	Students	Community Contact

    Wadena, MN	1971/1973	151(130)              30	Bell Hill Recovery	Audrey Schmitz, Bell Hill Recovery
    Wadena Air Force Station	Center	Center, P.O. Box 206, Wadena, MN
    54682
    (218) 631-3610
    Greenville, MS                            1965/1966            242/(2,048)            325	Southern Fasteners,	Wayne Downing, Airport Director,
    Greenville Air Force Base	Delta Aircraft Painting,	Greenville Municipal Airport, Greenville,
    AGAC, Head Start	MS  38701
    Schools, Drug &	(601) 334-3121
    Alcohol Center,
    Homeless Shelters,
    Municipal Airport
    Kansas City, MO                           1977/1985           1,5001(2,400)           475	BTM Inc, Calvary Bible          510(C)	lames Gerner, Assistant Director,
    Richards-GeBaur Air Force Base	College, Electronic	General Aviation Airport, 414 East 12th
    Institute, Southwest	Street, 9th Floor, City Hall, Kansas City,
    Tracor, US Air Force,	MO 64106
    Marine Corps Support	(816) 274-2300
    Facility, Directorate of
    Financial Operations,
    Richards-GeBaur Airport
    Neosho, MO                              1970/1968-75             1,200/-              3,500	Teledyne, Lazy Boy             1,500(C)	Gib Garrow, Executive Vice President,
    Camp Crowder & Air Force Plant	Char Co, Talbot Wire,	Neosho Chamber of Commerce, Neosho,
    65	Crowder Industry,	MO  64850
    Moark Production,	(417) 451-1925
    Crowder College,
    Municipal Airport
    Conrad, MT                                1972/1975              1531(20)              50	Cascade Campers Ltd,	Darrel Brown, Treasurer, Pondera
    Anti-Ballistic Missile Site	Intercontinental Truck	County Economic Development Corp,
    Body, MK Distributors,	Conrad, MT  59425 (406) 278-7525
    Tiber Water Authority
    Lewistown, MT                             1971/1794             27/(163)                3          c	William Spoja, Former County Attorney,
    Lewistown Air Force Base	Lewistown, MT  59457
    (406) 538-8767
    4-27

    Civilian Jobs
    Year	Lost	College
    Impact/Year	(Military	New Jobs	Major	Vo-Tech
    Community &  Location	Acquisition	Transfers)	on Base	Firms/Activities	Students	Community Contact

    Hastings, NE	1966/1966	240/(10)	1,650	Hastings Industries, TL	3,000(C)	Dee Hausler, Chamber of Commerce,
    Hastings Naval Anummunition Depot	Irrigation, Ebko	P.O. Box 1104, Hastings, NE  68901
    Industries, Animal	(402) 462-4159
    Research Center,
    Hastings Park, Good
    Sumaritan Retirement
    Center, Central
    Nebraska Community
    College, Hastings
    Energy Center
    Lincoln, NE                            1966/1966          396/(6,383)          3,000	Goodyear Tire,	Wayne Andersen, Executive Director,
    Lincoln Air Force Base	Bruswick Corp, Tri-Con	Lincoln Airport Authority, P.O. Box
    Industries, Land & Sky	80407, Lincoln, NE 98501
    Inc, Yasufuku Inc,	(402) 474-2770
    Heinke Technology,
    Boomers Printers,
    Valentino's Inc, Dept of
    Corrections Minimum
    Security, Municipal
    Airport

    Omaha, NE                              1975/1976            49/(56)             228         Metropolitan Community       6,500(C)	John Weber, Metropolitan Community
    College	College, P.O. Box 377, Omaha, NE
    68103
    (402) 449-8425
    Sidney, NE                             1967/1967            585/(2)             650	Sidney Warehousing            300(C)	Anita Pennel, Chamber of Commerce,
    Sioux Army Depot	Activities, Western	Sidney, NE 69162
    Nebraska Community	(308) 254-5851
    College, Glover Group,
    Cabela's Mail Order,
    Scoular Grain Co,
    Western Stockman Inc
    4-28

    Civilian Jobs
    Year	Lost	College
    Impact/Year	(Military	New Jobs	Major	Vo-Tech
    Community &  Location	Acquisition	Transfers)	on Base	Firms/Activities	Students	Community Contact

    Reno, NV	1966/1969	519/(2,133)	2,000	IC Penny Dist, Cntr,	1,200(c)	Robert Schriver, Associate Director,
    Stead Air Force Base	Precision Roll Products,	Economic Development Authority of
    Univ of NV Desert	Western Nevada, 5190 Neil Rd, Suite
    Research Institute, R.	111, Reno, NV  89502
    Donelly Son's Bradford	(702) 829-3700
    White West, Daimler
    Benz Freight Liner,
    Hidden Valley Ranch
    Food Products,
    Municipal Airport

    Manchester, NH                          1966/1966-75          138/1(320)          3,200	Sanders Associates,	lane Hills, Business Development
    Grenier Air Force Base	Disogrin Industries,	Representative, Greater Manchester
    Summit Packaging,	Development Corp, 889 Elm Street,
    Armtec Industries,	Manchester, NH 03101
    Municipal Airport	(603) 624-6505

    Burlington, NJ                           1973/1977            520/(10)             500	Duplifax, Resource	Mayor Herman Costello, City Hall,
    Burlington Army Ammunition	Equity Developers,	Burlington, NJ 08016
    Plant	Kitchens, Inc, Able	(609) 386-0200
    Warehousing, Joint
    Burlingtons Economic
    Development Corp
    Edison, NJ                               1963/1965            578/(426)           3,800	Livingston College of	3,500(C)	Barry Larson, Business Administrator,
    Camp Kilmer	Campus of Rutgers	1,050(5)	Edison Township, 100 Municipal Blvd,
    University, Kaiser	463(1)	Edison, NJ 08817 (201) 287-0900
    Aluminum, Revlon,
    Continental Can,
    Spaulding, Mattell Toys,
    Job Corps, Middlesex
    Vo-Tech Scholl,
    Lightolier Co     -
    4-29

    Civilian Jobs
    Year	Lost	College
    Impact/Year	(Military	New Jobs	Major	Vo-Tech
    Community &  Location	Acquisition	Transfers)	on Base	Firms/Activities	Students	Community Contact

    Edison, NJ	1964/1964-65	2,610/(8)	13,100	RCE, American Hospital	4,088(C)	Peter Cook, Managing Principal, Summit
    Raritan Arsenal	Supply, R.H. Macy,	Associates Inc, Raritan Plaza H11, Edison,
    Singer, B.F. Goodrich,	NJ 08818
    Nestle, GSA Depot,	(201) 287-0900
    United Parcel Service,
    Lloyd American
    Electronics, Grant
    Liquor, Michelin Tires,
    Kirsch Co, Ramada and
    Holiday Inns, Middlesex
    Community College,
    American Can

    Lumberton, NJ                           1974/1976              94/-                75	Lumberton Township	Patricia Ranier, Clerk, Lumberton
    Nike Site 25	Municipal Offices,	Township, P.O. Box 1860, Lumberton,
    Midway School for	NJ 08048
    Learning Disabilities	(609) 267-3217

    Roswell, NM                             1967/1967           3791(4,900)          3,000	Transportation, Mfg           1.200(C)	Dennis Ybarra, Roswell Industrial Air
    Walker Air Force Base	Corp, Levi Strauss, Job	Center, P.O. Box 5759, Roswell, NM
    Corps, Christmas by	88201
    Kreb's Co, Eastern NM	(505) 347-2594
    University, Municipal
    Airport

    Newburgh, NY                            1969/1971          1,011/(2,700)         1,000	United Express,	James P. McGuiness, Airport Director,
    Stewart Air Force Base	American Airlines,	Steward International Airport, P.O. Box
    Airborne International,	6100, Newburgh, NY  12550
    Emery Air Freight,	(914) 564-2100
    USDA Animal Import
    Center, New York Dept
    of Transportation, Air
    National Guard, General
    Aviation Airport
    4-30

    Civilian Jobs
    Year	Lost	College
    ImpactlYear	(Military	New Jobs	Major	Vo-Tech
    Community &  Location	Acquisition	Transfers)	on Base	Finns/Activities	Students	Community Contact

    New York City, NY	197011972	3881(38)	1,070	American Museum of	Ralph Blank, American Museum of the
    Army Pictorial Center	Movie Image, Kaufman	Movie Industry, 34-12 36th Street,
    Astoria Studios	Astoria, NY  11106
    (718) 784-4520
    New York City, NY                        1976/1981            336/(54)            6,700	New York Rail Car	Debra Alligood, Project Manager, New
    Brooklyn Army Depot	Company, SAMCO Inc,	York City Public Development Corp,
    Phase II building Project	161 William St., New York, NY  10038
    (1)	(212) 619-5000
    New York City, NY                         1974/1974           386/(517)            865	Veterans Administration	Solomon Goodrich, Executive Director,
    St Albans Naval Hospital	Hospital, Roy Wilkins	Southern Queens Park Assn Inc, 119th
    Park	Ave & Merrick Blvd, Jamaica, NY
    11434
    (718) 276-4630
    Schenectady,NY                           1966/1967            484/(15)             600	General Electric,	E. Graham Thompson, Sr Vice
    Schenectady Army Depot	PADCO Inc, State of	President, Northeastern Industrial Park
    New York, Distribution	Inc, P.O. Box 98, Guilderland Center,
    Unlimited, IBM	NY  12085 (518) 358-4435
    Voorbeesville, NY                        196611967            1,000/(20)           300	Scott Paper, Proctor &	E. Graham Thompson, Sr Vice
    Voorheesville General Depot	Gamble, Chrysler Car	President, Northeastem Industrial Park
    Distribution, Agway	Inc, P.O. Box 98, Guilderland Center,
    Feeds, State of New	NY  12085 (518) 358-4435
    York.

    Watertown, NY                            1979/1981             24/(24)             498	Watertown Correctional	Andrew Peters, Superintendent,
    Watertown Air Force Station	Facility	Watertown Correctional Facility,
    Watertown, NY 13601
    (315) 782-7490
    4-31

    Civilian Jobs
    Year	Lost	College
    Impact/Year	(Military	New Jobs	Major	Vo-Tech
    Community & Location	Acquisition	Transfers)	on Base	FirmnnslActivities	Students	Community Contact

    Wilmington, NC	1967/1976              4/(96)	487	US Air, Applied	Robert Kemp, Airport Director, New
    Air Force Interceptor Squadron	Analytical Industries,	Hanover International Airport, 1901 Hall
    Air Wilmington Inc,	Drive, Suite 201, Wilmington, NC
    Signa Tech Inc, NC	28405
    Army National Gurad,	(919) 341-4333
    FAA Control Tower,
    Aeronautic Inc,
    International Airport

    Bellefontaine, OH                         1969/1970             27/(136)             120	Ohio Hi-Point Joint Vo-         600(S)	Marilyn Meyer. Superintendent, Ohio Hi-
    Bellefontaine Air Force Station	Tech School	Point Joint Vo-Tech School, RFD-2,
    Bellefontaine, OH 43311 (513) 599-
    3010

    Columbus, OH                              1978/1984           380/(1,700)            625	Federal Express,	Rod Borden, Airport Manager,
    Richenbacker Air Force Base	Meisner Electric,	Rickenbacker Port Authority, 109 John
    Lockheed,Air National	Glenn Avenue, Columbus, OH 43217
    Guard, Army Reserve,	(614) 491-1401
    General Aviation Airport

    Port Clinton, OH                          1966/1967            1,885/(85)           1,200	AIM Packaging, Ares	Jeff Crosby, Manager, Erie Industrial
    Erie Ordnance Depot	Inc, USCO Dist Services	Park, Port Clinton, OH  43452 (419)
    Inc, Scandura, Superior	6354051
    Mfg, P&T Products,
    Challenger Motor
    Freight, Uniroyal
    Engineered Products,
    Toledo Edison Co,
    Panelite
    4-32

    Civilian Jobs
    Year	Lost	College
    Impact/Year	(Military	New Jobs	Major	Vo-Tech
    Community &  Location	Acquisition	Transfers)	on Base	Firms/Activities	Students	Community Contact

    Toledo, OH	1963/1965	1,654/(52)	3,900	Toledo Mold, Temp	4,570(C)	Susan Webb, President, Ampoint, P.O.
    Rossford Arsenal	Glass, Glass Tech Inc,	1,400(S)	Box 911, Toledo, OH  43692 (419) 666-
    Ace Hardware Dist	3222
    Cntr, JC Baxter Tub Co,
    Surface Combustion,
    Toyota Redistribution
    Center, Michael J.
    Owens Tech College,
    Penta County Vocational
    School
    Wilmington, OH                          1971/1973           613/(66)            4,000)	Airborne Express,	800(C)	Cynthia Hill, Executive Director,
    Clinton County Air Force Base	UNISETS, Ferno	500(S)	Wilmington Chamber of Commerce, 69
    Washington Inc, Laurel	North Street, Wilmington Oh 45177
    Oaks Vo-Tech,	(513) 382-2737
    Industrial Park, Hydro-
    Lift Trucks, Southern
    State Community
    College, Electric Supply
    Company
    Burns Flat, OK                        1969-70/1970         381/(1,700)           400	Wagnor Electric,              450(C)	Mark McAtee, Manager, Clinton-
    Clinton-Sherman Air Force Base	Halivunlon Services,	Sherman Industrial Airport, P.O. Box
    Jamesville Products,	100, Burns Flat, OK  73624
    Western Oklahoma	(405) 562-4526
    VoTech Center, Western
    Fabricators Co, Clinton-
    Shermnan, Municipal
    Airport
    4-33

    Civilian Jobs
    Year	Lost	College
    Impact/Year	(Military	New Jobs	Major	Vo-Tech
    Community &  Location	Acquisition	Transfers)	on Base	Firms/Activities	Students	Community Contact

    Corvalis, OR	1969/1973	1801(864)	105	Oregon, SouthWest	150(S)	Bill Duke, Director of Training, Oregon,
    Adair Air Force Station	Washington, Utah &	45(T)	SW Washington, Utah & Southern Idaho,
    Southern Idaho Laborers	Laborers Training Trust, RT 5, Box
    Training Trust, Oregon	325A, Corvalis, OR  97330
    Fish & Wildlife Service,	(503) 745-5513
    Santiam High School,
    Adair Village Housing,
    Willamette Carpenters
    Training

    Harrisburg,PA                          1965-68/1969        10,050/(1,250)         2,800	Pennsylvania State            2,640(C)	Matthew Douglas, President, Capital
    Olmsted AFB and Middletown Air	University-Capital	Chamber of Commerce, P.O. Box 969,
    Material Area	Campus, Penn State	Harrisburg, PA  17108 (7117) 232-4121
    Dept of Transportation,
    National Guard,
    Municipal Airport

    Lancaster, PA                           1967/1968               750/-              636	Armstrong World	Eugene Moore, Director of Public
    Marriett Air Force Base	Industries	Relations, Armstrong World Industries
    Inc, P.O. Box 30001. Lancaster, PA
    17604
    (717) 396-2101

    Philadelphia, PA                        1977/1983            3,400/(17)           2,000	Grafic Reproduction	Mark Hankin, President, Hankin
    Franford Arsenal	Services, Webster,	Management Co, P.O. Box 26767,
    Spring Co, Philadelphia	Elkins Park, PA  19117
    Biologics, Gorden-	(215) 674-9660
    Breach Inc, Mechanical
    Specialties Inc

    Pheonixville, PA                       1973-74/1978          845/(546)              50	Valley Force Christian        200(C)	Daniel Baer
    Valley Force Army Hospital	College	P.O. Box Pheonixville, PA  19460 (215)
    933-7725

    York, PA                                1964/1964            1,092/(13)            1,600        Harley Davidson Inc	Prank Caster, Director of Human
    York Naval Ordnance Plant	Resources, Harley Davidson Inc, York,
    PA 17402
    (717) 848-1177
    4-34

    Civilian Jobs
    Year	Lost	College
    Impact/Year	(Military	New Jobs	Major	Vo-Tech
    Community &  Location	Acquisition	Transfers)	on Base	Firms/Activities	Students	Community Contact

    Aguadilla, PR	1973/1977	709/(3,866)	1,500	Dupont Pharmaceutical,	1,000(C)	Jose I. Ortiz, Manager, P.O. Box 20,
    Ramey Air Force Base	Univ of Puerto Rico,	Ramey, PR 00604
    Job Corps, Digital	(809( 891-2286
    Equipment, Hewlitt
    Packard, Municipal
    Airport
    Newport, RI                            197411978         484/(11,069)         2.500	Derecktor Shipyard,	Bob Parsons, Director, Rhode Island
    Newport Naval Base	Bend Inc, Hughes	Department of Economic Development,
    Aircraft, Avid Corp,	Gilbane Bldg, 7 lackson Walkway,
    Syscon, McLaughlin	Providence, RI 02903 (401) 277-2601
    Research, Raytheon,
    RCA Services Co
    North Kingston, RI                    1974/1978-80       4,500/(6,211)         7500	Electric Boat Company,	Gary Lash, Director, Property
    Quonset Point Naval Air Station	Newport Offshore,	Management and Development, Rhode
    Cowa Plastics, IMS Inc,	Island Port Authority, 7 Belver Ave,
    Toray Industries, Drew	North Kingstown, RI 02852 (401) 277-
    Oil Corp, CSW	3134
    Transportation, Bristol
    Bay Seafood, Applied
    Environmental
    Technology, General
    Aviation Airport
    Greenville, SC                         1963/1964          672/(4,100)         5,253	Woolworth Distribution        500(C)	Phillip Southerland, Executive Director,
    Donaldson, Air Force Base	Center, 3M Company,	Donaldson Center, Greenville, SC
    Donaldson Area	29605
    Vocational Education	(803) 277-3152
    Center, Lockheed Aero
    Center, General Electric,
    Procter & Gamble Inc,
    Amoco, Auto Zone Inc,
    Magna International,
    General Aviation Airport
    4-35

    Civilian Jobs
    Year	Lost	College
    ImpactlYear	(Military	New Jobs	Major	Vo-Tech
    Community &  Location	Acquisition	Transfers)	on Base	Firms/Activities	Students	Community  Contact

    Edgemont, SD	1967/2968	512/12)                4	Grain Storage	Matthew Brown, Former Mayor, Box
    Black Hills Army Depot	629, Edgemont, SD  57735
    (605) 662-7720
    Smyrna, TN                              1969/1971           470/(4,050)            1,539	Cross Continental	Steve Fitzhugh, Building 644, Smyrna,
    Stewart Air Force Base	Services, Cumberland	TN  37167
    Mfg Co, Better Built	(615) 896-7736
    Aluminum Co, Square D
    Mfg Co, State
    Rehabilitation Center,
    Tenn Army National
    Guard, Corporate Flight
    Mgt, Independence Air
    Inc, Smyrna Air Center

    Amarillo, TX                          1969/1969          1,511/(5,560)           600	Hughes Aviation, Levis	795(C)	Richard McCollum, Airport Manager,
    Amarillo Air Force Base	Strauss, Tasco	5,520(1)	Amarillo International Airport, 10801
    Engineering, Texas State	Airport Blvd, Amarillo, TX  79111
    Technical Institute,	(806) 335-1671
    Municipal Airport
    Big Springs, TX                         1977/1978           909/(2,204)            575	IBI, Freecom, Fraser	126(C)	Hal Boyd, Manager, Big Spring Airpark,
    Webb Air Force Base	Industries, Fiber Flex,	S00(T)	P.O. Box 3190. Big Spring, TX  79721-
    Bureau of Prisons,	3190
    Western Container,	(915) 263-8311
    Southwest College for
    the Deaf, Municipal
    Airport

    Harlingen, TX                          1962/1963-64         720/(3,100)            1,600	Levi Strauss, Texas	2,800(C)	David Alex, President, Chamber of
    Harlingen Air Force Base	Steel, Marine Military	400(S)	Commerce, P.O. Box 189, Harlingen TX
    Academy, Texas State	78551
    Tech Institute, General	(512) 423-5440
    Dynamics, Confederate
    Air Force, Valley
    Intemrational Airport
    4-36

    Civilian Jobs
    Year	Lost	College
    Impact/Year	(Military	New Jobs	Major	Vo-Tech
    Community &  Location	Acquisition	Transfers)	on Base	Firms/Activities	Students	Community Contact

    Laredo, TX	197311975	700/(1,998)	2,200	Sancheez O/Brien Co,	Humberto Garza, Assistant to Airport
    Laredo Air Force Base	Webb County Tax	Director, Laredo International Airport,
    Assessor, K-Mart,	518 Flightline, Bldg 132, Laredo, TX
    Tracor Aerospace,	78041 (512) 423-5440
    Robertshaw Controls,
    ^So Texas Private
    Industry Council,
    Combustion
    Engineering, Laredo
    City Offices, Municipal
    Airport

    Mineral Wells, Tx                     1974/1975-77         1,219/(692)          1,683	Perry Equip Co, Qptic         400(C)	Greg Harrison, City Manager, P.O. Box
    Fort Wolters	Technology Corp,	339, Mineral Wells, TX  76067 (817)
    Concepts Inc, Antler	328-1211
    Antennas, S-Tec, Ford
    MFG, Western Co of
    NA, Halburton
    Resources Mgt, Tejas
    Home for Youth,
    Downing Heliport,
    Butler Ventamatic,
    Weatheford College

    San Marcos, TX                          1963/1965            30/(1)             750	Gary Job Corps Center,        2,200(T)	Albert Perkins, Director, Job Corps
    Camp Gary	Municipal Airport	Center, Box 976, San Marcos, TX
    78666
    (512) 396-6561
    Sherman-Denison, TX                     1971/1972          600/(1,930)          437	Denison Industries,           294(C)	Doyle Dobbins, General Manager,
    Perrin Air Force Base	Texas Instruments,	Grayson County Airport, 4700 Airport
    Greater Texoma Utility	Drive, Dension, TX  75020
    Authority, Grayson	(214) 786-2904
    County College, Local
    Government Offices,
    General Aviation Airport
    4-37

    Civilian Jobs
    Year	Lost	College
    Impact/Year	(Military	New Jobs	Major	Vo-Tech
    Community & Location	Acquisition	Transfers)	on Base	Firmns/Activities	Students	Community Contact

    Sweetwater, TX	1971/1971	25/(100)	130	Texas State Technical	650(C)	Robert Musgrove, Dean, Instructional
    Sweetwater Air Force Base	Institute	Studies, Texas Sate Technical Institute,
    Sweetwater, TX 79556 (915) 235-7300

    Waco, TX                                  1966/1966            833/(2,980)           2,000	Elsinore Airframe             4,000(C)	Monica Faulkenbery, Director of Public
    James Conally Air Force Base	Services Inc, Chrysler	Information, Texas State Technical
    Technologies, Airborne	Institute, Waco, TX  76705 (817) 867-
    Systems Inc, Texas State	4887
    Technical Institute,
    General Aviation Airport

    Moses Lake, WA                            1966/1966            38/(3,947)             900	Northlvest Airlines,	1,250(C)	David M. Bailey, Executive Manager,
    Larsen Air Force Base	Japan Airlines, Boeing,	200(1)	Port of Moses Lake, Grant County
    Sundstrand Data	Airport, Moses Lake, WA  98837
    Control, Big Bend	(509) 762-5363
    Community College,
    columbia Basin Job
    Corps, Municipal
    Airport

    Madison, WI                               1968/1968            378/(2,658)           3,000	Hazelton Laboratories,         6,000(C)	Charles Peterson, Business Manager,
    Truax Field	Badger Display, Madsen	Dane County Regional Airport, Madison,
    Corp, Omni Press,	WI 53704
    Venetian Marble,	(608) 246-3380
    Madison Area Technical
    College, Dane County
    Regional Airport

    Total Civilians	87,557               163,685

    Total Military	136,225

    Source:    1961-1990 Civilian Reuse of Former Military Bases, Office of Economic Adjustment, Department of Defense.

    Footnotes: (C) College students or post secondary vocational-technical students
    (S) Secondary or high school vocational-technical students
    (T) Manpower development and other traminees
    Does not include the Middle Reservation still retained by the DoD.
    4-38

    b Jobs lost ar included in the total figures for the Boston Naval Shipyard in Charlestown
    ' The former Charlestown Shipyard is being converted into a Commercial-Officc-Residential complex with an eatimated $1.3 billion in private sector investment to complete the full development.
    d The former Naval Hospital was redeveloped s a $100 million (7.2 million ETAC assistance) 'Admiral;s Hill' residentallcommerial-recreationalcomplex.
    ' The Sky Bible Institute closed in 1983 due to declining enrollments. The community is now seeking to reuse the site a a Winter resort or youth caunp.
    f Expected completion will add 4,000 jobs when fully occupied.
    I Former installation site is embroiled in environmental problems.
    " Loss of 4,400 milituary and a net gain of 150 for the Air Force Reserve which retained the runway facilities.

    Notes:      A detailed writeup of approximately 20 communities can be found in a report titled ' Community Response to Reduced Defense Activity, Communities in Transition' with reprints available by writing:
    Chairman-President's Economic Adjustment Committee, Office of the Secretary of Defense: Attention: Director of Economic Adjustment, Pentagon, Washington, D.C., 20301-4000.
    4-39

    I-0 I -- ~~~  II
    INDUSTRIAL RECRUITMENT RESOURCES
    5-1

    Workforce Talent Surplus
    The Charleston area has a significantly smaller portion of the economy devoted to manufacturing
    than the national average. Examination of the table titled "Comparative Analysis by SIC Code"
    clearly demonstrates that the Charleston economy is nearly 6.0% below the national average.
    Even more disturbing is the concentration of employment within the manufacturing sector is
    concentrated in only a few industries. Examination of the table which exhibits employment by
    manufacturing employment groups as well as the table titled "Major Employers" shows that the
    areas where employment is most concentrated is textile mill products (SIC 23), paper & allied
    products (SIC 26), chemicals and allied products (SIC 28) and industrial machinery and
    equipment (SIC 35).

    A major issue concerning the greater Charleston region has been which industries to target for
    industrial growth and expanded job base opportunities. A recent study by GSO (Growth
    Strategies Organization) suggests that the following industries are "most desirable and feasible
    economic development targets for the Charleston area"'

    SIC Code	Industry

    283	Drugs
    3844-5	Electronics Instruments
    286	Industrial Inorganic Chemicals
    382	Process Control Instruments
    3555	Printing Trades Machinery
    3841 Surgical & Medical Instruments
    3561	Pumps
    3541	Metal Cutting Tools
    3554	Paper Industry Machinery
    3563	Air and gas Compressors
    3542	Metal Forming Tools
    3519	Internal Combustion Engines
    3569	General Industrial Machinery
    2824	Organic Fibers
    *	Medical & Biological Research & Development
    3556	Food Products Machinery
    *	Headquarters, Closely Held Companies
    *	Corporate Data Centers
    3714	Motor Vehicle Parts
    3566	Speed Drives and Gears
    3699	Electrical Equipment, nec.
    3552	Textile Machinery
    3679	Electronic Components, nec.
    3851	Ophthalmic Goods
    3567	Industrial Furnaces and Ovens
    3533	Woodworking Machinery
    3675	Electronic Capacitors
    3562	Ball and Roller Bearings
    5-2

    Comparative Analysis by SIC Code

    US Economy
    SIC	Emp.
    Code	Totals    Percent
    Charleston MSAZ
    Emp.
    Totals    Percent
    Variance'
    2,278

    81

    10,478

    20,709

    10,384

    6,474

    43,127

    7,926

    46,106

    159

    147,722
    Agriculture, Forestry & Fishing

    Mining

    Construction

    Manufacturing

    Transportation & Public Utilities

    Wholesale Trade

    Retail Trade

    Finance, Insurance & Real Estate

    Services

    Unclassified Establishments

    Total
    07--

    10--

    15--

    20--

    40--

    50--

    52--

    60- -

    70--

    99- -
    543,652

    716,859

    4,671,221

    18,383,368

    5,584,484

    6,218,875

    19,600,024

    6,860,177

    29,575,248

    147,635

    92,301,543
    0.6%

    0.8%

    5.1%

    19.9%

    6.1%

    6.7%

    21.2%

    7.4%

    32.0%

    0.2%

    100.0%
    0.4%

    1.7%

    9.2%

    14.1%

    8.5%

    8.1%

    18.4%

    8.1%

    31.4%

    0.1%

    100.0%
    � -0.2%

    1.0%

    4.2%

    -5.8%

    2.4%

    1.3%

    -2.8%

    0.6%

    -0.7%

    -0.1%
    Note:  1. Variance is the ahsolute differerce between each percentage.
    2. Source: S.C. Employment and Securities Commission

    Comparative Analysis by SIC Code -

    Chareston MSA3
    Manufacturing
    US Economy4
    (x 1.0 Million)
    Manufacturine Industry Group

    Food and Kindred Products
    Tobacco Products
    Textile Mill Products
    Apparel and other Textile Products
    Lumber & Wood Products
    Furniture and Fixtures
    Paper and Allied Products
    Printing and Publishing
    Chemicals and Allied Products
    Petroleum and Coal Products
    Rubber and Misc. Products
    Leather and Leather Products
    Stone Clay and Glass Products
    Primary Metal Industries
    Fabricated Metal Products
    Industrial Machinery & Equipment
    Electronics; Other Electric Equipment
    Transportation Equipment
    Instruments and Related products
    Misc. Manufacturing Industries
    SIC    Employment
    % of Total

    1.7%
    0.0%
    8.4%
    3.7%
    6.2%
    2.2%
    8.4% '
    5.2%
    9.4%
    2.3% '
    5.8%
    0.0%
    3.3%
    6.1%
    4.8%
    15.5%
    2.7%
    9.1%
    3.2%
    2.0%
    Employment
    % of Total

    8.8%
    0.2%
    3.6%
    5.7%
    3.8%
    2.8%
    3.7%
    8.9%
    5.0%
    0.7%
    5.0%
    0.6%
    2.8%
    4.0%
    8.1%
    10.6%
    8.5%
    9.7%
    5.4%
    2.2%
    Variance2

    -7.04%
    -0.24%
    4.87%
    -204%
    2.45%
    -0.60%
    4.70%
    -3.64%
    4.37%
    1.59%
    0.82%
    -0.63%
    0.48%
    2.03%
    -3.28%
    4.93%
    -5.82%
    -0.65%
    -2.13%
    -0.17%
    20
    21
    22
    23
    24
    25
    26
    27
    28
    29
    30
    31
    32
    33
    34
    35
    36
    37
    38
    39
    361
    N/A
    1,745
    761
    1,285
    450
    1,740
    1,080
    1,949
    468
    1,206
    N/A
    686
    1,256
    996
    3,209
    554
    1,881
    669
    413
    1,475,000
    40,000
    598,000
    960,000
    631,000
    466,000
    621,000
    1,488,000
    846,000
    113,000
    840,000
    106,000
    476,000
    677,000
    1,359,000
    1,774,000
    1,427,000
    1,634,000
    901,000
    363,000
    20, 709    100.0%
    16, 795, 000
    100.0%
    Footnote:  1. Estimatedamounts
    2. Variance is the absolute difference between each percentage
    3. Source: SC. Employment Commission
    4. Source: US Dept. of Commerce. 1993. (Total does not include certain NEC industries)

    Major Employers
    Berkeley, Charleston & Dorcester Counties
    Emplover
    Charleston Naval Base
    Medical University of South Carolina
    Charleston Air Force Base
    Charleston County School District
    Berkeley County School District
    Roper Hospital
    U.S. Postal Service
    Piggly Wiggly Carolina Company Inc.
    Bosch, Robert Corporation
    Westvaco Corporation
    Trident Regional Medical Center
    City of Charleston
    Dorchester County School District 2
    Charleston County
    Bon Secours -St. Francis Xavier Hospital
    Wal Mart Stores
    Santee Cooper Public Service Authority
    College of Charleston
    R.H. Johnson DVA Medical Center
    K-Mart Stores
    InterTech Group Inc
    Bi-Lo Inc.
    Coatal Center (CDMR)
    Southeast Service Corporation
    Kiawah Island Resort
    DuPont de Nemours, E.I. and Company
    Alumax of South Carolina
    City of North Charleston
    Southern Bell Telephone
    SC Electric and Gas Company
    Miles Inc.
    The Post and Courier
    Main - Waters Management Inc.
    General Dynamics: Electric Boat Division
    The Citadel
    Charleston Memorial Hospital
    Food Lion
    Berkely County Government
    Pelican Food Systems
    Product/Service
    United States Navy
    Healthcare, research; university
    US Air Force
    Public education
    Public education
    Healthcare
    Postal Service
    Grocery service
    Fuel Injection & Braking System
    Lumber, Paper, Packaging, Chemicals
    Healthcare
    Municipal Govermnent
    Public education
    County Government
    Healthcare
    Retail
    Electric Utility
    Higher Education
    Healthcare
    Retail
    Manufacturing Holding Company
    Grocery stores
    Residential care
    Contractjanitorial services
    Resort
    Textile fiber (dacron polyester)
    Primaryand alloyed aluminum ingots
    Municipal Government
    Telecomm unica tions services
    Electric Utility
    Dyes, organic pigments
    Newspapers
    Fast food franchise operator
    Heavysteel fabrication
    Higher Education
    Healthcare
    Grocery stores
    County Government
    Restaurants
    * Emplovees
    41,883
    7,700
    6,050
    5,150
    2,900
    2,170
    1.970
    1,800
    1,750
    1,740
    1,600
    1,500
    1,500
    1,300
    1,160
    1,100
    1,000
    1,000
    1,000
    900
    830
    750
    720
    700
    700
    650
    630
    600
    600
    600
    600
    600
    600
    600
    560
    550
    550
    520
    500
    Source Center for Business Research. Charleston Trident COC

    While outside the scope of this study, some of the industrial classifications are generally
    consistent with what is perceived to be some of the inherent strengths of the greater Charleston
    area, particularly with respect to drugs, pharmaceuticals and research and development
    headquarters companies. Additionally, the skils from the naval base can be used to recruit
    industrial prospects wishing to have specialized skills for their operations. This is especially
    apparent in the metal fabrication, machinery and equipment and electronics manufacturing
    groups.

    Approximately 25.0% (about 46,000) of the entire labor force (about 200,000) is employed by
    the Charleston Navy Base. In fact, the employment at the Naval Base is a little over twice that
    of the entire Charleston Area manufacturing sector employment (approximately 20,000).

    The implications of both the large number of military and military related personnel as well as
    the distinct absence of certain key industrial sectors should provide greater guidance to the
    selection of target industries as opposed to those that are easy to attract for whatever reason.
    In short, those industries that demonstrate an affinity to the Charleston area because of certain
    attractive elements need not be heavily recruited except to the extent where profound competition
    form other communities is in evidence. In contrast, a solid recruiting strategy should be focused
    on those industries that are both absent, yet desirable for the region. For those industries not
    already present, incentives should be created to induce them. Probably the most attractive
    feature a community has to offer in the next decade will be quality of life and quality of the
    workforce.

    The current dilemma facing Charleston is due to the imbalance of the economy that has relied
    heavily in the past on both the military and tourism.   The previous chart shows that
    Charlestons's manufacturing sector is dominated by essentially four industries, and is
    significantly below the national average in six key industries:

    SIC Code	Industry Under-reigresentation

    2200	Food & Other Kindred Products
    2400	Apparel and Other Te-xtile Products
    2900	Printing and Publishing
    3400	Fabricated Metal Products
    3600	Electronics and Other Electrical Equipment
    3800	Instruments and Related Products

    The workforce talent surplus of the Charleston area will be best suited to recruit the last three
    industrial sectors for fabricated metal products, electronics and other related electrical
    equipment, and instr-uments and related products as opposed to food, apparel and printing and
    publishing.
    5-6

    Infrastructure Availability
    One of the single most important attributes of a community is the condition and cost of key
    elements of infrastructure. While infrastructure is not considered from a qualitative aspect when
    evaluating a community, it is many times used as a screening mechanism as a quantitative
    measure to either retain or delete a community for further consideration. As a result, providing
    adequate information to prospects that shows both adequate resources are avaiable and are
    reasonably priced are crucial.

    Typically, in the gite selection process, a recurring and non recurring cost analysis is performed
    which evaluates the relative cost impact of these costs. With respect to recurring costs, these
    costs include calculations for water, sewer, power, naturadl gas, labor, taxes and transportation.
    Based on the investigations of this study, the water and sewer costs for the Tni-County region
    are in no event out of the ordinary. In fact, in many cases the costs are quite reasonable. With
    regard to power rates; however, the greater Charleston region shows a distinct cost advantage
    for those industries that are energy intensive. Not surprising, due to the ownership structure of
    the gas and electrical resources of the region, natural gas in the Charleston region is
    considerably higher than most regions in the country. While this in and of itself is not an
    impediment, if local gas companies are willing to negotiate reasonable transportation rates for
    bulk purchases of natural gas at the well head on the spot market. If they are not, however,
    then this can be a severe recruiting liability.

    Water and Sewer

    Industrial prospects when evaluating communities invariably perform a quick assessment
    of the local water and waste treatment facilities. Such an assessment includes the design
    capacity, average daily usage and plans for future expansion. A rule of'thumb for site
    selectors in general is that if the system is at 80.0% of its rated capacity then it is not
    adequate unless there are plans in place to expand the system. The fact is, the estimated
    usage by a potential prospect may have no significant impact on the system. For
    example, 20.0% remaining capacity on a designed system of 100.00 MGD still allows
    for a 20.0 MGD excess. Nevertheless, site selectors typically use this rule of thumb
    whether fair or not. The lesson is to make sure that site selectors understand all three
    factors (design capacity, avg. usage and future expansion) in terms of actual numbers as
    opposed to percentages.

    The Commission of Public Works of the City of Charleston operate the water system
    which serves the city, a large section of Charleston County and parts of Dorchester and
    Berkeley Counties. Sources of supply are primarily from the Edisto River and the Bushy
    Park Resevior.

    Charleston County has seven sewer systems, five operated by municipalities and two by
    public sewer districts. All treatment facilities are relatively modern and appear to have
    5-7

    adequate expansion capabilities.
    Berkeley County water is provided by several different systems including the City of
    Charleston, Monck's Corner, St. Stephens and Goose Creek.

    Dorchester County is served by the Dorchester County Water Authority, the St. George
    Water Department and the City of Summerville. Sources of supplies are primarily from
    wells.

    The following tables show the various water and waste water treatment facilities with
    their respective total production capacity, average production, average flows and current
    status regarding system adequacy.
    5-8

    Waste Water Treatment Summary
    Present
    Design
    CaDacitIJ

    15.0000

    1.3X000

    0.3500

    0.1300

    270OOOO

    270000

    3.7000

    1.5000

    1.5000

    1.5000

    1.0690

    0.5700

    10.0000

    4.0000

    0.8000

    0.1220
    SCIP
    Estimated
    Availabley

    5. 7360

    0.1050

    0.1990

    0.0370

    8.2270

    6.7130

    0.0740

    0.0830

    0.5310

    0.0180

    0.3600

    0.0100

    5.4600

    0.2720

    0.2770

    0.1060
    Mar
    (Peak Day)
    June 1994

    5.5320

    1.2310

    0.1430

    0. 1570

    18.6700

    19.5000

    3.8000

    1.9000

    0.8310

    1.6000

    0.1820

    0.5200

    4.0000

    2.1000

    0.6100

    0.0400
    .Cumulative
    Permitted llow1

    9.2640

    1.1950

    1.1510

    0.9300

    18.7730

    20.2870

    4.4400

    1.4170

    1.0690

    1.4820

    0.4140

    0.5600

    4.5400

    3.7280

    0.5230

    0.0140
    Avg Flow
    June 1994'

    4.8260

    1.7770

    0.1360

    0.1440

    1 Z4300

    16.7000

    3.5000

    1.2000

    0.8160

    1.0000

    0.1220

    0.4650

    3.9000

    1.6000

    0.29s0

    0.2000
    Permitted Flow
    > 80% Canacity

    N

    y

    N

    N

    N

    N

    y

    Y

    N

    Y

    Y

    Y

    N

    Y

    N

    N
    Actual Flow
    > 804% Capacitv   Pretreatment

    N	Y

    Y	N

    N	N

    Y	N

    N	Y

    N	N

    Y	N

    N	N

    N	N

    N	N

    Y	N

    N	N

    N	N

    N	Y

    N	N

    N	N
    location

    BCW&SA/Lower Berkeley

    Town of Hanahan

    BCW&SA/Cen tral Berkeley

    BCW&SA/Pimlico Subdivision

    NCSD/Felix C Davis

    Charleston/Plum Island

    Mt Pleasant/Main

    St. Andrews PSD/Pierpont

    Town of Monck's Comer

    St. Andrews PSD/Savage Rd.

    Town of St. Stephen

    Town of Sullivan 's Island

    Summerville/Ox Pond

    Dorchester PW/Lower Dorcester

    Town of St. George

    Town of Harleyville
    Count

    Berkeley

    Berkeley

    Berkeley

    Berkeley

    Charleston

    Charleston

    Charleston

    Charleston

    Charleston

    Charleston

    Charleston

    Charleston

    Dorchester

    Dorchester

    Dorchester

    Dorchester
    Source:  South Carolina Infrastructure/Economic Development Project (SCIP)
    State, Development Board
    Footnote: Expressed in Million Gallons Per Day

    Water System Treatment Summary
    Total
    Prod.         Average
    County         Caiacirs       Prduct ion

    Dorchester	0.7390	0.364

    Dorchester	0.4518	0.0005

    Dorchester	0.2400	N/A

    Dorchester	6,5000	5.0000

    Dorchester	0.3696	0.1302

    Dorchester	0.3600	0.1620

    Dorchester	0.8880	0.6000

    Charleston	N/A	2.2690

    Charleston	78.6000	50.4300

    Charleston	3.931	0. 7490

    Charleston	10.9440	4.0589

    Charleston	0.2000	0.0900

    Charleston	2.458	0.7120

    Berkeley	2.398	1.1630

    Berkeley	0.0288	0.2470

    Berkeley	0.57	0.2760
    Production
    Available I

    0.375

    0.4s13

    N/A

    1.5000

    0.2394

    0.1980

    0.2880

    N/A

    28,1700

    3.1820

    6.8851

    0.1100

    1.7460

    1.2350

    0.0041

    0.3000
    Protection from	Sanitary
    Contamination	Protection

    S	S

    I	S

    U	S

    S	S

    S	N

    S	U

    S	S

    S	U

    N/A	N/A

    U	U

    S	S

    U	U

    I	S

    U	U

    S	U

    U	U
    Adequate
    Pressure

    S

    S

    U

    S

    S

    S

    S

    S

    N/A

    S

    S

    U

    S

    S

    S

    S
    Overall
    Ratine

    S

    S

    S

    S

    S

    S

    S

    N/A

    U

    S

    U

    S

    U

    S

    U
    Ouantitv

    S

    S

    U

    S

    S

    S

    S

    S

    N/A

    S

    S

    U

    S

    S

    S

    S
    OualitL

    S

    S

    S

    S

    S

    S

    S

    S

    N/A

    U

    S

    U

    S

    S

    S

    S
    Town of St. George

    Town of Ridgesille

    Town of Harleyrille

    Town of Summernille

    DCWA/Tranquil Acres

    DCWA/Reetesville

    DCWA/Knightswille

    St. Johns Water

    City of Charleston

    Isle of Palms

    Mt. Pleasant

    Town of Sullivan 's Island

    St. Andrews/Pierpont

    BCWSA-Sangaree W/D

    Town of Jamestown

    Town of St. Stephens
    Source: South Carolina Infrastructure/Economic Development Project (SCIP)
    State. Development Board
    Footnote: Expressed in Million Gallons Per Day
    l=Inadequate, S = Satisfactory. U= Unsatisfactory. N/A = Non -Applicable

    Electricity

    Electric Power in the Tri-County region is provided by South Carolina Electric and Gas
    Company, South Carolina Public Service Authority (Santee Cooper) and two electric
    cooperatives - Berkeley Electric and Edisto Electric Cooperatives. For many industries
    the cost of electric power is the overriding factor driving the site selection process. The
    following data demonstrates the competitive advantage that the Charleston region enjoys
    due to the low industrial power rates for South Carolina Gas & Electric.

    Comparative Electric Power Rates

    Avg. Cents	Avg. Cents	Avg. Cents
    Per KWHI	Per KWH	Per KWH
    State	Power Company                 Commercial	Industrial	Residential

    South Carolina	Carolina Power & Light	6.96	5.19	8.09
    Duke Power	6.44	4.11	7.25
    S.C. Electric & Gas	5.57	3.86	7.07

    North Carolina Carolina Power & Light	6.89	5.58	8.31
    Duke Power	5.88	4.44	7.34
    Nantahala Power	5.53	4.10	6.60
    North Carolina Power	6.78	5.10	8.43

    Virginia       Appalachian Power, Co.	4.89	3.75	5.68
    Delmarva Power & light	7.18	6.49	9.36
    Old Dominion Power	5.20	4.26	5.07
    Potomac Edison	6.30	4.72	6.84
    Virginia Power	6.21	4.29	8. 01

    Georgia        Georgia Power & Light	6.21	5.09	7.64
    Savannah Electric	7.28	4.23	7.09

    Alabama	Alabama Power Co.	6.91	4.48	7.18

    Florida	Florida Power & Light	6.75	5.41	8.07
    Florida Power Corp.	5.81	4.79	7.97
    Gulf Power Corp.	5.64	4.31	6.60
    Tampa Electric	6.73	4.65	8. 10

    Source: Edison Electric Institute, 'Typical Residential, Commercial and Industrial Bills, Winter 1994.

    As can be seen from the above table, the only competition from a rate per KWH
    standpoint for industrial rates is Appalachian Power Company in Virginia with a rate of
    $0.00375 per KWH as opposed to $0.00386 per KWH for South Carolina Electric &
    Gas. What is not shown in this table is the ability of Berkeley Cooperative to discount
    rates even further than that which is customarily charged by South Carolina Electric &
    Gas. For those industries where power cost is a major factor, there should be little if
    any competition in the Southeastern United States with the Charleston area.
    5-11

    Natural Gas
    The price of natural gas in the Charleston region is relatively high compared to other
    regions in the United States. Examination of the following chart demonstrates this fact
    by presenting a ranking of gas utility prices by state. As can be seen from the chart
    there are only 6 states who have higher gas prices that South Carolina. Another
    alternative for gas consumption is the purchase of gas at the well head on the spot
    market. As exhibited in the chart titled "Spot Market Gas: Posted Gas, the prices posted
    by the natural Gas Clearinghouse are considerably less.

    As an alternate fuel source to electricity, natural gas is not a viable alternative taking into
    consideration the relatively low price per KWH for power in the Charleston area.
    Nevertheless, there are some operations where the use of natural gas as an energy source
    shows a demonstrable advantage not only from a cost standpoint, but from a processing
    standpoint as well. It is probably appropriate for the local economic development
    organizations to have closer ties with South Carolina Electric & Gas to better understand
    the opportunities that are present with each respect energy source (electricity versus
    natural gas).

    Ranking of Gas Utilities Prices by State
    Rank
    1.
    2.
    3.
    4.
    5.
    6.
    7.
    8.
    9.
    10.
    11.
    12.
    13.
    14.
    15.
    16.
    17.
    18.
    19.
    20.
    21.
    22.
    23.
    24.
    25.
    26.
    State
    Hawaii
    Rhode Island
    Maine
    Alabama
    New York
    Washington DC
    South Carolina
    Pennsylvania
    West Virginia
    Louisiana
    New Jersey
    North Carolina
    Delaware
    Florida
    Georgia
    Maryland
    Virginia
    Ohio
    Arizona
    Oregon
    Idaho
    Tennessee
    Wisconsin
    Vermont
    Illinois
    Indiana
    Price MCF
    12.63
    7.37
    6.49
    6.24
    6.10
    6.03
    6.02
    6.01
    5.98
    5.92
    5.90
    5.87
    5.79
    5.76
    5.76
    5.57
    5.47
    5.45
    5.30
    5.24
    5.23
    5.19
    5.14
    5.06
    5.02
    4.97
    Rank
    27.
    28.
    29.
    30.
    31.
    32.
    33.
    34.
    35.
    36.
    37.
    38.
    39.
    40.
    41.
    42.
    43.
    44.
    45.
    46.
    47.
    48.
    49.
    50.
    51.
    State
    Kentucky
    Montana
    Missouri
    Texas
    Washington
    Michigan
    North Dakota
    Kansas
    Arkansas
    Mississippi
    New Mexico
    Wyoming
    California
    Iowa
    Oklahoma
    Nevada
    South Dakota
    Nebraska
    Utah
    Minnesota
    Colorado
    Alaska
    Connecticut
    Massachusetts
    New Hampshire
    Price MCF
    4.95
    4.93
    4.82
    4.81
    4.69
    4.68
    4.68
    4.59
    4.57
    4.57
    4.57
    4.57
    4.55
    4.53
    4.47
    4.44
    4.18
    4.17
    4.16
    4.14
    3.98
    2.76
    N/A
    N/A
    N/A
    Source: Department of Energy Natural Gas Monthly, Enervgy User News, April 1994.
    5-12

    Spot Market Gas: Posted Prices
    Pipeline                            Current	2/94	1/94	3/93

    ANR ...........................(OK) ....... 2.10	2.10	1.95	1.80
    Columbia(Gulf) ...............(LA) ....... 2.35	2.35	2.05	1.90
    Northwest Pipeline ..........(WIY) ....... 1.95	1.80	1.90	1.80
    Panhandle Eastern ...........(OK)     ....... .10	2.10	1.05	1.80
    Koch Gateway ................(LA) ....... 2.25	2.25	1.95	1.80
    Texas East .....................(TX) ....... 2.20	2.20	1.95	1.85
    Texas Gas (Zone 1) ..........(LA) ....... 2.30	2.35	2.05	1.85
    Natural Gas Pipeline .........(7X) ....... 2.10	2.10	1.95	1.80
    El paso ........................(7X) ....... 2.00	1.90	1.95	1.85

    So_ur_e: Depayvnem of Energy Natural Gas Monthly, Energy User News, Apri 1994.

    Port of Charleston

    Probably the single most important feature of the Tri-County region is the Port of
    Charleston. The port is the number #1 containerized port on the South Atlantic and Gulf
    Coasts and is second only to the combined ports of New York & New Jersey. Foreign
    Trade Zone number #21 is located twelve miles from the Port of Charleston and two
    miles from Interstate 26. According to the American Association of Port Authorities,
    the Port of Charleston ranked 1 lth in the total value of imports and exports in 1992 and
    has continued to grow since then.

    As more companies endeavor to expand their markets internationally, port access is
    beginning to play a leading role in the site selection equation. Often, prospective recruits
    are more impressed with the level of cooperation between port, state and local officials
    as much as they are with the port's modern facilities. In this respect, the Charleston area
    can do much to recruit companies who plan to manufacture and either import or export.

    There are four terminals which serve the Port of Charleston which handle both container
    and breakbulk cargo: The terminals include the North Charleston Terminal, the Union
    Pier Terminal, the Columbus Street Terminal and the Wando Terminal and combined
    feature:
    17 berths and 15 container cranes
    *      A heavy lift derrick capable of handling cargo weighing 475 tons.
    � A floating ro/ro ramp
    � An export packaging service
    *      ORION, an advanced computerized shipping document network that links key
    businesses and agencies involved in cargo movement.
    *      Neutral container chassis leasing pool
    5-13

    Real Estate Development Potential
    The potential real estate development opportunities are almost limnitless for the Charleston
    region. Examination of Section 4 shows the extent and potential breadth of development
    activities that have occurred in the past and ca act as a benchmark for the possibilities that exist
    for the future in the greater Charleston region. Reuse of the former base should obviously take
    advantage of the existing infrastructure in place; however, it should not be limited to only port
    related activities. (Reference Section 4)

    Local, State and Federal Inducemnents

    Federal Fundine

    Federal funding is limited in scope to project grants whose intent is to provide funding for
    military base reuse studies as opposed to inducements to attract new and or expanding industries.
    While these funds will do little to attract industry into the region initially, in the long term the
    development of strategic strategies as well as accessing funds for the development of
    infrastructure will be an. invaluable asset for the long range planning and use of the facilities that
    are available. It is expected that these funds have been investigated in part; however, in the
    event that they have not, it will be important to access these funds for a comprehensive study
    for economic feasibility studies and master planning of the proposed facilities to be utilized

    The funding is authorized by the Defense Authorization Act, 10 U.S.C. 2391. The following
    information provides a synopsis of the Military Base Reuse Studies and Community Planning
    Assistance:'
    Objectives:
    To assist state and local governments conduct military base reuse
    studies and resolve serious community economic problems resulting
    from: Military base closures, openings, and realignments. To
    conduct communiiy impact planning that will be beneficial to the
    Department of Defense and affected jurisdiction.
    T'ypes of Assistance: Project Grants
    Uses & Restrictions:
    DoD funding may be provided for military base reuse studies
    required for the reuse offormer military base property. DoD may
    provide community planning assistance through a cooperative grant
    or agreement for planning activities deemed beneficial to DoD and
    the affected community. Activities include, but are not limited to:
    Staffing, operating and administrative costs; travel; public
    information; and general or specialized impact studies conducted
    by contractors or State and local government employees.
    5-14

    Eligibility:         An applicant may be eligible for DoD funding for military base
    reuse studies if the Secretary of Defense has announced the local
    military installation is a candidate for closure or that a final
    decision has been made to close the facility; and one of the
    following activities is proposed or actually occurs:

    Applicant Eligibility:

    1) Increased activity

    a) the assignment of more than 2,000 military, civilian and
    Dob contractor personnel to a new or expanded
    installation:

    b) the assignment of more military, civilian, and contractor
    DoD personnel than the number equal to 10 percent of
    employment in counties or independent municipalities within
    15 miles of the installation, whichever is less:
    2) Decreased Activity: from alignment/closure of an installation.

    Additionally, the Secretary of Defense must make determination
    that the action is likely to impose a significant impact. DoD funds
    may be provide only if other Federal, State or Local resources are
    not adequate. State or local governments, regional organizations
    composed of State and local governments, regional organizations,
    and Federally recognized Indian Tribes located within the 50
    States, the District of Columbia, the Commonwealth of Puerto Rico
    and Guam are eligible if the above statutory criteria are met.

    Beneficiary Eligibility:

    State and local governments, regional organizations composed of
    State and local governments, or Federally Recognized Indian
    Tribes that represents the impacted area.

    Credentials/Documentation:

    Documentation that: 1) the Defense action will occur and that it
    has imposed or is likely to impose a substantial or serious impact;
    2) other Federal, State, or local resources are not adequate; 3) the
    threshold criteria of the legislation has been or will be met; the
    community planning will be beneficial to DoD and the affected
    community; and 4) there is an immediate and substantial need for
    5-15

    the funding.
    Application/Award.
    Preapplication Coordination:
    Requirements should be discussed with other State and Federal
    agencies to ascertain iffunding is available.

    Application Procedure:

    The standard application forms required by 32 CFR Part 278 must
    be used for this program. Applications and supporting documents
    should be submitted to the Director, Office of Economic
    Adjustment, OASD (FM&P), Pentagon, Room 4C767, Washington,
    DC, 20301-4000.

    Award Procedure:
    Applications are approved by the Director, Office of Economic
    Adjustment, in consultation with the Military Department involved.
    Considerations:
    Formulas & Matching Requirements:
    This program has no statutory formula. A minimum of 25.0%
    should be obtained from non federal sources, in the form of cash.

    Length and Time Phasing:

    Up to 1 year, funds are disbursed quarterly or as required. Funds
    should be expended during the grant period.
    Port Assistance:

    Average Assistance:
    In accordance with the provisions of the OMB Circular No. A-128,
    'Audits of State and Local Governments', State and local
    governments that receive financial assistance of $100,000 or more
    within the State's fiscal year shall have an audit made for that
    year. State and local governments that receive between $25,000
    and $100, 00 within the State'sfiscal year shall have an audit made
    in accordance with Circular No. A-128, or in accordance with
    Federal Laws and regulations governing the programs with which
    they participate.

    Average assistance ranges from $100,000 to $200,000.
    5-16

    Regulations:

    Contact:

    Related Programs:
    See OMB Circular Nos. A-128 and A-87, 32 CFR Part 278 and
    Part 280, Subpart F, Appendix C.

    Director, Office of Economic Adjustment
    OASD (FM&P)
    Pentagon
    Room 4C767
    Washington, DC 20301-4000

    Telephone: (703) 697-9155

    11.307, Special Economic Development and Adjustment Program-
    Sudden and Severe Economic Dislocation and Long Term
    Economic Deterioration; 12.600, Community and Economic
    Adjustment,   14.218,   Community   Development   Block
    Grants/Entitlement Grants; 14.219, Community Development Block
    Grants/Small Cities Program; 93.032, Community Services Block
    Grant-Discretionary Awards.
    State and Local Incentives

    The state and local incentives offered by the state of South Carolina can be instrumental in
    recruiting industries not only to the Charleston Tri-County region but also to areas deemed
    appropriate for reuse.
    Industrial Revenue Bonds
    Counties, municipalities and several authorities may issue tax
    exempt bonds, termed IRB's, to manufacturing firms. Such bonds
    generally carry an interest rate of approximately 70.0% of prime,
    and are typically issued for terms ranging from 1-0-20 years. The
    company's credit is pledged to repay the bonds rather that of the
    governmental entity issuing the bonds.
    Uses include the acquisition of fixed assets such as land and
    buildings, water and sewer treatment facilities and disposal
    facilities, machinery, equipment and office facilities and
    furnishings. The renovation and expansion of existing facilities are
    also eligible, and up to 2.0% of the bond proceeds may be used
    for administrative costs.

    A composite bond program is available through the state's Jobs-
    Economic Development Authority (JEDA). JEDA is authorized
    5-17

    to issue IRB's as a pooled bond on behalf of smnall businesses
    which, although eligible for tax exempt status, would find the cost
    of stand alone issues uneconomical. The maximum issue is $10.0
    million and the minimurn for practical purposes is $500,000.
    Smnall Business Loans
    The Federal Govemnment provides for a Small Business
    Administration 503 Loan Program which is packaged and serviced
    by the City-Wide Development Corporation with commercial bank
    participation. The 503 program provides monies to finance plant
    construction, to acquire machinery and equipment, to buy land and
    to make leasehold improvements.
    All loans are contingent on job creation. The maximum loan is
    $750,000 which cannot exceed more than 40.0% of the total
    project cost. There must be a minimum of 10.0 equity infusion.
    Small Business Administration Guaranteed Load Program Loans
    made through commercial lenders guaranteed up to 90.0% of the
    loan amount by the SBA. Guarantees cannot exceed $500,000.
    Community Development
    Administered by the Governor's Office, this program provides
    three funding measures. Grant programs make funds available to
    counties or municipalities to help provide or improve infrastructure
    and are intended to create or retain permanent jobs. Grants are
    awarded on a competitive basis.
    The Governor's Discretionary Program allows monies to local
    governments on an "as needed" basis for such purposes as water
    and sewer extension, site preparation and rehabilitation or
    construction of buildings.
    Loan Program:

    JEDA:
    Funds are available to business and industry for construction
    purposes. At least 52.0% of the borrower's employees must be
    persons with low or moderate household incomes. The interest
    rate is negotiable.

    Jobs-Economic Development Authority loan may provide up to
    $500,000 (or 40.0% of the project cost - whichever is less) for
    capital expenditures.   The  participation  of a unit of local
    government is required in all direct loans and/or guarantees form
    JEDA. These loans interest rates range from 85.0% of prime to
    plus 1. 0% depending on the term of the loan, with an interest floor
    of 8.5 %. The maximum term is 15 years. The job-to-dollars ratio
    cannot exceed one job per $10,000.
    5-18

    Job Training Partnership Act will reimburse a company for up to
    half of the wage costs for certain workers who are in an on-the-job
    training  program.    The  training  time  period  for  wage
    reimbursement is reflective of the amount of training needed .
    This program may be used along with the state's pre-employment
    job training.
    JTPA:
    South Carolina counties are empowered to negotiate a fee in lieu
    of property taxes with prospects or existing industries which
    commit to large capital investments in the state. The firm must
    invest an initial minimum of $85.0 million. Projects must be
    financed with taxable IRB'S and a purchase-leaseback agreement
    with the political subdivision holding actual title to the property.
    The County can negotiate down to a fee equivalent to 6.0%
    assessment ratio.

    $10.0 million in set-aside annually by the state of South Carolina
    specifically for the development of highways essential to economic
    development  projects.    These  funds  can  be  used  for  the
    construction of new or improved roads for the benefit of new or
    expanding business.

    This fund, initially capitalized at @2.0 million, provides low
    interest, first mortgage loans to develop good basic building
    projects in the 24 counties which were designated Presidential
    declared Disaster areas in the aftermath of Hurricane Hugo.
    Funding is provide by the JEDA to the Berkeley-Dorchester-
    Charleston Council of Government's local development
    corporation. Loans will normally be in the range of $250,000 to
    $350,000, with a maximum of $400,000.

    The Berkeley-Dorchester-Charleston Council of Governments
    established a revolving fund for economic development activities.
    These funds are available to help finance fixed assets and working
    capital. The average size of the loan is $50,000. The maximum
    loan amount is $100,000 and the minimumis $15,000.

    The state provided incentives for corporations to establish their
    headquarters or regional operations in South Carolina. A five year
    tax moratorium on county ordinary property is available to
    headquarters, administrative and distribution offices creating 75
    new full-time jobs. Headquarters offices meeting the defined
    criteria are eligible for a grant up to $500,000 to help offset the
    costs associated with establishing operations in South Carolina.
    Fee-In-Lieu Tax:

    Highway Set-Aside:

    Palmetto Basic Building:

    COG's Revolving Loan:

    Corporate HQ's & Office:
    5-19

    Headquarters and administrative offices establishing operations in
    South Carolina with a minimum of 75 new full-time jobs receive
    a 20.0 percent state tax credit. Credit is given for the costs of
    construction or five year lease expense of actual office space.
    Credits for Infrastructure:

    Tax Credits\Exemptions:

    Taxes:
    Credits 'to corporate income taxes are permitted for corporate
    contributions to infrastructure (water, sewer, roads) construction
    or improvement. Credit is permitted for 50.0% of the expense,
    not to exceed $10,000. Unused credits may be carried forward
    three years.
    A $300 corporate income tax credit, or insurance premium tax
    credit for insurance companies, is granted for each new full-time
    job created, with a minimum of 50 jobs. Credits are granted for
    a five year period, beginning with year 2 though 6 after the
    creation of the job. Expansion which occur within the 5 year
    certification period are also eligible to receive the jobs tax credit.
    Credits used in any single year may not exceed 50.0% of the
    year's tax liability. Unused credits may be carried forward for 10
    years.

    * South Carolina has no manufacturer's inventory tax.
    *	No unitary tax on worldwide profits.
    *	No wholesale sales tax.
    * Permits a 15 year net loss carry forward period.
    *   Exempts, for a period of five years, all new and newly
    expanded manufacturing facilities with a capital investment
    in excess of $50,000 from all property taxes except those
    levied for public schools and certain special taxes.
    *   Provides a Waes tax exemption for all manufacturing
    machinery, repair parts, industrial electricity and fuels, and
    materials which become and integral part of the finished
    product.
    *   Exempts air and water pollution control and abatement
    equipment form al local property taxation.
    *   Assesses a six percent, rather than a 10. 5%, the real estate
    property owned by or leased to a manufacturer and used
    for research and development purposes and real property
    owned by or leased to a manufacturer and used as an office
    building.
    Job Training:                      Special Schools is part of the Economic Development
    Division of the State Board for Technical and
    Comprehensive  Education.   Special Schools provides
    individually designed pre-employment training programs
    5-20

    fo.r cormpanies seeking to relocate or expand in the
    Berkeley-Dorchester-Charleston county area at virtually no
    cost to the owner. The program can include the following:
    �   Trainee  recruitment,  screening  and  testing  in
    conjunction with the South Carolina Employment
    and Security Commission
    *	Instructor recruitment and training\
    *	Provision of training site(s), if not conducted on
    company premises.
    *   Developmnent of instructional materials including
    print, audio or video.
    *    Comnplete program management from beginning to
    successful start-up and expansion assistance.

    An interesting law which is available to counties wishing to collaborate to form industrial or
    business parks can be found in Section 4-1-170 of the South Carolina Code of Laws and
    Regulations. The law reads as follows:'

    Section 4-1-170

    By written agreement, counties may develop jointly an industrial or business
    park with other counties within the geographic boundaries of one or more of the
    member counties as provided in section 13 of Article WIi of the State
    Constitution. The written agreement entered into by the participating counties
    must include provisions which:

    1) AddressY sharing exenses of the park;
    2) Specijfy a percentage the revenue to be allocated to each county.
    3) Specify the manner in which revenue must be. distributed to each of the
    taxing entities within each of the participating counties.

    For the purposes of bond indebtedness limitation and for the purpose of
    computing the index of taxing ability pursuant to Section 59-20-2-0(3), allocation
    of the assessed value of the property with in the park to th e participating counties
    and to each of the taxing entuities within the participating counties must be
    identical to the allocation of revenue received and retained by each of the
    counties and by each of the taxing entities within the participating counties. '

    The interesting provision of the regulation is that the business/industrial park is treated as a
    separate entity and can avail themselves of the economnic recruitment incentives of any of the
    counties that are a part of the agreement. As a result, the maximum allowable jobs tax credit
    and other available incentives can be taken regardless of where the industrial park physically
    resides. This mechanism was recently used in the recruitment of Magna Intemnational to
    Greenville county where jobs tax credits were allowed even though Greenville County is
    technically not eligible for the credit.
    5-21

    I
    [l[ll~ ~--    ll
    II              Il
    BIBLIOGRAPHY
    I  IIIII  I
    !
    !
    6-1

    BIBLIOGRAPHY

    Section 2.:   Trends Affecting Develooment

    1.    Lyne, Jack, Carolinas Lead Southern Surge in Site Selection's Inaugural Business
    Climate Rankings.", Site Selection, October 1993, PP. 1170-1173.

    2.     Sample, James O., "Should you reengineer, Relocate or Both", ExDansion Management,
    July-August 1993, pp. 6.

    3.     Patterson, Eric and Nachmnan-Hunt, Nancy, "Ahead by a Nose - Services Get a Fast
    Track, Manufacturers Move Slowly.", Exransion Management, March-April 1993. pp.
    14-16.

    4.     Stackhouse, Steve., "Today's Growth Industries." Area Development, September 1993,
    pp. 76.

    5.     Heenan, David A., "Small Towns, Big Business: The New Location Frontier.", Site
    Selection, 1993. pp. 1368..1380.

    6.	U.S. Industrial Outlook 1994, 35th Annual Edition, U.S. Department of Commerce.

    7.	Bryant, Frank. "EPACT Aftermath; States Begin to Test Waters on Retail Wheeling.",
    Enermv User News, Vol 19, No 1, January 1994, pp. 1, 4, 61 and 62.

    8.    Mandel, Michael J., "The Rush to Roll Back Taxes", Business Week, February 7 1994,
    pp. 114-115.

    9.     Sparks, Robert M.,  "NAFTA's Implications for Economic Development",  Area
    Development, January 1994. pp. 31-32.

    10.   Dillingham, Susan, "The Rating Game: Decisions Can Turn on the Price of Power",
    Plants Sites & Parks, November\December 1993, pp. 38-44.

    11.   Farell, Christopher; Melcher, Richard; Therrien, Lois; Schiller, Zachery; Hof, Robert
    D.; Zellner, Wendy and Jones-Yang, Dori, "It Won't Take your Breath Away But...The
    Economy is Poised for Modest, Steady Growth", Business Week, January 7, 1994, pp.
    60-66.

    12.    Venable, Tim, "Site Selection's 1992 Top Groups", Site Selection, April 1993, pp. 298-
    334.
    6-2

    13.   Venable, Tim, "Development Groups Go High Tech In Serving Corporate Clients", Site
    Selection, April 1993, pp. 272-296.

    14.   Siting and Consulting Services Qualification brochure, compliments of Fluor Daniel,
    Inc.'s Siting and Consulting Services Group.

    15.   McLeman, Neil, "Agency Competition Sharpens Focus", Comorate Location, November
    1993, pp. 21.

    16.   Murcio, F. Javier and Savaresem  Dierdre, "NAFTA  Makes North America Hot
    Property", Expansion Management-1993 Atlas and Guide, pp. 14.

    17.   Bergeron, Tom, "Corporate Executives Rate Site Selection Factors" Area Development,
    December 1993, pp. 39-55.

    18.   Barkley, David L. and Hinschberger, Sylvian, "Industrial restructuring: Implications for
    the Decentralization of Manufacturing to Nonmetropolitan Areas", Economic
    Development Quarterly, Feb 1992, pp. 77.

    19.   Carlsson, B., "Flexibility and the Theory of the Firm", International Journal of Industrial
    Oreanization 7, 1989, pp. 179-204, and Item number 18 as previously listed

    20.	Citation: Stephen S. Roach, economist at Morgan Stanley & Company.

    21.	U.S. Office of Technology Assessment, After the Cold War: Living with Lower Defense
    Spending, OTA-ITE-524 (Washington, DC: U.S. Government Printing Office, February
    1992, pp 5.

    22.   Beebe, Todd and Liljenwall, Ted G., "NAFTA: How to Maximize Opportunities in
    Mexico", Site Selection, December 1993, pp 1405.

    23.   U.S. Office of Technology Assessment, Paying the Bill: Manufacturing and America's
    Trade Deficit, OTA-ITE-390, (Springfield, VA: National Technical Information Services,
    February 1990.

    24.	Staff Writers, "Site Selection", Business Facilities, January 1994, pp 21,22 & 24.

    25.	Elliott. Jr. Charles K. and Shapiro, Andrew, H., "Changing U.S. Labor Force Presents
    New Challenges for Corporations", Site Selection, June 1993, pp. 618-628.

    26.    Coffee, Hoyt E., "Big Labor's Long Slide", Site Selection, December 1993, pp. 1324-
    1331.
    6-3

    27.   Haner, Tom. "Assessing a Labor Market, Simple Steps to Avoiding the Pitfalls", Site
    Selection, December 1993, pp. 1314-1322.

    28.	Coffee, Hoyt E., "Big Labor Slide", Site Selection, December 1993, pp. 1324-1327.

    29.	Wall Street Journal, May 24, 1993.

    30.	Associated Press, Greenville New Piedmont, "5 Year High In Hiring Predicted",
    February 28, 1994, Section C, Page 1.
    31.   U.S. Office of Technology Assessment, After the Cold War. Living with Lower Defense
    Spending, OTA-ITE-524 (Washington, DC: U.S. Government Printing Office, February
    1992, pp 9.

    32.   Report of the Defense Conversion Commission,  "Adjusting to the Drawdown",
    December 31, 1992.

    33.	Act No.# 93-851, Alabama State Legislative Action of September 7, 1993.

    34.	The Governor's Development Council Executive Summary of the Business Expansion and
    Support Act of 1994.

    35.	North Carolina's Financial Advantages for Business.

    36.	Hatch, C Richard, "Flexible Manufacturing Networks - Cooperation for competitiveness
    in a Global Economy", Corporation for Enterprise Development, ISBN: 0-9605804-8-4,
    1988.

    37.   Harrison, Bennett, Economic Develooment Ouarterlv, Vol. 8, No. 1., February 1994,
    pages 3-18.

    38.	Harvard Business Review, Page 12, May-June 1994.

    39.	Davis, Steven. J.; Haltwinger, John; Shuh, Scott, Business Economist, Vol. 29, page 13-
    22, July 1994.

    Section 4:    Constraints and Potentials

    1.    Adjusting to the Drawdown, Report of the Defense Conversion Commission, pp. i,
    December 31, 1992.

    2.    Miller, William H., "Defense Conversion - the Fourth Time Around", Industry Week,
    6-4

    April 4, 1994, pp 20.
    3.    Ladesich, Jim, "Base Closures - A Economic "Kiss of Death", or a New Opportunity for
    Communities and Business? - A Staff Report, Business Facilities, April 1994, pp 40.

    4.    Quotation from Wallace Bishop, Senior Project Manger at the Office of Economic
    Adjustment.

    5.    "Civilian Reuse of Former Military Bases - Summary of Completed Military Base
    Economic Adjustment Projects, Office of Economic Adjustment, office of Assistant
    Secretary of Defense Force Management & Personnel, The Pentagon, Washington, D.C..

    6.	"Communities in Transition", The President's Economic Adjustment Committee,

    7.	Mackinnon, David, "Changes at Military Bases: A Community Planning Challenge",
    Federal Planner's Network, Summer, 1990.

    Section 5.:  Industrial Recruitment Resources Assessment

    1.    "Charleston Trident Area  Economnic  Development  Strategy",  Growth  Strategies
    Organization, April 1994, page 79.

    2.    Military Base Reuse Studies and Community Planning Assistance, Office of Economic
    Adjustment, Office of Assistant Secretary of Defense, Department of Defense.

    3.    Tax Information for a Manufacturiniz Plant Locatine in South Carolina, Administrative
    Division South Carolina Department of Revenue, 1993, page 37.
    6-5

    APPENDIX
    Appendix - Page I

    Appendix 1

    1993 Site Selection Survey
    Appendix - Page 2

    Appendix 1                         1993 SITE SELECTION SURVEY
    (All figures are percentages)

    Very	Minor	Of No
    Important        Important	Concern
    	Imnportance
    LABOR
    Availability of skilled labor	44.6	44.2	9.4	1.9
    Availability of unskilled labor	16.8	37.4	30.2	15.7
    Worker\technical training programs	15.1	45.7	30.6	8.5
    Labor costs	51.9	38.4	8.2	1.5
    Low union profile	48.3	27.6	18.8	7.6
    Right-to-Work state	42.4	28.2	21.8	7.6

    TRANSPORTATION
    Highway accessibility	46.5	40.6	9.6	3.3
    Railroad service	10.3	18.3	37.0	34.4
    Accessibility to major airport	22.2	35.2	30.1	11.6
    Waterway or ocean port accessibility	6.5	14.1	33.2	46.2
    Availability of telecommunications
    services                             40.5              40.2             13.6                5.7

    FINANCE
    Availability of Long-term financing	49.4	39.5	7.8	3.4
    Tax exemptions	41.3	41.7	13.6	3.4
    State and local incentives	40.1	42.6	13.9	2.6

    OTHER
    Nearness to major markets	34.7	42.2	17.5	5.6
    Cost of land	24.9	45.3	20.8	9.1
    Availability of land	22.9	49.6	19.0	9.7
    Occupancy or construction costs	29.5	56.0	9.2	5.4
    Raw materials availability	26.2	33.9	23.9	16.2
    Energy availability or costs	39.7	43.5	11.1	5.7
    Environmental regulations	44.8	32.6	16.1	6.5
    Nearness to suppliers	16.7	42.1	29.9	11.4
    Nearness to technical university	9.1	23.5	43.9	23.5

    QUALITY OF LIFE FACTORS
    Climate	17.2	44.8	30.1	7.5
    Housing availability	19.9	56.9	19.9	3.4
    Housing costs	25.4	55.6	16.4	2.6
    Health facilities	21.6	59.5	15.9	3.0
    Ratings of public schools	28.1	52.4	15.4	4.1
    Cultural opportunities	13.7	45.6	32.7	8.0
    Recreational opportunities	9.5	50.5	36.1	3.9
    Colleges and universities in area	16.6	40.0	35.1	8.3
    Low crime rate	44.8	41.8	11.9	1.5

    Source: Area Development, 1993.
    Note:   Survey is conducted primarily focused on manufacturing executives.
    Appendix - Page 3

    Appendix 2
    Corporate Economic and Environmental
    Progress Continnuum
    Appendix - Page 4

    Appendix 2
    CORPORATE ECONOMIC AND ENVIRONMENTAL PROGRESS CONTINUUM

    T PARADIGM:l                                      - l                         I	3                          I iPwOAgTIE r

    ORIENTATIONS              Short term growth	Growth constrained	Growth guided by	Growth geared to
    and prosperity	by regulatory	environmental and	sustainable development
    restnctions	economic concerns

    DOMINANT	Belief in infinite      Meeting regulations,	Focus on efficiency,	Convergence of
    TRENDS	supply of resources          remediation	energy conservation	business and
    standards.	beyond compliance	environmental systems

    ENVIRONMENTAL             * Unregulated waste	0 Forced	* Proactive risk and	� Strong internal and
    POLICY AND                    disposal.	environmental	impact assessment.                  external
    OPERATIONS	assessment and                                            communications.
    * Value only	compliance.             * Proactive pollution
    tangible goods  prevention.                                                       � Life-cycle costing.
    services.           * Business as usual
    plus required             * Energy efficient	* Environmental
    * High energy input	treatment and                  programs.	responsibility resides
    per unit of	cleanup.	with every employee.
    production.                                    * Reliance on renewable
    * Anti-regulatory               resources.        �         Systems approach
    ODependence on               lobbying.                                           integrating business and
    quick fix.	* Beginning to think	environmental
    * Determination of	'Cradle-to-Grave".	functions.
    * Undeveloped           optimum pollution
    communications with             levels.	0 Beginning dialogue with	� Low energy input per
    employees and	public ania employees.	unit of production.
    public concerning	* One way approach
    environmental issues.	to external and	* Executives visible and
    internal	involved with issues.
    * Management            communications.
    indifferent to                                       0 Emphasis on
    environmental issues       * Environmental          environmental education
    issues isolated within           and training.
    one or two
    departments.

    POTENTIAL	0 Immediate           * Reduced penalties       * Prolonged industry life-	* High employee
    ADVANTAGES	economic gain and             and fines.                    cycle.	morale and
    profitabllity.	productivity.
    * extended resource	* Anticipating cost of
    * Reduced short-            availability.	regulatory compliance.	0 Maximum efficiency
    term costs of dealing	and utilizations.
    with wastes.            * Less negative        * Enhanced public image.
    publicity.	* Working relationship
    * Distribution of	0 Reduced cost of	with community.
    environmental costs     * Awareness of legal	production through
    to society.	recuirements.                 efficiencv.

    POTENTIAL	� Risks higher for	a	Regulatory	* Capital costs of retooling	* Sacrificing maximum
    DISADVANTAGES	being blind-sided.	constraints to growth.	for greater efficiency.	short-term profitability.
    * Poor public	* Extra costs of	* Up-front costs of	* Restructuring
    image.	compliance.	implementing new	corporate policies and
    environmental policies.	management styles
    * Poor employee	0 Costs of crisis	creates disruptions.
    mora[.	management.             0 More public scrutiny
    and exposure.             * Additional economic
    * No long-term	* Competitive	burden of
    master plan to deal	disadvantage within        * Alienation of industry	internalizing.g
    with shortages.             industry.                   and peers.	environmental costs.
    * Exposure to
    financial liabilities
    and criminal
    prosecution.

    Source: Environmental CommunicationsArsciales.
    Appendix - Page 5

    Appendix 3
    Canada, Mexico and the United States
    A Comparative Profi'le
    Appendix - Page 6

    Appendix 3
    Canada, Mexico and the United States
    A Comparative Profile

    CANADA                        MEaXICO                         U.S.
    ECONOMY
    Real GNP (S Billions) ................................................... $474.1	$302.3	$4575.7
    Percent Real GNP Growth, 1991 ..................................... -2.0%	-0.07%	3.6%
    Consumer Price Increase, 1991 ....................................... 5.6%	22.7%	4.3%
    ManufacturingProportionofGNP, 1992 ............................ 17.0%	25.0%	19.0%

    DEMOGRAPHICS
    Population (Millions 1991) ............................................ 26.8	90.0	252.5
    Percent of Population Under 1991 ...................................     28.1%	40.0	29.2
    Projected Annual Population Growth Rate, 1990-2000 .......... 0.9%	1.9%	0.7%
    Per Capita GNP, 1992 ................................................. S20,783	$2,921	$20,629

    EDUCATION
    Literacy Rate ........................................................... 99.0%                         87.0%                          97.0%

    LABOR
    Labor Force (Millions) ................................................ 13.5	31.8	123.9
    Labor Force Annual Growth Rate, 1990-2000          ...................   1.2%	3.2%	1.3%
    UnemploymentRate, 1992 ........................................... 11.3%	14.5%(Est.)	7.0%
    Labor Force as Percent of Population .............................. 52.0%	38.4%	50.3%
    Female Employees as a Percent of Populations        ...................  43.9%	27.8%	44.5%
    Workweek (hours paid per week per
    manufacturing worker) ................................... 38.6	47.1	41.0
    Percent of Workforce Unionized ....................................      36.2%	42.8	18.0%
    Industrial Disputes (working days lost per
    1,000 employees per year, 1987-89 average)    ........         67.6                            0.5                           28.4
    Significant Limitations on Employment of
    Foreign Nationals ..........................................   Some                         Yes (10.0%)                       No
    Significant Restraints on Employment
    Terminations ................................................ Moderate	Yes	No

    Employment Turnover Levels ........................................	Low	Mod. to High	Low to Mod.

    Substantial Reengineering/Downsizing ..............................	Recently	No (But factory	Well underway
    under way	automation to
    improve qual.)

    National Minimum Wage, 1992 ....................................        $4.00 Nat'l                    $0.57-S0.69                     $4.25
    $4.30-5.30 provinces
    Avg. Hourly Manufacturing Wage for Production
    Workers 1992 .............................................. $10.88                             $1.30                         $10.92
    Fringe Benefits as a Percent of Straight-Trimeun
    Salary (Avg. including mandatory
    and customary) ...........................................	33.0%	80.0%	28.0%

    Mandatory Overtime Pay for Hourly Workers .....................	Yes (Imt'd	Yes (2 x salary	Yes(l.Sx salary
    to 8 hrs.\week	first 9 hrs, 3x	and 2 X on
    min 1.5 x salary	salary after 9 hrs	holidays
    and on holidays

    Geographic Variation in Avg. Wages\Salaries         .....................  Moderate                    Slight                         Substantial

    Source: The Wadtley-Donovan Group. Inc. 1993
    Appendix - Page 7

    Appendix 4
    Forecast Growth Rates for
    136 Manufacturing Industries and Groups
    Appendix - Page 8

    Appendix 4
    Forecast Growth Rates for 136 Manufacturing Industries and Groups
    Growth Rate 1993-94
    ~%     ~	Rank
    1.0	113
    5.4	16
    2.0	85
    2.0	86
    3.0	60
    2.5	73
    1.5	105
    9.4	4
    4.0	39
    3.7	45
    4.3	27
    2.8	68
    6.4	8
    3.0	61
    0.1	119
    2.0	93
    3.7	44
    3.0	55
    4.0	40
    2.7	69
    -5.0	129
    2.0	95
    1.9	100
    0.4	116
    -1.7	123
    3.5	47
    1.2	108
    6.0	11
    3.0	62
    1.9	101
    2.0	89
    2.0	90
    1.9	99
    2.0	92
    1.4	107
    2.0	98
    2.0	91
    2.5	76
    2.0	88
    -4.8	128
    2.5	77
    3.5	49
    1.0	114
    1.0	112
    3.0	64
    5.0	19
    4.0	31
    6.0	9
    -1.9	124
    2.0	82
    3.0	59
    1.0	110
    0.8	115
    0.1	120
    3.5	48
    -5.2	130
    2.0	84
    2.0	96
    Growth Rate 1987-94
    %	Rank
    1.1	69
    -3.5	127
    -1.8	120
    -0.2	94
    -1.4	112
    -0.1	90
    -1.2	107
    5.0	16
    3.3	26
    0.0	85
    2.2	42
    -1.0	101
    3.3	25
    1.2	67
    -3.3	126
    -0.7	97
    2.1	48
    1.9	51
    1.8	54
    0.9	73
    -4.2	129
    1.7	57
    -1.3	110
    -0.4	95
    -2.7	123
    2.4	37
    2.3	38
    2.2	45
    4.1	19
    7.1	10
    1.5	60
    10.9	3
    5.9	13
    4.0	20
    0.0	85
    -1.4	113
    1.7	56
    -1.2	108
    0.6	80
    1.4	63
    2.0	50
    -0.2	93
    1.1	68
    1.0	72
    2.3	40
    2.2	41
    7.3	8
    -0.1	91
    1.4	62
    -2.9	124
    -3.0	125
    -10.2	136
    -4.7	130
    1.3	64
    -5.0	131
    -6.9	135
    -0.9	100
    -1.3	111
    1994 Shipments
    355.553
    0.157
    9.627
    17.066
    8.473
    2.048
    4.524
    5.765
    3.588
    7.977
    6.140
    2.000
    3.030
    118.600
    25.221
    16.517
    14.610
    3.720
    8.840
    47.651
    5.486
    3.278
    2.645
    1.140
    1.470
    2.800
    20.437
    30.473
    4.363
    5.429
    35.710
    4.542
    2.408
    15.216
    5.575
    2.722
    16.438
    11.677
    2.549
    4.203
    7.249
    4.604
    127.601
    11.153
    6.170
    68.040
    1.161
    2.202
    0.256
    1.719
    1.063
    0.198
    0.132
    1.018
    0.384
    0.239
    2.386
    3.944
    SIC
    20
    2386
    2411
    2421
    2431
    2435
    2436
    2451
    2493
    2511
    2512
    2514
    2515
    26
    2711
    2721
    2731
    2732
    2741
    275
    2761
    2771
    2782
    2789
    2791
    2796
    281A
    2821
    2822
    2833
    2834
    2835
    2836
    2841
    2842
    2843
    2844
    2851
    2873
    2874
    2879
    2891
    2911
    3011
    3069
    308A
    3088
    3111
    3142
    3143
    3144
    3149
    3151
    3161
    3171
    3172
    3211
    3241
    Industry
    Food & kindred products
    Leather and sheep-lined clothing
    Logging
    Sawmills and planing mills, general
    Millwork
    Hardwood veneer and plywood
    Softwood veneer & plywood
    Mobile Homes
    Reconstructed wood products
    Wood Household furniture
    Upholster household furniture
    Metal household furniture
    Mattresses and bedsprings
    Paper & allied products
    Newspapers
    Periodicals
    Book publishing
    Book printing
    Miscellaneous publishing
    Commercial printing
    Manifold business forms
    Greeting cards
    Bankbooks & loose leaf binders
    Bookbinding & related work
    Typesetting
    Plate making services
    Ind. inorganic chemicals, except pigments
    Plastics, materials & resins
    Synthetic rubber
    Medicinals and botanicals
    Pharmaceutical preparations
    Diagnostic substances
    Biological products except diagnostic
    Soap and other detergents
    Polishes and sanitation good
    Surface active ingredients
    Toilet preparations
    Paints & allied products
    Nitrogenic fertilizers
    Phosphatic fertilizers
    Agricultural chemicals, nec
    Adhesives and sealants
    Petroleum refining
    Tires and inner tubes
    Fabricated rubber products, nec
    Misc. plastic prod.'s, exc. bottles/plumb.
    Plastics plumbing fixtures
    Leather tanning and finishing
    House slippers
    Men's footwear, except athletic
    Women's footwear, except athletic
    Footwear, except rubber nec
    Leather gloves and mittens
    Luggage
    Women's handbags and purses
    Personal leather goods, nec
    Flat glass
    Cement, hydraulic
    Appendix - Page 9

    Appendix 4 - Continued
    Growth Rate 1993-94
    %	Rank
    3.0	66
    2.5	72
    1.6	104
    2.5	71
    1.9	102
    2.9	67
    -2.0	125
    6.0	12
    4.0	38
    2.5	74
    2.5	75
    2.0	97
    4.0	37
    3.0	58
    3.1	54
    12.8	1
    3.6	46
    4.0	35
    5.1	17
    3.9	42
    3.0	56
    3.9	43
    1.8	103
    4.1	30
    4.5	23
    3.9	41
    5.9*	14
    5.0	18
    3.3	52
    3.0	63
    4.5	24
    4.0	34
    3.1	53
    4.4	26
    4.0	33
    2.4	78
    3.0	58
    4.1	29
    6.6	7
    4.2	28
    0.3	117
    2.0	83
    -.6	122
    2.2	79
    11.1	2
    5.7	15
    -3.8	126
    7.7	5
    -11.3	134
    -20.0	135
    -24.3	136
    -.6	132
    5.9	13
    2.6	70
    4.9	22
    -5.3	131
    -3.9	127
    -6.6	133
    4.5	25
    Growth Rate 1987-94
    %	Rank
    2.2	43
    -1.9	121
    2.9	30
    2.3	39
    -0.9	98
    -1.6	117
    -1.4	114
    2.4	364
    0.7	77
    0.5	82
    2.8	32
    1.0	71
    -1.7	119
    -1.6	116
    3.0	27
    1.9	52
    1.4	61
    2.5	33
    1.9	53
    0.2	84
    -1.1	104
    -1.2	109
    1.3	65
    0.4	83
    -0.1	89
    3.3	24
    2.5*	35
    0.8	74
    0.0	85
    -1.0	102
    0.6	79
    1.7	55
    -0.5	96
    2.1	49
    2.2	44
    2.9	28
    5.1	15
    3.3	23
    0.5	81
    1.6	58
    -2.3	122
    5.6	14
    -0.1	92
    3.7	22
    9.3	4
    1.3	66
    0.6	78
    2.1	46
    -0.9	99
    -5.8	133
    -5.0	132
    -1.2	106
    -6.7	134
    8.7	5
    1.6	59
    0.7	75
    7.6	7
    -3.8	128
    -1.0	103
    SIC
    3253
    3261
    3275
    331A
    3431
    3432
    3441
    3451
    3452
    349A
    3523
    3524
    3531
    3532
    3533
    3541
    3542
    3544
    3546
    3548
    3552
    3554
    3555
    3556
    3562
    3565
    357A
    3585
    3612
    3613
    3621
    3625
    3631
    3632
    3633
    3634
    3635
    3639
    364A
    3643
    3644
    3651
    3661
    3663
    367
    3711
    3715
    371A
    3721
    3724
    3728
    3731
    3732
    3751
    3761
    3764
    3769
    3812
    3821
    Industry
    Ceramic wall and floor tile
    Vitreous plumbing fixtures
    Gypsum products
    Steel mill products (SIC 3312,15,16,&17)
    Metal sanitary ware
    Plumbing fixtures and trim
    Fabricated structural metal
    Screw machine products
    Bolts, nuts, rivets and washers
    Valves and pipe fitting (SIC 3491, 3494)
    Farm machinery and equipment
    Lawn and garden equipment
    Construction machinery
    Mining machinery
    Oil & gas field machinery
    Machine tools, metal cutting types
    Machine tools, metal forming types
    Special dies, jigs tools & fixtures
    Power-driven hand tools
    Welding apparatus
    Textile machinery
    Paper industries machinery
    Printing trades machinery
    Food products machinery
    Ball and roller bearings
    Packaging material
    Computerslperipheral(SIC 3571,72,75, 77)
    Refrigeration and heating equipment
    Transformers, except electronic
    Switch gear and switchboard apparatus
    Motors and generators
    Relays and industrial controls
    Household cooking equipment
    Household refrigerators and freezers
    Household laundry equipment
    Electric housewares and fans
    Household vacuum cleaners
    Household appliances, nec
    Lighting fixtures (SIC 3645,3646,3648)
    Current-carrying wiring devices
    Noncurrent-carrying wiring devices
    Household audio and video equipment
    Telephone and telegraph apparatus
    Radio and TV communications equipment
    Electronics components and accessories
    Motor vehicles and car bodies
    Truck trailers
    Automotive parts and accessories
    Aircraft
    Aircraft engines and engine parts
    Aircraft parts and equipment, nec
    Shipbuilding and repairing
    Boat building and repairing
    Motorcycles, bicycles and parts
    Guided missiles and space vehicles
    Space propulsion and parts
    Space vehicle equipment, nec
    Search and navigation equipment
    Laboratory apparatus and furniture
    1994 Shipments
    0.835
    0.693
    3.267
    59.780
    0.754
    2.100
    7.847
    3.322
    5.329
    7.210
    8.333
    4.921
    11.305
    1.360
    3.355
    3.636
    1.542
    8.986
    2.459
    2.140
    1.150
    1.715
    3.130
    2.025
    3.706
    2.753
    66.200*
    18.029
    3.301
    4.577
    7.040
    6.882
    3.270
    4.060
    3.530
    3.460
    1.870
    3.020
    6.425
    4.297
    2.471
    8.656
    17.400
    18.400
    93.767
    145.800
    3.587
    107.158
    36.630
    13.350
    12.555
    7.831
    3.300
    1.906
    24.081
    3.717
    1.980
    27.570
    1.650
    Appendix - Page 10

    Appendix 4 - Continued
    Growth Rate 1993-94
    1994 ShiWments	%	Rank
    2.072	1.0	109
    5.679	5.0	21
    1.996	1.0	111
    8.285	4.0	36
    5.210	6.0	10
    2.280	4.0	32
    4.198	2.0	94
    11.769	7.0	6
    14.448	10.0	3
    1.847	3.5	50
    3.279	5.0	20
    5.799	0.2	118
    2.294	2.0	87
    20.200	2.0	81
    3.775	3.0	65
    0.730	0.0	121
    4.262	2.0	80
    7.178	3.4	51
    1.233	1.5	106
    Growth Rate 1987-94
    Se_	Rank
    0.0	85
    2.5	34
    11.4	1
    1.0	70
    6.0	12
    2.9	29
    2.9	31
    6.1	11
    7.9	6
    3.8	21
    11.3	2
    7.1	9
    4.5	18
    0.7	76
    -1.1	105
    -1.5	115
    2.1	47
    4.9	17
    -1.7	118
    SIC
    3822
    3823
    3824
    3825
    3826
    3827
    3829
    3841
    3842
    3843
    3844
    3845
    3851
    3861
    3911
    3931
    394A
    3949
    3961
    Industry
    Environmental controls
    Process controls equipment
    Fluid meters and counting devices
    Instruments to measure electricity
    Analytical instruments
    Optical instruments and lenses
    Measuring and controlling devices, nec
    Surgical and medical instruments
    Surgical appliances and supplies
    Dental equipment and supplies
    X-ray apparatus and tubes
    Electromedical equipment
    Ophthalmic goods
    Photographic equipment and supplies
    Jewelry, precious metal
    Musical equipment
    Dolls toys and games (SIC 3942,3944)
    Sporting and athletic good, nec
    Costume jewelry
    Source: U.S. Department of Commerce, International Trade Administration
    � Appendix - Page 11

    Appendix 5
    Executive Order 12788 and 12.607 Community Planning
    Assistance Program Summary
    Appendix - Page 12

    Executive Order 12788
    January 15,
    1992
    (I 3) Secretary of the Treasury;
    (14) Secretary of Veterans Affairs;
    (15) Chairman, Council of Economic Advisers;
    (14) Directorof the Office of Managementand Budget;
    (I 7) Director of the Office of Personnel Management;
    (18) Director of the United States Arms Control and
    Disarmament Agency;
    (19) Administrator of the Environmental Protection
    Agency;
    (20) Director of the Federal Emergency Management
    Agency;
    (21) Administrator of General Services;
    (22) Administrator of the Small Business Administra-
    tion; and,
    (23) Postmaster General
    (b) Chairman. The Secretaries of Defense, Commerce, and
    Labor shall rotate on a yearly basis, as chairman of the
    Committee.
    (c) Vice Chairman. The Assistant Secretary of Defense
    who oversees the Department of Defense's Office of Eco-
    nomic Adjustment shall serve as vice chairman of the
    Committee. The vice chairman shall chair the Committee
    in the absence of both the chairman and the chairman's
    designee and may also preside over meetings of designated
    representatives of the concerned executive agencies.
    (d) Executive Director. The head of the Department of
    Defense's Office of Economic Adjustment shall provide
    all necessary policy and administrative support for the
    Committee and shall be responsible for coordinating the
    application of the Defense Economic Adjustment Program
    to Departmenf of Defense activities.
    (e) Duties. The Committee shall:
    (1) Advise assist, and support the Defense Economic
    Adjustment Program;
    (2) Develop procedures for ensuring that State, re-
    gional, and community officials and representatives of
    organized labor in those States, municipalities, localities,
    or labor organizations that are substantially and seriously
    affected by changes in Defense expenditures, realignments
    orclosures, orcancellation orcurtailment of majorDefense
    contracts, are notified of available Federal economic ad-
    justment programs; and,
    Sec. 5. Responsibilities of Executive Agencies.
    (a) The head of each agency represented on the Committee
    shall designate an agency representative to:
    (1) Serve as a liaison with the Secretary of Defense's
    economic adjustment staff;
    (2) Coordinate agency support and participation in
    economic adjustment assistance projects; and,
    (3) Assist in resolving Defense-related impacts on
    Defense-affected communities.
    (b) All executive agencies shall:
    (1) Support, to the extent permitted by law, the eco-
    nomic adjustment assistance activities of the Secretary of
    Defense. Such support may include the use and application
    of personnel, technical expertise, legal authorities, and
    available financial resources. This support may be used, to
    the extent permitted by law, to provide a coordinated
    Federal response to the needs of individual States, regions,
    municipalities, and communities adversely affected by
    necessary Defense changes;
    (2) Afford priority consideration to requests from De-
    fense-affected communities for Federal technical assis-
    tance, financial resources, excess or surplus property, or
    other requirements, that are part of a comprehensive plan
    used by the Committee.
    Sec. 6. Judicial Review. This order shall not be interpreted
    to create any right or benefit, substantive or procedural,
    enforceable at law by a party against the United States, its
    agencies, its officers, its agents, or any person.
    Sec. 7. Construction. (a) Nothing in this order shall be
    construed as subjecting any function vested by law in, or
    assigned pursuant to law to, any agency or head thereof to
    the authority of any otheragencyor officeror as abrogating
    or restricting any such function in any manner.
    (b) This order shall be effective immediately and shall
    supersede Executive Order No.:X         12049

    THE WHITE HOUSE,	.
    January IS, 1992.	(4
    (3) Report annually to the President and then to the
    Congress on the work of the Economic Adjustnent Com-
    mittee during the preceding fiscal year.

    THE PRESIDENT
    January 15, 1992
    Executive Order 12788
    Defense Economic Adjustment Programs
    communities' problems;
    (g) Assure coordinated interagency and intergovernmental
    adjustment assistance concerning Defense impact prob-
    lems;
    (h) Prepare, facilitate, and implement cost-effective
    strat-
    egies and action plans to coordinate interagency and
    intergovernmental economic adjustment efforts;
    (i) Encourage effective Federal, State, regional, metropoli-
    tan, and commuhity cooperation and concerted involve-
    ment of public interest groups and private sector organiza-
    tions in Defense economic adjustment activities;
    (j) Serve as a clearinghouse to exchange information
    among
    Federal, State, regional, metropolitan, and community of-
    ficials involved in the resolution of community economic
    adjustment problems. Such information may include, for
    example, previous studies, technical information, and
    sources of public and private financing;
    (k) Assist in the diversification oflocal economies to
    lessen
    dependence on Defense activities;
    (O) Encourage and facilitate private sector interim use of
    lands and buildings to generate jobs as military activities
    diminish; and,
    (m) Develop ways to streamline property disposal proce-
    dures to enable Defense-impacted communities to acquire
    base property to generate jobs as military activities dimin-
    ish.
    Sec. 4. Economic Adjustment Committee.
    (a) Membership. The Economic Adjustment Committee
    C'Committee") shall be composed of the following indi-
    viduals, or a designated principal deputy of these individu-
    als, and such other individuals from the executive
    branch as
    the President may designate. Such individuals shall
    include
    the:
    (1) Secretary of Agriculture;
    (2) Attorney General;
    (3) Secretary of Commerce;
    (4) Secretary of Defense;
    (5) Secretary of Education;
    (6) Secretary of Energy;
    (7) Secretary of Health and Human Services;
    (8) Secretary of Housing and Urban Development;
    (9) Secretary of the Interior,
    (10) Secretary of Labor
    (11) Secretary of State;
    (12) Secretary of Transportation;
    By the authority vested in me as President by the
    Constitu-
    tion and the laws of the United States of America,
    including
    10 U.S.C. 2391 and the Defense Economic Adjustment,
    Diversification, Conversion, and Stabilization Act of
    1990,
    enacted as Division D, section 4001 et seq., of the
    National
    Defense Authorization Act for Fiscal Year 1991, Public
    Law 101-510 and to provide coordinated Federal
    economic
    adjustment assistance necessitated by changes in Depart-
    ment of Defense activities, it is hereby ordered as follows:

    Section 1. Function of the Secretary of Defense. The
    Secretary of Defense shall, through the Economic Adjust-
    ment Committee, design and establish a Defense
    Economic
    Adjustment Program.

    Sec. 2. Purpose o.f the Defense Economic Adjustment
    Program. The Defense Economic Adjustment Program
    shall assist in the alleviation of serious community socio-
    economic effects that result from major Defense base
    closures, realignments, and Defense contract-related ad-
    justments, and the encroachment of the civilian
    community
    on the mission of military installations.

    Sec. 3. Functions of the Defense Economic Adjustment
    Program. The Defense Economic Adjustment Program
    shall:

    (a) Identify problems of States, regions, metropolitan ar-
    eas, or communities that result from major Defense base
    closures, realignments, and Defense contract-related ad-
    justments, and the encroachment of the civilian
    community
    on the mission of military installations and that require
    Federal assistance;

    (b) Use and maintain a uniform socioeconomic impact
    analysis to justify the use of Federal economic adjustment
    resources, prior to particular realignments;

    (c) Apply consistent policies, practices, and procedures in
    the administration of Federal programs that are used to
    assist Defense-affected States, regions, metropolitan areas,
    and communities;

    (d) Identify and strengthen existing agency mechanisms to
    coordinate employment opportunities for displaced agency
    personnel;

    (e) Identify and strengthen existing agency mechanisms to
    improve reemployment opportunities for dislocated De-
    fense industry personnel;

    (f) Assure timely consultation and cooperation with Fed-
    eral, State, regional, metropolitan, and community
    officials
    concerning Defense-related impacts on Defense-affected

    12.607 MILITARY BASE REUSE STUDMS AND
    CONMU1NITY PLANNIN~G ASSLSTANCE
    (Community PLanning Assistamo)
    IMDERAL AGENCY: OFFICE iOF ECONOMIC ADJUSTUMET,
    OFFCE OF ASSISTANT SECRETARY OF DEFENSE
    (FORCE MANAGEMENT AND PERSONNEL), DEPART-
    MENT OF DEFENSE

    )BJECT1VE& To assist State and local governments coodWc  =mitay
    bas  reue sgudies and resove smrous communit  manc.ic prob-
    kms resultng foma: Mlitary base  losum, openings, and rlin-b
    ments- To conduct community impact planning that wMl be bmefl
    ewa to the  epertient of Derens  an  the affecte jurisdiction.
    YPES OF ASSISTANCE. Project Crants
    !SES AND USE RESTRICTIONS: DoD fundingl may be provkde for
    imilitary bas	reuse studies required for reuse of forume  Umliay
    propery. DoD	may provide community planning gassisanc fund-
    ins through a cooperative agreement or grat for plannling wdtvi-
    dus consiered beneficial to DoD  and the affeced Community.
    ActMivies include, but are not limiited to: Stafring, operating and
    admiinistrative coils; travel; public information; and lgenera or spe-
    cialized community impact studies conducted by contractom or
    state or local government employees
    23IGIBILITY REQUIREMEN1,TS:
    Applicnt Eligblbwty An applicant may be eligible for DoD funding
    for militay base reuse studies if the Secretary of Defense has an-
    wmonced that the local military installation is a cadidate for sco-
    mmr or that a final decision has been mnade to clowe the installatiM,
    and, if one of the following actions is propose  Of actualY oc-
    carted: I) Increased activity: (a) the assignment of more then
    2.000 military. Civilian and DoD contractor personnel to a new or
    expanded insallation; or (b) the assignment of more military, cavil-
    ion. and contractor DoD personnel than the number equal to 10
    percent of employment in counties or independent municipalities;
    within 15 miles of the installation, whicbever is lesse; or 2) de-
    creased activity: from the realignment or closure of a military in-
    stalltion. Additionally, the Secretary of Defense mumsa ake a de-
    termination thi the action is likely to impose a significant impact
    ICA-31 fujnds may be provided only if other FederaL. State at local
    reources are not adequate. State or loca  governments, regional
    organizstions comnpose of State and local orsanizations aNW Fed-
    erally Recogized Indian Tribes located within the 50 States. the
    DWsrict of Columbia,. the Commonweath  of Puerto Rico and
    Guam are eligible it the above statutory criteria are met.
    Neuetclary Eligibility: State and loca  governments. region alrgai-
    zations composed of State and local Sovernments, or Federally
    Recopnited Indian Tribes that represents the impacted arms
    "edetkui/Docunentation.  Documentation  that: I) The  Defense
    action has or will occur and that it has impose o at liskely to
    impose a substantial and serious impact; 2) other Federal, State, or
    loca resources are not adequate; 3) the threshold criterion of the
    legislation has been or will be met; the community planning will
    be beneficia to DoD and the affected commundir, and 4) ther is
    an immediate and substantial need for the funding.
    APPLICATION AND AWARD PROCESS,
    Preppllcatiou Coordination: Requirements should be discussed with
    other Federal and State agencies to ascertan if hundig is avall-
    able. This program is excluded from coverage under E.O0. 12372.
    Application Procedure: The stadard application forms required by
    32 CFR Part 271 must be used for thi program. Appliftcato  mad
    supporting documentation should be submitted to the Director
    Office of Economic Adjustment, OASD) (FMMP), Pentago
    Room 4C767, Washington, DC 203014000.
    Award Procedure: Applications are approved by the Directr, Offic
    of Economic Adjustment, in consultation Withk the Miltary P0.-
    partinet involved.
    DeadUmma None.
    Rtange of Approval/Disapproval Time: 90 dayL
    Appeals None
    RC"nawa None
    ASSISTANCE CONSIDERATIONS:
    Formula sand Mateling Requirements This progmam has no statutory
    formula. A minimum of 25 percent sbould be obtained from non-
    federal sources in the form of cash.
    Length sad Time Phasing of Assistance Up to I year. Funds are dis-
    burse quarterly or as required. Funds should be expended during
    the grant perid.
    POST ASSLSTANCE REQUIREENTS.:
    Reporft Quarterly financia and progress reports are required.
    Audits In accordance with the provisions of OMB Circuar No. A-
    121, 'Audfits cof State and Loca Goverments, State and local
    govemnments that receive finacW iaasistance of S 100.000 or miore
    within the State's fiscal year shall bave an audit node for 6tha
    yea. State and local atovernments that receive between S25,00D
    and S100,000 witbin the StaWes fsA" year shl  have sm audit
    made in accordance with Circular No. A-12S. or in accordance
    with Federal laws ad regulations governing the programs in
    which they participate:
    Rftcords: In accordance with 32 CFR Part 271.
    FINANCIAL INFORMATIONi
    Account Idendfctloea" 9700100.0-1-051.
    Obligatiom (irants) FY 91 S1,541,795; FY 92 eat S4,000,000, and
    FY 93 eat 54,00,0.M
    Range sand Average of Ft---mal AsdIsanc 31100,000 to S2=00.00
    5150000
    PROGRAM ACCOMPLISHMENITS: In fisal year 1991, 39 communi-
    tie rceidved planning astistane funds. It is estimated that 25 new
    communities will receive funds in fscl" year 1992.
    REGULATIONS, GUIDELINMS AND LITERATURJ- OMB Circular
    NosL A-lU8 and A47, 32 CFR Part 271 and Part 280, Subpart F.
    Appendix C.
    VINFRMATION CONTACTM-
    Reffiona or Iund Offce.- COffice of Econormic Adjustment, OASD
    (FM&P). Western Region. 7500 Sand Point Way, NE.. Seattle.
    'WA 93115. Telephone: (M06)524-1$45.
    Headquarter  Office: Directo, Office of Economic Adjustment,
    OASD (FMAP), Pentagon Room 4C767, Washington. DC 20301-
    4000. Telephone: (703) 697-9155.
    RELATED PROGRAMS. 11.307, Specia Economiic Development and
    Adjustment Assistance Program-Sudden and Severe Economic
    Disocation  and  Long-Term  Beoomic  Deteroration; 12.600
    Community Economaic Adjustment;~ 14.218, Community Develop-
    umet Block Grants/Entitlement Grnts; 14.219. Community De-
    velopment Block Grants/Small Cities Program 93.032, Communi-
    ty Services Block Grant-Discretionary Awards.
    EXAMPLES OF FUNDED PROJECTS:- Funds were provided for
    reuse planning of closing basms
    CRITERIA FOR SELECIING PROPOSALS: Magnitude of inmpat
    Astatuory compliance immediacy of need, benefits to the naticn.
    DoD and the affected community and rftsonabletess of proposed
    level of funding considerin proposed work progams.