[ THEME MUSIC ] >> >>Announcer: MAJOR SUPPORT FOR CAROLINA BUSINESS REVIEW PROVIDED BY-- >> TO SAY THAT REAL ESTATE AND REAL ESTATE DEVELOPMENT AND COMMERCIAL DEVELOPMENT ARE A BRIGHT SPOT IN THE ECONOMY IS A GROSS UNDERSTATEMENT.

I'M CHRIS WILLIAM AND WELCOME AGAIN TO THE MOST WIDELY WATCHED AND LONGEST-RUNNING SOURCE OF BUSINESS POLICY AND PUBLIC AFFAIRS SEEN FOR 30 YEARS ACROSS NORTH AND SOUTH CAROLINA.

WE WILL CONTINUE THE DIALOGUE WITH A LOOK AT COMMERCIAL DEVELOPMENT AND CONSTRUCTION AS WELL AS REAL ESTATE.

IT IS BROAD AND WIDE INDEED.

WE START NOW.

>>Announcer: GRATEFULLY ACKNOWLEDGING SUPPORT BY-- [ THEME MUSIC ] >>Announcer: ON THIS EDITION OF CAROLINA BUSINESS REVIEW, A PANEL DISCUSSION FEATURING PAT ROGERS OF ROGERS BUILDERS ANDY ANDREWS, FROM DOMINION REALITY PARTNERS, LLC.

DALE STIGEMYER OF LCK AND LAWYERLYLES FROM THE NORTH CAROLINA REALTORS ASSOCIATION.

>> Chris: THE VELOCITY OF CHANGE SEEMS HISTORICALLY UNPARALLELED.

CLEARLY THIS LEVEL OF ACTIVITY AND NOT JUST BROAD ECONOMIC ACTIVITY BUT CERTAINLY IN RESIDENTIAL, COMMERCIAL, DEVELOPMENT, CONSTRUCTION, PAT ROGERS, WE'LL START WITH YOU.

HOW DOES IT END?

IS IT SUSTAINABLE?

>> OH, FIRST OF ALL, I HOPE IT DOESN'T END AND I DON'T THINK IT WILL.

I THINK AS A REGION, THE CAROLINAS WILL WORK WELL TOGETHER.

I THINK WE'RE OPTIMISTIC.

EACH OF THE CAROLINAS AND EACH ENTIRE REGION IS STRONG.

FOR US, 2020 BE OBVIOUSLY BROUGHT CHALLENGES TO EVERYBODY, BUT IT ENDED UP BEING ONE OF OUR STRONGEST YEARS AND WITH A LARGE VOLUME YEAR.

I WANT TO TAKE JUST A SECOND AND KIND OF THE PRIVILEGE HERE TO SAY THANK YOU TO THE TRADE WORKERS AND SUBCONTRACTORS AND THEIR LEADERSHIP AND ESSENTIAL BUSINESSES WHO CONTINUE TO WORK TO BUILD THE CAROLINAS THROUGH THE PANDEMIC.

AND SOME OUR CLIENTS ARE STILL DELAYING AND NOT CANCELING LARGE PROJECT PROJECTS AND THEY'RE GOING TO ENSURE WHAT THEIR FUTURE BUSINESS CHALLENGES ARE GOING TO BE.

WE HAVE SUPPLY CHAIN DISRUPTIONS, LABOR MATERIAL CHALLENGES AND THOSE ARE THE THINGS THAT WE HAVE TO WORK THROUGH TO MAKE SURE IT DOESN'T STOP.

>> GENTLEMEN, HOW DO YOU WEIGH IN ON THIS?

>> I AGREE WITH PAT.

I THINK THE CAROLINAS DO WORK VERY WELL TOGETHER.

I THINK IT'S BEEN AWN UNPRECEDENTED TIME.

SHE TOUCHED ON SUPPLY CHAIN ISSUES AND MATERIAL COST INCREASES AND WE'RE ALL WRESTLING THROUGH THAT.

I THINK ULTIMATELY, I DON'T SEE A LOT OF OVERBUILDING AND I SEE THAT THIS IS GOING TO CONTINUE ON FOR A WHILE.

>> GO AHEAD.

>> YOU KNOW, FROM THE RESIDENTIAL PERSPECTIVE, WE'RE SEEING A NUMBER OF PEOPLE WANTING TO RELOCATE TO THE CAROLINAS, YOU KNOW, DURING THE PANDEMIC AND STILL TODAY.

SO I THINK WE'RE GOING TO SEE THAT CONTINUE.

>> I THINK FROM MY PERSPECTIVE, WE'RE IN TOUCH WITH A LOT OF INSTITUTIONAL EQUITY OUT THERE THAT LOOKS AS THE SUNBELT UNIQUE IN ITSELF AROUND THE UNITED STATES.

THERE'S NO OTHER PLACES THAT ARE AS ACTIVE THAN THE MECKLENBURG COUNTY AREA AND THE TRIANGLE AND OBVIOUSLY, SOUTH CAROLINA ALSO SO.

THE BUILDING THAT WE'RE EXPERIENCING IS NOT GOING ON ALL AROUND THE COUNTRY.

SO WE'RE PRETTY FORTUNATE THERE AND YOU KNOW, WE'RE TAKING WHAT'S HAPPENING HERE AND WE CAN THAT IT'S HAPPENING ALL OVER THE COUNTRY BUT THAT'S NOT THE CASE.

>> YOU TOUCHED ON SOMETHING, PAT, AND I WANT TO LEVERAGE OFF THAT AND ANDY, YOU TALKED ABOUT THE FINANCING SIDE AND INSTITUTIONAL INVESTORS AND WE KNOW FINANCE IS THE LIFE BLOOD OF THE BUSINESS.

IF INTEREST RATES TICK UP%, IS IT A GAME CHANGER?

>> I DON'T THINK IT IS.

FOR US IN THE CONSTRUCTION SIDE, WE LEARNED HOW TO DO THINGS A LITTLE BIT DIFFERENTLY, YOU KNOW WITH THE 2020 PANDEMIC STILL GOING ON, NOT NEARLY AS STRONG OBVIOUSLY, BUT WE HAVE OTHER FACTORS THAT HAPPENED.

WE HAD THE ICE STORM IN TEXAS.

WE HAD THE COST OF MATERIALS GOING UP.

THOSE WERE CHALLENGES.

BUT WE'VE FIGURED OUT HOW TO WORK AROUND THAT.

WE'RE DOING THINGS A LOT DIFFERENTLY THAN THEY USED TO DO.

WE'RE DOING A LOT OF PRE-FABRICATION.

WE'RE DOING IT MORE ECONOMICALLY, EFFICIENTLY AND DOING IT QUICKER.

I THINK THOSE THINGS WILL BALANCE OUT THE OTHER CHALLENGES.

WHO KNOWS THAT THEY ARE.

I THINK WE'VE GOTTEN SMARTER.

>> DOES ANYBODY HAVE A DIFFERENT POINT OF VIEW ON THE FINANCING SIDE?

THAT IT IS HISTORICALLY, SECULARLY, GENERATIONALLY LOW INTEREST RATES, IF THAT GOES UP OR STARTS TO TREND, AGAIN, IS THIS A GAME CHANGER?

>> FROM OUR PERSPECTIVE, WE'RE DOING BETWEEN 60 MILLION 130 MILLION.

I AGREE WITH YOU.

IF WE HAD A SHARP UPTICK IN INTEREST RATES, IT'S GOING TO IMPACT THE CONSUMER.

WE'RE PASSING THOSE INCREASES DOWN TO THE CONSUMER LEVEL.

THERE'S NO-- SO WE'RE PASSING IT DOWN TO THE CONSUMER LEVEL.

THINGS ARE MORE AGGRESSIVE THAN THEY WERE SIX MONTHS AGO.

CLEARLY, IT'S A MUCH MORE AGGRESSIVE ENVIRONMENT FOR US IN THE DEVELOPMENT BUSINESS TODAY.

BANKS ARE ACTIVELY TO REPLACE MONEY OUT THERE.

>> I CAN'T HELP BUT THINK OF THAT.

A LOT OF US FACED SELLING A HOUSE OR BUYING A HOUSE OR BOTH OR BUYING A NEW HOUSE.

YOU KNOW CERTAINLY TOP OF MIND HERE.

HOW DOES THE RESIDENTIAL BUYER-SELLER, HOW DO THEY FARE IF RATES GO UP?

I MEAN, WHAT'S THE GENERAL CONSENSUS BESIDES EVERYONE IS CHASING ASSET PRICES AT THIS POINT?

>> YES.

YOU KNOW, I FEEL LIKE IF THE RATES DO GO UP, I FEEL LIKE WE'LL SEE SLOWDOWN OF THE VELOCITY IN THE MARKET.

ALSO SLOWDOWN IN THE PRICE INCREASES.

I MEAN, WE'VE SEEN YEAR-OVER-YEAR PRICE INCREASES IN THE-- DEFINITELY IN THE DOUBLE DIGITS BUT SOME UP TO 20% IN THE CHARLESTON MARKET.

I THINK CHARLOTTE HAS HAD A HUGE INCREASES AND ALSO THE RALEIGH MARKET.

SO ALL OF THOSE AREAS, I THINK, YOU'LL SEE MAYBE SOME SLOWDOWN IN THE PRICE INCREASE.

>> DALE?

>> YEAH.

YOU KNOW, I THINK INTEREST RATES WILL ABSOLUTELY HAVE AN IMPACT AS THEY TICK UP.

WE TO A LOT OF WORK IN OWNER-OCCUPIED SPACE PARTICULARLY IN THE INDUSTRIAL SECTOR AS FOLKS ARE SHOWING PRODUCT AND WATCHING THE INTEREST RATE ENVIRONMENT.

THINGS THAT ARE AFFECTING OUR WORLD MORE, MATERIAL PRICE INCREASES AND PROCUREMENT TIME IS WHERE WE'RE FACING THE MOST CHALLENGES AND MOST CONCERN.

>> PAT, HOW DO YOU MANAGE THROUGH-- ESPECIALLY GIVEN THE BROAD ENTERPRISE THAT ROGERS BUILDERS IS, HOW DO YOU MANAGE THROUGH THE ACUTE RISE IN RAW MATERIAL?

NOT JUST WOOD.

NOT JUST SHEETROCK, BUT STEEL AND EMPLOYMENT AND WORKERS?

HASN'T THAT BECOME-- S MY TERM, MA'AM.

DOESN'T THAT BECOME REALLY THE HEADWIND THAT GETS STRONGER FOR YOU?

>> ABSOLUTELY.

I MEAN, THE MATERIAL SHORTAGES THAT WE'RE CONFRONTING RIGHT NOW IN METAL, IN ANYTHING THAT COMES OUT OF THE FACTORIES THAT WERE SHUT DOWN DURING THE PANDEMIC BECAUSE SOME OF THE STATES THAT WERE TOTALLY SHUT DOWN, THEY HAVE NOT BEEN ABLE TO GET BACK UP TO FULL CAPACITY.

EVEN THOUGH THEY'RE OPEN, THEY DON'T HAVE THE WORK FORCE, TRAINED WORKFORCE TO BRING THEM BACK TO FULL CAPACITY.

SO IT IS A CHALLENGE.

IT'S A CHALLENGE ON ALMOST EVERY PROJECT THAT WE HAVE.

WE SEE IT BEGINNING TO GET A LITTLE BETTER, BUT IT HASN'T TURNED COMPLETELY AROUND IN THE PANDEMIC.

IT HASN'T.

>> WHEN DO YOU THINK IT NORMALIZES?

WHEN DO YOU THINK IT REGRESSES BACK TO THE MEAN OF WHAT MATERIAL PRICES WERE?

>> TO THE INTEREST RATE QUESTION, IF THAT SLOWS THINGS DOWN, IT WILL FOLLOW.

WE'LL START TO GAIN CAPACITY BECAUSE THEY WON'T HAVE THE DEMAND.

BUT HOPEFULLY, WE WILL FIND A BALANCE BETWEEN THE TWO OF THOSE AND WE'RE ABLE TO FACE THE HEADWINDS AND FIND A WAY AROUND IT.

>> ANDY, WHEN YOU DEVELOP A PROJECT, JUST GIVEN THE CONVERSATION WE JUST HAD AROUND RAW MATERIAL PRICES AND HOW YOU FACTOR OUT OR PRO-FORMA WHAT YOUR COSTS ARE GOING TO BE AND YOU HAVE TO BUILD THAT INTO WHETHER THEY'RE CONDOS OR APARTMENTS OR MIXED USE OR WHATEVER, I MEAN, TREES DON'T GROW IN THE SKY.

YOU CAN'T KEEP GOING UP ON THE PRICE PER FOOT, CAN YOU?

WHERE IS THAT ABSORBED?

HOW DO YOU MANAGE THROUGH AND HOW DO YOU SAY, YOU KNOW, WE'RE NOT GOING TO DO IT.

IT FINANCIALLY DOESN'T WORK?

>> AT SOME POINT IN TIME, YOU'RE RIGHT, CHRIS, THERE WILL BE A CEILING HERE.

FORTUNATELY, WOOD HAS GONE DOWN.

IT WAS GETTING TO THAT POINT.

IT HAS DEFINITELY DECREASED A LOT IN THE LAST 60 DAYS WHICH HELPED US TO BE ABLE TO GO AHEAD AND MOVE FORWARD WITH APARTMENT COMPLEXES.

WE WERE SEEING-- WE HAVE SEEN 100% INCREASE IN THE COST OF THE APARTMENT COMPLEX IN THE LAST SEVEN YEARS AND IN THE LAST SEVEN YEARS, WE HAVE SEEN 100% INCREASE IN STEEL AND CONCRETE IS UP 100%.

LABOR IS UP.

WE'RE HAVING TO DEAL WITH THOSE ISSUES BUT YOU KNOW THE, THE LARGESTER THE PROJECT RIGHT NOW, WE'RE ABLE TO HOLD A LITTLE BIT OF THE-- YOU KNOW, THE UNCERTAINTY SO WE'RE ABLE TO MOVE FORWARD, BUT WE ARE GOING TO KEEP AN EYE ON IT.

IT IS A BIG ISSUE RIGHT NOW.

ESPECIALLY IN THE OFFICE MARKET.

OFFICE MARKET IS UNDER SOME PRESSURE RIGHT NOW WITH THE PANDEMIC.

PEOPLE AREN'T GOING BACK TO WORK YET.

THE OFFICE MARKET HAS BEEN IN A REAL LULL FOR THE LAST 18 MONTHS WHEREAS, THE APARTMENTS THEY ARE HOT AS FIRECRACKER BECAUSE PEOPLE DON'T WANT TO SPEND THE MONEY ON WITH THE HOUSING INCREASES.

THEY WANT TO WAIT A YEAR AND THEY RENT A PLACE.

IN THE WHOLE OF CAROLINAS, WE'RE AT 79% OCCUPANCY IN APARTMENTS AND PEOPLE STILL MOVING DOWN IN DROVES.

IT'S A POPULAR SPOT.

>> DALE, DO YOU EVER SAY AND YOU KNOW, I DON'T WANT TO PUT YOU IN A POSITION HERE.

AS A MANAGER OF A PROJECT, YOU'RE NOT AN EQUITY OWNER, RIGHT.

I'M CORRECT ABOUT THAT.

DO YOU EVER SAY TO POTENTIAL CLIENT OR CLIENT, I WOULDN'T DO IT, THE NUMBER DON'T WORK, WE CAN DO IT, BUT IT'S NOT GOING TO WORK OR HERE'S THE RISK, OR YOU GOT TO MAKE SURE THIS DOESN'T CHANGE?

ARE YOU SAYING MORE AND MORE THAT YOU DON'T WANT OR YOU DON'T THINK PEOPLE SHOULD DO PROJECTS?

>> NO.

THAT'S NOT AS MUCH THE CASE.

WE CERTAINLY GIVE OUR CLIENTS AN OBJECTIVE VIEW OF WHERE THE MARKET IS.

SO IF THEY HAVE THE ABILITY TO WAIT TO LET SOME OF THAT PRICING NORMALIZED, WE HAVE PUT THAT OPTION ON THE TABLE FOR THEM.

IN MANY CASES, WE'RE NOT GOING TO ADVISE THEM TO NOT DO A PROJECT.

WE LET THEM MAKE THEIR OWN DECISION.

WE WILL LAY OUT THE OBSTACLES.

PARTICULARLY SCHEDULES.

SCHEDULES HAVE, TO US, IS PROBLEM I WILL THE HINDRANCE.

GETTING STEELE ON THE SITE AND CONCRETE.

IS PVC AVAILABLE BECAUSE OF WHAT HAPPENED IN TEXAS?

ET CETERA, ET CETERA.

THAT'S WHERE WE'RE SPENDING OUR TIME IS REALLY EDUCATING THEM ON THE PROCUREMENT PLAN WHAT DO WE NEED TO PROCURE NOW TO MAKE YOUR PROJECT FEASIBLE WHEN YOU NEED TO OCCUPY THAT SPACE AND DELIVER YOUR PRODUCT TO THE END USER?

>> MORRIS, I DON'T WANT TO GET TOO FAR DOWN THIS ROAD BECAUSE THAT WILL PUT YOU IN A POSITION OF BEING KIND OF COUNTERPRODUCTIVE TO WHAT REALTORS ARE MEANT TO DO.

ARE YOU HAVING MORE CONVERSATIONS WITH FOLKS WHO WANT TO BUY A HOUSE OR YOU CAN, HERE'S WHERE YOU NEED TO CONSIDER GIVEN WHERE THE HISTORICAL LEVEL OF ASSET PRICES ARE?

>> SURE.

A LOT OF TIMES YOU HAVE SOMEBODY WHO HAS TO BID OVER THE ASKING PRICE OR OVER APPRAISED VALUE TO PURCHASE A HOME.

>> I WOULD GUESS MORE THAN ONCE OR TWICE THEY HAVE.

>> ABSOLUTELY.

YOU'VE GOT TO HAVE THAT CONVERSATION WITH THEM OF WHAT'S YOUR ULTIMATE GOAL, WHAT ARE YOU WANTING TO DO, HOW LONG ARE YOU GOING TO BE IN THAT HOUSE?

BECAUSE OBVIOUSLY, IF THEY HAVE TO TURN AROUND AND SELL IT THE NEXT YEAR, TWO YEARS LATER, THEY COULD BE IN A BAD POSITION.

YOU WANT TO MAKE SURE THEY'RE AWARE OF THAT.

OBVIOUSLY, I THINK WHAT THEY DO IS COMPARE MAYBE RENTING VERSUS BUYING AND INTEREST RATES ARE LOW.

SO THERE ARE A LOT OF OTHER FACTORS THERE THEY'RE LOOKING AT AND THEY'RE ALL IMPORTANT.

>> TO THAT POINT, CAN I SAY, CHRIS, THAT'S PROBABLY THE BEST THING WE HAVE GOING RIGHT NOW FOR APARTMENTS.

BECAUSE FOLKS, YOU KNOW, ARE HAVING TO SPEND A LOT MORE THAN MAYBE THEY PLANNED ON BECAUSE THEY'RE HAVE DOING TO PAY ABOVE AN ASKING PRICE.

THEY'RE GOING TO SAY, WELL, WE WOULD RATHER RENT FOR A YEAR AND SEE IF THE MARKET CORRECTS ITSELF.

IT SHOWS THAT APARTMENTS ARE PRETTY POPULAR NOW AND HOUSING IS A LITTLE BIT MORE DIFFICULT TO FIND ONE AND YOU'RE GOING TO PAY A LOT MORE FOR IT.

>> PAT, SINCE WE'RE TALKING ABOUT THESE THINGS THAT HAVE GONE THROUGH THE ROOF IN DEVELOPMENT, WHAT DO YOU SEE IN TRENDS IN CONSTRUCTION AND BUILDING?

WHAT ARE YOU SEEING THAT A LOT OF PEOPLE ARE MOVING THEIR MONEY TO THAT MAYBE THEY WEREN'T EVEN 12 MONTHS AGO?

>> WE'RE SEEING THINGS LIKE AS YOU MENTIONED IN BALLENTYNE--EARLY ON, BALLENTYNE, SOLID COMMUNITY, SOLID PROJECT, AND WE'RE WORKING WITH NORTHWOOD AND BALLENTYNE REIMAGINED.

IT'S A COMMUNITY THAT'S REIMAGINED ITSELF.

SO THEY'RE DOING A LOT OF THINGS NEW AND DIFFERENT, BRINGING THINGS ALONG IN A DIFFERENT WAY BECAUSE THE MARKET HAS CHANGED.

PEOPLE WHO NOW LIVE IN BALLENTYNE ARE DIFFERENT THAN THE PEOPLE WHO LIVED IN BALLENTYNE 20, 25 YEARS AGO AND WE'RE SEEING A LOT OF THAT.

WE'RE SEEING REDEVELOPMENT OF A LOT OF OUR CITIES IN THE CAROLINAS.

YOU KNOW, YOU LOOK AT COLUMBIA, CERTAINLY GREENVILLE, RALEIGH, DURHAM, CHARLOTTE, GREENSBORO.

EVERYBODY IS TRYING TO REIMAGINE WHO THEY ARE GOING FORWARD.

I THINK THAT'S A LOT OF WHAT IS FUELING A LOT OF THE INTEREST IN THE CAROLINAS.

I MEAN, I CAN'T THINK OF A BETTER PLACE IN THE COUNTRY TO DO BUSINESS THAN IN THE CAROLINAS RIGHT NOW.

>> IT'S HARD TO ARGUE WITH THAT.

TO TAKE THAT A LITTLE BIT FURTHER, GUYS, LET ME UNPACK THIS.

AS PAT TALKED ABOUT COLUMBIA , DALE, MORRIS, I THINK ABOUT THE BULL STREET PROJECT.

YOU TALK ABOUT WHAT HUES HAS BEEN DOING IN GREENVILLE.

ANDY YOU KNOW WHAT'S GOING ON IN RTP.

YOU KNOW CHARLESTON IS MAYBE THE HOTTEST GROWTH AREA IN THE COUNTRY.

SO ARE THESE-- BACK TO THE POINT ABOUT-- AS YOU TALK ABOUT BALLENTYNE AND CHARLOTTE, PAT, ARE THESE GRAND VISIONARY COMMUNITY PROJECTS?

ARE MORE OF THOSE-- ANDY, I WILL START WITH YOU.

ARE MORE OF THOSE HAPPENING?

ARE THERE MORE PLANS FOR THAT?

ARE THEY LESS BUT MORE SPECIFIC?

HOW WOULD YOU DESCRIBE THAT?

>> THERE ARE MORE PLANS AND GOING TO BE MORE PLANS.

I THINK ALL OF THE ECONOMIC DEVELOPMENT GROUPS IN THE CAROLINAS ARE REALIZING THEY ARE GETTING TEN TIMES THE INQUIRIES THEY HAD 20 YEARS AGO OR EVEN TEN YEARS AGO.

SO I THINK THE AND THE NEED TO HAVE THESE PLANS ON THE TABLE TO SHOW, TO DEVELOP AREAS THAT ARE LESS SERVED TO GO A LITTLE FURTHER OUTSIDE OF TOWN OR TO HAVE MORE DENSITY IN THE MIDDLE, IN THE HEART OF TOWN, I THINK THOSE THINGS ARE GOING TO COME TO LIFE MORE SO THAN THEY EVER HAVE IN OUR HISTORY.

I'M 62 YEARS OLD AND WE HAVE SEEN A LOT.

I THINK WE'RE GOING TO SEE A LOT MORE COMING UP SOON WITH THIS INFLUX OF COMPANIES MOVING TO CAROLINAS AND INDIVIDUALS MOVING HERE WITHOUT A JOB.

YOU KNOW, I INTERVIEWED 30 KIDS.

YOUNG KIDS, YOUNG PROFESSIONALS THAT MOVE DOWN AND RENTING AN APARTMENT AND NOT ONE OF THEM HAD A JOB.

THEY WERE ALL MOVING HERE BECAUSE THEY LOOKED IT UP.

THEY FELT GOOD ABOUT IT AND NOW THEY'RE GOING TO FIND A JOB.

I DON'T THINK THAT HAPPENED IN ANY OF OUR TIMEFRAME WHEN WE WERE GROWING UP.

BUT IT IS A PRETTY COMMON PRACTICE RIGHT NOW.

>> DALE, ESPECIALLY DURING THE SUMMER MONTHS WHEN YOU THINK ABOUT >> PROS AND YOU THINK ABOUT RESORTS AND SUMMER AND BEACHES, DANIEL ISLAND IN THE LOWCOUNTRY AND BLUFFTON DOWN IN HILTON HEAD AND GOLD COAST IN NORTH CAROLINA.

IS THIS A SOLIDLY-- IS THIS A HOT SPOT FOR GROWTH AS WELL?

NOT JUST FOR THE NEXT SIX MONTHSS, BUT DO YOU SEE THAT FLUSHING OUT?

>> ABSOLUTELY.

I THINK THERE'S GOING TO BE A TREMENDOUS AMOUNT OF GROWTH AND PEOPLE ARE SEEKING OUT A QUALITY OF LIFE.

THEY'RE MOVING FROM AREAS THAT MAY BE MORE DENSE OR THEY COME TO SOUTH CAROLINA, THEY COME TO NORTH CAROLINA, AND THEY REALIZE THE BEAUTIFUL ENVIRONMENT THAT WE LIVE WITHIN.

I DON'T SEE THAT GROWTH SLOWING DOWN ANYTIME SOON.

AND ANDY'S EXACTLY RIGHT.

THE ECONOMIC DEVELOPMENT FOLKS HAVE BEEN DOING AN OUTSTANDING JOB RECRUITING BUSINESS THAT EITHER WANT TO RELOCATE OR EXPAND AND THE CAROLINAS ARE SQUARE ON THEIR MAP.

SO WE NEED TO BE BUILDING COMMUNITIES THAT ATTRACT THE LABOR TO ALLOW THOSE BUSINESSES TO BE SUCCESSFUL.

>> NORRIS, DOES RESIDENTIAL PLAY A BIG PART OF THAT COASTAL GROWTH?

>> DEFINITELY IT DOES.

I THINK MORE AND MORE PEOPLE ARE RETIRING TO THE COAST AND TO THOSE AREAS.

THEY'RE LIKING WHAT THEY SEE DOWN THERE.

THERE'S A LOT MORE INFRASTRUCTURE WITH MEDICAL CARE, ALL OF THOSE THINGS ALONG THE COAST TO HELP WITH THEIR-- ADDRESS THEY SORT OF AGE IN PLACE.

SO WE'RE SEEING-- AS THEY SORT OF AGE IN PLACE.

WE'RE SEEING A NUMBER OF PEOPLE MOVE IN THAT DIRECTION.

ABSOLUTELY.

>> I'M TRYING TO FIND SOME SPOTS WHERE YOU ALL ARE WORRIED ABOUT SOMETHING, IT DOESN'T SOUND LIKE YOU ARE.

I HATE TO BE-- I'M NOT PESSIMISTIC, BUT PAT, ARE YOU CONCERNED?

DO YOU WATCH SOMETHING THAT SAYS IF WE GO TOO FAR THIS WAY, HERE'S WHAT THE KNOCK-ON EFFECT IS GOING TO BE?

DO YOU HAVE A SHORTLIST OF THINGS YOU'RE WATCHING THAT YOU CONCERNED ABOUT?

>> OH, YEAH.

AT THE TOP OF THE LIST IS THE HIGH DEMAND AND SHORTAGE OF SKILLED WORKERS.

I MEAN, WE HAVE TO, AS A TWO-STATE REGION, WE'VE REALLY GOT TO PUT OUR SUPPORT BEHIND OUR LOCAL COMMUNITY COLLEGES AND OUR LOCAL WORKFORCE DEVELOPMENT PROGRAMS.

THERE ARE SOME REALLY GOOD ONES OUT THERE AND WE NEED TO PLAY A PART IN HELPING THEM GAIN MOMENTUM, SUPPORTING THEM.

THAT'S REALLY IMPORTANT.

I WORRY ABOUT THAT.

IT'S NOT JUST IN MY SELF-INTEREST TO HAVE A TRAINED WORKFORCE.

A TRAINED WORKFORCE ATTRACTS ECONOMIC DEVELOPMENT AND IT CHANGES THE LIVES THAT PEOPLE HAVE AND LIVES OF FAMILIES.

I WORRY ABOUT THAT.

WE REALLY ARE NOT PUTTING A FOCUS AS MY FRIEND JIM ROGERS FROM DUKE USED TO SAY, YOU KNOW, IF YOU HAVE A PROBLEM, HANG A LANTERN ON IT.

WE HAVE TO HANG A LANTERN ON THE SHORTAGE OF SKILLED WORKERS AND WHAT CAN WE DO AS A REGION TO TAKE CARE OF THAT?

I WORRY ABOUT THAT.

I DO WANT TO CIRCLE BACK TO WHAT ANDY SAID ABOUT, YOU KNOW, COMMUNITIES BEGIN TO SPREAD OUT AND TO GROW INTO OTHER AREAS OUTSIDE OF THE CORE OF THE CITIES.

I THINK THAT WILL HELP.

WE DON'T DO HOUSING ORS RES DENGSAL.

I THINK THAT WILL BALANCE OUT THE HOUSING PRICES AND AS HOUSING MOVES OUT FROM THE CENTER CITY OR OUT FROM THE HUB OF THE REGION, THAT WILL BRING MORE COMMERCIAL OUT INTO THAT AREA AS WELL.

AND SO WE'RE EXCITED ABOUT THAT.

WE HAVE AN OPPORTUNITY TO DO THAT.

>> WILL GO AHEAD, ANDY.

>> WITH THAT, I'M GOING TO GO OUT ON A LIMB, CHRIS, AND SAY IT'S MY BELIEF THAT THE RURAL AREAS OF BOTH OUR STATES HAVE SUFFERED FOR MANY YEARS.

I TRULY THINK THIS IS GOING TO BRING A LOT OF GROWTH TO THESE SMALLER TOWNS.

LOOK AT FORT MILL.

LOOK AT WHAT'S GOING ON IN SOME OF THESE COMMUNITIES.

>> I WOULD ARGUE THAT FORT MILL IS NOT RURAL.

>> IT WAS 20 YEARS AGO.

>> IT WAS.

>> IT IT'S GROWING.

HOLLY SPRINGS IN THE TRIANGLE.

IN 1995 IT WAS 450 PEOPLE.

TODAY, IT'S 40,000.

THAT'S ON THE PERIPHERAL OF THE TRIANGLE.

I THINK THOSE LITTLE, SMALL TOWNS ARE GOING TO GROW INTO PRETTY METROPOLIS AREAS OVER THE NEXT 10 YEARS AND I THINK THAT'S GOING TO BE A REAL POSITIVE FOR BOTH OUR STATES.

>> SO DALE AND MORRIS, DOES ALL OF THAT GROWTH, AS ANDY JUST DESCRIBED PIT PAT STARTED IT,S COULD DOES ALL OF THAT DEPEND ON SALIENT, GOOD TRANSPORTATION POLICY, OR IS THIS GOING TO ORGANICALLY HAPPEN ANYWAY TO THE GROWTH OF THESE SMALLER COMMUNITIES?

>> SO I WAS GOING TO INTERJECT AND TO WHAT ANDY WAS SAYING, ONE OF THE BIGGEST ISSUES WE'RE SEEING IS WE'RE SEEING LEXINGTON, SOUTH CAROLINA, THAT'S RIGHT OUTSIDE OF COLUMBIA.

THEY PASSED A MORATORIUM ON NEW DEVELOPMENTS, NEW HOUSING DEVELOPMENTS AND THEY HAVEN'T BUILT-- THEY HAVEN'T DONE THE INFRASTRUCTURE TO BE READY FOR THIS GROWTH AND WE GOT TO BE ON THEM ABOUT, YOU KNOW, PREPARING FOR THIS GROWTH THAT'S COMING, BUILDING AND SCHOOLS, BUILDING THE SEWER, BUILDING THE ROADS, ALL OF THOSE THINGS BECAUSE WHEN YOU DO THAT, WHEN YOU PASS 180-DAY MORATORIUM, IT PUTS EVERYTHING AT A HALT AND EVERYBODY GOES SOMEWHERE ELSE SO THEY'VE GOT TO BE CAREFUL OF HOW THEY-- YOU KNOW, HOW THEY APPROACH IT.

>> A FREE WITH MORRIS 100%.

I THINK INFRASTRUCTURE IS THE BIG DRIVER PARTICULARLY IN OUR MIDLANDS REGION HERE BUT I KNOW IT'S THE GREATER NORTH CAROLINA, SOUTH CAROLINA AND WE HAVE TO PUT INFRASTRUCTURE FOR GROWTH TO HAPPEN AND THEN HAVING THE RIGHT SCHOOLS TO EDUCATE OUR YOUTH AS THEY GET INTO THE WORKFORCE AND HAVE THAT LABOR POOL AVAILABLE TO ALLOW THE ECONOMIC DEVELOPMENT DEALS TO LAND HERE.

>> JUST REAL QUICK.

I SAW SPECIFIC AREAS AND WHAT THEY'RE SAYING RIGHT NOW AND THERE WERE COMMUNITIES AND THE CORPORATE SMALL TOWNS AROUND CHARLOTTE THAT STYMIED GROWTH AND SAID NO MORE DEVELOPMENT.

WE'RE NOT SPENDING MONEY ON INFRASTRUCTURE.

AND THEN THERE WERE THE PEOPLE WHO SAID, OH, YEAH.

WE ARE ON INFRASTRUCTURE.

WE'RE GOING TO DO IT.

YOU KNOW, FORT MILL IS ONE OF THEM.

YOU KNOW, THAT DID THAT.

>> SO PAT, SPECIFICALLY TO CHARLOTTE THEN IF YOU ARE TALKING ABOUT THAT, THERE WAS A BRUISING AND I WOULD SAY IT WENT ON FOR YEARS, THIS BRUISING BATTLE BETWEEN NORTH MECKLENBURG AND IREDELL COUNTY JUST NORTH OF CHARLOTTE AND IN THE COUNTY OF MECKLENBURG ABOUT THE I-77 CORRIDOR AND HOW THEY BATTLED BACK AND FORTH ABOUT THOSE TOLL LANES, BUT IT TURNS OUT OR IT'S TURNING OUT THOSE TOLL LANES ARE A BOOM TO THE ECONOMIC DEVELOPMENT.

ARE WE GOING TO SEE THESE BARE-KNUCKLED, BLOOD SPORT BATTLES?

>> I HOPE NOT.

I HOPE WE'VE LEARNED THAT IF WE CAN FIND SOME HARMONY IN THE DIFFERENCES THAT WE HAVE AND IF WE CAN DO THAT, IT'S BETTER FOR EVERYBODY, YOU KNOW, IT'S BETTER FOR THE COMMUNITY.

BETTER FOR THE PEOPLE WHO NEED JOBS.

IT'S BETTER FOR THE FAMILIES THAT NEED MORE ECONOMIC DEVELOPMENT WITHIN THEIR COMMUNITIES.

THAT'S WHAT I HOPE FOR THE CAROLINA.

I THINK WE'LL DO IT.

I THINK WE'LL DO IT REALLY WELL.

>> ANDY, PAT TALKED ABOUT ONE OF THE BIGGEST ISSUES IS FINDING TALENT.

YOU WEIGHED IN ON THAT AS WELL.

DO YOU FEEL LIKE-- PAT, I'M NOT SPEAKING FOR YOU OR PUTTING WORDS IN YOUR MOUTH, BUT PAT SAID PUBLIC POLICY HAS TO BE MORE AGGRESSIVE IN FIGURING OUT THAT SPOT WHERE WE CAN'T GET TALENT.

DO YOU FEEL THE LEGISLATORS ARE DOING WHAT THEY CAN OR CAN WE BE DOING MORE?

>> THAT'S A GREAT QUESTION.

WE ALWAYS STRUGGLE WITH BEING AHEAD OF THE CURVE A LITTLE BIT.

I THINK THIS IS-- THE MOMENTUM IS THERE FOR US RIGHT NOW AND I THINK WE REALLY DO NEED TO SUPPORT THE COMMUNITY COLES.

ALL THE OTHER COLLEGES ARE GROWING BY LEAPS AND BOUNDS.

WE HAVE A GREAT COLLEGE SYSTEM IN THE CAROLINAS AND SOUTH CAROLINA.

TO YOUR POINT, I THINK WE DO NEED TO NUDGE THEM A LITTLE BIT IN THE GOVERNING BODIES THAT KEEP THEM ON THEIR Ps AND Qs SO WE CAN MOVE THESE RURAL AREAS FORWARD.

I AM NOT WORRIED ABOUT THE METROPOLITAN AREAS.

THEY'RE GOING TO GROW AS THEY'RE GROWING.

THAT'S NOT A PROBLEM.

OKAY.

LET'S PUT THAT ON THE TABLE.

IT'S TO REALLY HELP THE AREAS THAT HAVE SEEN ZERO GROWTH IN THE LAST TEN YEARS.

AND I THINK IN ORDER TO-- THE TRANSPORTATION ISSUE, IF WE DON'T GET THAT STRAIGHT, THEY'RE GOING TO GO TO ANOTHER STATE.

THAT'S THE BOTTOM LINE.

>> SORRY, ANDY, TO INTERRUPT YOU.

WE'RE RUNNING OUT OF TIME.

40 SECONDS LEFT.

DALE AND MORRIS, IF YOU CAN WEIGH IN QUICKLY.

SPECIFIC TO SOUTH CAROLINA, WITH THE NEW COMMERCE OF SECRETARY AND CEO OF THE CHAMBER, BOB MORGAN, IS IT A NEW DAY IN SOUTH CAROLINA, IN 30 SECONDS, DO YOU FEEL LIKE THEY WOULD ATTACK THE TALENT ISSUE?

>> ABSOLUTELY.

ABSOLUTELY.

I THINK THEIR PREDECESSORS DID A WONDERFUL JOB.

I SEE VERY, VERY GOOD THINGS AHEAD.

I THINK BOTH ARE BUSINESS-MINDED AND I THINK THEY WILL DO LOTS FOR OUR REGION AND STATE >> I'M EXCITED ABOUT BOTH OF THEM.

I THINK THEY WILL BE ABLE TO TACKLE THESE THINGS.

GET OUR HELP.

GET THE REALTORS' HELP AND DEVELOPERS' HELP.

WE KNOW HOW THESE THINGS WORK.

>> PAT, ANDY, DALE, MORRIS, THANK YOU ALL FOR BEING SUCH GAME TO GET THIS INFORMATION.

HAPPY WEEKEND TO YOU.

THANKS FOR LEADING THE CHARGE.

BEST OF LUCK TO YOU ALL.

>> THANK YOU.

>> MAJOR FUNDING FOR CAROLINA BUSINESS REVIEW PROVIDED BY-- AND BY VIEWERS LIKE YOU.

THANK YOU.