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Long run, I believe urban in-fill projects such as The Old Creamery, Gibson Mill and Locke Mill will have a competitive advantage. If you compare the plight of General Motors with that of cotmnercial real-estate development, there is great insight. While the marketplace kept demanding gas guzzling SWs and pick-up trucks, GM did riot make sufficient investments in forward-looking, environmentally sensitive cats and trucks to compete with Toyota and Honda. In a matter of months, the company leas had to drastically shift its business strategy to compete in a new economy, where the marketplace has demanded smaller, more fuel-efficient cars. An investment by Cabarrus County in smart-growth is similar to an investment in hybrid or electrical cars. When prospective office and retail tenants seek unique, environmentally sensitive developments, The Old Creamery and our community will be available to meet this demand and seize the correlating job-creation and tax-revenue opportunities. The Old Creamery -and similar properties - is exactly the kind of investment that our community needs for many reasons. It is consistent with our county's long-term growth and land-use plan; it preserves green-space; and it synchs with mass transit, bike lanes and sidewalks. It uses existing infrashuchrre, saving local municipalities fiom extending roads, water and sewer lines to far-away places. In addition, it recycles an older building; it preserves our history and culture; it is unique, creates a sense of place, and enhances quality of life. Moreover, it will likely encourage additional te-investment in surrounding properties. IV. WHY FIVE YEARS INSTEAD OF THREE? This project requires significant speculation. That means spending money up-front before there are any significant commitments from tenants. Only spending money and performing the improvements will draw people to the project. I often tell people, if this project could not lease up in the "go-go days" of 2003 to 2008, when would it ever lease up? Most people snnply cannot see the vision. I have to create the vision by renovating the property and bringing it closer to life. With along-term horizon, I assume that this project will take time before gaining significant traction. In order to get the project "off the ground," I intend to pass along savings of these taxes breaks to tenants. By having five years, rathet• than three, these lower lease rates will enable the project to get the momentum necessary to lease all or• a significant portion of the buildings. I am afraid that three years is not enough time to ensure that The Old Creamery attracts a critical mass of tenants. Once the building is fully leased, it will become an asset for the county by generating returns in the form of property and sales taxes as well as facilitating economic development through job-creation and surrounding re-developments. VI. WHY SHOULD WE FUND A PROJECT WITH RETAIL SPACE? The Old Creamery offers office and retail spaces, both of which create jobs. The property is designed to respond to the demands of the market -office or retail. Accommodating both user- types is critical to the project's success. Given how retail/consumer spending has tapered in this economic downturn, I anticipate relatively strong office demand. In arr effort to market this property to those users, I am working with the Economic Development Commission, the Charlotte Commercial Property Exchange, CCIM, and national and regional brokerage firms. I am optimistic about the possibility of capturing office tenants given the interest from prospective businesses and brokers in recent months, and, in fact, I am prepared to put any interested office user on the first floor. 3 267 Corban Avenue SW, Concord, NC 28025 P.O. Box 145, Concord, NC 2802~ttachmentnumber2 704.262.6314 Direct 704.792.2255 Fax harrisC~3~i~companies.com www.harrismorrisonc~ n5pa°ny com