The Cape Fear Capital Connection on MyTalker Radio. WMYT 106.7 fm

Monday, August 18, 2014 Curtis Wright and Thomas Vass Discuss:

The Current Political Controversy Over The Pathways to Prosperity Report:

Understanding Why There Is No Focus On Small Business In the Current Economic Policy.

“There has been a lack of leadership in the area in setting a vision for economic growth. This perception is validated by current policies in place that have the unintended effect of discouraging certain types of business that would be beneficial for the area.” From the Report.

The December 2013 Report stated that there had been a lack of leadership and vision in the region.

That Lack of Leadership Is Why Per Capita Income Is Down 6% in Five Years

Over the last ten years, growth in real values for the per capita income in New Hanover has declined by 0.3 percent

(-$99) and in the last five years, is down by 6.1 percent (-$1,911)

On August 1, 2014, Kevin Maurer Wrote An Article About the Report

On The Right Track? WBD’s work generally stays behind the

scenes “WBD doesn’t really have a strategy, of

course, but I’m more concerned that we – county government, city government, the business community, etc. – don’t have a clearly articulated strategy,” said a former WBD member.

What Is WBD?

Wilmington Business Development is a private-public partnership that recruits and helps companies looking to move to Wilmington and New Hanover and Pender counties.

It is under contract with the city of Wilmington, New Hanover County and Pender County to serve as the area’s primary economic development group.

About 32 percent of WBD revenues come from tax revenues from Wilmington, New Hanover and Pender counties.

In addition to getting tax funds for operational revenues, WBD negotiates the secret industrial incentive deals, using tax dollars.

Political Leaders Are Satisfied With The Status Quo

WBD still has the support of county leaders who called the group the region’s main economic development partner.

“WBD is a critical part of this,” said Woody White, chairman of the New Hanover Board of Commissioners. “Our success will be dependent on the success of WBD.”

WBD Board Responds To Business Journal Article. August 13, 2014

We were greatly disappointed in Kevin Maurer's

critique of Wilmington Business Development (WBD) in your August 1st issue.

Our organization's efforts do not warrant the dismissive treatment and condescending tone represented in your pages last week. The people and businesses of Greater Wilmington deserve better, and so does WBD.

Who Are The WBD Leaders? Most Linked to Commercial Real Estate and Industrial Recruitment Organizations.

Dickson McLean McGuireWoods, LLP Mike Wilkinson PPD, Inc Bill Cherry Air Wilmington, Inc

Bill Cameron Cameron Management Ken Dull McKinley Building Corp Albert Eckel Eckel & Vaughn Group

Charles Rooks Rooks Farm Service, Inc Margaret Robison CFCC Foundation

After The Break, We Will Describe Why WBD Is Mad About Any Criticism

All of the leaders have a political and financial interest in industrial recruitment, not small business development.

WBD is the link between tax industrial recruitment incentives given out in secret negotiations.

Any type of criticism opens the WBD to unwanted scrutiny of possible conflicts of interest.

Lack of Vision Means No Strategy For Small Business

Focus resources on existing small technology companies in the 7 county Cape Fear Region.

In New Hanover and Pender Counties, alone, there are 112 small technology manufacturing companies.

Of the 112, 94% employ less than 50 workers.

Lack of Strategy Means No Focus on The Capital Market Infrastructure For Small Companies To Grow

Economic growth occurs when small companies make capital investments.

Small companies need capital to service and supply the bigger companies in the region.

How Do Citizens Hold Private Non-Elected WBD Leaders Accountable For Economic Failure?

Tax dollars are used in secret negotiations. Members of the WBD benefit financially from

the use of tax incentives. For example, McGuire Woods negotiates the secret deals for both sides of the transaction.

In other words, how do citizens who do not benefit from the secret deals hold the leaders responsible for 50 years of economic failure?

We Agree With Part of The WBD Response to The Maurer Article

“The people and businesses of Greater Wilmington deserve better.”

The citizens deserve an economic policy that raises per capita incomes, not lowers them.

The citizens deserve an economic policy that holds WBD accountable for failure.

Small businesses deserve an economic strategy that promotes their interests, not the interests of outside companies that are seeking government tax incentives.