Headquartered in scenic Franklin, North Carolina, Drake Software is a rapidly growing tax preparation software company. More than 30,000 tax professionals nationwide use Drake Software. Each year, Drake Software processes more than 9 million federal- and state-accepted returns. The company provides free electronic filing and excellent federal and state programming. Year after year, Drake develops the tools tax professionals need to build successful tax preparation businesses.

Drake Software employs more than 300 people who live in the area.

Drake’s award-winning software was named a 2009 Reader’s Choice Award winner by CPA Technology Advisor in three categories: Federal/State Income Tax Compliance, Website Builder for Accounting Firms, and Document Management & Storage. In other media rankings, Drake was recognized for its Client Write-Up program, Estate Tax, 1040 Tax, Business Tax, Overall Customer Satisfaction, and Technical Support.

A 2008 NATP (National Association of Tax Professionals) member survey shows Drake Software is an industry leader in customer support satisfaction. When customers need Support, they can expect their phone calls to be answered in less than nine seconds (average response time) by customer representatives and not by an automated answering system. More than 200 highly-trained representatives answer Support phones during peak tax season.

Phil DrakePresident & CEO

Corporate profile: Drake SoftwareSoftware DevelopmentEmployees: 325+Customers: More than 30,000

“Macon County is both a gateway and a hub to the Great Smoky Mountains and is growing at a very rapid pace. Macon County is and will remain a very strong economic community for many years to come.”

INTRODUCTION

Macon Countyat a Glance

PoPulationPopulation: 33,756Projected 2013 Population: 36,414Annual Growth Rate (2000 to 2008): 10,7%

laborLabor Force: 16,3082009Q1 Unemployment Rate: 12.2%Labor Draw Area: 79,418Average Weekly Wage: $551Average Weekly Wage Manufacturing: $659

income and HousingMedian Household Income: $39,272Home Ownership: 81.3%

educationPercentage of Population that are High School Graduates: 77.4%Average SAT Score (2400 Scale): 1,528Percentage Bachelors Degree or Higher 16.2%Community College - 1High Schools -3Junior High - 1Elementary - 8Hospitals - 2Physicians / 10,000 population - 21

taxesCounty Property Tax $0.264 cents per $100 of evaluationFranklin Property Tax $0.25 cents per $100 of evaluationHighlands Property Tax $0.13.5 cents per $100 of evaluation

geograPHyLand Area (Square Miles): 516.47Persons Per Square Miles: 57.8Located in Southern Appalachian MountainsDistance to Hartsfield Jackson InternationalAirport in Atlanta, GA 139 miles (2 hours 35 minutes)Distance to Asheville, NC 69 miles (1 hour 21 minutes)Distance to Chattanooga, TN 137 miles (2 hours 43 minutes)Distance to Knoxville, TN 108 miles (2 hours 16 minutes)Distance to Charlotte, NC 182 miles (3 hours 17 minutes)

business communitytop Private employers: Drake Enterprises Software DevelopmentAngel Medical Center HealthcareHighlands-Cashiers Hospital HealthcareZickraf Enterprises Flooring ManufacturerWhitley Products Auto Part Manufacturer Caterpillar, Inc. Auto Part Manufacturer TekTone Sound & Signal Mfg. Inc. ManufacturerWal-Mart Associates RetailLowe’s Home Centers Retail

IntroductIon

History The county was formed in 1828 and was named for Nathaniel Macon, who represented North Carolina in the United States House of Representatives from 1791 to 1815 (serving as Speaker of the House from 1801 to 1807), and in the United States Senate from 1815 to 1828. In 1839 the western part of Macon County became Cherokee County. In 1851 parts of Macon County and Haywood County were combined to form Jackson County.

Franklin, ncFranklin is the County Seat and is surrounded by beautiful streams, waterfalls, mountains, hills and valleys. The people are friendly and organize lots of activities, including festivals and arts & crafts shows. There are plenty of trails for hiking including the Little Tennessee River Greenway and the views are breathtaking. There is also plenty of fishing, hunting, rafting and kayaking available. Franklin is home to approximately 3,600 citizens, but the population nearly doubles during the spring, summer and fall seasons due to our temperate climate and beautiful scenery. Franklin’s geographical position enables us to enjoy cool summer nights and mild winters. With a healthy tourism industry and lots of local people taking an active roll in the community, there is always exciting activities and places to go. Visit the Franklin Main Street Program for more information.

Highlands, nc Highlands is the highest incorporated town east of the Mississippi River at 4,118 feet and is located in one of the few temperate rain forests in North America. Population ranges from 3,200 year round residents and swells to over 18,000 during the summer and early autumn. Highlands is well known for its cooler climate year round and magnificent golf courses. Natural wonders also abound including waterfalls and scenic vistas. Highlands is listed as the 499th most expensive zip code in the United States in Forbes Magazine.

nantahala, nc The name in Cherokee means “Noon Day Sun”. This virtually unspoiled paradise west of Franklin features lake and mountain living at its finest. The Nantahala area features superb fly fishing waters, waterfalls and whitewater river rafting. This community offers a great way to truly enjoy the four seasons from the wildflowers in the spring to magnificent color in the fall.

County Makeup

Corporate profile:

BalsamWest FiberNET is a fiber optic-based, wholesale and enterprise telecommunications carrier in Western North Carolina. Founded in 2003, BalsamWest is jointly owned by the Eastern Band of Cherokee Indians and Drake enterprises, Ltd. and is the leading provider of broadband services via SONET & Ethernet service as well as the leading provider of collocation and Interconnection Services in the region. With over 300 miles of underground fiber serving 10 counties in NC, GA & TN, BalsamWest is the first provider in the region to offer protected services that are not only redundant but geographically diverse with connections to major data hubs in Atlanta and Charlotte. The primary backbone is made up of Cisco SONET equipment operation at OC-192.

BalsamWest has enabled low-cost access to high capacity bandwidth for Internet service, security and phone services as well high demand applications such as video, data and distance learning. The mission of BalsamWest is to bring 21st century communications to Western North Carolina that previously has not been available in rural areas. In 2010 BalsamWest will establish additional fiber connections to Asheville and Knoxville and also deploy DWDM technology, further insuring the regions redundancy and availability for 21st century business.

BalSaMweSt fiBerNetFiber Optic Based Broadband CompanyEmployees: 12

• Provides 10 counties in NC, GA and TN with uninterrupted data services with connections to primary data hubs located at 56 Marietta Street in Atlanta, Charlotte, and Knoxville

• Deployed more than 300 miles of underground fiber madeup of Cisco 15454 operating OC-192 the blazing speed of 10 gigabits.

“I am excited about the technology opportunities that BalsamWest brings to the businesses and citizens of our mountainous region. Our BalsamWest network infrastructure has been engineered to provide the level of connectivity that is typically only available in larger urban areas. Businesses and organizations now have access to greater bandwidth capacities and reliable connectivity for high speed Internet, data applications, and voice services at more affordable rates. I am extremely proud and excited to be associated with an initiative that impacts so much of western North Carolina, eastern Tennessee, and northern Georgia, by allowing us all to live and work in one of the most beautiful parts of the world and having the same access to connectivity and technology found in larger cities.”

Jim campbell, ctoVice President of Network Operations

Quality of life

the outdoors as a way of

Nearly half of Macon County lies within the Nantahala National Forest. Comprised of over a half-million acres of unspoiled beauty, this magnificent forest is just waiting to be explored. The Nantahala is the largest of the four national forests in North Carolina.

The rolling mountains rise to a series of peaks over 5,000 feet high from the valley of the Little Tennessee River, creating spectacular vistas and a richness of natural beauty that have entranced visitors since the 18th Century.

You are steps away from canoeing on the Little Tennessee River; kayaking or rafting on the Nantahala River; or fly fishing in hundreds of pristine creeks, streams and rivers that call Macon County Home. If hiking is your passion, Macon County is home to 60 miles of the Appalachian Trail and another 40 miles of side trails that interconnect with the “AT.”

A rare and hidden gem in Macon County is the Bartram Trail. Named for American Botanist William Bartram, who documented the native flora and fauna of the area in 1775, Bartram Trail climbs into the mountains, inviting hikers to take the steps of one of the areas most notable explorers.

Quality of life

For those looking for a less strenuous walk or bike ride, the Little Tennessee River Greenway is a great escape. The five mile trail includes a playground, picnic areas, canoe put ins, fishing piers and multiple bridges that span the Little Tennessee River.

Macon County is home two popular scenic gorges, the Cullasaja and the Nantahala. In its rush downhill the Cullasaja takes some spectacular spills, creating lower Cullasaja Falls with a drop of 250 feet. Dry Falls is a local favorite where can actually walk behind the roaring 75 foot wall of water.

West of Franklin, the Nantahala River has carved its own deep gorge. The Cherokee called this place “Noonday Sun”, because at one point, the perpendicular cliffs obscured the sun except during the middle of the day. Today, the area is famous for trout fishing and white water sports.

Golf courses are abundant in Macon County. Courses open to the public include Mill Creek Country Club, and Franklin Golf Course. Private clubs include Highlands Country Club, Wildcat Cliffs, Cullasaja Club, Highlands Falls and Old Edwards Club.

Quality of life

a Sense of

Whether you are enjoying the exclusive shops and restaurants as you stroll Main Street in Highlands or enjoying the local blue grass and folk music bands on the square in Franklin on warm, summer Saturday night, Macon County has what many communities work hard to merely emulate . . . . a sense of place . . . . a sense of community.

The Bascom art center in Highlands provides audiences of all ages with stimulating, diverse exhibitions, studio art instruction and other cultural experiences. The Bascom is located on a new six-acre, architect-designed campus that provides you, your family and friends a community gathering place amid art, nature and many program offerings.

The new Smokey Mountain Center for the Performing Arts located in Franklin draws tens of thousands of patrons each year. The state of the art, 1,500 seat facility provides the finest drama and musical performances from both nationally recognized performers as well as local community talent.

Macon County is also home to several art galleries, artisan shops, and museums.

Quality of life

living in the

Macon County has one of the best school systems in North Carolina. The system consistently performs among the best in the state for SAT scores. Schools and class sizes are small and students are afforded a rare opportunity for learning in our local schools. The average class size is 19 and average elementary schools have 303 total students.

Percent Highs School Graduates 77.3%Average SAT Score (2400 Scale) 1,528 Ranked 11th in North CarolinaPercent Bachelor’s Degree or Higher 16.2%

Housing options are extremely diverse. The median home price in Macon County is $140,000. Whether you want to live on a secluded lot with several acres and a great view, live in condo in the middle of town or enjoy the country club life, Macon County has something for you.

Quality of life

The County’s climate features four distinct seasons. Typically December and January are the coldest months with July and August the hottest. Our mean annual temperature is 55F and varies from a mean low of 38F in January to a mean high of 71F in July.The County is located in one of the highest rainfall zones in the Eastern U.S. with a mean annual rainfall of 70 inches. Snow represents 2 to 10% of the annual precipitation.

Two hospitals serve Macon County as well as a locally based Air Ambulance service that supports regional medical facilities. Specialists covering all medical disciplines are available in the county. A full range of supporting medical and dental practices are located throughout Macon County including an Urgent Care Center.

Physicians per 10,000 of Population 21Registered Nurses per 10,000 of Population 60Dentists per 10,000 of Population 4

Corporate profile:

client base: TekTone® currently supplies products to both national and international facilities in locations such as the US, Central America, South America, Kuwait, Africa, Arab Emirates, Canada, Mexico, Asia and the Caribbean

TekTone®, a family-owned business, is committed to providing quality intercommunication solutions at competitive prices, supported by conscientious customer service, for the health care, residential, and commercial markets. This is founded on the principles of sound engineering, continuous product and process improvement, efficient manufacturing, cost effective purchasing, and ultimately, through the dedication of the firm’s employees.

TekTone®’s, production facility specializes in high quality and affordable nurse call, intercom, apartment entry, emergency call, radio pocket paging, and area of rescue assistance systems that are used in an enormous number of applications. TekTone®’s residential and commercial intercom systems range from simple doorbell intercoms to 12- station multiple master systems. Furthermore, TekTone® has a full range of apartment entry systems, both hard-wired and telephone-line based.

The company’s line of nurse call systems includes everything from visual-analog to fully programmable microprocessor intercom systems. These systems are used as nurse or emergency call systems for elderly housing and apartments, small clinics, doctor’s offices, hospitals, and panic alarms for retail and government facilities.

TekTone® Sound & Signal Mfg., Inc. is a strong supporter of ISO 9000 international quality management standards. The firm’s quality system is registered by Underwriters Laboratories Inc. to the ISO 9001 standard.

tektoNeEmployees: 75-100Client Base: (see below)Annual Sales: $5mil-$10mil

Education & trainingIncreasing global competition is confronting every sector of Macon County’s economy and workforce. The difficulties of assessing a churning job market, locating appropriate training, and finding the time and money to pursue skills development require cooperation and mutual support between the private sector and the local education system. By creating learning partnerships with the business community, Macon County’s education system is prepared to meet the challenges of a growing and vibrant community.

Macon County Schoolsmission: Macon County Schools will challenge all students to achieve their academic potential and be successful in the 21st Century. We will achieve this mission in a safe and caring environment in partnership with parents, staff, and the community.

Vision: To be a globally competitive school system striving for continuous improvement…

Values: Motivated Faculty and StaffContinuous ImprovementAll Children Can LearnManagement by FactStakeholder PartnershipSafe and Healthy Learning Environments

With 625 full time employees, serving approximately 4,400 children, all Macon County Schools are accredited by the Southern Association of Colleges and Schools. Macon County Schools follow the North Carolina Course of Study in all grade levels. This ensures rigorous student academic performance standards that are uniform across the state.

This philosophy of teaching and learning is consistent with current research, exemplary practices, and national standards. Macon County Schools follow the grade level pacing guides developed for the county.

Education & training

Macon County Schools at a Glance11 different Advanced Placement Courses at the •

high school level Recipient of Advanced Placement Scholar status • and Honors status at the high school levelScholarships awarded to the 2008-09 graduating • class exceeded $1,000,000.00 46 National Board Certified teachers• 130 teachers with advanced degrees• 60% of all classrooms utilize advanced white board • technology in instructionAll Macon County Schools are connected via the high • speed data technology of BalsamWest Fibernet. Recipient of the nationally recognized Carolyn White PEP • grant4,400 Students• 625 Full Time Employees• District –wide SACS accreditation• Macon County Teachers present at state and national • conferencesInnovative learning opportunities for high school students• State winners in Career and Technology students • OrganizationsNew and updated elementary schools• Strong partnerships with local community college and • local universityNC State Improvement Project sites for math and reading• Elementary AIG program executes “Battle of the Books”• County-wide Family Literacy Night• Support staff and specialized programs in all school• 10 different sports for men and women throughout the • school systemBand and chorus at the middle school and high school • levelsSchool nurses are assigned to all schools • School nurse program received the • “Child Health Recognition Award” for work in the schools Active volunteer program within all • schoolsStrong relationships between Parent/• Teacher Organization and schools

Current Schools: 126 Primary/elementary schoolsCartoogechaye — 400 studentsCowee — 147 studentsCullasaja — 191 studentsEast Franklin — 351 studentsIotla — 163 studentsSouth Macon — 574 students

1 middle schoolMacon — 861 students

1 High schoolFranklin — 991 students

2 K-12 schoolsHighlands School — 425 studentsNantahala — 116 students

1 alternative school grades 7-12Union Academy — 62 students

1 early college grades 9-12Macon Early College — 138 students

Planned schools with Planned opening dateMountain View Intermediate SchoolGrades 5th & 6thOpening date 2010

Education & training

preparing Students with targeted initiatives: academically gifted and students with disabilitiesThe mission of the Exceptional Children program is to assure that students with disabilities and those who are academically or intellectually gifted develop mentally, physically, emotionally, and vocationally through the provision of an appropriate individualized education in the least restrictive environment. A range of services are available to students with disabilities and those that are academically gifted at each school site in Macon County.

college Preparedness - gear uPThis initiative helps students Gear Up or Gain Early Awareness and Readiness for Undergraduate Programs. The program begins with sixth and seventh grade students with the ultimate goal of helping them become more aware and prepared for college.

new century scholarsThe New Century Scholars Program is a collaborative educational effort among the public schools in Macon, Jackson, and Swain counties and Southwestern Community College.

The New Century Scholars program targets “high potential” students at the end of sixth grade and provides extra support to those students through their middle school and high school years. In addition to maintaining good grades and behavior, students are required to perform 10 hours a year of community service. Upon completion of high school, each students in awarded a tuition scholarship for each of his/her two years at Southwestern Community College.

Western Carolina University has added a guaranteed scholarship that will enable students who complete the NCS program and earn and Associates Degree at SCC to continue their education at WCU for two years and earn a Bachelors Degree.

macon county academic FoundationThe Macon County Academic Foundation plays a very important role in the Macon County Schools System. MCAF is a tax-exempt 501(c)3 organization that provides funding for supplemental programs that enrich the existing school curriculum. Funds donated to the organization are provided for special events, pilot programs, and special classroom teaching initiatives.

macon early collegeMacon Early College started in the fall of 2006 and will be celebrating it’s first graduating class in the spring of 2010. With 33 early college high schools in operation throughout North Carolina and more to come, early college has been a great success.

MEC’s goal is to provide students with the opportunity and support to earn up to two years of college credits during high school. Students have the choice to earn this credit in four years or five years. Macon Early College has 138 students currently enrolled in the ninth through twelfth grades.

Education & training

ViP after-school ProgramVIP provides quality care, educational support, and a variety of enrichment activities designed to stimulate the development of children in a safe and fun environment. This program is offered to all elementary students grades K-5. All sites are licensed by the North Carolina Division of Child Development

School Safety - School Resource OfficerMacon County Schools started a School Resource Officer program in the school system in the fall of 2001. This program places officers in school in an effort to create and maintain safer learning environments.

An SRO is a certified law enforcement officer who is permanently assigned to provide coverage to a school or set of schools. The SRO is specifically trained to perform three different roles.

These roles include: acting as law enforcement officers, provide legal guidance to students and act as links to support services both inside and outside the school, and to share their special law enforcement expertise in the classroom.

The main role of an SRO is to provide a positive role model for the students, and to provide safety and security to the staff and students.

private SchoolsIn addition to the high performing public schools, Macon County also offers several private schools:

trimont christian academyTrimont Christian Academy provides a Christian faith focused private pre-school and K-12 learning opportunity.

The prayer, goal, and vision of Trimont Christian Academy is to facilitate the development of young people to become men and women who will carry the banner of Christ because of a personal relationship with Jesus, a knowledge of His Word, a Christian world view, and a vision of how God can use them to change the lives of others; to equip them academically, socially, and emotionally to articulate and defend their faith, and to become servant leaders in their God-given vocations.

Education & training

Southwestern Community CollegeSince 1964, Southwestern has provided quality technical education and training for the western region of North Carolina. At Southwestern, students are prepared to become productive and responsible employees, with strong work ethics and family values. Quality is given special emphasis throughout the College as being essential to success, whether institutional or personal.

Southwestern is committed to providing businesses and industries in Macon County with customized, affordable and quality education and

training for their employees. Because of this commitment, they have a staff of workforce development professionals. Their responsibility is to make sure your education and training needs are met. They will design classes for you, help you secure funding for training, bring the classes to your site, or do whatever is possible to meet your needs.

macon county campusThe Macon Campus is on a 20-acre site on Siler Farm Road just south of Franklin. This high-tech, state of the art campus is the beginning of a resource-rich campus, offering technology enhanced learning with computer laboratories, virtual and interactive classrooms, and a wireless environment. Students have borrower privileges at SCC Library on Jackson Campus and the adjacent Macon County Public Library, and access to major research institutions. The first two buildings are the Groves Center and the Ledford Center, headquarters for Macon Early College High School.

customized training ProgramThe Customized Training Program of the Southwestern Community College supports the economic development efforts of Jackson, Macon and Swain Counties and the Qualla Boundary by providing education and training opportunities for eligible businesses and industries. The Customized Training Program offers programs and training services to assist new and existing business and industry to remain productive, profitable, and within the State.

The program was developed in recognition of the fact that one of the most important factors for a business or industry considering locating, expanding, or remaining in North Carolina is the ability of the State to ensure the presence of a well-trained workforce. The program is designed to react quickly to the needs of businesses and to respect the confidential nature of proprietary processes and information within those businesses.

Degree, Diploma & Certificate Programs Arts & Sciences Career Technologies Health Sciences small business services

SOUTHWESTERNCollege of the Great Smoky Mountains

COMMUNITY COLLEGESOUTHWESTERN

College of the Great Smoky MountainsCOMMUNITY COLLEGE

Education & training

western Carolina University Located just 20 miles from downtown Franklin, Western Carolina University is one of North Carolina’s leading institutions of higher learning. WCU was founded in 1889 to bring higher education and career opportunities to the western region of North Carolina. A member of the University of North Carolina system, WCU now provides an education to more than 9,000 students from 38 states and 32 countries.

The university’s mission is focused on quality education and preparation for responsible citizenship in a changing world. Since its founding, WCU has grown in size to become a major cultural, scientific, and educational force in the region and the state—and we’re still growing.

Our academic programs span more than 120 specialties—including the nation’s highest-ranked entrepreneurship and project management programs, a national award-winning teacher education program, a criminal justice program used as a model for North Carolina’s accreditation program, and the nation’s first accredited four-year emergency medical care program.

Our distinguished faculty includes national award-winning authors, nationally and internationally recognized experts, and winners of Emmy, O. Henry, and National Endowment for the Arts awards—to name a few.

Western Carolina University is accredited by the Commission on Colleges of the Southern Association of Colleges and Schools to award bachelor’s, master’s, education specialist, and doctor’s degrees. Contact the Commission on Colleges at 1866 Southern Lane, Decatur, Georgia 30033-4097 or call 404-679-4500 for questions about the accreditation of Western Carolina University.

Also, the university holds 21 special program accreditations and is a member of more than 30 state and national associations and organizations to which its professional programs are related

Corporate profile:

mission: Dedicated professionals providing compassionate and superior health care to all.

Vision: AMC will be a respected leader in healthcare, exceeding the expectations of those we serve through continuous improvement in ourselves and dedication to our community.

medical services:Ambulance (Ground and Helicopter Services Cardiopulmonary Cardiac/Pulmonary Rehabilitation ChemotherapyEndoscopyEmergency Department (12 Beds) Home Health Hospice and Palliative CareIntensive Care UnitLaboratoryOccupational TherapyOutpatient MedicinePhysical TherapyRadiology (Bone Density, CT, Digital Mammography, MRI, Nuclear Medicine, Etc.)Rehabilitation Services (Physical, Occupational, and Speech)Sleep StudySpeech TherapySupport Group/Classes Smoking Cessation, Diabetes Support Group, Bereavement Support Groups (3--one for men, women, and for parents who have lost a child), CPR Classes for the community Caregivers Support Group, and Childbirth Classes Surgical Services, including Same Day Surgery Urgent Care (Staffed 365 days per year) Women’s and Children Unit

I grew up in Franklin and have a lot of extended family, friends and neighbors

that provide me a vested interest in making Angel the best it can be. My goal is that Angel be the healthcare leader in the community and operate a hospital where employees want to work, where physician’s want to practice and where community members seek and are able

obtain the vast majority of their hospital service needs. I am very pleased with not only the quality of the care being provided

at Angel, but also the added personal touch that is not found in many hospitals.

aNGel MeDiCal CeNter Employees: 440Inpatient Beds: 59 Licensed with 25 StaffedServices: Acute Care Critical Access HospitalAnnual Budget: Operating Budget, $46 millionAccredited by The Joint Commission and an approved Medicare provider

Workforce

Population 2008 estimated 33,005

2010 Projected 34,945

income 2007 Per capita 28,443

2000 median Family 37,381

Wages for Quarter ending december, 2008

average Weekly Wage 537.00

number of employers for Quarter ending december, 2008

goods Producing 356

service Providing 1,014

total 1,370

Labor Force16,824

Employed15,283

Unemployed1,541

Unemployment Rate

9.2%

Workforce

Mining (except Oil and Gas) 3 2 348.00

Construction of Buildings 118 439 681.00

Heavy and Civil Engineering Construction 15 115 723.00

Specialty Trade Contractors 168 617 579.00

Food Manufacturing 3 10 302.00

Wood Product Manufacturing 11 338 611.00

Nonmetallic Mineral Product Mfg 3 13 887.00

Furniture and Related Product Mfg 7 24 332.00

Merchant Wholesalers, Nondurable Goods 7 53 440.00

Electronic Markets and Agents/Brokers 13 39 867.00

Motor Vehicle and Parts Dealers 21 144 641.00

Furniture and Home Furnishings Stores 21 144 545.00

Electronics and Appliance Stores 9 27 447.00

Building Material & Garden Supply Stores 23 262 505.00

Food and Beverage Stores 15 370 416.15

Health and Personal Care Stores 11 75 561.00

Gasoline Stations 18 123 298.00

Clothing and Clothing Accessories Stores 34 130 456.00

Sporting Goods/Hobby/Book/Music Stores 12 36 182.00

General Merchandise Stores 10 352 359.00

Miscellaneous Store Retailers 43 123 430.00

Nonstore Retailers 7 34 654.00

Truck Transportation 14 36 487.00

Support Activities for Transportation 3 13 233.00

Postal Service 4 67 929.00

Couriers and Messengers 3 108 639.00

employment in Macon Countyindustry

number ofemployees

average Weekly

Wageemployment

WorkforcePublishing Industries 5 63 494.00

Motion Picture & Sound Recording Ind *** *** ***

Broadcasting (except Internet) 4 31 417.00

Other Information Services 3 34 350.47

Credit Intermediation & Related Activity 27 201 693.17

Financial Investment & Related Activity 8 72 918.00

Insurance Carriers & Related Activities 9 61 843.00

Real Estate 62 76 599.00

Rental and Leasing Services 10 38 346.00

Professional and Technical Services 80 806 653.00

Administrative and Support Services 58 389 506.02

Waste Management and Remediation Service 5 32 737.00

Educational Services 16 932 626.28

Ambulatory Health Care Services 67 386 787.00

Nursing and Residential Care Facilities 10 327 392.00

Social Assistance 14 156 347.00

Performing Arts and Spectator Sports 3 10 379.00

Amusement, Gambling & Recreation Ind 15 271 664.00

Accommodation 27 232 473.00

Food Services and Drinking Places 80 1,049 269.00

Repair and Maintenance 45 152 578.89

Personal and Laundry Services 28 97 387.00

Membership Organizations & Associations 12 193 474.00

Private Households 22 35 510.00

Executive, Legislative, & Gen Government 6 587 700.00

Justice, Public Order, and Safety Activi 3 21 893.00

Administration of Environmental Programs 7 91 1,102.93

Unclassified establishments 85 59 870.00

Workforce

Macon County labor Costs Statistics

Agriculture, Forestry, Fishing & Hunting 429 468 403

Mining 1,282 960 676

Utilities 1,392 1,264 1,230

Construction 779 650 534

Manufacturing 0 802 585

Wholesale Trade 1,025 944 608

Retail Trade 0 432 412

Transportation and Warehousing 0 698 528

Information 1,167 991 508

Finance and Insurance 1,347 1,157 686

Real Estate and Rental and Leasing 717 609 572

Professional and Technical Services 1,202 994 559

Management of Companies and Enterprises 1,539 1,419 844

Administrative and Waste Services 523 453 477

Educational Services 681 656 281

Health Care and Social Assistance 705 653 574

Arts, Entertainment, and Recreation 530 473 469

Accommodation and Food Services 282 240 269

Other Services, Ex. Public Admin 483 439 404

Public Administration 0 142 0

Unclassified establishments 708 526 344

2001 2002 2003 2004 2005gross retail sales 419,765,848 421,660,152 445,300,154 489,373,173 546,122,555

industrynational average Weekly Wage

state average Weekly Wage

Workforce

top manufacturers employment rangeSHAW INDUSTRIES / ZICKRAF ENTERPRISES INC 250-499WHITLEY PRODUCTS 100-249CATERPILLAR INC 100-249TEKTONE SOUND & SIGNAL MFG INC 50-99CR FRANKLIN INC Below 50COOK BROTHERS LUMBER CO INC Below 50FRANKLIN LUMBER & KILN CO INC Below 50GOSHEN TIMBER FRAMES Below 50ROCKS Below 50SOUTHDOWN, INC Below 50

top non-manufacturing employers employment rangeMACON COUNTY PUBLIC SCHOOLS 500-999DRAKE ENTERPRISES LTD (A CORP) 500-999MACON COUNTY 250-499ANGEL MEDICAL CENTER 250-499HIGHLANDS CASHIERS HOSPITAL INC 250-499OLD EDWARDS INN & SPA 100-249WAL-MART ASSOCIATES INC 100-249MACON PROGRAM FOR PROGRESS 100-249LOWES HOME CENTERS INC 100-249INGLES MARKETS INC 100-249BRITTHAVEN INC 100 249

NEED TO CHECK TO MAKE SURE THE LIST IS UP TO DATE AND ACCURATE!

labor Draw areacounty labor ForceJackson 21,620

macon 16,841

cherokee 10,541

rabun (ga) 7,249

swain 7,211

towns 6,199

clay 4,931

graham 4,826

total eight county labor Force: 79,418

Macon County Comprises 21% of the eight County labor force

TAXES & IncEnTIvESMacon County boasts of having the lowest property tax rate in the region. Low taxes have helped Macon County maintain a lead position as a strong business leader in Western North Carolina.

Property tax rate Per $100 Valuemacon county $0.264Jackson County $0.28Swain County $0.33Cherokee County $0.385Clay County $0.43Graham County $0.58

Property tax assessmentThere is only one assessment in each county. The value as determined by the county assessor constitutes the base for all levies, including those of cities and towns on property located within the municipality. Property is to be assessed at 100% of appraised value. Although appraised value is to be “full value,” this standard is not always achieved for real property. This is largely because real property is required to be revalued every eight years, although counties may revalue earlier. Property appraised at full value at the time of appraisal may appreciate until appraised value is only 50-60 % of true value by the endof the eight-year period.

Real property owned by businesses and individuals consists of land and buildings and is permanently listed for property tax. The owner is only required to list the construction or acquisition of improvements on and separate rights in real property.

New manufacturing machinery is generally appraised at cost and is depreciated annually until it reaches a minimum value, frequently 25% of cost. The annual depreciation varies but a common figure is 10% per year. Most counties have adopted the “trending” procedure to value machinery and equipment. Under this procedure, the machinery is valued at replacement cost each year and then depreciated according to its age and expected life.

Property tax exemptions and exclusionsThere are only a few exemptions and exclusions of interest to manufacturers and retail/wholesale establishments. They are described in the following paragraphs.Excluded from property taxation are manufacturers’ inventories (raw materials, goods in process, finished goods, materials or supplies consumed in processing, crops, and other agricultural or horticultural products held for sale), contractors’ inventories (goods held by contractors to be furnished in the course of building, installing, repairing, or improving real property), livestock, poultry, and feed used in productionof livestock and poultry, and inventories of retail and wholesale merchants (tangible personal property held for sale and not manufactured, processed, or produced by the merchant).

Computer software is exempt from taxation. This exemption does not apply to embedded software and capitalized software purchased or licensed from an unrelated entity.Property which has been imported from a foreign country and is stored at the seaport terminal while awaiting further shipment is exempt for the first year of storage.“Bill and hold” goods manufactured in North Carolina and held by the manufacturer for shipment to a nonresident customer are exempt.

TAXES & IncEnTIvESMotor vehicle chassis belonging to nonresidents which enter the State temporarily for the purpose of having a body mounted thereon are exempt from taxation.

Improvements on brownfields properties are partially excluded from property taxation. The exclusion is for a five-year period beginning when the improvements are made and declines during the period from 90% of the appraised value for the first year to 10% for the fifth year. The improvements are fully taxable in the sixth and subsequent years after the improvements are made. The property must be subject to a brownfields agreement entered into by the owner with the Department of Environment and NaturalResources pursuant to G.S. 130A-310.32.

Property used to reduce air or water pollution receives special treatment under the tax laws of North Carolina if the Board of Environmental Management or local air pollution control program certifies that the property complies with the requirements of the Board.

Such real and tangible personal property is exempt from taxation under the property tax laws and is subject to the preferential 1% state sales tax rate as “accessory” to manufacturing machinery. Furthermore, the cost may be excluded from the three alternate bases in computing the franchise tax and may be amortized over 60 months for corporation income tax purposes.

Personal property used exclusively for the prevention or reduction of dust in textile plants is also exempt from local property taxes.

Equipment or facilities installed for the purpose of recycling solid waste or resource recovery from solid waste receives the same treatment under the tax laws as that given to pollution abatement equipment described above

taxes in north carolinaAccording to an Ernst & Young report, north carolina has one of the nation’s lowest effective business tax rates. Overall, North Carolina’s moderate state and local business taxes are lower than neighboring states.

Businesses are encouraged to secure the counsel of a competent tax professional regarding their individual situations.

corporate income taxNorth Carolina’s corporate income tax is 6.9 percent of the portion of net income allocable to the state. If a corporation in North Carolina does business in North Carolina and in one or more other states, North Carolina taxes a fraction of the corporation’s income based on the amount of sales, payroll and property it maintains within North Carolina. In the double-weighted sales factor calculation, the payroll factor, the property factor and twice the sales factor are added, and then divided by four. In computing the property factor, owned property is valued at original cost and leased property is valued at eight times the annual rental rate. Thus, a business in North Carolina that makes significant sales outside the state would be taxed at a lesser level than a comparable business that is located elsewhere but makes significant sales within North Carolina. Other combinations of ratios have the potential to result in even greater savings.

TAXES & IncEnTIvES

corporate Franchise taxFranchise tax is levied on business corporations, including those electing federal S corporation status, at the rate of $1.50 per $1,000 of the largest of three alternate bases:

The amount of the capital stock, surplus and undivided profits apportionable to the state •

55 percent of the appraised value of property in the state subject to local taxation•

The book value of real and tangible personal property in the state less any outstanding debt that was •created to acquire or improve real property in the state.

Only corporations that do business in one or more states in addition to North Carolina are permitted to apportion capital as described under one above. The minimum franchise is $35.

sales and use taxIn North Carolina, the state levies a general retail sales and use tax of 5.25 percent. Most counties levy a 2.5 percent local sales and use tax on items taxed by the state at its general rate. As a result, the combined general state and county tax rate is 7.75 percent in all counties except Mecklenburg County, which has a rate of 8.25 percent due to a 0.5 percent public transit tax. Alexander, Catawba, Cumberland, Haywood, Martin, Pitt, Sampson & Surry have an additional .25% sales tax.

items state tax rate local tax rate

Most tangible goods, room and cottage rentals, laundry and dry cleaning services, mixed beverages 5.75% 2.0%*

Telecommunications services, spirituous liquor,cable and satellite television 7% Exempt

Sales of aircraft, boats 3% Exempt

Electricity for general use 3% Exempt

Electricity for qualifying manufacturing industries & plants 0.8%** Exempt

Purchases of selected goods by manufacturers Exempt Exempt

Motor vehicles prescription drugs, other medical equipment, gasoline, many business purchases Exempt Exempt

Food for home preparation Exempt 2%

Mill machinery is exempt from sales and use tax and subject to a 1 percent privilege or excise tax with an •$80 per article cap.

TAXES & IncEnTIvESA • one percent excise tax is imposed on certain equipment purchased by physical engineering and life science research and development companies. The tax applies to equipment (including attachments and repair parts) this is capitalized by the company for federal income tax purposes and is used in research and development of tangible personal property.

Personal income taxNorth Carolina has a graduated rate schedule, with rates of six percent, seven percent and 7.75 percent based on the filing status and North Carolina taxable income of the taxpayer. Starting in 2009, individuals who meet certin income requirements will pay a surtax on the amount of tax they owe before any witholding, payments or credits.North Carolina taxable income is the same as the figure calculated for federal income tax purposes with certain adjustments.

single individuals taxable income rate surtax

0-$12,750 6% 0%

Over $12,750 to $60,000 7% 0%

Over $60,000 to $150,000 7.75% 2%

Over $150,000 7.75% 3%

Married Individuals Filing Jointly and Surviving Spouses Taxable Income Rate Surtax

0 to $21,500 6% 0%

Over $21,250 to $100,000 7% 0%

Over $100,000 to $250,000 7.75% 2%

Over $250,000 7.75% 3%

Head of Household Taxable Income Rate Surtax

0 to $17,000 6% 0%

Over $17,000 to $80,000 7% 0%

Over $80,000 to $200,000 7.75% 2%

Over $200,000 7.75% 3%

Married Individuals Filing Separately Taxable Income Rate Surtax

0 to $10,625 6% 0%

Over $10,625 to $50,000 7% 0%

Over $50,000 to $125,000 7.75% 2%

Over $125,000 7.75% 3%

TAXES & IncEnTIvESWorkers’ compensationNorth Carolina employers enjoy some of the lowest workers’ compensation costs in the nation thanks to a program that is well-managed and features reasonable, fiscally responsible policies.

Several key features of the program can contribute to substantial labor cost savings:

Self-insurance is permitted. •

Insurance rates are lower than the standard industry rates for qualifying firms •

A clear-cut, on-the-job accident is a condition for benefit compensation. •

Free accident – prevention workshops designed for each product manufactured.•

incentivesmacon county economic development grants The following economic development grant guidelines were adopted to promote diversified economic development, encourage growth in the property tax base, improve recruitment of business and industry, enhance job creation, and to continue Macon County’s ability to function as a local center of commerce and industry. All economic development grants are offered at the discretion of the Macon County Board of Commissioners.

consideration Parameters: The County may consider providing economic development grants for both new and expanding business enterprises projects that meet the following criteria:

Create new capital investment of $1,000,000 or more•

The project must create full-time jobs that pay wages at or above the median wage for Macon County •as listed annually by the North Carolina Department of Commerce Finance Center, and provide health insurance and other benefits at a level commensurate with Macon County businesses

Leased properties may qualify if the applicant will enter into a binding lease that exceeds the length of the •period for which grant payments will be made under the agreement.

Economic development grants under these guidelines are limited to new businesses and existing o businesses undertaking expansions.

Grants under these guidelines will not be awarded to existing businesses contemplating shifting o locations within the County.

Projects eligible for grants include, but are not limited to: data management facilities, corporate •headquarters, research and development facilities, software development enterprises, retail businesses, manufacturing facilities, technology related business professional offices, health care services, back office operations, but exclude residential projects.

TAXES & IncEnTIvESProjects not eligible for grants include: cemeteries, golf courses, public utility uses, resource recovery •facilities, private clubs, abattoirs, mining, landfills, personal services uses and telecommunications towers. Expansion projects will be excluded if for any reason, the project results in a net reduction of the property tax valuation of all facilities owned by the company, or its parent subsidiary or affiliated companies.

Projects must neither have started construction nor been publicly announced prior to consideration of the •application.

Economic development grants must comply with the N.C. Gen. Stat. §158-7.1 and other applicable •general statutes.

There is no right or entitlement to economic development assistance. All such assistance is made at the •discretion of the Board of Commissioners.

grants: Project grants are generally made in annual payments in an amount and for a period as determined in these guidelines.

Grant amounts for each project are determined at the discretion of the Board. However, its is o intended that grant amounts for projects will vary directly with the number of jobs created or retained directly as a result of the project, on the following schedule:

capital investment annual grant Payment Period of Payment

$1 – 2.999 million 0.15% of the investment 3

$3 – 5.999 million 0.175% of the investment 4

$6 – 9.999 million 0.2% of the investment 4

$10 million and Above 0.25% of the investment 5

compliance: All economic development grant considerations will be formalized in a written agreement between Macon County and the recipient company. The recipient company will be required to meet the following performance criteria:

Jobs created as announcedo Capital investment in real property as announcedo Compliance with wage and health insurance requirementso

Macon County reserves the right to audit a company to assure compliance with the economic development grant agreement. If the performance is not met, or altered significantly, Macon County may require the grants to be repaid in full or in part.

TAXES & IncEnTIvESTo be eligible for payment of the grant award, the company must have:

Demonstrated compliance with the terms of the agreement. o Completed and occupied the buildingo Be current on all taxes payable to Macon Countyo

credits For growing businesses (article 3J credits) Article 3J provides three types of tax credits to eligible taxpayers that undertake qualifying activities in North Carolina:

1) Credit for Creating Jobs2) Credit for Investing in Business Property3) Credit for Investment in Real Property (tier 1 only).

These credits may be combined to offset up to 50% of the taxpayer’s state income and franchise tax liability, and unused credits may be carried forward for up to five years (15-year carry-forwards apply to the Credit for Investing in Real Property and 20-year carry-forwards exist for taxpayers that invest at least $150 million over a two-year period).

County Tier Designations (§143B-437.08)The Department of Commerce annually ranks the state’s 100 counties based on economic well-being and assigns a tier designation to each. The 40 most distressed counties are designated as tier 1, the next 40 are tier 2, and the 20 least distressed are tier 3. This tier system is incorporated into various state programs, including Article 3J Credits, to encourage economic activity in the less prosperous areas of the state.

Macon County is a tier 2 county.

EligibilityTo qualify for Article 3J Credits, the following eligibility require-ments must be met:

The primary activity at the business establishment must be an eligible type of business, which includes: 1. aircraft maintenance and repair; air courier services hub; company headquarters that creates at least 75 new headquarters jobs; customer service call centers; electronic shopping and mail order houses; information technology and services; manufacturing; motorsports facility; motorsports racing team; research and development; warehousing; and wholesale trade. The average wage of all full-time workers employed by the taxpayer at the establishment during the 2. taxable year must meet or exceed the applicable wage standard of the county in which the establishment is located. Note: There is no wage standard for taxpayers located in a tier one county. The taxpayer must offer qualifying health insurance for all full-time positions at the establishment and 3. pay at least fifty percent (50%) of employee premiums. The taxpayer must not have received any significant environmental violations with the North Carolina 4. Department of Environment and Natural Resources within the prior five years. The taxpayer must not have received any “willful” or “failure to abate” serious OSHA violations at the 5. establishment within the prior three years. The taxpayer may not have overdue taxes. 6.

TAXES & IncEnTIvESCredit for Creating Jobs Eligible taxpayers that meet a minimum threshold of new full-time jobs created during the taxable year may claim a credit for each new job created. The credit is taken in equal installments over four years following the year the jobs are created. The job threshold and the credit amount per job are determined by the tier designation of the county in which the jobs are created.

macon county tier 2 countyJob Threshold 10Credit Per Job $5,000

*If the job is filled by a resident of the zone or a long-term unemployed worker, add an additional $2,000

research and development tax creditCredit is based on a percentage of qualified research expenses with the highest amounts for research performed by North Carolina universities.

Businesses with qualified North Carolina research expenses are allowed a credit equal to a percentage of those expenses. The allowable credits are determined by:

Small business (annual receipts less than $1 million): Qualified businesses on the last day of the taxable year are allowed a credit of 3.25%.

other research: For expenses not covered above, refer to the table below for qualified research expenses during a taxable year:

Qualified Expenses rate

$0-$50 million 1.25%

$50 - $200 million 2.25%

More than $200 million 3.25% A business with North Carolina university research expenses for the taxable year is allowed a credit equal to 20% of those expenses.

TAXES & IncEnTIvESrenewable energy tax creditsNorth Carolina’s various renewable-energy tax credits are unified into a statute that addresses nearly all renewables. The statute provides a tax credit of 35% of the cost of renewable energy property constructed, purchased or leased by a taxpayer and placed into service in North Carolina during the taxable year. Program Requirements: The credit is subject to various ceilings depending on sector and the type of renewable-energy system. The following credit limits for various technologies and sectors apply:

A maximum of $3,500 for residential active space heating, combined active space and domestic water-•heating systems, and passive space heating; A maximum of $1,400 for residential solar water-heating systems, including solar pool-heating systems; •A maximum of $10,500 for photovoltaic (solar-electric), wind, or other renewable-energy systems for •residential use; A maximum of $2,500,000 for all solar, wind, hydro and biomass applications on commercial and industrial •facilities, including photovoltaic (PV), daylighting, solar water-heating and space-heating technologies.

Expenditures eligible for the tax credit include:

Cost of the equipment and associated design •Construction costs •Installation costs less any discounts •Rebates •Advertising •Installation-assistance credits •Name-referral allowances or other similar reductions. •

Maximum Amounts: The credit is taken in five equal installments beginning with the year in which the property is placed in service. If the credit is not used entirely during these five years, the remaining amount may be carried over for the next five years. The credit can be taken against franchise tax, income tax or, if the taxpayer is an insurance company, against the gross premiums tax.

Job development investment grantsThe Job Development Investment Grant (JDIG) is a discretionary incentive that provides sustained annual grants to new and expanding businesses measured against a percentage of withholding taxes paid by new employees. The program stimulates economic activity and creates new jobs by promoting the expansion of existing business and industry and by recruiting and attracting new business and industry. Overseeing the program is the Economic Investment Committee, comprised of five members, the Secretary of Commerce, the Secretary of Revenue, the Director of the Office of State Budget and Management, and two private sector members appointed by the N.C. General Assembly. Program Requirements: A proposed project must meet a rigorous set of criteria. The Economic Investment Committee must find:

The project will result in a net increase in employment. •The project will increase opportunities for employment and strengthen the state’s economy. •The project will be consistent with the economic development goals of the state and of the area in which it •is located. The project will be competitive with another state(s) or country. •The grant is necessary for the completion of the project in the state. •

TAXES & IncEnTIvES

The company must meet certain state health insurance and workplace safety requirements. The proposed project’s benefits must outweigh its costs, thus rendering the grant appropriate. A cost benefit analysis is done for each project, and the committee identifies and selects projects that are most beneficial, after considering a number of different evaluation factors. Statute requires that the business maintain operations at the project location, or at another approved site, for at least 150% of the term of the grant. Also, the agreement must include a claw-back provision to recapture all or part of the grant, at the committee’s discretion, if the business fails to remain at the site for the required years. The final Community Economic Development agreement must be reviewed and signed by the state Attorney General. Maximum Amounts: The committee is authorized to award up to 25 grants in a single grant year. These grants can result in payments to a business for up to 12 years. The total amount paid out in any one of those years cannot exceed $15 million, giving the committee up to $180 million to allocate in benefits to the 25 businesses over a 12-year period. The statute authorizes awards from 10% to 75% of withholdings for eligible positions. Similarly, the term of the grant may not exceed 12 years. Even with statutory requirements, the committee has discretion in weighing factors to award projects and fix the amounts, terms and time periods of grants.

one north carolina FundThe One North Carolina Fund helps recruit and expand quality jobs in high value-added, knowledge-driven industries. It also provides financial assistance to those businesses or industries deemed vital to a healthy economy that are making significant efforts to expand in North Carolina. The fund currently consists of nonrecurring appropriations made by the N.C. General Assembly for companies seeking to undertake new expansion or locate new operations in the state. The fund is competitive and the location or expansion must be in competition with another location outside the state. Program Requirements: Companies can receive money for:

• Installation or purchase of equipment. • Structural repairs, improvements, or renovations of existing buildings to be used for expansion. • Construction of or improvements to new or existing water, sewer, gas or electric utility distribution lines, or equipment for existing buildings.

For a company to be considered:

• The company must agree to meet an average wage test .• Local units of government (city or county) must agree to match financial assistance to the company.

the one north carolina small business ProgramThis program awards state matching funds to North Carolina businesses that have received either a Small Business Innovation Research Program (SBIR) or Small Business Technology Transfer (STTR) Program award by the corresponding U.S. government program. The Federal SBIR/STTR Program provides funding competitions in two phases that are relevant to the North Carolina program: Phase 1 conducts feasibility research; and Phase II expands and develops Phase I results and develops commercially viable innovations.

TAXES & IncEnTIvESindustrial revenue bond ProgramIndustrial Revenue Bonds (also called industrial development bonds, IDBs, IRBs and qualified small issue bonds) offer qualified manufacturing facilities and certain solid waste disposal facilities convenient, long-term, flexible financing. They assist new and expanding industry in all 100 counties, while also providing workers with high-quality jobs. IRBs can be either tax-exempt or taxable and can be used to finance the entire project, including the cost of land, construction of new or expanded facilities, acquisition and installation of depreciable property such as equipment, and construction period interest. The Industrial Facilities and Pollution Control Financing Authority of each county issues the bonds in the county where the project is located. Due to the complexity and documentation associated with revenue bonds, a business should consult early in the process with an attorney who specializes in revenue bonds (bond counsel). Most county industrial facilities and pollution control financing authorities permit companies to designate bond counsel, although some have their own designated bond counsel. Significant Requirements (Manufacturing IRBs)

Manufacturing – Must be at least 75% manufacturing. •

Letter of Credit – Since all bond issues must be supported by a letter of credit, it is important to secure an •early commitment from a bank which is rated investment grade or better. Most often, the bank that issues the letter of credit will place the bonds and may purchase them.

Environmental Approval – No IRB project may be approved without environmental certification by the •North Carolina Department of Environment and Natural Resources (DENR). If the company must obtain required permits, the process could take 60 to 90 days. DENR representatives will guide the company through the process.

Abandonment – Company must certify that in building the facility, it is not abandoning another facility (or, •if it is, that it is impossible for the company to remain at its present location because of limitation on land use, etc.).

Jobs Test – Must create or retain number of jobs with the size of financing (currently one job for every •$250,000 in financing).

IRB Proceeds - May be used only for land, building and equipment (fixed assets).•

industrial/road access ProgramAdministered by the Department of Transportation, this program provides funds for the construction of roads to provide access to new or expanded industrial facilities. An access review committee comprised of representatives of the Department of Transportation performs a technical review of a requested project and makes recommendations about traffic and safety concerns. Approval is based upon the resulting economic benefits of the project including the number of new jobs created, the amount of capital investment, highway’s use and the area’s economic conditions.Sales and Use Tax Discounts, Exemptions and Refunds

TAXES & IncEnTIvESreduced rate allowances on certain parts, accessories and construction supplies for eligible industries andmanufacturing processes.

For example:

Industrial machinery and equipment is exempt from sales and use tax but is subject to an excise tax. •This rate is 1 percent with a maximum of $80 per item.

Parts and accessories to manufacturing machinery, which include most supplies used in the •manufacturing process but not becoming a part of the manufactured product, including pollution abatement equipment, are taxed at 1 percent.

Purchases of ingredients or component parts of manufactured products are exempt from sales or use tax. •

Packaging containers and items that become part of a manufactured product and are delivered with •the product to the customer are exempt from sales and use tax.

Bioprocessing, pharmaceutical and medical manufacturing and distribution, aircraft manufacturing, •computer manufacturing and semiconductor manufacturing companies may receive a refund of sales taxes on purchases of building materials, fixtures and equipment if the facility costs at least $50 million in Tier 1 counties and $100 million in Tier 2 and 3 counties.

Sales of electricity to manufactures are taxed at a rate of 1.8%. Effective July 1, 2008, the rate •will decrease to 1.4%; effective July 1, 2009 the rate will decrease to .8%; and effective July 1, 2010, sales of electricity to manufacturers for qualifying purposes will be exempt from sales and use tax.

Sales of electricity and eligible business property to an internet service provider or web search portal •business that invests at least $250 million in private funds are exempt from sales and use tax.

Piped natural gas is exempt from sales and use tax but is subject to an excise tax. This tax rate is •based on the number of therms of gas consumed in a month.

Coal, coke and fuel oil used in manufacturing is taxed at 1 percent. •

Motor vehicles are exempt from sales and use tax but are subject to the highway use tax. Highway •use tax is 3 percent of the retail value of the motor vehicle with a maximum tax of $1,500 per vehicle.

Aircraft, boats, railway cars and mobile offices are taxed at 3 percent with a maximum tax of $1,500 •per item.

Custom computer software and computer software delivered electronically are exempt from sales •and use tax.

All telecommunications services are taxed at a rate of 6 percent.•

infrastructure

Macon County, the Town of Franklin and Town of Highlands have a long a positive history of investing in infrastructure to accommodate the needs of a growing business community.

transportation:While Macon County is located in the mountains, it has a strong infrastructure connecting it to short and easy drives to larger urban markets.

Distance to Hartsfield Jackson InternationalAirport in Atlanta, GA 139 miles (2 hours 35 minutes)Distance to Asheville, NC 69 miles (1 hour 21 minutes)Distance to Chattanooga, TN 137 miles (2 hours 43 minutes)Distance to Knoxville, TN 108 miles (2 hours 16 minutes)Distance to Charlotte, NC 182 miles (3 hours 17 minutes)

infrastructure

future transportation projects planned (funded):

SR 1533 Walnut creek. Replace bridge no. 200

SR 1456 Little tennessee river. Replace bridge no. 172

SR 1551 Bridge 58 over the cullasaja river on sr 1551

SR 1309 Wayah creek. Replace bridge no. 17

US 441 Business Little tennessee river. Replace bridge no. 22

Various Blue ridge national heritage sites. Interpretative and gateway markers.

Various Blue ridge music trails

Various Ecosystem enhancement program for division 14 project mitigation.

US 23-441 Renovation of rest area-building and grounds. Include ada compliant family restroom andupgrade of fixtures and finishes.

NC 28 and Sr 1729 (depot street extension) to sr 1378 (bennett road). Upgrade and make safety improvements.

SR 1323 Sr 1729 (depot street extension) to sr 1378 (bennett road). Upgrade and make safety improvements.

NC 28 Nc 28 from sr 1323 (moor road) to sr 1335 (sanderson road).

SR 1538 (Buck Creek Road) Us 64-nc 28, nc 106 to sr 1533 at gneiss and sr 1538, us 64 north of highlands to us 64-nc 28 at gneiss. Upgrade roadway.

US 64 - NC 28 Us 64-nc 28, nc 106 to sr 1533 at gneiss and sr 1538, us 64 north of highlands to us 64-nc 28 at gneiss. Upgrade roadway.

Connector National highway system guard-rail rehabilitation. Upgrade sub-standard guardrail, end treatments and bridge anchor units.

US 25-176 National highway system guard-rail rehabilitation. Upgrade sub-standard guardrail, end treatments and bridge anchor units.

US 23, US 74, National highway system guard-rail rehabilitation. Upgrade sub-standard guardrail, end treatments and bridge anchor units.

US 64 Winding stair gap eastward for two miles. Construct truck climbing lane.

SR 1364 - SR 1114 Sr 1369 (byrd road) in macon countyto existing pavement in swain county. Upgrade tosecondary road standards.

Needmore Road Sr 1369 (byrd road) in macon countyto existing pavement in swain county. Upgrade tosecondary road standards.

Needmore Road Sr 1364/sr 1114 (needmore rd) from sr 1369 (byrd rd) to swain county line

Franklin New route, sr 1660 (siler road) to sr 1662 (wiley brown road) south of us 441

US 64/NC 28 Us 64/nc 28, us 23/441 in franklin to nc 106 in highlands. Construct truck information stations and truck turn-arounds.

infrastructure

water and Sewer infrastructure:The Town of Franklin and Town of Highlands have made substantial investments in water and sewer systems that serve a substantial portion of Macon County.

franklin: City water and sewer is available within the greater area of the city limits of Franklin. City water and sewer is also available on NC highway 441 South and 64 West. Please contact the Town of Franklin in determining the availability of city water or sewer.

Highlands: Inside the town, water and sewer are provided to most households. Private wells and septic systems are common, and several of the private clubs have their own community water and /or sewer system. Please contact the Town of Highlands in determining the availability of city water or sewer.

infrastructure

telecommunications:Verizon is the local provider for telephone service in Macon County.

Despite the difficulty of the mountain terrain, there are ______ wireless towers that provide excellent mobile coverage for nearly all of Macon County.

There is a strong competitive market place for high speed internet connectivity for commercial entities. The following are options for local businesses:

Verizon – Verizon offers a complete package of telephone, mobile and high speed internet access options for local businesses

dnet – Dnet is a local internet service provider offering multiple options to local businesses needing high speed internet access.

smnet – SMNET is based in Macon County and provides the following services to local businesses: Dial Up Internet Access & E-mail, T1, Frame Relay & Wireless connections, Website Hosting, Website Design & Development, Website

Maintenance, Networking, Consultation, Professional E-commerce Applications, Business Solutions, Search Engine Submissions & Results, and Internet Marketing & Support

balsamWest Fibernet - Larger data users will be encouraged to know that BalsamWest has made a significant investment in approximately 300 miles of underground fiber that serves 10 counties in NC, GA & TN. The primary backbone

is made up of Cisco 15454 operating at OC-192 the blazing speed of 10gigabits and Balsam’s local loops operate at either OC-48 or OC-12, 2.5 gigabits and 622 Mbs respectively.

SMNET

technologyMacon County is home to several great technology companies: Drake Software, TekTone, DuoTech, and Smokey Mountain Systems. These companies rely upon the availability of creative talent, access to the outdoor lifestyle, and technology infrastructure that interconnects schools, libraries, hospitals and colleges.

technology

Balsamwest fiberNet:BalsamWest provides 10 counties in NC, GA and TN with uninterrupted data services with connections to primary data hubs located at 56 Marietta Street in Atlanta, Charlotte, and Knoxville. They have deployed more than 300 miles of underground fiber madeup of Cisco 15454 operating OC-192 the blazing speed of 10 gigabits.

BalsamWest is a fiber optic based broadband company. Within the region BalsamWest is the leading provider of broadband services via SONET & Ethernet service and the leading provider of collocation and Interconnection Services.

technology

a lifestyle that Supports Creativity and innovation:Macon County offers access to a lifestyle that as attracted creative and innovative thinking for many years. You are literally footsteps away from the Appalachian Trail, world class kayaking, rafting and fishing.

With the new Smokey Mountain Center for the Performing Arts, the Bascomb Art Center and dozens of galleries and other arts organizations, the creative mind has many outlets outside of the workplace.

Corporate profile:

The Forbes Four-Star, AAA Four-Diamond resort is located at 445 Main Street in Highlands, NC. The Inn is listed on the National Register of Historic places (1878), Historic Hotels of America. The mountain resort features 68 rooms ranging from historic inn rooms, spa suites and luxury suites to cottages, a rustically elegant lodge and numerous private lodge suites cascading along a lushly landscaped hill of the property.

The Old Edwards Hospitality Group encompasses The Old Edwards Inn and Spa in Highlands, NC, as well as The Old Edwards Club—a private club that features a professionally designed golf course, outdoor heated mineral pool, tennis courts, fitness center, clubhouse with bar and restaurant and golf shop. Also introduced in 2009 was Satulah, Old Edwards Private Residences, which includes 14 luxury mountain homes just two blocks of Main Street, Highlands.

Included in the Old Edwards Experience are a Forbes Four-Star wellness spa, Madison’s Restaurant and Wine Garden, The Farm at Old Edwards special events and wedding facility, Acorn’s and Acorn’s Annex upscale retail shops, and The Rib Shack & Sports Corner. A spectacular outdoor heated mineral pool with three arching fountains graces the very center of the property.

Madison’s Restaurant and Wine Garden has won the Wine Spectator “Award of Excellence” every year since 2005 and the “Best Of” award in 2008 and 2009. Madison’s combines the freshest local and regional ingredients to showcase the new Southern Cuisine.

The Rib Shack is a casual dining venue with extensive draught beer selection, known for having the best house-smoked ribs and barbecue in town, the Rib Shack offers rustic mountain ambiance, a wide selection of sandwiches, salads, entrees and a family dining experience The Spa at Old Edwards is a Four-Star world-class wellness experience, with signature treatments featuring native herbs and botanicals, a Rainforest Rejuvenation Room, outdoor heated mineral pool and whirlpool, fireside lounge, glass-enclosed spa café, rooftop serenity terrace, and more.

The Farm at Old Edwards encompasses 33 acres of lushly landscaped gardens with a Wedding Lawn and all-white garden, Event Terrace, elegantly furnished and restored period Barn with full catering kitchen and three-bedroom Farmhouse for the bride and family. The Farm hosts up to 225 guests for an outdoor reception and 60 guests indoors. Hickory Suites and cottages at Old Edwards Inn serve as luxury housing for groom and bride parties. The Old Edwards Club also has multiple venues for dinners and receptions.

Old Edwards Inn and Spa started a $50 million renovation project in 2001 that ended in 2004 making the Old Edwards Inn & Spa a luxury mountain destination with full resort amenities. The Old Edwards Club was formed in 2009 when Old Edwards Hospitality Group purchased the golf course at Highlands Cove and invested an additional $5 million to bring it up to Old Edwards’ standards.

olD eDwarDS iNN aND Spa Resort, Hotel, Spa and GolfEmployees: 200 +Customers: More than 12,000 annually