Why the two Carolinas need to cooperate more than compete
January 28, 2005

Republished with permission from the Charlotte Business Journal. Copyright owned by the Charlotte Business Journal.

The following appeared in the Charlotte Business Journal on January 28, 2005.

OPINION

By Jim Hodges

With the Interstate 77 and U.S. Highway 521 corridors growing at a rapid pace, the state line that separates the two Carolinas in the Charlotte region continues to blur.

People in Lancaster and York counties have interests far more in common with Charlotte than with Columbia. Yet more and more we are observing the complications from separate state jurisdictions within the Charlotte region, especially in wide ranging areas such as business development, air quality and higher education.

Too much time and energy is invested in arguing the competitive advantages and disadvantages of our neighbors, and not enough into looking for opportunities to work together that would strengthen economic opportunities for the entire region.

The truth is that the economic pie is big enough for all of us to share, and it can grow even larger with some smart moves. Here are a few areas of mutual interest the two Carolinas would be wise to explore:

1. Air quality. This is not just a quality-of-life issue, as many assume. It is also an economic issue that affects our ability to grow existing business and recruit new opportunities. When I served as governor of South Carolina, the state was a finalist in the recruiting battle for a half-billion-dollar automobile manufacturing plant that would create thousands of jobs. The best South Carolina site was in Chester County, more than 50 miles from Charlotte. In the final stages of the decision-making process, this site was removed from consideration, in large part because of issues surrounding the Charlotte region's slipping federal air quality rating. The company was concerned that growing problems with air quality might jeopardize its ability to get future permits necessary for expansion.

This is a problem that would benefit from a bi-state commission truly empowered to craft short-term and long-term solutions to protect the region's air quality and our economic future. The commission would be given one year to propose ideas that would keep the region out of the Environmental Protection Agency's jailhouse, with a clear understanding that the leadership of the two states would embrace the solutions proposed.

2. Economic development. The Charlotte region's thriving manufacturing distribution businesses need South Carolina's Port of Charleston. South Carolina's businesses can't live without Charlotte's airport and financial center resources. While we complement each other in vital ways, we also engage in a pitched, winner-take-all competition for every business opportunity. Both states now aggressively provide tax incentives to entice business, and friction has arisen over existing businesses relocating a few miles south to Fort Mill or Lancaster to take advantage of better state tax breaks from South Carolina.

We should try a new approach. Let's start with a multi-state business park along the state line. This park would be dedicated for large economic development opportunities (let's say $300 million in capital investment), such as new automobile or pharmaceutical manufacturing plants. Both states would participate in the costs to develop the park. Both would share in the tax revenue and profits. Equally important, the states would share the incentive costs, understanding that the economic benefits from this new park would boost the entire region. Rather than competing, we would be wise to recognize that no other state in the country could match our combined power and effort. Land exists for this all along our state line in the Charlotte region.

3. Higher education. More than one-third of the students at Winthrop University are from North Carolina. Many South Carolina residents choose to attend Central Piedmont Community College or UNC Charlotte. Both the University of South Carolina and UNC Charlotte have ambitious new plans to focus on university research as a catalyst for economic growth in their communities. Our higher educational institutions are critical to future information-based business growth, and yet institutions within a local phone call from one another do not coordinate their long-term plans or investments.

We should focus on reducing tuition costs for out-of-state students who live within the region that choose to attend a college in the Charlotte region. Next, USC and UNC Charlotte should seek out opportunities to jointly fund research in areas of shared strength. In fact, it would be a terrific idea to have a joint university research center as the centerpiece of our new multi-state business park.

We have countless opportunities to ignore artificial boundaries and become a true region. It's time to move beyond the talk and take action.