Unlike Rick Watson of North Carolina’s Northeast Partnership, some leaders of the state’s other regional economic development groups say they cannot imagine situations in which they would seek public money for businesses that they are trying to recruit and/or work for. Some of them say they have explicit policies against such conflicts of interest.
Watson, who has arranged to work for Randy Parton and his Moonlight Bandit production company in Roanoke Rapids while still retaining his head role with the partnership, sought state money for a music-theater project that is planned for Northampton County. He also asked for public money for the Advanced Vehicle Research Center in his role leading North Carolina’s Northeast Partnership Foundation.
“I’ve had no experience in dealing with that set of circumstances in my career,” said Don Kirkman, president of the Piedmont Triad Regional Partnership. “Part of the reason may be is that the kinds of projects we are involved in are ones in which there have been no local investment.”
Kirkman said his agency, which receives about 50 percent of its funding from the state, has a policy against conflicts of interest — when it comes to pursuing state money for individual projects or recruited businesses. He said the Piedmont partnership isn’t really in the business of getting incentives for companies. That responsibility is left to the state Department of Commerce and to county and city government agencies.
“We’re really just a marketing organization,” Kirkman said. “We’re not in the transactional side. We just try to market and generate leads.”
That mission stands in contrast to the Northeast Partnership, with which Watson repeatedly pursues state money for projects his organization works on. Those include the Parton project and the Vehicle Research Center, as well as his efforts to get Tobacco Trust Fund money for a fingerprint security company and for a defunct biotechnology company in 2002.
Another regional partnership head says his organization doesn’t usually seek incentives either.
“We are a straight-up marketing organization,” said Paul Butler, director of North Carolina’s Southeast, which pursues economic development for 11 counties in the state. “That is the ‘block-and-tackle’ grunt-work of economic development.”
Butler said his agency doesn’t have a conflict-of-interest policy because to be involved with a company he is trying to get public money for is inconceivable.
“I’ve been in this business a long time,” Butler said. “In my entire career I’ve never had that type of situation brought forth to me.”
Charles Hayes, director of the Research Triangle Regional Partnership, said his organization is in the process of developing a conflict-of-interest policy, even though local economic developers mostly handle incentives. The organization’s board is large and has many representatives from businesses and industry throughout the state. That makes it more likely that board members could have stocks or mutual funds invested with companies that seek the partnership’s help.
The Western North Carolina Regional Economic Development Commission, which conducts its business as AdvantageWest, maintains a detailed ethics policy and code of conduct for its employees and board members. Its ethics guidelines prohibit employees and directors with a “significant financial business interest” in a business from getting consideration for grants from AdvantageWest. Also, employees and board members must disclose their investments in companies that receive consideration from AdvantageWest, and are required to abstain from voting on proposals related to those companies.
AdvantageWest’s code of conduct also addresses potential conflicts with organizations that might have contracts with the Asheville-based agency. No agreements with outside interests that “would create a conflict of interest” are permitted, and the policy extends beyond the obvious financial or employment gain that could result from such relationships.
“Other interests that may create a conflict in producing non-financial gain include the benefit to reputation or prestige in a professional field,” the AdvantageWest code of conduct says. “No employee, officer, board member or agent shall accept gratuities, favors, or anything of monetary value from contractors.”
Watson did not return a phone message inquiring about the Northeast Partnership’s conflict-of-interest policy. Carolina Journal requested that a copy of such a policy be provided, but by the publication deadline had not received anything.
Paul Chesser is associate editor of Carolina Journal. Contact him at [email protected].