Cape May County Herald, 7 August 1985 IIIF issue link — Page 73

73 Herald - Lantern - Dispatch 7 August '85

County Economic Development Lags

(From Page 1) Two out of three's not bad, some might say. In truth, the county's economic growth is more than Childs can be held responsible for, especially since it seems to have been assigned a low priority by his bosses, the County Board of Chosen Freeholders. CHILDS CAME into a mess on Aug. 1, 1983. Robert A. Laws, (Sl-a-year) airport manager, had been removed from his post by freeholders in January, and Economic Development Director Donald M. Kelly had quit his $31,190-a-year job in June, midway through a 90-days-without-pay suspension. "It was chaos," said Childs. "I had no staff. There was a lot of empty space (in the industrial park) and there wre a few tenantejicjth signed leases who couldn't get into buildings because the work had not been don6, to accommodate them.'' Excluding the commuter, Childs lists these airpSrt accomplishments in two years. \ "Operations (landings and takeoffs) went from 42,000 a year to 60,000. He blamed the commuter decline on "the recession and the air traffic controller's strike and we take a back seat to Atlantic City." HE LISTED four airport projects that cost (2.4 million (90 percent federal money, 5 percent state, 5 percent county, he said) and created 110 construction jobs over two years: • A parallel taxiway for the north-south runway. • Reconstruction and rehabilitation of the east-west runway. • Reconstruction and rehabilitation of 25,000 square yards of ramp around the South Jersey Airways hanger. • Fencing of the field parimeter plus electrified fencing around approaches to the runway. "Before I came here, the airport was not in the federal program (for funds)," he said. AS FOR THE industrial park rental revenue went from $115,000 in 1963 to $267,000 last year, Childs said. This year that will drop by about $70,000, he said, because about 20,000 square feet will be lost to the county courts moving in this fall for 18-24 months while the courts complex in Court House is expanded. Rent at the industrial park is about $2 a square foot (plus utilities and taxes). Office space goes higher, he said. Industrial park tenants employed 306 when Childs took over. Today the number is 341, he said. He said there really were an additional 55 or 60 jobs, but the net increases is less because some firms left. There also are 139 county employes in eight agencies at the industrial park, Childs said. But Everlon sits there — a 195,000 square foot building on 20 acres with nothing but the spund of security guards echoing off its walls. It was down to 135 employes when Childs took his post, he said. "LARGE EMPLOYERS have large impacts." said Childs. "It's good when they're working, but negative when they close. I'd like to see Everlon split into two or three or four industries. I've been talking to three that would take 75,000 to 100,000 square feet each. "Suppose the county could get the building." he suggested, a possibility he concedes "has been discussed. It would be better to have some smaller companies with less volatile impact. Eight percent of the jobs in the county come from small companies." Asked to name specific results outside the airport industrial park, Childs cited a federally-financed low-interest revolving loan program for commercial fishermen, and a state-financed grant that helped put 100 handicapped clients to work for Jersey Cape Diagnostic Training & Opportunity Center, a not-for-profit agency at Crest Haven that makes beach tags and collects recyclables. Funds for both projects were applied for before Childs came THE FISHING industry loans provided $465,000 to 17 persons or firms who promised to "maintain or create" 55 jobs for lowor middle-income persons As those loans are repaid, more money will be available for more projects, probably by early next year. Beyond those two projects, said Childs. "a lot of things need to be done "We're a small entity I think we've made a positive contribution, but we need held in the economic development area. We need some reserach people. " "I'm totally in agreement on that," said Freeholder Herbert Frederick, who took office and responsibility for that departt

ment from Freeholder Gerald M. Thornton seven months ago. "We do need some extra staff persons, trained in economic development, maybe an in-house person who can be moved in." Frederick also suggested that the volunteer, nonpaid seven-member Economic Development Commission, which meets once-a-month except in the summer, "could be utilized more than in the past." SIGNS OF COUNTY support for . the commission's goal of year-round employment are scarce. The most recent literature promoting it as a site for new industry dates to 1981, which Childs called "out of date." "We are in the planning stages for new brochures, responded Frederick. "I want to see something out by the beginning of next year. We are also working on an update of site locations throughout the county." The budget for economic development is $12,000. That covers, Childs said, "administration, supplies, advertising, meetings, travel ..."The county will spend more than that this year, on autopsies. "It will be increased next year," said Frederick. He also pointed out that $2,600 of the total went for advertising. CHILDS SHOWED copies of two ads from magazines: "High Flight," a publication of the Air Force Association of New Jersey, and the "Business Journal of New Jersey." Both ads emphasize the airport industrial park and use the slogan, "Live, Work and Play at the Seashore." Yet Childs, in effect, calls the seashore part of the problem. "We're up against an image problem," he said. '"Hiey think of this as 'a tourist place, and it's down there at the boot of the Cape.' All the action is in the PhiladelphiaNew York corridor." But the seashore, and the tourism it brings, appears to be the county's emphasis for future growth. "WE WANT the tourist trade to stretch the season," said Childs, "to add to the stability of the economic base. We are trying to develop some strategies that the county can embark on. Williamsburg does it year-round. That can happen here. The commission is aware of the tourist trade. You take that as a base and you build on that." Commission Chairman G. John Schreiner Jr. of Ocean City also seems to see tourism as a key answer. He proposed "an inventory of what we currently have in rooms, attractions, and work from there. "We have to find how to benefit from the casinos," he said. "We have to extend the season. I think there's a good opportunity to seek people that will travel from regional areas, land at the airport, and stay at a county facility, except maybe in January and February. A former zone circulation manager for the Wall Street Journal, and retired from Burroughs, Schreiner concedes, "As far as other activities, other than the fishing grant and the airport industrial park, we haven't been able to come up with that much yet. But we're working on it and we're going to succeed. "WE HAVE TO CREATE employment, i year-round seasonal, whatever, and give more people the opportunity to earn a dollar." He mentioned "senior citizen nursing homes and more promotion regarding medical facilities" as other possibilities Employement may be the county's most I confusing topic. "Unemployment is 5 percent now and 23 percent in March," said Childs. "If you , break it down, there are a lot of retired > people and a lot of part-timers. Historicai- ' ly, there are tourism jobs and part-time jobs or unemployment the rest of the year - It will take catalytic action to enhance the > labor force." i A RECENT REPORT by the county's Human Services Department concluded that unemployment was the county's highest ranking problem It said that 1 unemployment averages "over 20 percent for approximately six months per year " Statistics from the state Department of > Labor show an unemployment rate of 15.3 ; percent in December, which translates to t 8,500 people "unemployed and looking for work " The most recent figure was 5 per cent in May, which means. 2.700 looking i for jobs. ? Last summer. Labor said, the rate drop- ? ped to a low of 3.8 percent < 2,200 persons > I in August The history of those statistics shows a 1 gradual reduction in unemployment. Look - c ing at the peak January month, for example, Labor reported 27.7 percent in 1982,

20.2 percent in 1983, 19.7 percent in 1984, and 15.3 percent this year. LABOR MARKET analyist Chester Sherman, however, cautions against too much respect for any of those numbers. They result from statewide surveys, he said, and Cape May County, "its own little work, is overpowered by the rest of the state." One thing is sure, Sherman said: "You've lost manufacturing, but tourism has grown." The problem is, tourism is a few months, manufacturing year-round. Any unemployment discussion invariably brings the private opinion of some persons that the majority prefers the current situation: working as many as three jobs in the summer and collecting unemployment in the winter. CHILDS SAID he dosen't accept that. "I assume a person wants a job." he said. "People stay here because they like it here and take jobs not commensurate with their abilities. "We want year-round business. We need some other type businesses to help stabilize the economy away from the 3 '^-4-month tourist industry, such as we have in the industrial park." Childs expressed concern for the younger generation, coming out of high school, or college, with few opportunities to keep them in their home county. "We want to coordinate with the training our young people are getting at vo-tech and a community college satellite," he said. "I want to do what we can to develop definite programs which I believe would require us to selectively recruit new business and investment. "WE ARE GOING through some transition," he said. "There are pressures created by natural growth, brought on by the tourism trade, by increased residential population. Businesses that were developed here by people who live here many years now want to expand, or they're selling the business. Buyers or investors have to get a return on investment commensurate with today's economic demands. They have to produce more (money) in the same period of time, or stretch out the season. That will be reflected in other businesses, suppliers, services. "There is a large economic impact from Atlantic City," he added. "There is a potential the county can take advantage of The casino industry has to work with our own tourism trade. That's a tough one that has to happen — and will." "We can't invite heavy industry." he said. "We already have demands on water and sewage systems. And that's not acceptable in the first place. We want the type of business compatible with our climate, labor, and tourist trade, and the quality of life we're trying to preserve, why people come here in the first place. "BUT I DON'T HAVE, a crystal ball, or a panacea to cure all ills," he added. Childs (and Frederick) pointed to two recent developments they said could mean more jobs for the county : a Southern New Jersey Technology Consortium and possible designation of the airport industrial park as a foreign trade zone The latter was first proposed in 1983 and the freeholders got egg on their face this June when federal officials indicated a local subzone at the airport was too far away from the Salem Port Authority and most unlikely "There was a lack of communications somewhere," said Childs. who recommended it to the freeholders in May As for the technology consortium, incorporation papers were filed last week, the first step to create a public-private sector partnership to attract advanced technology businesses to South Jersey. But the FAA Technical Center in Pomona is "the focal point of this effort," according to Congressman Bill Hughes CHILDS PREPARED a paper, dated June 7. which he entitled "To encourage growth and application of technology in Cape May County " He wrote that the county can offer "very competitive salary levels" with "average factory wage levels 10-20 percent lower than hourly wages prevailing in Northern New Jersey." He added that the county "had the lowest median household income and median family income in the state." But in an interview last week, he said the county's average income per capita was "high. $12,707, Uth highest in the state." And the Human Services report said that "Cape May County's median household in come is $14,098 which is 30 percent lower than the state average of $19,801 and approximately 9 percent of the general

population is considered below poverty level according to the 1980 Census." THE DIFFICULTY in getting reliable Cape May County statistics was illustrated by Child's five-point "market profile" that included Cape May and Atlantic counties together as part of the Atlantic City Metropolitan Statistical Area. Childs listed these points as attractive to potential new industry • The vo-tech school and access to two community colleges. • A large labor pool, particularly in the unskilled and semiskilled categories. • An enviable climate with beaches, historical and cultural background, family-oriented recreation, nearby casinos and quality entertainment, and proximity to Philadelphia, New York City and the Washington-Baltimore area. • "Very competitive construction costs." • Operating costs, such as utility costs, "the same as our neighboring Atlantic County." • Low taxes, "particularly in Upper Township," compared to the surrounding areas in other counties. • Fifteen banking and savings and loan institutions. • An "ideal location" whose highways make "transportation very easy for trucking and for employe commuting ..." The five-page paper listed two key locations available for new industry: an industrial park next to the Woodbine airport, and the county airport industrial park.

7 Ousted at Parks (From Pagd 1) Two other employes are expected to be charged with being disorderly persons for "use of a controlled dangerous substance, marijuana," Elwell said. HE IDENTIFIED them as James Turner, 21, of Goshen, and Kenneth W. Langford, 47, of Burleigh. All seven persons were originally issued summonses, Elwell confirmed. He said some of the employes had been operating county vehicles and equipment while using marijuana. Elwell said park director Fulginiti and Freeholder Ralph W Evans, who heads the parks department, requested the investigation six or eight weeks ago. Evans coukhnot be reached to comment. The alleged offenses. Elwell said, took place "within the last year." County records indicate MacBride is a carpenter who started with the county in August, 1981, and earned $16,708 a year ^ Langford is a laborer who started in June, 1983, and made $11,787. Turner is a groundskeeper who started in April 1982 and made $12,79L. Parks reportedly has 24 employes, including the Fulginitis. % Doru Ward SILHOUETTES — Early risers take a peace* ful morning stroll oo the 113th Street beach in Stone Harbor. ^