ENGEL

Jan. 26 Aquesta Bank is back in the black. CEO Jim Engel said its unaudited operating income for the fourth quarter of 2011 was $78,000 compared to net income of $2,000 for the same quarter of 2010. Net interest income for the fourth quarter of 2011 increased to $1.8 million from $1.6 million. The increase was largely due to improved net interest margins, but loan volume declined amidst a weak economy. At the same time, Aquesta had set aside a total of $1.8 million in loan loss reserves at the end of 2011, compared to $1.2 million set aside at the end of 2010.

Engel said Aquesta has hunkered down because of the economy. 

"We had a rough patch in the third quarter and really decided to reduce our cost structure. We took a hard look at our loan portfolio to see if they are all priced correctly," Engel said, explaining that the bank is prepared for slow growth in 2012 and 2013. The Cornelius-based institution reported an $859,000 loss during the third quarter of 2011 (compared to net income of $124,000 for the same year-ago quarter) and cut its workforce by about a dozen people.

Gov. Perdue

Gov. Bev Perdue announced 28 new jobs at Origin Food Group's new facility in Iredell County. In a partnership with a agricultural family from Ecuador, Origin will produce a new line of healthy food products, beginning with "fresh" yogurt and fruit shakes.

The company is investing more than $7 million to build and upfit its food processing facility off Interstate 40. Origin Food Group expects to create 28 jobs initially, and employ as many as 50 people in about two years. Origin Food Group is a partnership between Francisco Alarcón and Bob Stamey, a long-time leader in Iredell agriculture. Origin Food Group dates back more than 60 years in the Statesville area. Origin has been in the yogurt and beverage business 33 years; the Alarcon family owns Toni Dairy Industry in Ecuador.

COLLINS

Jan. 25 The Charlotte Venture Challenge is offering prize money for the first time—-a total of $100,000 for local entrepreneurs. The business innovation competition, formerly known as Five Ventures, is accepting applications from early-stage entrepreneurial companies between now and noon Feb. 29. The Charlotte Venture Challenge is organized by UNC Charlotte’s Charlotte Research Institute and The Ben Craig Center. For the first time, prize money to be awarded to the winning companies will top $100,000.

Go to www.charlotteventurechallenge.com to apply.

Jan. 25 The head of strategic planning for Norfolk Southern has let the NC Department of Transportation know that the railroad has grave concerns about plans for the $452 million Red Line from Charlotte to Mooresville near the Lowe's corporate campus.

"Norfolk Southern is concerned that the proposed Red Line project may now be fundamentally incompatible with Norfolk Southern's potential future use of the line and our ability to grow our business in North Carolina," John Edwards, general director of passenger policy and strategic planning, said in a letter to Paul Morris, the deputy secretary of the NC Transportation Department.

TARTE

POINT: "It is difficult to understand why NS was not contacted sooner to bring them in as a partner in the development of the rail line.  As we don't know where NS will come out in their analysis of the line, we are going to continue our fact finding and analysis albeit with some additional concern as to the depth of the plan's development."
--Cornelius Mayor Jeff Tarte

GILROY

COUNTERPOINT: "Utterly unbelievable! Iredell County Chairman’s description of all this as “cockamamie”, “insane”, and a “fairy tale” are proven even more accurate… NC DOT should be utterly ashamed for this waste of time and money. We need to widen I-77 and seriously plan and develop a 21st century rapid bus transit system."
--Dave Gilroy, Cornelius Town Commissioner

Excerpts from Jan. 16 Letter from John Edwards, Norfolk Southern's general director of strategic planning, to Paul Morris, deputy secretary of the NC Transportation Department:

"As I explained in our meeting, Norfolk Southern is concerned that the proposed
Red Line project may now be fundamentally incompatible with Norfolk Southern's
potential future use of the line and our ability to grow our business in North Carolina."

"Current publicity and discussions indicate that Norfolk Southern has agreed to,
endorsed, or otherwise has consented to the proposed Red Line project, which is
simply not the case.There has been a significant change in the use of the North Carolina mainline between Charlotte and Raleigh that may require the 0 Line to be used as an alternative through freight route."

To read the entire letter click here.

Jan. 24 Property rights in a multimillion-dollar neighborhood on Jetton Road in Cornelius collided with the concept of adequate compensation for a lost use Monday night at Town Hall. Steve and Lisa Haimbaugh rent their $1.2 million home on Jetton Road for $5,000 a week in the summer, generating $50,000-plus a year in revenue.

It violates the town’s vacation rental ordinance, but it allows the Haimbaughs to make their mortgage payment. Paul Duke, whose $1.975 million home is next door, asked that the town uphold the ordinance vacation rental ban, which would force the Haimbaugh’s close down what amounts to a bed and breakfast in February, when a three-year grace period comes to an end.

Mr. and Mrs. Haimbaugh asked the town for a 30-year extension because they wanted the rental income from the property to cover their investment.

TARTE

ANERALLA

Jan. 19 Cornelius Mayor Jeff Tarte is putting $50,000 of his own money into a campaign for newly created N.C. Senate District 41, which stretches from Cornelius to Matthews. Tarte, who said the money is a loan to the campaign, is in his third term as mayor of Cornelius.

He already has $75,000 in his treasury, as well as the apparent blessing of N.C. Speaker of the House Thom Tillis, a Cornelius resident. Tarte's campaign manager is Greg Wessling, a Cornelius resident, while Bill Dagit, a Cornelius CPA, is Tarte's campaign treasurer. Tarte said he is running so that he can take his experiences as Cornelius mayor—which featured a consultative, plan-oriented approach-and apply them in Raleigh. Among his focuses would be widening I-77 for the sake of the Lake Norman region; improvements to I-485 for the Matthews area; and education issues for everyone. Jim Duke, the head of the Peninsula Property Owners Association, is endorsing Tarte.

Tarte will be running in the GOP primary against John Aneralla, a conservative Republican who has already lined up an impressive list of endorsements, including Cornelius Mayor Pro Tem Lynette Rinker, current Cornelius Town Commissioners Chuck Travis and Dave Gilroy, as well as past Cornelius Town Commissioner Jim Bensman.

Aneralla also has the endorsements of Huntersville Town Commissioners Melinda Bales, Charles Jeter, and Danny Phillips,  Mint Hill Mayor Pro-Tem Lloyd Austin, Mecklenburg County Commissioner Neil Cooksey (District 5), Mecklenburg County Commissioner Bill James (District 6), former Cornelius Town Commissioner Eddie McNeely, and former Davidson Town Commissioner Tim Dreffer.

"This will get ugly," one elected official said. Both Aneralla, who lives in Huntersville, and Tarte attend the same church in Davidson. Filing for the fall election starts Feb. 13 and runs through the 29th. Party primaries will be Tuesday, May 8. The general election is Tuesday, Nov. 6.

North Meck officials, including Davidson Mayor John Woods and Bill Thunberg, executive director of the Lake Norman Transportation Commission, the Iredell Board insisted on  more information on the $452 million plan.
Jan. 17 Iredell County commissioners didn't derail the proposed Red Line at their Tuesday night board meeting. They just put a herd of cattle in front of it.

After a series of blunt arguments against the proposed commuter and freight service from Charlotte to southern Iredell County, they voted unanimously to withhold support for the "current draft business finance plan," saying "we believe the draft plan will lead to higher taxes for all citizens of Iredell, despite claims to the contrary."

The resolution said Iredell will reject all future Red Line proposals unless the consultants hired by the NC Department of Transportation produce the names of the corporations that will build along the proposed line.

“We have an obligation, if we are going to turn this thing down, that they have a target to shoot at,” said Steve Johnson, chairman of the Iredell Board of Commissioners.

Like Tonya Harding at a sportsmanship convention, the Red Line consultants fled the meeting room in Iredell County's historic government building, where "In God We Trust" is emblazoned in stone across the entryway.

I can not in good conscience hold the taxpayers of Iredell County hostage. In the economic times we live in, I cannot see this as a good investment," said Renee Griffith, a member of the Iredell board. Commissioner Ken Robertson, who said he was "totally out" when it came to supporting the Red Line, declared that Iredell would likely be left holding the bag because it is at the terminus of the Red Line, and therefore most subject to cost over-runs.

He said  the train would attract those people who now work and live in Mecklenburg County, and have kids in the Mecklenburg school system, but have not moved because the commute is too long.  "The train is more likely to attract young families with children than industrial growth," Robertson said.  "The businesses, where these people now work in Charlotte, will continue to contribute to the Mecklenburg tax base while the financial burden to educate the children of these workers would then fall upon the taxpayers of Iredell County."

The Red Line Regional Rail project requires buy-in from all the governments up and down the 25-mile line. Supporters say the line would spur development at each of the commuter stations from Huntersville to Mooresville, as well as "freight villages" that would enhance tax ratables from new manufacturing plants.

Asked if a thumbs-down from the Iredell County Commission meant "game over" for the Cornelius Mayor Jeff Tarte said: "Probably.  There are alternatives but they are difficult at best."

The Red Line, which would extend from Gateway Station near the center of Charlotte to Mount Mourne, near the Lowe's corporate headquarters in Mount Mourne, comes out of years of study and planning for growth. The Metropolitan Transit Commission established a task force in June 2010. With support from the N.C. Department of Transportation, the MTC has asked for intense study right now as well as public hearings, followed by votes up or down in the spring.

Cox: Buildings sells for $1.75 million

Jan. 16 The Cabarrus Chamber of Commerce has sold its 12,500 square foot building on Highway 3 in Kannapolis to a medical practice for $1.75 million.

“Given the market, and the fact that it met the appraisal at every level, we feel very good about it,” said John Cox, CEO of the Cabarrus chamber.

At one time the building had appraised at $2.6 million. The chamber will become a tenant.

The sale comes at a good time for the chamber. Like other chambers, the organization has taken a hit in sponsorship income. The Cabarrus chamber’s has fallen about half during the past couple of recessionary years. To make matters worse, the chamber’s long-time tenant, the Cabarrus Convention & Visitors Bureau, moved to a new location near Bruton Smith Boulevard, reducing the chamber’s revenue by about $60,000 a year.

BLACK

By Frank DeLoache

Three large commercial foreclosure proceedings in Cabarrus and Iredell counties in October and November come as no surprise to people who work in local commercial real estate. They say the commercial real estate market has not reached bottom yet.

Public records show:

• In Iredell County, Peoples Bank filed two, apparently related, foreclosure actions against Morrison Plantation LLC. According to records, on Nov. 23, Peoples filed a $3,918,000 foreclosure action on Lot 21 (1.92 acres) and Lot 2 (1.23 acres) in Morrison Plantation, the mixed-use development in Mooresville. On the same day, the bank filed a foreclosure for the same amount on 35.93 acres on Morrison-Plantation Parkway.