Supporters of a struggling state-funded vehicle research center in Northampton County are seeking an additional $18.2 million from state taxpayers. Since the center’s inception in 2005, the General Assembly and other public sources have committed $17 million to the project.

Rep. Michael Wray, D-Northampton, introduced a bill Feb. 12 that would send another $18.2 million to the project over the next two fiscal years. The bill designates $1.9 million for operating costs and the remainder for continued construction costs. State Sen. Ed Jones, D–Halifax, introduced an identical bill in the Senate.

The project, N.C. Center for Automotive Research (NCCAR), was known until April 2007 as the N.C. Advanced Vehicle Research Center. NCCAR is organized as a nonprofit, and Northampton County Economic Development Director Gary Brown serves as president.

“NCCAR plans to be an independent, non-profit center devised to meet the ever-evolving product research, testing and development demands of the automotive industry,” according to its Web site. The 625-acre site, just off Interstate 95 outside Roanoke Rapids, is to include a 4.6-mile test track, advanced laboratory, and client garages.

Financial reports filed by NCCAR show that it paid Chicago-based Lotus Engineering $315,000 in 2006 and $158,000 in 2007 for “systems design.” Simon Cobb, a former Lotus employee, became NCCCAR chief operating officer last April and remains the only employee. A groundbreaking ceremony took place in April 2006, but there was no visible construction activity until last fall. In September NCCAR awarded an $8.4 million site development contract to PLT Construction in Wilson.

In January NCCAR awarded a $2.8 million contract to Heaton Construction of Roanoke Rapids to build a 23,620-square-foot engineering, client garage, and operations building and the entry security building.

Dick Dell of Raleigh developed the concept for the research center. He helped sell the project to the General Assembly, which in turn appropriated $15 million. Dell also helped secure a $1 million grant from Golden LEAF, a foundation set up to handle North Carolina’s tobacco settlement funds. Dell is no longer associated with the project but continues to do automotive research under the name of Advanced Vehicle Research Center.

Golden LEAF President Dan Gerlach told CJ the $1 million grant from his organization is on hold because it is tied to job creation requirements that have not yet occurred.

Is it feasible?

“State sponsorship and affiliation with North Carolina’s university and community college system offers exceptional opportunities for matching the innovative talents of the world’s automotive industry with the research capacity and business development resources of the State of North Carolina,” reads a claim on the center’s Web site.

CJ asked Wray whether he thought the project was still feasible, given the current troubles with the U.S. auto industry. “I think it is feasible because of the alternative energies being pushed by Washington. There is still a need for a testing facility,” he said. When asked whether NCCAR had an updated feasibility study, he said he was not aware of one.

CJ also asked Brown whether the project was still feasible. “Absolutely. This is the best possible time to bring NCCAR into the marketplace to support the new methods of engineering and producing vehicles. The automotive industry is faced with drastic global challenges, which include cutbacks of effectively everything and consequential disposal of capital assets and key skilled workforce,” he said.

“NCCAR offers solutions to those companies and organizations as they emerge from their current difficulties. This is not just our view. It comes directly from the industry contacts we talk with at very frequent intervals,” said Brown.

CJ asked Brown when the most recent feasibility study was released. “Feasibility studies are typically based on projections with limited validated data and are often prone to inaccuracy,” he said. “Development of NCCAR has focused on extensive market research conducted in 2006. This involved three industry organizations and included one-on-one interviews with 128 industry leaders, globally. All the NCCAR features and equipment design have been based directly on these studies, which have proven to be very consistent as validated by ongoing industry contacts, dialogue, and continual refinement.”

CJ also asked Brown whether he had any potential users that could be interviewed. “No,” he said.

What happens to the project if the General Assembly doesn’t provide the additional $18.2 million requested by Wray? Brown said, “NCCAR will be operational with Phase 1A facilities in October 2009. Additional funding, whether through the NCGA or other sources, including user fees, will be utilized to provide for operations and additional capital improvements in subsequent phases.”

Conflicts of interest?

The project has had its share of apparent conflicts of interest. Wray acknowledged he owns land adjacent to the project. His 105-acre tract is listed on the N.C. Department of Commerce directory of available industrial property.

When asked whether he might have a conflict of interest, Wray told CJ, “No, because the project was started before I got to the General Assembly.” When asked whether he thought others might think he has an appearance of a conflict of interest, Wray said, “I can’t speak for others.”

The Northeast Commission, under the direction of then-CEO Rick Watson, was involved in the planning stages of the NCCAR project. The commission is a state-funded regional economic development organization headquartered in Edenton. In 2004 Watson helped locate the facility on Northampton County land owned by O.S. “Buck” Suiter and his relatives. A retired Ahoskie banker, Suiter also serves as a board member on the Northeast Commission, as an appointee of former Gov. Mike Easley.

After Northampton County optioned the site for the project in 2004, the commission paid a Raleigh engineering firm to conduct a preliminary environmental assessment.

Last year Suiter told CJ that he was unaware his commission had spent money evaluating the site.

Carrington is executive editor of Carolina Journal.