Terry addressed an update of the Western Piedmont Council of Governments information delivered to us last year by Taylor Dellinger. Not a whole lot of information has changed pertaining to the numbers.
Danny gave updates about the Legislative Issues conference that would take place on 1/20/2011. He then addressed the upcoming Chamber Annual Meeting that is designed around Creativity and Innovation. He addressed the unveiling of Catawba County’s Portal Website that Houston Harris played a major role in designing around Live, Work, and Play. One message and one marketing brand designed around start something here, it is the greatest place to begin or begin again.
March 11, 2011 – a big Economic Strategic planning session at the Simulated Hospital to develop a jobs plan for Catawba County using the facilitation and technology of the Collaborative Labs of St. Petersburg College. They will be a satellite branch of this facility at the Former Ryan’s Steakhouse where the Manufacturing Solutions Center was initially going to be located.
Danny went into the Brainstorming process in association with Tom Shea. Houston touched on the Creativity Institute at the McColl Center in Charlotte. It was a six week process involving innovative artists who are nationally recognized. Exercises enabled individuals to use art to communicate a thought and go through the creative process. It wakes things up in you that may have been asleep for a while. This enables you to bring those things out. Houston went into his Free Range Chicken Thinking Theory in association with this process.
Danny spoke about the Innovation 2010 conference held in October and Andrew Hargadon’s Presentation. It isn’t about the idea. It is about taking an idea and connecting it with other things that may already exist and that is what creates value. As I interjected, one of the things that is going on around here is that we aren’t looking to our past resources and how we can put those together for future needs. That is the mash-up process. The Higher Education consortium that put this event together developed under the ideas and theme of what the Future Economy Council had asked them to do.
The Edison Project has come out of talks with CVCC and they will engage in an event in April or May. The Chamber will also form a competition for later in the year. These applications will be taken until May. It will be narrowed down by August and an event will take place in September that will award a cash prize and pro bono services to help get the idea off the ground.
Terry brought up the subject of Social Media involving his endeavors with the government. He stated that this fits into the Mobile Governance model. London, England has utilized this for economic growth. Smart phone technology can be utilized with government databases and integrated to make information more efficient and purpose driven. Terry states that we need to know what people need.
Weak Signals – Rick Smyre’s Weak Signal report based upon World Wide basis. Terry asked about weak signal opportunities and challenges associated with Catawba County. I stated that this is the reason why we need to have more dialogue between FEC sessions. We decided to move forward with a Linked In site as a path of least resistance.
Houston reintroduced his discussion of a website that will allow ideas to build momentum and move forward. You post a problem and it must be accompanied by your idea of a solution. There will be a voting mechanism associated with this and this process would allow for the building of a consensus. It is Houston’s desire that this to be a regional process.
Terry added that there is a similar system in place in Manor, Texas. It is a sort of gaming format with 4 levels associated with scrutiny and feasibility. Houston stated that this could be done in three weeks, if the arrangements were brought into line to move forward. Terry stated that there is an opportunity here in association with land-use and competing in the social media and citizen interaction arena. How do we get ideas funneled into a mechanism that people can start using. This would be used to study issues about business, government, social, and cultural issues.
Harry went into a discussion that we had had recently involving the issues of tolerance and receptivity towards cultures and diversity. The world is evolving and if we are going to be a world wide culture, we are going to have to be open to opportunities from a lot of different areas. People look at this area and wonder if we are really receptive. Are we going to be able to get into a global mindset in something less than a generation? We don’t want to see a vibrant Hickory 30 or 40 years down the road, we’d kinda like to see something happening quicker. We’re all middle –aged white men. How do we expand this? How do we get to where when people look to Catawba County they see a welcome mat and an open door?
Terry went into numbers presented by Taylor in the past and the areas that were most successful over the last several years. Wlimington, Raleigh, and Asheville were looked to as areas of cultural diversity that have succeeded.
We had a discussion about the surveys that have us at the bottom of the rankings. I asked Danny about his participation in the Gallup-Healthway study. He basically told us that they had given him an overall view of wellness and asked him to help find other people in the community to discuss how they personally defined wellness. I stated that we need to climb in the numbers. I believe that we need to re-engineer these numbers. I spoke about a weak signal being the fact that with the increased costs of higher education that you may see a contraction in the UNC system as fewer people are able to enroll.
Steve Ivester spoke about the App State regional campus and his anxieties about the fact that this seems to not have taken hold. Danny stated that the local campus is up to 800 students and it is doing great. Harry stated that he doesn’t think it is education per se. He believes that the local issues that we face involve culture. We have the right business climate. The ancillary things related to culture and wellness are negatively impacting the area. How do we change the culture about opening up the welcome mat?
Ivester talked about the Hickory Small business Council and the fact that in many ways we don’t even realize that they exist. I interjected that they have not yet come up with their ideas that they want to put into the public arena. They are holding everything close to the vest until that happens. Alan will participate in anything outside of that entity and is willing to grab ideas.`
Danny talked about the Economic Development opportunities surrounding the Manufacturing Solutions Center and the Practice Nursing Facility and opportunities involving the housing of these students and fulfilling their living needs. Terry mentioned in Savannah, Georgia they are utilizing hotels for dorm space and it is uplifting these areas.
We also talked about the possibilities of teleconferencing in the future. We also talked about the formation and flow of topics under the Linked In site.
We came to a conclusion that we need to incorporate more people into the group. We also have chosen that we need to make it easier for people to participate. We definitely want to bring younger people and more cultural diversity in the group.
Kevin Spencer wanted to know what the focus of the group is. Are we trying to completely remake ourselves or are we looking to remarket what we have? Harry stated that we are talking about and/both. I stated that we have a trade war going on in this world. Kevin interjected that part of that is coming back and he added some of the successes that he has had in placing these companies. I added that we do need to look at the issue of fair trade and we should not completely dismiss manufacturing and some people think we should get completely away from manufacturing. I am not saying that we have mandated that. Kevin interjected that that seems to be the consensus that manufacturing has brought us to this point. Manufacturing has killed us.
I added that I don’t think that it is healthy, when I look at what Jim Rice said back in the 1970s, he said we needed to diversify the area and we never did. We lucked into the cable and it took up the place of the hosiery and stuff that was leaving and it took up some of that capacity in the 1990s, but as soon as that left, it left this big canyon that we have to fill here. We have got to have communication with our leaders in the State and federal government that it is more than just talking points. We need to fight to bring fair trade and manufacturing back to the united states and we will benefit from that.
Harry responded to the issue of both/and. We need to get people to look at Hickory, like we are doing with this portal website. We must do that and we cannot fail to do that, but that is not enough. We have good business fundamentals. But, sometimes we shoot our foot with some things. In a diverse world we are not going to have everything in common with our neighbors . We have got to say that if you want to bring something a little different that we are open to that within certain rules.
Dan St. Louis added that he is getting tons of inquiries from businesses around the world that want to relocate here. He can’t keep up with them. We are starting to build something and we do need to market ourselves better. We don’t want to give up what we’ve got. We aren’t as bad off as we think we are.
Danny finished by stating that he is trying to make stuff happen, because we lack visionary leaders with the government. Is it the Chamber’s responsibility to do this? There is nobody doing this and that is frustrating. There is no sense of urgency here to fix anything. We have hit rock bottom and we couldn’t go any further down. We have to keep the faith and make sure that we stay together and broaden the group. We lost Facebook, not because of our quality of life, but because we are a tier 2 and not a tier 1 (Economic Develop Incentives with the State of North Carolina).
I asked again that e form a mission statement to take to the public. Some simple message that we can give to the public about what we are all about. Danny added that he can’t understand why the top Business Executives won’t participate in this group.
Harry added that we are looking at two separate things business and area. We are talking about the Future Economy Council of Catawba County. We are thinking about Catawba County. The younger people he has spoken to don’t give a hoot about Catawba County. They are more interested in their work and lifestyle than they are about Catawba County. We have to make our area more amiable to these people, because businesses can locate (and operate) anywhere. The ancillary things need to come together and they are up to the standard that people want to have.
Ron Valentini added that when you are putting information out there to get input from the citizenry, what is even more important is whoever is receiving that information, are they open to something they don’t believe in, but yet they are receptive? I think that is important. If a person is willing to make themselves vulnerable, open and receptive to… that might work, as opposed to being closed minded. Terry added that economics have opened people’s minds and government is now having to work together to provide services. The climate has changed.
Tuesday, February 15, 2011
Monday, November 8, 2010
Future Economy Council Meeting #19 - (November 3, 2010)

Terry opened the meeting by pointing to the above map and speaking about the storm that occurred the week before. No one was taken to the hospital as a result of this storm. The red dots are results where property was damaged. The red dots show the path that the storm took. There were tractor trailors that were fully loaded and were turned over and pushed 1,000 feet.
Danny addressed the group and spoke of a trip that he took with Dr. Garrett Hinshaw of CVCC to St. Petersburg, Florida to meet with Collaborative Labs at St. Petersburg College. An event will be held in January associated with the Collaborative lab staff.
On November 10, 2010, an event focusing on innovation will be held at CVCC. Partnership for Innovation in Education (PIE) is sponsoring a showcase of business innovation and creativity called “Innovation 2010: Business Resources for Success.” The half-day seminar is from 7:30 a.m. until 2:30 p.m. at Catawba Valley Community College’s Multipurpose Complex. CVCC is a member of the PIE partnership.
Danny then addressed the Brainstorming sessions that have taken place so far in association with the Chamber of Commerce and The Entrepreneurial Roundtable Group. He also addressed the issue of the Portal Website being established by Houston Harris and Pixelspace. We should see what it will look like at the beginning of the year. He also spoke about the new exposition starting at the beginning of the year called Schmoozapalooza. This will take place twice per year. It will be a fun event. The annual chamber meeting in February will identify and recognize the most creative and innovative companies in Catawba County. He needs help in identifying these companies. These companies have a story in association with their uniqueness and he wants these stories to be told. This will be a positive event for the area.
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Dewey Harris Presentation on Mobile Governance:
Over the last few years you, who know me, have been made privy to my frustrations detailing the lack of a relationship between government and the citizenry. I have expressed the anxieties I feel I have witnessed in the association between a government operating in favor of special interests and lacking forthrightness and an unengaged, ambivalent public looking for short answers and simple solutions.
Rick Smyre introduced the subject of Mobile Governance to the Future Economy Council and myself in late May and Early June of 2009. He wrote a detailed article entailing the meaning of Mobile Governance, which I introduced on the Hickory Hound at that time -THE WEAK SIGNAL OF MOBILE GOVERNANCE by Rick Smyre.
Dewey Harris, the Assistant Catawba County Manager and a member of the Future economy Council gave a thorough presentation and discussion of the progress that has taken place over this issue during the last 18 months. Dewey has worked in association with Rick and there is hope that UNC-Wilmington and other institutions will come on board to institute this process and program. Pilot Programs will be established to initially stake a flag into some key complex issues where local governments might have trouble communicating with the public and implementing important tasks and processes, because of the lack of trust that has become rooted in our current system of governance.
Here is Dewey's presentation made on November 3, 2010:
Here is a favorite quote of mine from Catawba County Chamber of Commerce President Danny Hearn espoused on June 18, 2009, which makes a statement about what the Future Economy Council is trying to achieve and its relation to the governance issue.
When people say, "who is the beneficiary?" I can't go to someone and say give me $10,000 and you will get this in return. This is not that investment. We are selling the invisible. If we continue to take this economy in the direction that we have always taken it, we aren't going to get anywhere. The Economy has totally changed. What we had prior to 2000 is gone. We have to reinvent ourselves. If we don't do that, then we are in big trouble. It is the thinking of elected officials, business, and education of changing the way we do things and that investment can't be shown. The community better embrace it and understand it.
We can't even get our local officials to read a document about Mobile Governance that Rick wrote. There are (forward thinking) investment ideas out there, that no current elected official will look at, but people who are prone to understand this and reach outside of their comfort level and try to embrace it, all of a sudden, an idea that a traditional thinker will not do, we might. Those ideas are achievable.
Tuesday, September 21, 2010
Future Economy Council Meeting #18 - (September 16, 2010)
A Conversation about Conover Station and Economic Development
Conover Station -- An Economic Development and Multi-Modal Transportation facility.
Donald Duncan is the City Manager of Conover. Danny Hearn stated that (the Chamber) wants to bring us creative economic development, entrepreneurial driven projects that can give us some optimism and some positive news to look forward to. This project, that is being presented, is something that Conover has been working on for several years.
Don stated that this is a very large project that they have been working on for five years. At that time, when Don took the city manager job, they had no idea what they would do with the Broyhill building. Today they have $5.7 million in grants that are dedicated to this project. Last week they presented to the North Carolina Green conference.
Currently the Conover site is the lead project for the North Carolina Brownfield’s projects. He stated that none of this was planned and this has been hard work. They have had more failures than successes, but they have turned the failures into assets. The goal has been to turn every liability into an asset, into cash assets, increase property values, or turn properties into something no one ever thought they could be.
Don showed a 3-D rendering of a project that was designed by the 1996 Atlanta Olympic committee. This sketch up concept cost tens of millions of dollars. This Olympic Committee was represented by many members who were not technologically savvy. The average age of these individuals was 55 years old. This was a crude walk-through of what the Olympics stadium would look like when it was finished. The members of this Olympic Committee were in awe of what they saw from that crude 3-D rendering.
People could never visualize large scale developments such as this on paper. These types of Visual Media (3-D Renderings) help to sell things. This shows what they have done with the properties associated with the Broyhill property. This had such an effect on people that Don had to calm the people down, because they were so excited by the prospects of what could be done with this property. The problem is that sometimes the media is the message and you have to be careful with that. Sometimes people don't realize what they're buying into.
What they started out what with was a 27 acre site that backs up to Conover's downtown. The site has a footprint of approximately 400,000 sq. ft. Most of these properties come from the early part of the 20th century. It was cobbled together. There were 650,000 sq ft of total building beyond that footprint. There were stone foundations and multiple floors. These buildings were uniquely put together utilizing technology from the early part of the 20th century.
Don stated that Broyhill was a good environmental steward and the sites were very clean. There were buried tanks in the ground that were removed in the early 1980s when the EPA wanted this taken care of. There is some ground contamination and they are currently handling that with a $200,000 cleanup grant from the EPA. They're using new innovative technologies to attempt to remedy this and to remove any of the ecological problems on the site.
The site has a creek that is bisecting the middle of it. 20 years ago they would have covered it up and put a plant on it. They are going to utilize the creek as a water feature and they will utilize the property for storm water. The storm water basin will be used for the downtown area and encompasses 70 acres. This is a liability that has been turned into an asset. The city will own the storm water treatment facility and this allows the full use of all of the property. Tax dollars will maintain this. This would have been wasted land, but instead it will be utilized as a park. There will be walking trails and a passive park. This will be a 3 1/2 to 4 acre park.
The whole site will be integrated into the neighborhood that surrounds it. Modern construction and modern development techniques and standards will be utilized to bring together this site, the neighborhood that surrounds it, the industrial area across Highway 16, and downtown Conover.
What do you do with 1800 feet of railroad? There is a lot of railroad infrastructure located at the site. There used to be a parallel track located on the side. There is a switch where you cross Highway 16 and there is a WPA bridge on the south side of the property, which is architecturally significant.
The Western Piedmont Passenger Rail Committee supports passenger rail and the possibility of bringing it back to the area. Hickory has sold its depot and there is no designated spot located in the Catawba County area. Conover has worked in conjunction with this group to put together a plan to present to the State Department of Transportation. This led to Conover being designated as a stop on the Western North Carolina rail line. Catawba County is the most populated area in the western North Carolina area besides Mecklenburg County. The Department of Transportation is fully supportive of this idea.
Nothing has been done that is antagonistic towards any other community in this area. Work still needs to be done in conjunction with the owners of the railroad. This is not something that will be done overnight. No one knows when the rail could possibly come into existence. There is the possibility that this could come into existence in the next 10 years, because of the stimulus money that has been spent to enhance rail options in the state of North Carolina. Asheville is the number one requested stop in North Carolina by tourists in studies done by Amtrak.
The largest military concentration in the world is located in southeastern North Carolina. The military needs to be able to get goods and military personnel in and out of that area. Every dollar they get spent in western North Carolina will be spent in eastern North Carolina. The goal is to make the ports stronger and have a more expeditious way to move people and equipment in and out of North Carolina. Gov. Perdue is completely behind us.
Stimulus money says that all of this has to be engineered and studies have to be done before the high speed rail is finished. Environmental work is being done on both the eastern and western side of North Carolina. If money is available this will entail 5 to 6 years of time for construction. You're looking at a minimum of 7 to 8 years for this to occur. The state legislature has passed laws to help facilitate development of properties along the rail lines. The railroads are required to respond to any development proposals within 90 days of their submission and this is required by law. If they do not ,then you are allowed to do what you need to do on the property in question as long as you are not inhibiting rail traffic.
I (Thom Shell) asked if this was all existing track that needs to be reconditioned? Don answered yes. This must be upgraded for higher speeds. Freight will run at 50 to 55 mph. Passenger rail will run in the 70 mph range. On the western side of Conover freight will run at 35 mph, while passenger rail will run at around 55 mph. There are topographical issues that prevent high speed rail. Past the Old Fort (NC) area you can only go 15 to 20 mph.
I asked if this was a passenger and industrial link or the western side or just an industrial link? Don stated that this was mainly meant for freight rail. The idea is to have two or three passenger trains available per day for this proposed rail service line. They do not want passenger trains interrupting freight rail. This is looked at as an expensive proposition, but with a cost of $150 million, the cost is less than $1 million per mile. This compares favorably with development of projects on the highways and interstates that cost 10+ times that amount.
Jay Adams pointed out interstates carry a lot more people. Don stated that there are commuter possibilities between Old Fort and Salisbury. From Conover to Raleigh you could be in Raleigh and 3 to 3 1/2 hours. Jay pointed out that this could be a good tool for businesses located on the western side of the state. We want to have our (Industrial) plants dispersed. The rail corridor is a great way to move people and materials between facilities. Don pointed out that there has not been much investment in the rail system since World War II. We have gone from the greatest rail system in the world to the worst rail system in the world in a period of about 30 years.
I asked if there was a vision of this possibly becoming a commuter line in the near future? Don stated that he didn't believe that there was a possibility in the near future. Not until the passenger line is completely reinstituted. In the long-term this might happen. This will not be possible for short trips, but this is a possibility to Raleigh or Marion or Old Fort.
I asked if there was any possibility that there could be a direct connector to Charlotte? Don stated that that is the question that is most often asked. He pointed out that there are existing lines that run through Maiden and there are lines existing in Gaston County to Belmont and into Lincoln County. These lines have been abandoned and property owners have been uncooperative. The Carolina Thread Trail is looking to procure this right of way. He does believe that this is a key. He stated that he does hope that this will happen. He stated that the State has not put enough money into this and Norfolk- Southern has abandoned the tracks.
I asked if the key contingency was the price of fuel? He stated yes. This is the major factor. When we see $4 a gallon people will be screaming for more rail. Rail is just one component of the Conover (Broyhill) site.
Don showed pictures of the main existing infrastructure on the site, this especially includes the Warlong building, which was built at the beginning of the 20th century. This was the most sound building on the site. There is a lot of history to this building. Don went into the specific architecture of this building.
When viewing and discussing the techniques of how these buildings were originally built, Houston Harris asked if we have lost the ingenuity to just make things happen?
Don showed many features of the site, which includes a walkway with a pedestrian bridge and this is dead even with the track and leads to a rail platform. He does not know when this will be done, because the state will build all of these at one time. Money has been designated by the state for this.
Over $2 million will go into the process of renovating the Warlong building. One-third of this building will be utilized as a waiting area for future passenger rail. This building will also have a section devoted as a library. This will be one of the nicest libraries in Catawba County. Another part of this building will be devoted to the transit authority of the area. That is what makes this building a multi-modal facility. People need a way to get around when they get off of the train. This will be a fixed route bus system. There will also be a community facility in the building. This can be utilized for conferences, receptions or other public needs. The community room expands into a patio area.
The Manufacturing Solutions Center hopes to eventually be located at this site. Those developments are still open ended because of funding issues that are currently being addressed. Don stated that they don't want to promise something that they are not going to be able to deliver. The idea of a partnership between the city of Conover, CVCC, and the Manufacturing Solutions Center is to get the facility (MSC) out of the educational environment and make businesses realize that the focus is on business. They want to do things at the speed of business to help business. There is an advantage with the library for research issues and this is proposed to be associated with N.C. State University. The community center can also be used as a conference facility for purposes related to the Manufacturing Solutions Center.
There is also a residential aspect to this community. But, under current circumstances the market is flooded and currently this is only a fallback plan. What he is trying to accomplish is a more viable downtown. People say that Wal-Mart killed downtown, but Don stated that he believes the interstate system killed downtown. The idea is for this to be a development where people can take a 10 minute walk and go utilize multiple services. They are just trying to get back to what existed 100 years ago.
Jay Adams pointed out the great product that Conover has to offer. He talked about the terrific assets and a community that is optimizing those assets; and he complemented Conover on taking the negatives and turning them into positives. He stated that in his business that this type of mindset creates enthusiasm on both sides of the equation.
There will be a new website which will be launched next month. Michael Neely is the developer of this site. Don basically stated that there is no idea that they have not listened to and no possibility that they have dismissed. They are willing to listen to any and everyone about anything that is proposed.
I asked about what appears to be loose reigns and I stated that it appears that they have not been micromanaged. What created this environment in Conover? Don stated that there is a lot of give and take and it takes a lot of vision and a lot of different personalities have to get along. The city's team has had to learn to understand the needs of one another. There has been a lot of changeover on the Conover City Council. He stated that this was neither good nor bad, but the previous Council did not want to put the money into what it would take to be a developer. They did not want this development to be a drag on the town. The present council wants this development to be a gift to the city and a help to the city.
The political connotation of this development is that if it fails everyone attached to its neck is in the noose. Many people (governments) don't want to take that sort of risk. There has already been a changeover on Conover City Council, not all of it related to this issue, but maybe some of it. This could lead to more turnover if it were to fail. Many average citizens do not understand the site.
The city has not hired professional PR people to promote this site and its development. Don has taken it upon himself to go personally address small groups to bring them into the loop on this issue. The average citizen cares mostly that taxes are kept low and the city delivers services that are expected to be provided smoothly and efficiently. Other than services, this is the number one priority of the city of Conover. As long as those services are running smoothly and efficiently this is the number one focus.
Patti Thompson stated that she had to admit that she had never heard about this until she attended a graduation presentation in which it was addressed. She stated that she was excited about this project, but she thought it was a mall and she really didn’t understand what the entire project encompassed, it is still somewhat of an intangible.
Jay stated that the real activity will come when you interface with the development community. They will create the housing, office buildings, and retail. They are excited when that they see things such as this. It is about making the connection. Don asked, “How many communities are willing to take on this type of liability?” As a municipality, Conover has had a lot of leverage with regulatory agencies. This has helped a lot. Regulatory agencies are used to dealing with private developers and not with public entities.
I stated that economic development does not happen in the past or present, it happens in the future. Don said he disagreed. It starts today. You will not see the fruit of the labor until 5 or 10 years later. He talked about the Apple development. He said that it took Duke Power damming the river and the loss of industry in order to have the excess energy capacity available that is needed for this facility. So it took 100 years for the circumstances to be right for this development take place. He talked about the IBT (Inter-Basin Transfer). This is not the huge deal today, that it will be in the future.
Most governments will not take the risk that is necessary for this sort of development. He joked that this was kamikaze approach. Don stated that it is a necessity not to overstate what they are doing with this site.
Kevin Spencer talked about the hurdles that Conover has had to jump. He pontificated about, “…can you imagine if an independent entity were to try and do something like this, not a city.” Jay stated that Don has plowed a garden to create economic development. Kevin stated that an individual would not be able to do this. A business would not be able take on this kind of risk. Jay stated that businesses appreciate when they see this. Kevin said we have got to overcome that and stated that there is not another community in this area that would be willing to do this. Businesses will say it ain’t worth it. Jay laughed and stated that his attitude was, “Let’s go to Conover.”
The success of Conover will force other communities to take a look at what Conover is doing. Don asked that we not compare Conover to their contemporaries. He stated that government's responsibility is to take the obstacles out of the equation. That is what government is for. Don stated that you can have all the vision in the world, but if you don't take action then it is nothing but a dream.
Conover Station -- An Economic Development and Multi-Modal Transportation facility.
Donald Duncan is the City Manager of Conover. Danny Hearn stated that (the Chamber) wants to bring us creative economic development, entrepreneurial driven projects that can give us some optimism and some positive news to look forward to. This project, that is being presented, is something that Conover has been working on for several years.
Don stated that this is a very large project that they have been working on for five years. At that time, when Don took the city manager job, they had no idea what they would do with the Broyhill building. Today they have $5.7 million in grants that are dedicated to this project. Last week they presented to the North Carolina Green conference.
Currently the Conover site is the lead project for the North Carolina Brownfield’s projects. He stated that none of this was planned and this has been hard work. They have had more failures than successes, but they have turned the failures into assets. The goal has been to turn every liability into an asset, into cash assets, increase property values, or turn properties into something no one ever thought they could be.
Don showed a 3-D rendering of a project that was designed by the 1996 Atlanta Olympic committee. This sketch up concept cost tens of millions of dollars. This Olympic Committee was represented by many members who were not technologically savvy. The average age of these individuals was 55 years old. This was a crude walk-through of what the Olympics stadium would look like when it was finished. The members of this Olympic Committee were in awe of what they saw from that crude 3-D rendering.
People could never visualize large scale developments such as this on paper. These types of Visual Media (3-D Renderings) help to sell things. This shows what they have done with the properties associated with the Broyhill property. This had such an effect on people that Don had to calm the people down, because they were so excited by the prospects of what could be done with this property. The problem is that sometimes the media is the message and you have to be careful with that. Sometimes people don't realize what they're buying into.
What they started out what with was a 27 acre site that backs up to Conover's downtown. The site has a footprint of approximately 400,000 sq. ft. Most of these properties come from the early part of the 20th century. It was cobbled together. There were 650,000 sq ft of total building beyond that footprint. There were stone foundations and multiple floors. These buildings were uniquely put together utilizing technology from the early part of the 20th century.
Don stated that Broyhill was a good environmental steward and the sites were very clean. There were buried tanks in the ground that were removed in the early 1980s when the EPA wanted this taken care of. There is some ground contamination and they are currently handling that with a $200,000 cleanup grant from the EPA. They're using new innovative technologies to attempt to remedy this and to remove any of the ecological problems on the site.
The site has a creek that is bisecting the middle of it. 20 years ago they would have covered it up and put a plant on it. They are going to utilize the creek as a water feature and they will utilize the property for storm water. The storm water basin will be used for the downtown area and encompasses 70 acres. This is a liability that has been turned into an asset. The city will own the storm water treatment facility and this allows the full use of all of the property. Tax dollars will maintain this. This would have been wasted land, but instead it will be utilized as a park. There will be walking trails and a passive park. This will be a 3 1/2 to 4 acre park.
The whole site will be integrated into the neighborhood that surrounds it. Modern construction and modern development techniques and standards will be utilized to bring together this site, the neighborhood that surrounds it, the industrial area across Highway 16, and downtown Conover.
What do you do with 1800 feet of railroad? There is a lot of railroad infrastructure located at the site. There used to be a parallel track located on the side. There is a switch where you cross Highway 16 and there is a WPA bridge on the south side of the property, which is architecturally significant.
The Western Piedmont Passenger Rail Committee supports passenger rail and the possibility of bringing it back to the area. Hickory has sold its depot and there is no designated spot located in the Catawba County area. Conover has worked in conjunction with this group to put together a plan to present to the State Department of Transportation. This led to Conover being designated as a stop on the Western North Carolina rail line. Catawba County is the most populated area in the western North Carolina area besides Mecklenburg County. The Department of Transportation is fully supportive of this idea.
Nothing has been done that is antagonistic towards any other community in this area. Work still needs to be done in conjunction with the owners of the railroad. This is not something that will be done overnight. No one knows when the rail could possibly come into existence. There is the possibility that this could come into existence in the next 10 years, because of the stimulus money that has been spent to enhance rail options in the state of North Carolina. Asheville is the number one requested stop in North Carolina by tourists in studies done by Amtrak.
The largest military concentration in the world is located in southeastern North Carolina. The military needs to be able to get goods and military personnel in and out of that area. Every dollar they get spent in western North Carolina will be spent in eastern North Carolina. The goal is to make the ports stronger and have a more expeditious way to move people and equipment in and out of North Carolina. Gov. Perdue is completely behind us.
Stimulus money says that all of this has to be engineered and studies have to be done before the high speed rail is finished. Environmental work is being done on both the eastern and western side of North Carolina. If money is available this will entail 5 to 6 years of time for construction. You're looking at a minimum of 7 to 8 years for this to occur. The state legislature has passed laws to help facilitate development of properties along the rail lines. The railroads are required to respond to any development proposals within 90 days of their submission and this is required by law. If they do not ,then you are allowed to do what you need to do on the property in question as long as you are not inhibiting rail traffic.
I (Thom Shell) asked if this was all existing track that needs to be reconditioned? Don answered yes. This must be upgraded for higher speeds. Freight will run at 50 to 55 mph. Passenger rail will run in the 70 mph range. On the western side of Conover freight will run at 35 mph, while passenger rail will run at around 55 mph. There are topographical issues that prevent high speed rail. Past the Old Fort (NC) area you can only go 15 to 20 mph.
I asked if this was a passenger and industrial link or the western side or just an industrial link? Don stated that this was mainly meant for freight rail. The idea is to have two or three passenger trains available per day for this proposed rail service line. They do not want passenger trains interrupting freight rail. This is looked at as an expensive proposition, but with a cost of $150 million, the cost is less than $1 million per mile. This compares favorably with development of projects on the highways and interstates that cost 10+ times that amount.
Jay Adams pointed out interstates carry a lot more people. Don stated that there are commuter possibilities between Old Fort and Salisbury. From Conover to Raleigh you could be in Raleigh and 3 to 3 1/2 hours. Jay pointed out that this could be a good tool for businesses located on the western side of the state. We want to have our (Industrial) plants dispersed. The rail corridor is a great way to move people and materials between facilities. Don pointed out that there has not been much investment in the rail system since World War II. We have gone from the greatest rail system in the world to the worst rail system in the world in a period of about 30 years.
I asked if there was a vision of this possibly becoming a commuter line in the near future? Don stated that he didn't believe that there was a possibility in the near future. Not until the passenger line is completely reinstituted. In the long-term this might happen. This will not be possible for short trips, but this is a possibility to Raleigh or Marion or Old Fort.
I asked if there was any possibility that there could be a direct connector to Charlotte? Don stated that that is the question that is most often asked. He pointed out that there are existing lines that run through Maiden and there are lines existing in Gaston County to Belmont and into Lincoln County. These lines have been abandoned and property owners have been uncooperative. The Carolina Thread Trail is looking to procure this right of way. He does believe that this is a key. He stated that he does hope that this will happen. He stated that the State has not put enough money into this and Norfolk- Southern has abandoned the tracks.
I asked if the key contingency was the price of fuel? He stated yes. This is the major factor. When we see $4 a gallon people will be screaming for more rail. Rail is just one component of the Conover (Broyhill) site.
Don showed pictures of the main existing infrastructure on the site, this especially includes the Warlong building, which was built at the beginning of the 20th century. This was the most sound building on the site. There is a lot of history to this building. Don went into the specific architecture of this building.
When viewing and discussing the techniques of how these buildings were originally built, Houston Harris asked if we have lost the ingenuity to just make things happen?
Don showed many features of the site, which includes a walkway with a pedestrian bridge and this is dead even with the track and leads to a rail platform. He does not know when this will be done, because the state will build all of these at one time. Money has been designated by the state for this.
Over $2 million will go into the process of renovating the Warlong building. One-third of this building will be utilized as a waiting area for future passenger rail. This building will also have a section devoted as a library. This will be one of the nicest libraries in Catawba County. Another part of this building will be devoted to the transit authority of the area. That is what makes this building a multi-modal facility. People need a way to get around when they get off of the train. This will be a fixed route bus system. There will also be a community facility in the building. This can be utilized for conferences, receptions or other public needs. The community room expands into a patio area.
The Manufacturing Solutions Center hopes to eventually be located at this site. Those developments are still open ended because of funding issues that are currently being addressed. Don stated that they don't want to promise something that they are not going to be able to deliver. The idea of a partnership between the city of Conover, CVCC, and the Manufacturing Solutions Center is to get the facility (MSC) out of the educational environment and make businesses realize that the focus is on business. They want to do things at the speed of business to help business. There is an advantage with the library for research issues and this is proposed to be associated with N.C. State University. The community center can also be used as a conference facility for purposes related to the Manufacturing Solutions Center.
There is also a residential aspect to this community. But, under current circumstances the market is flooded and currently this is only a fallback plan. What he is trying to accomplish is a more viable downtown. People say that Wal-Mart killed downtown, but Don stated that he believes the interstate system killed downtown. The idea is for this to be a development where people can take a 10 minute walk and go utilize multiple services. They are just trying to get back to what existed 100 years ago.
Jay Adams pointed out the great product that Conover has to offer. He talked about the terrific assets and a community that is optimizing those assets; and he complemented Conover on taking the negatives and turning them into positives. He stated that in his business that this type of mindset creates enthusiasm on both sides of the equation.
There will be a new website which will be launched next month. Michael Neely is the developer of this site. Don basically stated that there is no idea that they have not listened to and no possibility that they have dismissed. They are willing to listen to any and everyone about anything that is proposed.
I asked about what appears to be loose reigns and I stated that it appears that they have not been micromanaged. What created this environment in Conover? Don stated that there is a lot of give and take and it takes a lot of vision and a lot of different personalities have to get along. The city's team has had to learn to understand the needs of one another. There has been a lot of changeover on the Conover City Council. He stated that this was neither good nor bad, but the previous Council did not want to put the money into what it would take to be a developer. They did not want this development to be a drag on the town. The present council wants this development to be a gift to the city and a help to the city.
The political connotation of this development is that if it fails everyone attached to its neck is in the noose. Many people (governments) don't want to take that sort of risk. There has already been a changeover on Conover City Council, not all of it related to this issue, but maybe some of it. This could lead to more turnover if it were to fail. Many average citizens do not understand the site.
The city has not hired professional PR people to promote this site and its development. Don has taken it upon himself to go personally address small groups to bring them into the loop on this issue. The average citizen cares mostly that taxes are kept low and the city delivers services that are expected to be provided smoothly and efficiently. Other than services, this is the number one priority of the city of Conover. As long as those services are running smoothly and efficiently this is the number one focus.
Patti Thompson stated that she had to admit that she had never heard about this until she attended a graduation presentation in which it was addressed. She stated that she was excited about this project, but she thought it was a mall and she really didn’t understand what the entire project encompassed, it is still somewhat of an intangible.
Jay stated that the real activity will come when you interface with the development community. They will create the housing, office buildings, and retail. They are excited when that they see things such as this. It is about making the connection. Don asked, “How many communities are willing to take on this type of liability?” As a municipality, Conover has had a lot of leverage with regulatory agencies. This has helped a lot. Regulatory agencies are used to dealing with private developers and not with public entities.
I stated that economic development does not happen in the past or present, it happens in the future. Don said he disagreed. It starts today. You will not see the fruit of the labor until 5 or 10 years later. He talked about the Apple development. He said that it took Duke Power damming the river and the loss of industry in order to have the excess energy capacity available that is needed for this facility. So it took 100 years for the circumstances to be right for this development take place. He talked about the IBT (Inter-Basin Transfer). This is not the huge deal today, that it will be in the future.
Most governments will not take the risk that is necessary for this sort of development. He joked that this was kamikaze approach. Don stated that it is a necessity not to overstate what they are doing with this site.
Kevin Spencer talked about the hurdles that Conover has had to jump. He pontificated about, “…can you imagine if an independent entity were to try and do something like this, not a city.” Jay stated that Don has plowed a garden to create economic development. Kevin stated that an individual would not be able to do this. A business would not be able take on this kind of risk. Jay stated that businesses appreciate when they see this. Kevin said we have got to overcome that and stated that there is not another community in this area that would be willing to do this. Businesses will say it ain’t worth it. Jay laughed and stated that his attitude was, “Let’s go to Conover.”
The success of Conover will force other communities to take a look at what Conover is doing. Don asked that we not compare Conover to their contemporaries. He stated that government's responsibility is to take the obstacles out of the equation. That is what government is for. Don stated that you can have all the vision in the world, but if you don't take action then it is nothing but a dream.
Friday, August 20, 2010
Future Economy Council Meeting #17 - (August 20, 2010)
Future Economy Council Business address - Danny Hearn spoke about the fact that someone will help to submit a grant to the Golden Leaf Foundation in hopes of developing an Entrepreneur Center such as the one in Dublin, Ohio. Tom Shays will help with this. Dr. Jane Everson addressed the mini Emerging-Issues forum that will take place as a one day event on November 10, 2010 (7:30am-2:30pm).
Danny and Scott Millar (and there counterparts in Alexander, Burke, Caldwell, and Watauga counties) helped to develop an agenda that has a lot of input from both business and industry. There will be a showcase of 16 businesses that have done something innovative in partnership with one of our local Higher Educational Institutions. Andrew Hargadon will be a keynote speaker. He is a business professor dealing in innovation from the University of California at Davis. Registration will begin on September 1, 2010 - the registration is limited to 400 people.
Lenoir-Rhyne will hold a creativity forum on September 8, 2010 at 7:00pm involving Creative Communities at Work Transforming Local and Regional Economies.
VisionAire Aviation Presentation (The VisionAire Vantage - Aerospace Industry beginning a future in Catawba County). The inset link is a more detailed full length article I authored after previously meeting with the VisionAire team at their office for three hours. I hope that you will read it. In my opinion, this aircraft is a golden opportunity to move our community towards innovative technology. This would be a significant step towards our desire to brand this area as a community of ingenuity and innovation. The initiation of the design and manufacturing processes would bring instantaneous scientific notoriety to the area. We would definitely be taken seriously as a community on the move towards the cutting edge of future technologies.
Mr. Jim Rice and Mr. David Okenfuss gave a 30 minute presentation. This presentation was a pared down version of what you will have read in the article above. After the presentation, Mr. Rice took questions from the group.
Patty Thompson asked about the FCC's certification? Jim addressed the steps involved to obtain FAA Certification. Involving building aircraft and having them tested and broken down. Steve Ivester asked about the past failures of the company including the Ames, Iowa plant, a wing-drop issue, and a landing gear issue? Paraphrasing, Ivester asked why now, why should this be expected to work now? I hope that you will listen to Mr. Rice's full detailed explanation of these issues.
Mr. Rice addressed how the aircraft's structural issues were dealt with and resolved.
He then spoke of the timing of Investments. This all occurred during the fluctuations of the High Tech Bubble Economy. Many of investors dried up during this period, because they had lost liquidity due to their losses involving the dot.com bubble. The company had to take alternative measures to procure capital, which they were doing during 2001. He tells a personal story about what happened on September 11, 2001, as he was in a conference room and the Airliners flew into the World Trade Center. Not one investor has ever sued over their investments.
He addressed the bankruptcy that the company was forced into. Tom Shays asked about whether the company was still privately held? Mr. Rice stated that he was currently the only shareholder and asked about the 30 month build cycle? Mr. Rice addressed how the intellectual property would and needed to be secured. He spoke of his vision about the trauches of capital that would be guaranteed at certain milestones. He states that this was a mistake he learned the last time. It is just too hard to obtain capital as the process goes along.
Eco-Complex presentation by Jacky Eubanks the Catawba County (North Carolina)Planning Director.
Jackie addressed the future vision of the 321 corridor and the role that it will play in the culture of our local area. He mentioned the successful milestones reached thus far entailing Lincoln County's industrial park, Google, Apple, Appalachian State, and the Eco-Complex.
He talked about past initiatives over the last couple of decades. He talked about how the challenges of these plans and recommendation is that we need to dig a little deeper. Try to take these initiatives and put measurable guidelines and timelines that will enable the community to be more business friendly. He spoke in-depth about the infrastructure needs that will be designed and developed.
Jacky spoke of the need for mixed-use development to reduce sprawl. Opportunity sites will require flexibility and more choices. He spoke of how the government is working to help preserve farmland. The transportation needs and design that will help with Industrial development. He went into the development of an interchange at Rocky Ford Road. To gain a secondary outlet that will help move traffic around the Eco-Complex more efficiently.
Jacky spoke about the challenges of the municipalities in delivering infrastructure and trying to develop aggreements that will prevent overlapping and the ensure that jurisdictions are working in Harmony.
Jacky next talked about the properties in the area that have cultural significance and the desire to promote travel and tourism to the area. He also talked about natural resources and the Carolina Thread Trail. He talked about the volunteer agricultural preservation program that has been developing. He spoke of the desire to develop these opportunities.
Maps were shown with nodes that will try to densify certain areas and reduce sprawl through Mixed-Use Development. The key is to have infrastructure in place to take advantage of future possibilities. He spoke of the synergies that are meant to take advantage the current positive trends and keep that momentum going. He next went into an overview of the Eco-Complex specifics and the green economy. He also briefly talked about Apple.
Eco-Complex Questions and Development
I (Thom Shell) asked about mixed-use development cooperation involving multiple entities. Steve Ivester asked about access roads and industrial development possibilities involving the 321 corridor.
Terry announced that the next meeting will take place on September 16, 2010. Danny announced the Health Forum at the SALT Block that will take place on September 1, 2010.
Danny and Scott Millar (and there counterparts in Alexander, Burke, Caldwell, and Watauga counties) helped to develop an agenda that has a lot of input from both business and industry. There will be a showcase of 16 businesses that have done something innovative in partnership with one of our local Higher Educational Institutions. Andrew Hargadon will be a keynote speaker. He is a business professor dealing in innovation from the University of California at Davis. Registration will begin on September 1, 2010 - the registration is limited to 400 people.
Lenoir-Rhyne will hold a creativity forum on September 8, 2010 at 7:00pm involving Creative Communities at Work Transforming Local and Regional Economies.
VisionAire Aviation Presentation (The VisionAire Vantage - Aerospace Industry beginning a future in Catawba County). The inset link is a more detailed full length article I authored after previously meeting with the VisionAire team at their office for three hours. I hope that you will read it. In my opinion, this aircraft is a golden opportunity to move our community towards innovative technology. This would be a significant step towards our desire to brand this area as a community of ingenuity and innovation. The initiation of the design and manufacturing processes would bring instantaneous scientific notoriety to the area. We would definitely be taken seriously as a community on the move towards the cutting edge of future technologies.
Mr. Jim Rice and Mr. David Okenfuss gave a 30 minute presentation. This presentation was a pared down version of what you will have read in the article above. After the presentation, Mr. Rice took questions from the group.
Patty Thompson asked about the FCC's certification? Jim addressed the steps involved to obtain FAA Certification. Involving building aircraft and having them tested and broken down. Steve Ivester asked about the past failures of the company including the Ames, Iowa plant, a wing-drop issue, and a landing gear issue? Paraphrasing, Ivester asked why now, why should this be expected to work now? I hope that you will listen to Mr. Rice's full detailed explanation of these issues.
Mr. Rice addressed how the aircraft's structural issues were dealt with and resolved.
He then spoke of the timing of Investments. This all occurred during the fluctuations of the High Tech Bubble Economy. Many of investors dried up during this period, because they had lost liquidity due to their losses involving the dot.com bubble. The company had to take alternative measures to procure capital, which they were doing during 2001. He tells a personal story about what happened on September 11, 2001, as he was in a conference room and the Airliners flew into the World Trade Center. Not one investor has ever sued over their investments.
He addressed the bankruptcy that the company was forced into. Tom Shays asked about whether the company was still privately held? Mr. Rice stated that he was currently the only shareholder and asked about the 30 month build cycle? Mr. Rice addressed how the intellectual property would and needed to be secured. He spoke of his vision about the trauches of capital that would be guaranteed at certain milestones. He states that this was a mistake he learned the last time. It is just too hard to obtain capital as the process goes along.
Eco-Complex presentation by Jacky Eubanks the Catawba County (North Carolina)Planning Director.
Jackie addressed the future vision of the 321 corridor and the role that it will play in the culture of our local area. He mentioned the successful milestones reached thus far entailing Lincoln County's industrial park, Google, Apple, Appalachian State, and the Eco-Complex.
He talked about past initiatives over the last couple of decades. He talked about how the challenges of these plans and recommendation is that we need to dig a little deeper. Try to take these initiatives and put measurable guidelines and timelines that will enable the community to be more business friendly. He spoke in-depth about the infrastructure needs that will be designed and developed.
Jacky spoke of the need for mixed-use development to reduce sprawl. Opportunity sites will require flexibility and more choices. He spoke of how the government is working to help preserve farmland. The transportation needs and design that will help with Industrial development. He went into the development of an interchange at Rocky Ford Road. To gain a secondary outlet that will help move traffic around the Eco-Complex more efficiently.
Jacky spoke about the challenges of the municipalities in delivering infrastructure and trying to develop aggreements that will prevent overlapping and the ensure that jurisdictions are working in Harmony.
Jacky next talked about the properties in the area that have cultural significance and the desire to promote travel and tourism to the area. He also talked about natural resources and the Carolina Thread Trail. He talked about the volunteer agricultural preservation program that has been developing. He spoke of the desire to develop these opportunities.
Maps were shown with nodes that will try to densify certain areas and reduce sprawl through Mixed-Use Development. The key is to have infrastructure in place to take advantage of future possibilities. He spoke of the synergies that are meant to take advantage the current positive trends and keep that momentum going. He next went into an overview of the Eco-Complex specifics and the green economy. He also briefly talked about Apple.
Eco-Complex Questions and Development
I (Thom Shell) asked about mixed-use development cooperation involving multiple entities. Steve Ivester asked about access roads and industrial development possibilities involving the 321 corridor.
Terry announced that the next meeting will take place on September 16, 2010. Danny announced the Health Forum at the SALT Block that will take place on September 1, 2010.
Sunday, April 18, 2010
Future Economy Council Meeting #14 (4/15/2010)
NC Engineering Center - ©2010 Pat Appleson Studios, Inc. All Rights Reserved, Used By PermissionTerry Bledsoe opened the meeting by discussing the reasoning behind the creation of the Future Economy Council, what it is all about, and what collaborative efforts that have taken place in relation to other groups throughout the community. Terry introduced Dave as an Expert from outside of our community that would discuss ideas that have been talked about by the Future Economy Council.
Rick Smyre next spoke in introducing Dave Baldwin who he met at the World Future Society Conference several years ago. He stated that Dave is very involved in biotechnology and building networks around economic development. Dave is focused on taking diverse people with diverse ideas and understand that we are shifting from an age based on standard ideas, hierarchies, and predictability to a world of webs, networks, and multiple choices, as well as becoming comfortable with ambiguity and uncertainty.
Dave began by speaking about how Technology has given us the ability to connect with others instantly. Networking is not about collecting business cards. It is about relationships, intentions, and using the network. He stated that you have to have a context about network development. Why are you creating this network? He categorizes his business as a microenterprise. He states that that is where the economy is going to grow. He helped start a seven county biotech consortium in northeast Ohio. They are looking to attract a biotech workforce and preparing asset and attraction strategies to attract people who want to start biotech companies in Ohio.
Dave talked about his consultant relationship with Dublin, Ohio, which is on of the Seven Intelligent Communities of the World - (in 2010 those cities are as follows) - Arlington County, VA; Dublin, Ohio; Dundee, Scotland; Eindhoven, Netherlands; Ottawa, Ontario; Suwon, South Korea; Tallinn, Estonia. This is based on capacity and use of broadband. They want Dave to develop network connections in Dublin.
Communities bring Dave in to build, grow, and sustain networks. These communities are looking to extend connections between communities to resources that they never thought were necessary or available to them. These networks are brought in in the spirit of innovation and growth.
NEXT BIG ECONOMIC CHALLENGES AND OPPORTUNITIES
IT & Innovation Foundation in Washington, DC. There are industries that are gone and aren't going to come back. Our strategies for investing in these is not appropriate. This foundation has identified a new economy and they have created new indicators of prosperity and growth in dealing with where the economy and world are headed.
They state that the U.S. economy and, by extension, state economies, face at least five key challenges over the course of the next decade. How well they meet these challenges and turn them into opportunities largely will determine whether the national and state economies will be growing and robust in the next decade or stagnant:
* Achieve the promise of the digital revolution
* Ride the next wave of innovation
* Build on the transition to a low carbon economy
* Take advantage of the new globalization
* Build on more balanced regional growth
Overall, the report uses twenty-nine indicators, divided into five categories that best capture what is new about the New Economy:
* Knowledge Jobs
* Globalization
* Economic Dynamism
* Transformation to a Digital Economy
* Technological Innovation Capacity
Dave mentioned a company involved in this new economy that is centers around Biomimedics and Biomimicry.
Biomimicry - Biomimicry is the science and art of emulating Nature's best biological ideas to solve human problems. The Biomimicry Institute promotes learning from and then emulating natural forms, processes, and ecosystems to create more sustainable and healthier human technologies and designs.
20th Century Innovations - (From: 21st Century Innovations by Eugene S. Meieran, Senior Intel Fellow at Intel Corp in Chandler, AZ as they appeared in “Grand Challenges for Engineering” of the National Academy of Engineering)
Electrification, Automobile, Airplane, Water supply and distribution, Electronics, Radio and television, Agricultural mechanization, Computers, Telephone, Air conditioning/refrigeration, Interstate highways, Space flight, Internet Imaging, Household appliances, Health technologies, Petrochemical technology, Laser and fiber optics, Nuclear technologies, High-performance materials.
21st Century Innovations - (From: 21st Century Innovations by Eugene S. Meieran, Senior Intel Fellow at Intel Corp in Chandler, AZ as they appeared in “Grand Challenges for Engineering” of the National Academy of Engineering)
Energy conservation, Resource protection, Food and water productions and distribution, Waste management, Education and learning, Medicine and prolonging life, Security and counter-terrorism, New technology, Genetics and cloning, Global communication, Traffic and population logistics, Knowledge sharing, Integrated electronic environment, Globalization, AI-interfaces and robotics, Weather prediction and control, Sustainable development, Entertainment, Space exploration, Virtualization and VR, Preservation of history, Preservation of species.
*** Dave stated that the above issues pose challenges, but they also hold the key to growth, prosperity, and a lot of excitement. Are we chasing the past or investing in the future?
Ideas of a Smart World
(“Smart World: Breakthrough Creativity and the New Science of Ideas” by Richard Ogle. Harvard Business School Press 2007)
An idea space is a domain or world viewed from the perspective of the intelligence embedded in it, intelligence that we can use – consciously or not – both to solve our everyday problems and to make the creative leaps that lead to breakthrough. Creative leaps arise not from exclusively internal operations of the individual mind (genius or otherwise), but from navigating the ideas of the smart world we have built for ourselves; locating the powerful, structured forms of intelligence embedded in them; and analogically transferring these to new spaces.
*** Dave stated that A lot of ideas come from the world through "collective intelligence." Networks promote "speed of change" and an ability to share information and an accumulate and build on information that the world has come to know without having to think it or learn it all by ourselves.
Critical Community Conversations
In many communities, it’s hard to find any effective civic process. There are no places where people come together routinely to discuss issues of common concern, like building a new community center or improving our schools. As we move our communities and regions to the Second Curve economy, we will need more vibrant, flexible and focused civic processes. We will need new ways of coming together to explore complex issues. We will need new places where we can routinely convene to explore new opportunities. We will rely on trusted conveners to help us. We will need new networks, yet building these networks should not be haphazard.
In the command and control world of the First Curve, conversation is regarded largely as a distraction…First Curve leaders often think of conversation as “just talk”. On the Second Curve, conversation plays a much more central role. Through conversation, we make sense of what is happening. The complexity of the change defies easy understanding… We need to test our assumptions and make adjustments… We have no way to ask the world to slow down or stop while we engage in a deliberate and lengthy strategic planning process. (“New Models of Economic Development” White Paper Version 0.5 by Ed Morrison, Director of I-Open – The Institute for Open Economic Networks. May 2006)
***Dave stated that we have been doing this through the FEC. In the past we focused so much on productivity and efficiency. In the 21st century, we need to talk to one another and build our communities. Community and economic development have blended. We need to build relationships through networking. In the past conversation was viewed as a distraction.
Bridging Disparate Worlds
Technology brokers have discovered how to bridge the disparate worlds they move among outside their boundaries, and how to build new ventures from the technologies and people they come across. In the process, they have developed four intertwined work practices that help them do this:
1)Capturing good ideas
2)Keeping ideas alive
3)Imagining new uses for old ideas
4)Putting promising concepts to the test
***Dave talked about the disparate worlds that he is involved in and how he is educating himself about these different industries and how it makes him valuable to other entities, because of what he has to offer.
The 4 Laws of Networks
1) Luck = consciousness x transparency
2) Innovation = learning x diverse connections
3) Influence = credibility x location
4) Network growth = introductions x generosity
*** Dave stated that he and his colleague Jack Ricchiuto (Designing Life) are designing community development strategies and structures for participation. The old way was very cloistered and secretive, because of hyper-competition. Networking Science shows that it is best to collaborate, because there are many ways that we can collaborate without competing.
Effective Networks - Boards are becoming tired structures for organizational change. They don't involve the richness of the other parts of the network and don't respond fast enough to the changes in communities and organizations that we are seeing.
Five general patterns are observed in all effective networks:
1. Birds of a feather flock together - nodes link together because of common attributes, goals
or governance.
2. Diversity is important. Though clusters form around common attributes and goals, vibrant networks maintain connections to diverse nodes and clusters. A diversity of connections is required to maximize innovation in the network.
3. Rich Connections - Robust networks have several paths between any two nodes. If several nodes or links are damaged or removed, other pathways exist for uninterrupted information flow between the
remaining nodes.
4. Some nodes are more prominent than others – they are either hubs, brokers, or boundary spanners. They are critical to network health. Roles emerge because of position and personality.
5. Most nodes in the network are connected by an indirect link in the network. A-B-C-D shows a direct link between A and B, but indirect links between A and C and A and D. Yet, the average path length in the network tends to be short. There are very few long paths in the network that lead to delay and distortion of information flow and knowledge exchange.
*** Knit the Net - Intentional strategy - Valdis Kres & June Holley
Experience shows that most communities start as small emergent clusters organized around common interests or goals. Usually these clusters are isolated from each other. They are very small groups of 1-5 people or organizations that have connected out of necessity. If these fragments do not organize further, the community structure remains weak and underproducing. They are working with communities to make them recession proof by weaving networks to grow local sustainable economies.
Network Weaving - Master Capacity Building
Strength of Weak Ties & Innovation - As the weaver connects various individuals, organizations and clusters, these entities connect to each other loosely. A new dynamic is revealed here – the strength of ‘weak ties’. Weak ties are connections that are not as frequent, intense, as strong network ties that form the backbone of a network. Strong ties are usually found within a network cluster, while weak ties are found between clusters. As clusters begin to connect to each other, the first bridging links are usually weak ties. Over time weak ties may retain their structure by bridging separate clusters or they may grow in to become strong ties binding previously separate groups into a new larger cluster.
Bridging ties between clusters are also important in innovation. New ideas are often discovered outside the local domain. To get transformative ideas you often have go outside of your group. A successful formula for creating ties for innovation is to find other groups that are both similar and different than your own. Similarity helps build trust, while diversity introduces new ideas and perspectives -- Connect on your similarity, and profit from your diversity.

Meta Networks - Are large networks of networks; That are multi-centered – having no single center of control; Yet bound together by trusted relationships and shared values, goals, and experiences. Multi-Centered - No Center of Control - Illusion of Control. We are moving away from Hirarchies and from command and control organizational strategies. Out of chaos and complexity will come order if you allow it to self-organize.
- Duncan Work - Inventor/designer of social software for the Internet; organizational consultant. former Chief Scientist for LinkedIn. Bio: http://www.linkedin.com/in/duncanwork.
What are the effects of Darkness in Networks - Dark Networks exist, but they are invisible to us, because we have not met the people we need to meet. Fragmentation of the network that impedes flow of ideas and resources. Making more mistakes than would be made in a ‘brighter’ meta network. Delay, excess cost and effort, or failure to deliver needed money, talent, knowledge and ideas that are vital for success.
Questions
Steve Ivester asked about Capital and its effects on this system? Dave discussed asset mapping and community economic development. How do we define wealth and assets and the ability to get things done that don't cost as much through connections, through bartering and volunteerism. Looking at new indicators of wealth. Coming up with a local stock exchange. Coming up with a different way of fostering capital. Changing jobs and technologies that are available to the community.
Rick introduced Keva.com as a way to access capital. PayPal was about developing capital outside of the Central Banking system. He also talked about Instant Manufacturing and Boutique Manufacturing around the world as part of the emergence of the Creative Molecular Economy that will help deal with the issue of capital not being defined in the traditional way.
I (Thom Shell) asked about strides that have been made in Dave's community? Dave talked about Open Source Economic Development and asset mapping involving things like nanotechnology, biotechnology, and advanced manufacturing. There are a lot of assets that have been available in the local community that businesses didn't know were available. He talked about how they have identified developed a supply chain. It's about agenda setting and capacity building. No one is excluded. This system is not ignorant of capitalism. It celebrates it.
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