Wilkes EDC 2020-21 Annual Report by WilkesEDC

ANNUAL REPORT

Wilkes Commercial Business Center Mock Up Photo PLACEHOLDER

Page Design Not Final

2020-21 EDITION

BOARD CHAIRMAN Your Wilkes Economic Development Corporation Board and professional staff have been working diligently this past year to support our citizens and companies alike. We had 7 Projects Announced consisting of 172 jobs and $18 million of investment for our county, awarded a total of 105 business recovery grants along with 17 marketing grants for our local businesses affected by Covid-19, funded and released a much needed housing study for our county, awarded 8 entrepreneurial grants from our annual Entrepreneurial Grant Program, and secured an award of $1.5 million Golden LEAF grant for our planned Wilkes Commercial Business Center in our LEAP Forward initiative just to name a few. Wilkes County has seen a surge in new building permits in 2021 even with record lumber prices. In response to Covid-19, more companies are accommodating remote work allowing employees to move out of congested cities and suburbs to rural areas which bodes well for our county. Our excellent fiber broadband availability position Wilkes County well in this environment. I have been blessed to travel across the US and can report that we live in a beautiful area with abundant water, favorable climate and fantastic outdoor recreational opportunities. Project Reborn (North Wilkesboro Speedway) infrastructure funds was included in Governor Cooper’s proposed budget this year. With Wilkes and two other speedway revitalization announcements being in both “red” and “blue” counties, bipartisan support is expected. There are some big names behind this initiative including Marcus Smith, Dale Earnhardt Jr., and Marcus Lemonis. If this comes to fruition with the budget, this could be the largest stimulus this county has seen in recent years. This could be our opportunity to identify and secure topography friendly industrial sites along our US 421 corridor. I want to personally thank our President LeeAnn Nixon, Vice-President/CFO Robin Hamby and our Marketing & Content Manager Caroline Bracey for their countless time and energy spent working for our citizens and companies, as well as our engaged Board of Directors that continue to collaboratively work together to move Wilkes County forward. Sincerely, Brett D. Cothren , Chairman

213 Ninth Street North Wilkesboro, NC 28659 (336) 838-1501 www.WilkesEDC.com

CONTENTS Year of: July 2020 - June 2021

"Wilkes EDC's mission is to facilitate the creation of new jobs and capital investment in Wilkes County, through the retention and expansion of existing businesses and recruitment of new businesses."

YEAR END ACTIVITY REPORT

Project Averages, Missed Opportunities and Business Activity Statistics

2020-2021 Announced Business Projects, Workforce and Investment Averages

LOOKING AHEAD Year-to-Date 2021 Announced Projects, Workforce and Investment Averages

RECOVERY GRANT Final Statistics for the EDC led Small Business Recovery and Marketing Grants in response to COVID-19

OUTDOOR ECONOMY Wilkes Outdoor Action Plan and the EDC's Start Your AdVenture Here campaign.

YEAR END REVIEW Notable Activity, Marketing Efforts and Current Local Statistics

LOOKING BACK

2021 ENTREPRENEURIAL GRANT WINNERS Wilkes County Small Businesses who received an Entrepreneurial Grant in 2021

13 HOUSING

Local Planned Housing Projects, Housing Statistics

WILKES COMMERCIAL BUSINESS CENTER Coming Soon! A multi-tenant workspace for commercial or light industrial use.

AREA GROWTH Economic progress and expansions within Wilkes County

LOOKING BACK 2020-2021

Announced Projects Owen Medical Products New Business

Totals

Apple Brandy Prime Cuts Expansion

Sun Oven

New Business

Projects

Elk's Lodge New Business

NRS Logistics Expansion

172 New Jobs

JELD-WEN

Expansion (2020)

JELD-WEN

Expansion (2021)

18M

New Investment

2020-2021

Announced Projects

LOOKING BACK

Owen Medical Products, LLC, a woman-owned small business (WOSB), opened November 2020 in the Town Square business complex in North Wilkesboro. The new company manufactures and supplies non-woven disposable ASTM Level 1 procedural face masks and distributes other disposable and medical products. Apple Brandy Prime Cuts is opening a retail space soon at 106 Chestnut Street next to Smoot Park in North Wilkesboro. It is slated to open in the Fall of 2021, adding four positions bringing their total to 12 employees. Seth Church, owner of Apple Brandy Prime Cuts, also operates a harvesting and processing plant on Thomas Street in North Wilkesboro, which is expanding and upgrading equipment. Sun Oven International, Inc. an Illinois based company, that produces 6,000 solar cookers yearly, is locating within Cornerstone Church in Wilkesboro. Additionally, they will be implementing an incubator focused on Green Energy. Sun Oven plans to engage with Wilkes EDC, ASU and WCC to cultivate creative ideas in the region by assisting with investment capital, expertise, accounting and other businesses services for entrepreneurs. Elks Lodge, located on Reynolds Road and Finely Avenue in North Wilkesboro, was purchased by local businessman, Scott Nafe. Plans are underway to examine the feasibility of alternative uses, including both residential and institutional. The former building is 7,000 square feet and located on 4.2 acres of land. NRS Logistics, a North Wilkesboro company that provides multiple functions for the retail sector, such as printing, installations, logistics and warehousing. They have expanded by leasing an additional 50,600 square foot manufacturing building on Ridge Street in Wilkesboro. NRS Logistics provides services to Fortune 50 Companies nationally. JELD-WEN is a proud to be a part of the community in North Wilkesboro and plans to continue their investment in Wilkes County. With the help of the Wilkes EDC, they were able to complete a $8 million dollar expansion and add approximately 108 jobs, far exceeding the 29 positions they committed to. They also recently announced a capacity expansion at the Wilkes plant that will result in additional jobs by the summer 2022. JELD-WEN values their partnership with Wilkes County and the State of North Carolina and looks forward to growing together. JELD-WEN currently employs over 500 people in the state of North Carolina.

LOOKING AHEAD YTD 2021-2022

Announced Projects Rossman Apiaries Expansion

Rossman Apiaries– Expanded into a building that provides larger warehouse space allowing them to increase their inventory. Rossman relocated from 318 Ninth Street to 102 Chestnut Street, Suite 103, in North Wilkesboro (near Smoot Park). Rossman offers an array of beekeeping supplies and provides knowledge that not only serves our locals bee enthusiasts, but clients who travel regularly from surrounding states to shop.

Totals

3 Projects

The Block

New Business

The Block– A family fun center is opening soon in North Wilkesboro offering a trampoline park, ninja warrior course, roller skating rink, birthday party rooms, concession area and later adding a glow in the dark putt-putt course. The Block is located at 101 6th Street, formerly known as Town Square. This asset will appeal to both local families and those from surrounding areas fulfilling an important needed amenity that improves our quality of life.

54 Jobs Retention/New

SHAMRON MFG New Business

Shamron Manufacturing– Shamron Mills, is a Woman Owned Small Business (WOSB) based in Troy, New York. They specialize in providing medical garments to their clientele, acquired Wilkesboro based Hinson & Hale Technologies’ building, assets and talent. Shamron has utilized Hinson & Hale to manufacture their garments since 2015, so it is a seamless transition with local leadership that secures the future of our workforce. They seek to add employees to the operation allowing them to increase their ability to broaden their client base.

1.7

Million Investment

2021 ENTREPRENEURIAL GRANT WINNERS The Entrepreneurial Grant Program Sponsors Program provides funds to Existing Businesses for Expansion, and those who plan on Starting a Business in Wilkes County. Applicants are asked to submit a business plan that describes how the grant funds will be used to grow or start their business, as well a video pitch of their request. Castello Barone, a new vineyard located at 475 Groce Road in Ronda, is owned by Scott and Elizabeth Barone. This Veteran-owned small business plans to use their $1,700 to purchase grape vines they will use in their first acre of planting the varietals of Vermentino and Montepulciano grapes. They will begin constructing their Tasting Room and hope to open by 2023. For more about Castello Barone, visit www.castellobarone.com.

Erin and Michael Vanderploeg, along with LB Prevette, have planned to open Merle's at 106 East Main Street in Wilkesboro in the Fall of 2021. The lounge is planned to be a gathering place for locals and visitors alike where they can socialize and network while enjoying craft cocktails. The trio plans to provide an inclusive community experience by revitalizing their historic location and encouraging customers to also visit local restaurants in downtown Wilkesboro. The Wilkes EDC awarded them $1,500 toward the purchase of restaurant equipment. For information on The Cocktail Lounge, email EWilser1@gmail.com.

2021 ENTREPRENEURIAL GRANT WINNERS 3 Pink Flamingos Boutique, a retail clothing store located at 107 West Main Street in Wilkesboro, received $1,300 to assist in purchasing a second Point of Sale System. This new boutique is owned by sisters Brandy Miller, Tasha Handy and their mother Judy Snyder. Specializing in women’s clothing, the aim of 3 Pink Flamingos is to offer personalized shopping experiences for their customers based on their style and body type. To contact them, send an email to 3PinkFlamingosBoutique@gmail.com.

Dylan and Deanna Prevette own New Castle Farm, a new You-Pick Farm located at 3378 Clingman Road in Ronda. For their first harvest season, the Prevettes planted 18,000 strawberry plugs by hand. They plan to offer seasonal selections, like pumpkin picking in the fall, to allow families and individuals a unique experience without having to drive outside of Wilkes County. New Castle Farm was awarded $3,000 to purchase a Rain-Flo Water Wheel 1600 Series planter and additional wheel that will allow them to efficiently plant double rows at once. To learn more about New Castle Farm visit their website www.NewCastleNC.com or follow them on Facebook. Sew Blessed Quiltworks, located at 201 Sparta Road, Suite A in North Wilkesboro, is a small fabric and quilting shop. Owner Libby Whittington specializes in making quilts using a long arm quilting machine to the specifications of her clients. She has been awarded $1,200 for training sessions for herself and a new employee to create more complex custom designs on quilts. Whittington says that the training will broaden the detailed designs offered by her shop and build her client base. Contact Sew Blessed Quiltworks by calling 336-8180852, visiting their website or Facebook page.

2021 ENTREPRENEURIAL GRANT WINNERS Elyse and Dustin Serrano, owners of Serrano Film Co. received $2,000 from the EDC to go toward purchasing an additional camera for their business. Serrano Film Co. is located at 118 Piney Top Drive in Millers Creek. Elyse and Dustin provide custom, personal story-based videography services primarily for weddings. They also serve small businesses by providing commercials, training or real-estate videos, and more. Visit Serrano Film Co. by following them on Facebook or on their website www.serranofilm.co.

Reavis Skull Works is a taxidermy-based business owned by Jody Reavis of 176 Pennington Road in North Wilkesboro. Reavis Skull Works specializes in a unique cleaning service of bones using dermestid beetles. Reavis also offers articulations of full skeletons of small mammals and custom laser cut metal hangers for sportsmen to display their trophies. The Wilkes EDC awarded Reavis Skull Works $2,000 to go toward marketing efforts and the purchase of inventory. Contact Jody by visiting his website. www.ReavisSkullWorks.com.

JR Pixels, a Veteran-owned photography studio located at 101 West Main Street in Wilkesboro received $800 from the EDC to go toward marketing efforts. Owner Nelson Gonzalez delivers premium studio and commercial location photography in the Wilkes County area. To inquire about services, visit www.jrpixels.net, or send an email to Contact@JRPixels.net

HOUSING Wilkes EDC Releases Housing Study Wilkes EDC, in partnership with the Wilkes Chapter of the Winston-Salem Regional Association of REALTORS® (WSRAR) and the North Carolina Homeowners Alliance (NCHA), commissioned Bowen National Research in the Summer of 2020 to conduct a Housing Study in Wilkes County, NC. The study considered various demographic, economic and housing metrics, as well as other factors that impact and influence housing. Wilkes EDC hosted a presentation on September 22, 2020, to gain insight and engage with Patrick Bowen, President of Bowen National Research. The full study can be found on the Wilkes EDC website. A few of the highlights and key points from the assessment include: Need exists for 995 additional rentals and 1,511 for-sale units over the next 5 years. Opportunities are diverse in price points creating a demand for a broad based approach to support growth. Nearly 10,000 commuters travel into the County daily for work who could potentially be residents. Potential sites that would be suitable for development are included in the report

Townhomes Planned in Wilkesboro The Wilkesboro Town Council approved plans for 10 townhomes to be built by Finley Properties at 100 Court Square, behind the Wilkes Heritage Museum. The council conveyed the site to Finley Properties for $100,000 and stipulated that the developer invest a minimum of $1 million in the project, obtain a building permit in 9 months, and complete the townhomes in 18 months. Responding to the need for increased housing in our area, Cam Finley says each townhome will be sold for around $300,000 and contain 3 bedrooms, 2.5 baths, and average around 1,800 sf with double garages. Units will be sold individually with deeds, with seven units facing North Bridge Street and three facing Hardin Hill Street. In addition to Court Square, Finley said he also plans to develop the nearby Bank of America site (200 Main Street) into 8 townhomes, describing them as ‘a little higher grade, with master bedrooms downstairs’. Construction for these townhomes is underway as of August 2021.

Wilkes Building Permits Increase Despite Material Cost Surge Permits for single-family homes almost doubled as of August 2021 compared to similar months in prior years.

2019

57 Permits Issued

Average Size: 1,946 sf

2020

2021

Average Size: 1,982 sf

Average Size: 1,934 sf

Permits Issued

OUTDOOR ECONOMY "ELEVATING QUALITY OF LIFE AND THE ECONOMY THROUGH THE OUTDOORS" The Wilkes Outdoor Economy Workgroup is composed of representatives from the Health Foundation, Towns of Wilkesboro and North Wilkesboro, Wilkes Economic Development Corporation, Wilkesboro Tourism Development Authority, Wilkes Health Department, Yadkin River Greenway Council and the County of Wilkes. The group is focusing on the planning and development of outdoor recreation infrastructure projects such as trails, greenways, destination-quality parks, attractive downtowns, and the creation of multi-use public spaces suitable for major events and festivals. These projects contribute significantly to the quality of life for local residents, help grow small businesses, and attract visitors. The purpose of “The Great State of Wilkes Outdoor Recreation Action Plan” is to create a community-led vision and 15-year roadmap to ensure strategic decision-making and to grow the outdoor economy.

Learn more about the Action Plan at:

While working on the Outdoor Action Plan, Wilkes EDC continues to encourage start-ups, entrepreneurship and recruitment of businesses that utilize and appreciate our local outdoor amenities through the marketing campaign. Help us spread the word by using #WhyWilkes and sharing our posts on social media!

Solving Economic Issues Economic development efforts are hampered as sites and available buildings for expanding businesses are scarce. Many are unable to wait for construction. Immediate market demand compels them to consider leaving the area. The Wilkes EDC received a $1.5 million grant from Golden LEAF and a $1.5 million match contributed by Wilkes County to fund a solution to these issues in our area.

As part of the LEAP Forward initiative, we will develop Wilkes Commercial Business Center, a 31,200 square foot flex multitenant building for commercial or light industrial use on a 4.8acre site. The building will be leased at a discount rate to new or existing businesses for three years before advancing to market rate. Occupants can remain or grow into a larger location within Wilkes upon availability.

This will solve current project demand based on reliable data collected locally, where companies are searching for new facilities that are not available. The Business Center will support retention and growth of jobs and companies. Funds received from lease income would be utilized for maintenance and expanding the program to create additional innovation centers in the future.

AREA GROWTH WILKES COUNTY AIRPORT

Upgrades to the Wilkes County Airport were completed with plans for a T-Hangar and runway extension to come. Samaritan's Purse now has a new larger hangar at the airport and Wake Forrest Baptist now uses the site for AirCare, in addition to local and regional businesses.

EDUCATION PROMISE PROGRAM A two-year scholarship designed to ensure every qualifying high school graduate in Wilkes, Ashe and Alleghany can access a college degree from Wilkes Community College tuition-free. Visit https://www.wilkescc.edu/promise/ for more.

NEW INFRASTRUCTURE

Wilkesboro announced plans for Cub Creek Park. Brown's Ford Water Tank and Waterline Loop were completed, as well as opened a new ABC store. North Wilkesboro began Wilkes Industrial Park water tank to JELD-WEN, and plans to extend waterline from tank to Hwy 268 intersection. Wilkes County announced plans for new multi use County Office building.

FRONTIER NATURAL GAS This was a year of growth for Frontier Natural Gas. They expanded from Sparta Road/Hwy 18 to the Tyson Hatchery, from Westwood Lane/Old Hwy 18 to Herbal Ingenuity and The Fieldstone Estates, as well as a connection from Edgewood Road to Old Hwy 18 and then to Carl Rose & Sons. These new connections create expansion opportunity for businesses, as well as provide access to more Wilkes residents.

SPECTRUM HOSPITALITY HOTEL Plans are underway for a new hotel coming to Wilkes County in the near future.

SAMARITAN'S INN Samaritan's Purse announced plans to open the Samaritan's Inn, which contains approximately 29 rooms. This facility will be used for employees and volunteers in training.

HOSPITAL ONCOLOGY OPENS

Wake Forest Baptist Hospital added a Hematology and Oncology clinic to its Wilkes Medical Center campus. They continue to expand patient care and top level treatment options in Wilkes County.

EXPANSION AT TWO RIVERS

Planet Fitness added with Harbor Freight and Taco Bell joining the area of Two Rivers cinema in Wilkesboro soon. Additionally, Dodge City has moved next to Kohl's.

AREA GROWTH NORTH WILKESBORO SPEEDWAY The Wilkes EDC in collaboration with Wilkes County, North Wilkesboro and Wilkesboro managers responded to a request from the State Budget Director about Governor Cooper’s Budget Plans at the end of April 2021. Then on May 19th, Governor Roy Cooper announced his initial recommendations for investing federal American Rescue Plan funds, including allocating $10 million for repairs and infrastructure improvements at the North Wilkesboro Speedway. This designation is contingent on a $2.5 million match from local government. It also designates $5 million to develop, connect and market a new Motorsports and Moonshine Heritage Trail. EDC President LeeAnn Nixon said, “We look forward to continuing to collaborate with SMI’s leadership and our local partners as we move forward together. North Wilkesboro Speedway’s revitalization will have a significant impact on our local economy through tourism, job creation and businesses that support the industry.” The efforts of local marketing campaign launched by the Wilkes Chamber of Commerce and Terri Parsons sparked additional funding promises from Camping World CEO Marcus Lemonis, who pledged $1 million toward the project in addition to the possibility of a local Camping World store. In August 2021 it was announced that the funding allocation for North Wilkesboro had been doubled to a $20 million designation with no local match. This news comes after a visit from SMI's Marcus Smith and Dale Earnhardt Jr. to Raleigh. These funds must be included in an ARP spending bill and approved by the North Carolina General Assembly. Unless delayed, this vote is set to happen in August 2021. It is still uncertain what type of motorsports will officially return to Wilkes, but the possibility of racing and other entertainment events have been rumored around the project. Nonetheless, the Wilkes EDC values the esteemed history of the North Wilkesboro Speedway and looks forward to its future in Wilkes.

FROM OUR PRESIDENT Wilkes has continued to be blessed with growth and progress in the midst of challenges that COVID has presented. Thankfully, through the partnership of local government, resource partners, companies and private sponsors we were able to provide assistance, resulting in many good things to reflect upon. We are off to another great start as we take a leap of faith and begin the LEAP Forward program with the Wilkes Commercial Business Center in the design/bid stage. The center meets a need within Wilkes and will provide an opportunity to assist new or existing companies by accelerating their ability to grow quickly. So quickly, that we hope the tenants outgrow the building and we will need to duplicate the building process. Additionally, we have already announced 3 Projects so far this year and have the possibility of holding a second Entrepreneurial Grant Program in the Fall of 2021 if more sponsors contribute. We welcome you to be a part of our mission. Engage with us in conversation, join us in meetings, share social media post to assist in promoting Wilkes, and tell business owners we are available to assist if we have not yet reached them. Consider becoming an investor in our efforts or a sponsor of a specific program. Partnerships make it possible for us to collectively LEAP Forward and continue our mission to ensure Wilkes is a great county to do business ! Sincerely, LeeAnn Nixon , EDC President

Board of Directors

NEW INVESTORS 2020-21

2020-2021

Brett Cothren, Chairman Oakwoods Properties, LLC | Blue Ridge Real Estate Group, LLC

Dale Isom, Vice Chairman Spectrum Hospitality, LLC

Terry Bumgarner, Past Chair Bumgarner Services

Keith Elmore Wilkes County Representative

Russ Ferree Wilkesboro Representative

Debbie Ferguson North Wilkesboro Representative

Sandra Simmons Ronda Representative

George Smith Copper Barrel Distillery

John Cothren Cooperative Extension Agent

Matthew Daye Surrey Bank

Ron Wilcox Samaritan's Purse

Shelmer Blackburn Wilkes Cattlemen's Association

Amanda Perry Wilkes Communications

Luke Mathis Mathis Concrete Incoming Board Member FY 21-22

ABOUT US

The Wilkes Economic Development Corporation is a 501(c)(3) public-private partnership. The EDC is comprised of three professional staff and a 13 member Board of Directors. Our Board of Directors is comprised of both Public and Private membership that meets on the second Friday of each month at 8 a.m., except in the month of July. The meetings are open to the public. Please let us know if you would like to be added to our monthly email reminder or plan to attend the meeting by sending a request to Info@WilkesEDC.com.

ANNUAL EVENT SPONSORS