RALEIGH—In an effort to add businesses to its township and expand its tax base, Clayton has set its sights on annexing the area occupied by pharmaceutical companies Bayer, Novo Nordisk, and Fresenius Kabi. Opponents of the plan, including Republican Rep. Billy Creech, fear that new taxes could drive away the companies and deprive Johnston County residents of new jobs.

Creech took action against Clayton’s proposed annexation April 9 when he introduced House Bill 1173, which would create an economic development zone and industrial training center in the area on U.S. 70 just outside Clayton’s borders. The proposed area would include the three pharmaceutical plants and land east of Clayton that comprises the Johnston County Airport and Caterpillar and Environ plants. The plan would be modeled somewhat after the Research Triangle Park area between Durham and Raleigh.

Johnston County board of commissioners passed a resolution in June supporting Creech’s bill. Two commissioners, Allen Mims and Jeffrey Carver, opposed the measure. The bill recently was tacked on to a similar measure, HB440, proposed for the same type of district in the town of Wentworth in Rockingham County.

Creech said he thinks that in order to keep the jobs in Johnston County and pave the way for new ones, towns in the region must avoid imposing new taxes on businesses. The companies said they would consider leaving the area to avoid an increased tax burden that annexation would bring.

In exchange for protection against annexation, industries in the district would tax themselves to support a biotechnology training center planned near Novo Nordisk. The industry money would add 10,000 square feet to the building.

Proponents of annexation said Creech and others are too quick to rush into a decision that would affect the entire Johnston County area. “Annexation is at least two years off. We shouldn’t rush without looking at it from all sides and trying to make it a win-win situation for everyone,” Carver said.

Even if Gov. Mike Easley signs the proposal into law, the bill would give only Johnston County permission to set up the district. The next step would be for commissioners to conduct public meetings before a final vote could be held.

Those who favor the creation of the district hope to have things in place by September.

Symons is an editorial intern at Carolina Journal.