John Cox

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.

Cox acted quickly on the changing realities. For one thing, he voluntarily cut his own $160,000 salary by 25 percent and implemented staff furloughs. Cabarrus County had also reduced funding to the Economic Development Corp., which Cox also runs.

Principal and interest on the chamber’s $980,000 mortgage ran $9,000 a month. The new lease payment — for just 5,000 square feet of space in the building — is going to be $7,500 a month. Without taxes, property insurance, maintenance and lawn care, Cox figures the chamber will save about $100,000 a year. Utilities alone ran $27,000 a year.

The build-out for the chamber was expected to get under way immediately.

Cox, who is also CEO of Cabarrus Economic Development, has his work cut out for him in 2012. He fielded a range of questions from BusinessToday editor Dave Yochum:

What’s on top of your agenda as both the head of the chamber and the EDC?

Cox: Jobs, jobs, jobs — both new jobs for Cabarrus County and retaining existing jobs. We’re also going to continue our strong support for local small businesses and find ways to work with the County’s Council for a Sustainable Local Economy.  I’ve also forwarded a copy of the Small Business and Entrepreneurial plan we had prepared by Market Street Services a few years ago to the managers of Concord and Kannapolis as well as County Manager Mike Downs. The four of us are currently considering ways to make it Cabarrus specific and determining how best to implement it.  Chamber Board members and Staffers have recently taken tours of four chambers (Greenville and Spartanburg in South Carolina as well as Raleigh and Durham) asking how those chambers and economic development organizations are making positive impacts in their communities and creating new jobs.  At the Chamber’s Board Advance on Jan. 6, we’ll be hearing from chamber executives from Rome, Ga.; Moore County, N.C.; and Summerville, S.C., asking the same questions.

How many members do you hope to recruit in 2012?

Cox: In 2010 and 2011 we conducted very successful Membership events resulting in over 300 new member accounts. We haven’t planned an event like that for 2012 but we are looking at other strategies for member growth. We know retention will play a key role in our plan for 2012. In speaking with other chambers we’ve learned that many have been impacted by significant losses in member accounts — and have sustained those losses for the last few years. We want and need to stay over the 1,000 account mark by this time next year.

Any different initiatives in 2012?

Cox: In addition to listening to what other chambers around the country are doing, we are also bringing in outside experts to coach us. Carroll Gray led the Charlotte Chamber for more than 20 years. He and Bob Confy have formed a new company called Revenue Growth. I’ve asked them to address the Chamber Board on Jan. 6 as well. We want to know what chambers are doing to positively impact their communities, create greater ROI for their members and support their local economies.  We’ve also gathered the officers of the EDC Board and the Chamber Board — and the common Board member they share — Steve Morris of Gem Theatre — as well as the managers of Concord and Kannapolis and Cabarrus County to discuss how we continue to work effectively and efficiently together in the new economic reality we all find ourselves in. Both boards are engaged in the process. We all want to make the most positive impact with our resources as possible for Cabarrus County.

Is the chamber’s public policy strategy going to change?

Cox: We have always believed that the economy is best served when good business and good government work together. We still believe this to be true. We are the voice and face of business and our job is to convene business leaders, understand business positions, convey those positions to governments at all levels and work with governments to create the most positive environment possible for businesses to create jobs and prosperity.  Our Legislative Agenda process begins in the fall of each year and is completed in the December Board meeting when the full Board walks through the work of the Governmental Affairs Committee. By that point we will have listened to educators, health care professionals, government leaders and folks who lead large and small businesses alike. We use the Legislative Agenda as a compass giving direction to policy decisions we make.

How will you work on relationships with local elected officials in 2012?

Cox: Just yesterday I met with Cabarrus County Board of Commission Chair Liz Poole. We talked through some policy and budget issues and laid out a plan for communicating with the new chair and the new county manager.  The Chamber Board invited our new House member, Larry Pitman, to its November meeting for a “get acquainted” session. None of us had ever met him and we need to know what his positions are on issues that affect business.  We will have a State House race, Congressional races, a Governor’s race and County Commission races and while the Chamber does not endorse candidates, we do take positions on issues.  Look for this to be a busy political year.

Do you see staff furloughs in 2012?

Cox: The staff furloughs were temporary and expired in December 2011. 

What kind of activity or interest is there in the Philip Morris site?

Cox: We continue to field calls and respond to clients who express interest. We have a prospect we’ve been working with for about 60 weeks who is very exciting and we have other prospects who continue to express interest in the site. The PMUSA site has been very busy this year with a number of film productions taking place. Most of that activity ‘wrapped’ in October.