Some banks still struggling to pick up the pieces
The view from Roger Plemens office is hard to beat.
Bay windows serve up a bird’s eye view of the Nantahala mountain range, a vantage point that must have been a factor when Macon Bank chose this hilltop for its prestigious corporate headquarters that tower above Franklin.
Macon Bank under watchful eye of FDIC as it tries to rebound from real estate bust
Fallout from the real estate bubble in Western North Carolina has landed Macon Bank on the watch list of the Federal Deposit Insurance Corporation, a federal banking oversight arm.
Macon Bank has been operating under the scrutiny of the FDIC since March. The oversight agency has laid out a series of benchmarks the bank must meet, from strict performance targets to heightened involvement by the bank’s board of directors.
Tired of being the odd woman out, Haywood tourism member resigns
A Haywood County Tourism Development Authority board member has resigned from her seat after disagreeing with the rest of the board’s decision to close a couple of its visitors centers.
WNC vitality index provides data-driven look at region
A one-of-a-kind database that encompasses virtually every aspect of life in Western North Carolina, from ecology to economics, is now available to decision makers, business leaders and the public.
The Mountain Resources Commission, a group formed in 2009 to study environmental and economic issues facing WNC, recently unveiled the vitality index.
The new par? Decline in golfing persists in post-recession world
As people’s discretionary spending remains low nationwide, golf courses in Haywood County are trying to drive their way out of a bunker with price cuts and special offers aimed at drawing in atypical players.
Golf courses in the Haywood County are, at the very least, trying to stay on par with past numbers — be it the number of rounds played or total revenue earned.
“It’s a luxury,” said Jay Manner, the general manager at Maggie Valley Club & Resort. “We understand that golf is important to a lot of people, but it isn’t shelter or food.”
To help golfers save, the club is waving its initiation fee for anyone who signs an 18-month membership commitment.
The decline in golf has mostly taken its toll among casual, or “fringe” golfers, said Duane Paige, the general manager of Laurel Ridge Country Club.
Core golfers, a term Paige uses for those who play two, three or even four rounds a week, have been less likely to let up on their game in the recession.
But fringe golfers, those who played once or twice a month, have backed off, perhaps only playing every other month now, Paige said. And those who used to play very other month might now play just twice a year — or not at all.
Manner said the Maggie Club is “cautiously optimistic” about its numbers this year, particularly given the unseasonably warm winter. The course was up 1,000 rounds of golf in April compared to the prior year.
However, more rounds does not automatically translate to more money coming in. Several years ago, a round at the Maggie Valley Club was around $90. Today, its about $60. The club also moved its twilight hours up. Golfers with tee times after 2 or 3 p.m. would typically pay discounted rates because of the late start. Now that rate has been extended to those who tee off after 1 p.m.
The Waynesville Inn is no different, offering limited time play passes that are cheaper than a full-fledged membership, though without some of the perks.
The passes are “for that golfer that wants to play golf but doesn’t want to tie up money in a membership,” said Tom Halterman, general manager at Waynesville Inn Golf Resort & Spa. “We have gained a great deal of the local play” as a result, he said.
Halterman said that he thinks younger generations are put-off by the lifestyle a golf club membership portrays.
“Today’s generation they are not interested in that type of thing,” Halterman said. “Membership tends to scream stuffy.”
Courses that were once almost entirely private have opened up their fairways to outside play as a way top counter the decline.
“If we can bring in some amount of outside play that helps supplement our income,” said Paige. Laurel Ridge is now among those semi-private courses that accept outside play.
“We are always looking to help people enjoy our golf course because if they do we hope they become a member one day,” Paige said.
Changing demographics
Golf course managers with a long view of their sport are perhaps most troubled by the declining number of younger golfers there to replace their aging core clientele.
Paige said the decline in play among younger golfers isn’t due solely to the economy. Men, who still account for the majority of golfers, typically spend more time with their families on the weekend. They are more likely to be involved in activities with their children and have household responsibilities than men in previous generations.
That’s led Paige to look for ways to get the whole family out to the course, including wives and children. Laurel Ridge offers junior golf camp in the summer, as well as special Tee-It-Forward rounds where the tee box is moved closer on the fairway to make the course doable for youth.
Maggie Valley Club is trying to get kids into the sport by offering junior golf lessons for all ages. That way, when the kids are learning to swing and putt, the parents can enjoy the golf course themselves or the club’s other amenities. Otherwise, people just don’t have the time to devote to golf nowadays as they did in the past.
“They’ve got kids, families,” Manner said. “They don’t have 4 to 4.5 hours.”
Likewise, golf courses are not capturing as much of the baby boomer generation as they expected, given that many people are being forced to work well past retirement age.
In hindsight, the proliferation of golf courses developments aimed at retirees and second-home buyers during the real estate heyday of the early 2000s was perhaps overly optimistic, Paige said.
“We were predicting continued prosperity that if you built it, they would come,” Paige said of the region’s outlook. “So we overbuilt. We have a little bit more supply than we have demand.”
Staff Writer Becky Johnson contributed to this story
GroWNC inspires neighboring counties to think like a region
Haywood is banding together with Transylvania, Buncombe, Henderson and Madison counties under a project titled GroWNC, designed to get the region thinking collectively about ways to develop the economy with a focus on sustainability.
GroWNC is currently holding meetings in all five counties to gain feedback on the goals and gather information about their residents, including one planned in Haywood County this week. Participants are being asked everything from what people love most about Western North Carolina to individual demographics to opinions about the program.
“It is trying to take a long-term vision of the area and see what our common issues are,” said Waynesville’s Assistant Town Manager Alison Melnikova. “It’s basically everything people like about Western North Carolina and preserving it.”
The group will focus on seven core areas: jobs and economic development; housing; natural resources; cultural resources; energy; land use; transportation; and health and wellness.
The consortium is led by an 18-member committee, which is responsible for prioritizing work activities, participating in the selection of consultants and making recommendations to guide the project. Sub-committees have been formed to address the seven specific areas.
Each of the committees has drafted a list of goals that it hopes to work toward that will promote growth and more inter-connectivity between the counties, rather than each county taking its own path.
“GroWNC better conveys our goal of growing together as a region,” said Carrie Runser-Turner, senior planner with Land-of-Sky Regional Council, a multi-county local government planning and development organization. “Really what we are trying to do is look at the choices we make in these areas (and) how they are inter-related.”
Among the goals are creating effective job training programs; exploring alternative energy options; increasing transportation choices; promoting community health resources such as gym class in schools and physical activity programs; building mixed use neighborhoods with a “sense of place;” and encouraging the development of affordable housing, among others.
The meetings being held throughout the project region are informal, allowing people to move from table to table as they wish and skip over areas that they don’t have an particular interest in. Door prizes will also be given away at the meetings.
“The participants get to shape their experience with this meeting,” Melnikova said.
A U.S. Department of Housing and Urban Development grant was awarded to the counties for the project through the Land-of-Sky.
Want to participate?
Haywood Community College will host an informational and feedback meeting from 4-7 p.m. on May 16 in the Charles Beall Auditorium. If you cannot attend the meeting at HCC, check out www.gro-wnc.org for other upcoming meetings and more information about GroWNC.
Appalachian born and bred: Downtown Waynesville, Haywood Tourism both launch locally made campaigns
The Jackson County farmers market had three or four vendors who regularly showed up each week to sell their homegrown goods in 2001.
For the most part, the growers would sit around, chew the fat and trade produce.
“It was kind of our farmer’s morning out,” said Cathy Arps, who runs Vegenui Garden with her husband Ron.
The vendors would make maybe a few sales during the day. However, mostly, people would drive-by the market, roll down their car windows and glance at the offerings before zipping off.
“It was very difficult,” Arps said. But, “The farmers of the farmers market hung on.”
Now, about a decade later, the number of vendors has more than septupled and the amount of customers has grown even more.
The Jackson County market is not an anomaly. The number of vendors at the Waynesville farmers market went from fewer than a dozen in 2008 to now more than 60, with crowds perusing all their options. Beeswax candles, goat’s milk soap, sauces and rubs, cheese and round out the traditional baskets and tables of produce.
“There is a tremendous movement underfoot to save your local farmers,” said Carol James, former president with the Haywood Historic Farmers Market.
Both markets are representative of a nationwide trend that spread during the last several years. Considerably more people are buying local.
“The farmers market is sort of a snapshot of the radical change,” Arps said.
The desire to buy local goes beyond food. People are growing tired of the mass-produced, dime-a-dozen riffraff made overseas that line the shelves of retail giants. Locally made is a hip alternative.
Looking to capitalize on the movement, Haywood County and the downtown Waynesville business district are finding ways to promote locally produced merchandise that is unique to the area as well as items made within the U.S. — which seem difficult to find when perusing the tags at any area department store.
Taking a cue from the Good Morning, America series “Made in America,” Buffy Phillips, executive director of the Waynesville Downtown Association, decided to find out what businesses in Waynesville’s downtown sell items crafted in Western North Carolina and in the U.S.
“I just thought it was time we came together and promoted it,” Phillips said. “I find that customers are asking. They want to know what is made in the USA and locally.”
Phillips has been compiling a list of downtown businesses with U.S. and locally made wares. Although American-made clothes are still difficult to find, people can find WNC-made jewelry at the Jeweler’s Workbench or buy dog treats at the Smoky Mountain Dog Bakery. High Country Home sells furniture and cabinets constructed in Waynesville and hardwood floors from Franklin. And, the local brews are taking off with Headwaters Brewing Company, Frog Level Brewery and soon at the Tipping Point. With the exception of a few items, most food necessities can be found around town — from the smoked tomato jam at Sunburst Trout Market to barbecue sauces to jams and salsa.
Phillips is distributing stacks of stickers and signs to businesses along the downtown Main Street strip that each can used to advertise whether they sell products made in the U.S.
Twigs and Leaves Art Gallery is already one step ahead of the curve with a map displayed in its window, showing where in the U.S. each of its products hails from — all but a handful are from within WNC.
“I would love to think that everybody on the street would have something made in North Carolina,” Phillips said.
And, in a couple of months, the Haywood County Tourism Development Authority will launch its own similar campaign “Homegrown in Haywood.” The logo of the advertising initiative is a needle inside of a fish, inside of a duclimer, inside of an artist’s palette, inside of an apple.
Visitors want to experience the local culture, buy things that are specific to the area and eat what the locals eat, said Lynn Collins, executive director of the Haywood TDA. The marketing campaign helps point people in the right direction and also advertise the things that make the county different.
Part of the movement in Western North Carolina is also about preserving Appalachian culture, which is why the dulcimer — a locally significant instrument — is included in the tourism agency’s logo.
In addition to food and art, there are blacksmiths who makes tools, woodworkers who build tables, soap makers, bookbinders, people who manufacture guns — all too numerous to count.
“Locavesting” catching on
People aren’t just purchasing more items grown, constructed and masterminded in Western North Carolina, but they are willing to invest in local ventures.
For example, when Annie’s Naturally Bakery closed late this year, 10 area residents pooled their money to help the popular Sylva joint reopen.
“I think this is a concept that makes a lot of sense to a lot of people,” said Frank Lockwood, an assistant professor of Entrepreneurship and Innovation at Western North Carolina University. “I think we will find more and more examples of this locavesting as we figure out how to do it.”
Along the same vein, some area growers have begun selling season-long memberships to their farm’s bounty, guaranteeing an individual a portion of the crops that are harvested each week.
“It is basically like people buying a subscription to your product,” Arps said.
Although the products are slightly pricier than their grocery store counterparts, people are willing to pay that little extra for natural products without all the additives, preservatives and extra unnecessary stuff.
Jackson resident and farmer Jackie Hooper hasn’t heard any complaints about her reduced sugar apple butter-like spread. In fact, she said, less is what more people are looking for.
“People don’t seem to mind that there isn’t more sugar,” said Hooper, who also sells chicken, quail and rabbit, among other items. “They are actually glad because sugar is one of the things they are actually trying to cut down on.”
That sentiment hits on a big reason why people want to buy straight from the farmer rather than the grocery store. People are more health conscious compared to the past.
“They are really reading package labels,” said Hooper, of Shared Blessings Farm in Cullowhee. “They no longer want to buy it ready-made in a grocery store.”
In many cases, the product is also tastier, since it had a shorter distance to travel before it ended up on someone’s plate.
Robin Smith, of Lenoir’s Devon in Canton, is one of several cattle farmers in Haywood County whose focus is to deliver fresher, higher quality beef without a middleman.
“We were just really interested in selling a better product than the grocery stores had,” Smith said. “(The beef) doesn’t go from a big plant and have additives in it.”
In places like Western North Carolina, the movement only seems natural given the vast tracts of open land. There have always been farmers in the area, but after WWII, fewer Americans grew their own food or received produce from a nearby farm. And now, the nation is moving back toward its roots.
“There are now people that are willing to grow the products and make it available,” Lockwood said. “In the neck of the woods we live in … it’s something that makes a lot of sense.”
The dour economy has also played a role in national shift in mentality as people lost their jobs and saw manufacturing facilities move overseas, making buyers more conscious of where their purchases come from.
“I guess now with a loss of businesses and employees, we don’t want to lose anymore,” Phillips said.
Dusting the mothballs off Sylva’s ‘ghostel’
The shell of a vacant four-story hotel sitting partially finished on Sylva’s main drag for three years is finally going somewhere.
Developers from Greensboro bought the vacant hotel along N.C. 107 for $850,000 and are promising to pump an additional $2 million into completing the project.
The hotel was partially constructed beginning in 2008 and has widely been considered an eyesore. It was supposed to become a Clarion Inn, but the original developers TJ Investments, the father and son team Thomas and John Dowden of Cashiers, went into bankruptcy. Alpharetta Community Bank of Georgia, which foreclosed after the men failed to payoff a $5-million loan, owned the hotel. The newly formed Sylva Hotel Group recently bought the property for $850,000.
Developer Stephen Austin said he and his two partners in the project have settled on a national hotel chain to brand the 78-room hotel, which includes a convention room and space for a restaurant, but added that they aren’t ready to disclose which one.
He said the bargain-basement purchase price made the deal a good venture.
“Sylva is not an extremely deep hotel market,” he said. “We’re going to do our very best to have a hotel that is worthy of our business.”
Austin said that the men’s pre-purchase market studies indicated that Sylva hotel occupancy rates run at about 50 percent, lower than the national average of more than 60 percent. Even after figuring that higher vacancy rate into the business plan, Austin said the getting-in price made it a sound investment.
“If you are going to build a new hotel, it helps to get in at a good price,” he said. “We’ll have a total of about $3 million in the project. We’re also excited to be able to take a piece of property and produce something of value, create an asset for the community.”
Austin said he and his partners are hoping to start construction soon and open the new hotel this year.
Town Commissioner Harold Hensley, who lives near the hotel, said he is excited that it sold and is going to be finished and used.
Five years ago, the town OK’d an exemption to its building height restrictions, allowing the proposed Clarion Inn to have four stories instead of three. The developers at the time claimed they needed a 75-foot maximum height instead of just 45 feet as mandated by town regulations.
Hensley said he believed the purchase was indicative that the local economy is starting to shake off the recessionary blues.
“I don’t know much about the details, but to me, it’s excellent news that this can move forward and progress,” Hensley said.
Paige Roberson, assistant to the town manager and director of the town’s Main Street program, echoed Hensley’s optimism. She said that at least two other vacant stores in town have seen movement recently. Cope’s Superette, a downtown newsstand that closed in December, is being reopened as an antique store; the crematorium of Moody’s Funeral Home is being repurposed as a doctor’s office.
Report: Blue Ridge Parkway adds up to jobs, money
A new National Park Service report shows that more than 14.5 million visitors spent $299 million along the Blue Ridge Parkway and in surrounding communities in 2010. That spending supported more than 4,008 jobs.
Under the same economic model, the Great Smoky Mountains National Park claims its 9 million visitors spent over $818 million in the gateway communities surrounding the Park, with 11,367 local jobs were supported by Park visitor spending.
"The people and the business owners in communities near national parks have always known their economic value," said Parkway Superintendent Phil Francis. "The Blue Ridge Parkway is clean, green fuel for the engine that drives our local economy."
The figures are included in an overall total of $12 billion spent by 281 million visitors in 394 national parks and nearby communities, which are reported in an annual, peer-reviewed, visitor spending analysis conducted by a Michigan State University professor for the National Park Service.
Most of the spending and jobs is related to lodging, food, and beverage service (52 percent) followed by other retail (29 percent); entertainment and amusements (10 percent); gas and local transportation (7 percent); and groceries (2 percent).
To download the report visit www.nature.nps.gov/socialscience/products.cfm#MGM and click on Economic Benefits to Local Communities from National Park Visitation and Payroll, 2010.
Desperate for work, WNC residents flock to regional jobs fair
People once again lined up at the Biltmore Square Mall in Asheville last week, but this time they weren't waiting for hours to see Santa Claus. Instead, they were looking for a belated Christmas gift — a job.
The mall was the site of the largest job fair in the mountains, boasting more than 1,200 open positions. About 2,000 people showed up for the event, most of them members of the 10 percent of unemployed residents of North Carolina.
An older gentleman in a grey three-piece suit looked overwhelmed as he surveyed the seemingly never-ending rows of employers and possible employees that filled a vast majority of the mall.
Barbara Darby, who helped run the event put on by the Asheville Area Chamber of Commerce and Economic Development Coalition, said she was not surprised by the turnout.
SEE ALSO: Stuck in a rut: Too few jobs coming on line
"We are well aware of the large numbers looking for work," said Darby, a member of the Mountain Area Workforce Development Board.
People traveled from all around Western North Carolina — Haywood, Jackson, Macon, Swain, Yancey, Madison, Polk — in search of a job or a better opportunity.
"There are really no county lines when it comes to finding jobs," said Mark Clasby, executive director of Haywood County's Economic Development Commission. "People will really commute where the jobs are."
About 15 percent of Haywood County residents travel outside the county to work, Clasby said, and at least 3,000 people commute into Haywood County for work.
The dismal job market has forced some unemployed individuals to move.
During the past year, Tonya Turner, 40, packed up her belongings and moved from Haywood County to a place in Mars Hill with her son. She is looking for "a new start," she said.
Turner has been jobless for a year and has applied for more than 20 jobs during that time. She is looking for a position as a receptionist or in medical billing and has experience as an administrative employee.
The Potential Hires
While many participants put a face and a name on WNC's more than 8 percent unemployment rate, a number of people with current jobs attended the fair looking for better benefits or for a second or third job to help pay their bills. Some proactively applied for positions, knowing they might soon receive a pink slip.
"It's time to find me something better," said Josh Grooms, a 23-year-old Canton resident.
Grooms works for a roofing company in Fletcher, near Asheville, but the benefits do not include health insurance — a costly bill to foot on one's own.
He was hopeful, however, that he would find a new job at the fair.
"They have plenty of decent jobs out here," Grooms said.
There was no age, social class or race that predominated the fair. Quickly glancing around, anyone could spot a teenager or young 20-something as well as people well into their 50s and 60s. The dress code ranged from jeans, T-shirts and boots to suits and ties.
Terry Gant — one of the baseball hat, T-shirt and jeans people — said he was looking for "anything."
The Haywood County resident is a former employee of Volvo Construction Equipment.
The Volvo plant in Asheville closed in March 2010 and shifted its operations to some of the company's other manufacturing facilities around the world.
The move left Gant and 227 other people without jobs. Gant, 46, said he hasn't worked since.
"I am just ready to get back to work," he said.
Gant has not been sitting on the sidelines waiting, however. He went back to community college and will soon have his associate's degree in industrial systems technology. The degree, plus his welding and electrical experience, will make Gant much more marketable and increase his chances of getting a job.
Like Gant, Darren and Melinda Sims, also causalities of the Volvo plant closure, decided to return to school. The out-of-work couple from Fairview won't graduate until next year but knowing the trouble they will likely face, wanted to get a head start on the job search. Darren, 41, wants to finds a job in industrial systems, and Melinda, 40, is looking for an administrative position.
A noble effort
On the outskirts of the melee at the mall were applicants such as Ken Childers from the Whittier area in Jackson County, who was filling out packets and reading information collected along the employment trail.
Childers worked at a steel mill for 27 years before starting his own trucking company in 2005 — just two years before the recession began. He was not able to sustain his business as diesel prices skyrocketed up to $4.75 a gallon in 2007.
The National Bureau of Economic Research, a private, nonprofit research group, marked the start of the recession as December 2007. And although the group declared the downturn over as of June 2009, the U.S. is still beset with high unemployment rates and fears of a double-dip recession.
"It's tough out there," said Childers, 55. "You almost have to have two jobs today."
Similar to many fair attendees, Childers is looking for anything he can get. He is even willing to move from his family's 100-year-old farm for a job.
Childers was somewhat pessimistic about the prospect of finding something at the fair, saying there's a "lot of people for them to choose from."
The Employers
Many area businesses are wary of the economy and are only adding one or two jobs at a time.
"I think businesses are very cautious," Clasby said. But, "The economy is slowly improving overall."
With such slow growth, the addition of 35 jobs at Sonoco Plastics in Waynesville is considered a boom. In the past, that number would have been considered low.
"That is kind of a big number all of the sudden," Clasby said. "That's not the norm unfortunately."
Sonoco, which makes plastic trays for frozen food dinners, was among the more than 80 employers at the job fair.
"We are excited to be growing," said Vanessa Crouch, human resources manager at the Waynesville plant. "It's an employer's market right now."
Because the country is still experiencing high rates of unemployment and few companies hiring, employers can be more selective with whom they hire.
Sonoco received 175 applications for seven recently filled positions, Crouch said. The company is hiring only a handful of new employees at a time so as not overload itself with trainees, she said.
Among the open positions are supervisory staff, quality technicians, maintenance personnel and packers.
Amidst the many Asheville area employees at the jobs fair was Mission Health, a healthcare provider with centers throughout WNC, including Angel Medical Center in Franklin.
As of the early afternoon, Gloria Perry, a hiring specialist with Mission Health, said "easily 300" people has already visited their table.
"It breaks your heart sometimes," said Perry, whose husband is actually unemployed. "Everybody's so desperate."
As of Monday, the Mission Hospital website listed 197 available full-time and part-time positions at its various facilities in Western North Carolina — a testament to the health care field as one of the largest and fastest growing sectors of the economy. The medical group's biggest need is certified nursing assistants, Perry said, later adding that she had met many displaced or soon-to-be-certified nursing assistants at the fair.
October 2011 unemployment rates
Haywood County 8.6 percent
Jackson County 8 percent
Macon County 9.6 percent
Swain County 12 percent
Source: N.C. Employment Security Commission. October is the most recent month for which data is available.