W. TERRY SMITH
EDITOR
August 08, 2008 10:27 am
—
Most people seem to agree economic development is the silver bullet that would cure Edgecombe County’s ills: unemployment, low tax base and high tax rate.
But Rusty Holderness sees it differently.
“The best economic development is to be the place where people come and live,” the Tarboro real estate developer said. “All economic development is useless, if they don’t live here.”
Holderness would like to see some of the $2 million in grant money Golden LEAF is offering Edgecombe be spent on an incentive to lure people to buy homes and live in the county.
He proposes offering $10,000 grants to those who would buy a new unoccupied house or use it toward building a new house. The money would not have to be paid back.
Mobile home and modular homes would not qualify because they are built outside the county. Holderness wants to see money spent in the county.
One million dollars would provide 100 grants of $10,000 each – and 100 new homes.
“One hundred new homes at a minimum of $100,000 per home would add $10,000,000 to the tax base or a total of $94,000 additional tax revenue per year,” he pointed out.
Holderness would give teachers first priority.
“The school says they have a problem with teacher retention,” he said. “This would have to help. What an incentive to live here!”
As many as 50 percent of the county’s schoolteachers may live outside of Edgecombe.
Second priority would go to Edgecombe Community College instructors who may work here but live outside the county.
“Maybe have a two- to three-year residency requirement,” he said.
Third priority would go toward people already working in the county but living elsewhere.
Holderness figures this kind of industry would mean work for contractors, tradesmen, laborers plus supply stores, bankers, lawyers, insurance agents, merchants who sell furniture, appliances … .
“Think of the taxes from selling materials, payroll
“It would impact existing business,” he said.
Holderness thinks this would reverse the population decline going on Edgecombe County.
“We are projected to lose 5,000 people – about 10 percent of our population – between 2000 and 2010,” he said. “It’s scary.”
Less people means less sales tax revenue from the state, which is distributed by population.
If each new household had three people, the increase in population would be three times 100 or 300 new people in the county.
“Homeowners make quality citizens,” he said. “They care about their property and they care about their neighborhood, their town.
“(Edgecombe County) had 16 new housing starts last year,” Holderness said, “and three or four of those were by Habitat (for Humanity).”
Holderness is not sure if he will propose his idea during a future Community Assistance Initiative listening forum. “I’m in the real estate business, and people will say it’s just for me,” he said, “but I honestly think this is a wonderful concept that could work.
“It wouldn’t have to be a $1 million. Let’s start with $500,000 – 50 grants – and see what happens. I can’t imagine anyone not enticed by this.”
According to U.S. Chamber of Commerce figures, new money brought into the area would be re-circulated seven times, making the economic impact seven times $10,000,000 or $70 million poured into the local economy, Holderness said.
The next meeting of the Golden LEAF Community Assistance Initiative listening forum is 2 p.m. Wednesday at Johnson Elementary School in Rocky Mount.
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