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2010 Asheville City Plan

Population, Employment and Economic Development

Population, Employment and Economic Development

SIZE AND GROWTH RATE
The City of Asheville has experienced some erratic changes in population over the past several decades. During the period between 1950 and 1960, the population increased by 13.6 percent. Much of this growth is attributable to a major annexation of what is presently known as east Asheville and large extensions of north, south and west Asheville. However, the population decreased by 4.2 percent between 1960 and 1970 and by another 7.1 percent between 1970 and 1980. This population loss is believed to be principally due to the movement of people from existing neighborhoods within the City to the County suburbs. Annexations which occurred in 1981 and 1983 increased the City's population by 10.8 percent.

POPULATION CHARACTERISTICS
The following tables reflect information obtained from the 1980 Census, Neighborhood Statistics Program, on the demographic composition of the City of Asheville. This information is based on the population within the City limits as they existed in 1980.

NOTE: For the purposes of analyzing demographic and land use information in the 2010 Asheville City Plan, the larger planning area has been divided into ten planning "focus areas." The boundaries for these "focus areas" were determined based on the 1980 U.S. Census Neighborhood Statistical Program Area delineations. [See Focus Area Map: Land Use Section.]

During the same period, the population of the Asheville planning study area (inside and outside the current City limits) is expected to grow to 111,130 persons. This represents an 18.3% increase over the twenty-five year period.

The strengthening of economic growth within the City of Asheville is essential to the achievement of most of the community strategies outlined in the 2010 Asheville City Plan. Major economic and employment trends in Asheville and Buncombe County offer insights into the formation of goals for future economic development of the City and the strengthening of the City's role as the economic center of Western North Carolina. Economic development trends affecting Asheville and strategies for future growth do not stop at the municipal boundaries, therefore, much of the data presented and analyzed in this chapter focuses on Buncombe County as a whole.

Traditionally, the economy of Asheville has been based in three major employment sectors — manufacturing, tourism/ convention industry, and regional trade.

MANUFACTURING INDUSTRY
At present, manufacturing is the largest employer in the Asheville Area (Buncombe County) and provides a large share of the local income. In 1985, over 280 manufacturing establishments provided approximately 21,760 jobs, or 24.9 percent of the total County employment (Source: North Carolina Employment Security Commission.) The diverse products manufactured in the area include textiles, electrical components, precision instruments, blankets, packing products, printing and publishing products, and glass containers.

The following table shows the manufacturing patterns in the Asheville Area

NON-MANUFACTURING
The growth and development of the Asheville Area, in recent history, has largely been attributable to the non-manufacturing sector, i.e., services, retail, and wholesale trade. This growth is due primarily to an early recognition of the potential the area offered for tourism, retirement, recreation and health care facilities.

SERVICE INDUSTRY
Perhaps the least promoted, the least understood, but the most important, non-manufacturing activity in the Asheville area is the regional service industry. Service activities include business and repair shops, recreation services, personal services, health services, amusements, entertainment, and hotel and motel operations. This industry not only fills local needs, but provides much in the way of attracting outside revenue sources into the area. When service industry activities are grouped together, they represent a large portion of the total employment. The two major primary care hospitals in Asheville, Memorial Mission Hospital (1,645 employees) and St. Joseph's Hospital (930 employees), along with the Veterans Administration Medical Center, employing 1,040 persons, are the top three non-manufacturing
employers. (Source: Asheville Area Chamber of Commerce.)

In 1970, service industry activities accounted for 25.4% of the total employment in Buncombe County. By 1980, that percentage had dropped to 24% but advanced again to 25% by 1985. An overall 21.6% employment increase in the service industry is expected between 1990 and 2010.

TOURISM/CONVENTION
Tourism, a growing sector of the service industry, has experienced a dramatic increase in employment and revenues over the past four years in Buncombe County. The tourism industry includes establishments that serve the visiting public: hotels, motels, restaurants, attractions, and ground transportation operations. Asheville's convention and meeting industry made gains in 1986 as evidenced by revenues generated by the new room occupancy tax. According to the Buncombe County Tourism Development Authority (TDA), this tax generated $809,592 dollars in 1986. TDA officials predict that the room tax will bring in $1.2 million dollars in 1987. The tourism/convention industry is projected to replace manufacturing as the top revenue producing industry by 1988.

INCOME
From 1969 to 1980, the per capita annual income of persons in the Asheville Area (Buncombe County) increased by 38.7% from $4,585 in 1969 to $6,360 in 1979. Four years later in 1983, the area's per capita income level had increased 63.5% to $10,001.

The City of Asheville's per capita income, at $6,533, was slightly higher than Buncombe County's in 1980. That same year, the lowest income within the City was found to be in the central focus area ($4,972) and the west focus area ($5,284). The north focus area had a per capita income of $9,129, while the south and east focus areas were $6,007 and $5,787, respectively.

In the downtown area, the City has three large redevelopment projects underway — The Pack Plaza Project, a mixed retail/office complex including a cultural arts center and a parking deck; the Wall Street Project, a retail and office complex with a260-car parking facility; and large renovation projects on Hay-wood Street including the Haywood Park Hotel, a retail/office complex and an apartment project. [For more details, refer to section on Downtown.]

The Grove Park Inn and Country Club has been a major hotel/convention resort complex since its construction in 1919. The Grove Park expanded in 1984 adding over 230 rooms and began another expansion in 1986-87 of 186 rooms with larger banquet and meeting rooms. Over the past three years, the total number of hotel rooms in the City has doubled to 4,000.

In addition, two regional shopping centers have been constructed in the Asheville Area in the past year and a half; River Ridge Outlet Mall in the east, and West Ridge Center in the west. This recent commercial construction activity, plus the large, steady growth of the area's residential market, is reflected in the following table summarizing the number and value of building permits issued in the City during the past six years.

The challenge of finding new ways and means to strengthen and diversify the Asheville Area economy continues. Factors such as the future shift in employment patterns, the fierce competition for new business and industry in the southeastern United States, and the limited resources available for economic promotion and recruitment has inspired the community to begin formulating, and acting upon, new aggressive strategies to meet the goals for a healthy economy.

Through the City's "Alternatives for Asheville" planning process and the Economic Development Summit sponsored by the Asheville Area Chamber of Commerce and the University of North Carolina at Asheville, goals and strategies are being addressed.

OBJECTIVES AND TOOLS

To maintain the quality of life and to create conditions conducive to attracting a diversity of new business and industrial development while retaining and expanding existing business and industry.

• Prepare a marketing strategy to entice new businesses and non-polluting industry.
• Promote more convention activity.
• Promote corporate, regional and division headquarters in the Asheville area.
• Investigate the potential for alternative tax structures.
• Encourage and support the Airport Authority in its drive to implement all phases of the expansion plans.
• Encourage the use of the microelectronic hookup between UNC-A and the Research Triangle.
• Promote Chamber of Commerce economic development activities.
• Promote financial assistance (seed capital) for the development of new businesses through venture capital enterprises.
• Maintain and continually update the City's Capital Improvement Plan (CIP).
• Develop better cooperation between the City and County to ensure orderly growth and development and the protection of scenic and natural assets throughout the areas.

To increase the tax base of the City.

• Adopt a long-range plan of annexation.
• Study the creation of special tax districts for public improvements.
• Encourage the establishment of a permanent source of funds to provide financing for economic development.
• Research and utilize state and federal funding sources. Seek grants or professional assistance.
• Educate the public on the use and necessity of bond issues for public improvements.

To expand and upgrade the community's infrastructure systems and services.

• Routinely update status reports of the infrastructure systems as an aid to developers and in defining those ; areas most conducive to development.
• Develop only within the capabilities of water, sewer and street systems.
• Authorize the City Planning Director to determine the need for developers to participate in improving the infrastructure, not only for the specific site, but also, for the contiguous area and other areas that are affected by the construction, maintenance and servicing of the development.
• Use the French Broad River for a water supply.
• Encourage telephone, power, and cablevision lines to be placed underground.

To provide a broad range of employment opportunities for youth, minorities, and women.

• Find ways to encourage our young people to remain in Buncombe County to live and work, or to return following advanced education and training.
• Encourage job market analysis for future graduates to acquaint them with available jobs, the potential for future employment, and anticipated changes in the economy of our area.
• Encourage competitive salary scales in the community.
• Strengthen coordinated industry recruitment efforts of our local youth, minorities, and women by the City, UNC-A, and A-B Tech.
• Adopt a comprehensive affirmative action plan.