Risk Assessments and Growth Models

Risk Assessment for Industrial and Selected Commercial Locations—City of Conover

In light of the recent job losses in the region because of the loss of an industry (a large contributor to the city of Conover's tax base), city officials decided in 2003 to embark on a project to examine the city's manufacturing base. The goal of this project was to examine the health of the city's existing industries and gather information to assist in promoting the city as a destination for new industries.

A college intern inventoried the properties that were in the city's two industrial zones and one commercial zone that allowed light manufacturing. The inventory included an assessment of each site's suitability relative to its zoning such as whether a site was developed, prepped for development, vacant, or used for nonindustrial purposes. Data on developed sites was collected when possible and included information such as ceiling heights, number of loading docks, and railway accessibility. A North American Industry Classification System (NAICS) code was assigned to each site.

City staff matched the personal property tax scroll provided by Catawba County. Rolling stock tax values were also matched to distribution companies that own trucking fleets listed separately from other personal property. The analysis identified which industries are the biggest contributors to the city's tax base and how the tax value is divided between personal property and real property. The city also discovered several thousand dollars in personal property tax revenue that was billed in the wrong jurisdiction.

The inventory data was given to the Western Piedmont Council of Governments to determine whether each industry was projected to gain or lose jobs and whether the industry pays above or below the average Catawba County wage. This analysis determined that industries projected to lose jobs, based on national trends, were concentrated primarily in two of the older industrial areas of the city. The city was able to identify industries that could be considered at risk and potentially in need of assistance. The city of Conover and the Catawba County Economic Development Corporation have begun prioritizing existing industry visits based on the findings of this project.