APEX - The town is behind other Wake County municipalities when it comes to spending on economic development and offering incentives.

It has been about a year and a half since the town of Apex took over economic development duties from the chamber of commerce, and they now find themselves playing catch up.

In its first year Apex has set up a website, sent out a marketing folder to about 600 companies, and created a featured property designation to promote non-residential sites. It plans to launch an economic advisory committee.

As Apex officials work on a long-range plan, other municipalities - who are spending far more - are attracting industry jobs.

Apex is spending less on economic development that at least four other towns in southwestern Wake County - including some municipalities that are almost half its size.

Both Morrisville and Fuquay-Varina, which have about 18,000 residents each - about half Apex's population - are putting more cash towards economic development. Morrisville is spending slightly more at $31,000 and Fuquay-Varina is spending $116,496. Holly Springs is spending about $230,000 and Cary is spending $235,000.

Towns are using those extra dollars to offer incentives.

For years Apex had declined to offer incentives. In 2005, the Apex Council, then called the board of commissioners, voted against establishing an incentives policy, citing the plan as not worthwhile.

Instead, the town has taken a case-by-case approach, which has not been used until recently.

In 2009, the council voted 3-2 to offer EMC data storage company a cash grant in order expand its site in Apex. The grant was contingent upon EMC making a $140,000 investment and adding about 64 jobs, according to recently released meeting minutes. EMC declined the offer and went to Durham.

"I think possibly the reason we haven't seen larger companies lately maybe because of our previous council's feelings about incentives and being extremely selective," said Councilman Bill Jensen, who is on the council's economic development committee.

Wake County Economic Development Executive Director Ken Atkins said in a tough economic climate incentives are becoming increasingly important.

"Companies, they want incentives," Atkins said. "It used to be they narrowed the list down and then asked about incentives. We're seeing more and more that incentives are being asked about in the front end of the process."

He said towns that don't offer incentives put themselves at a disadvantage when facing competition from their neighbors who do offer incentives.

Incentives at work

Other towns have been utilizing incentives for years and attracting jobs.

In 2006 Holly Springs, which has fewer residents than Apex, attracted vaccine manufacturer Novartis by offering to purchase property for the company. The plant opened in 2009. Over 300 full-time employees now work in the $1 billion facility.

In December Novartis announced that the Holly Springs campus would be the site for a new viral lab and pilot plant. The $36 million pilot plant, expected to open in 2012, will add 100 jobs that will pay an average salary of $106,200 plus benefits, according to Holly Springs' Website.

Cary town leaders agreed in August 2009 to give a $75,000 cash incentive - on top of $9.4 million offered by the state - to Deutsche Bank.

The company said it would create 319 jobs that would pay an annual average wage of $88,213.

Cary leaders have set a deadline of Dec. 31, 2013, for Deutsche Bank to produce the jobs. The company also must have in place at least $6.7 million in capital assets. If the company fails to meet those goals, it would be required to repay Cary 10 percent of the town's investment for up to five years or until the company meets the stipulations, whichever comes first.

The Cary Town Council approved a $25,000 cash incentive in July 2009 to draw Loparex, a manufacturer of silicone-coated papers and films, from Willowbrook, Ill., to the Crescent Lakeside development on Crescent Green.

Towns have also offered incentives to keep companies from heading to other jurisdictions.

Earlier this year, Cary offered $50,000, on top of N.C. incentives, to adhesive global manufacturer Lord Corp. to keep them in town and add 117 high-paying jobs over the next five years. Lord Corp. also considered sites in Ohio and Pennsylvania, but chose to expand at its home base after North Carolina promised incentives worth as much as $1.3 million.

And in February 2008, Cary shelled out $500,000 in incentives to Siemens for an expansion of that company's medical campus in Regency Park.

Offer unlikely

JMC Tools of Apex has been offered incentives by Lee County to relocate their company of about 30 employees.

Lee County is offering the equipment-component maker an incentive package that includes $1,000 for every job the company brings in, up to $50,000. The company provides parts to industries including aerospace, electronics, medical and telecommunications. Jensen said it's unlikely the town will offer the company incentives to stay.

"We have other machine shops in Apex that do the same thing (as JMC)," he said. "So if we do an incentive package to keep JMC, then how will the folks that remain think? Do we give JMC an incentive package - say of $100,000 - and then run around shops in Apex and give them all $100,000? It won't work."

Apex Town Manager Bruce Radford said he plans to meet with the company's vice president soon.

Apex Mayor Keith Weatherly is forming a group of local business leaders to discuss economic development, business retention and recruitment.

The task force will include Weatherly, Jensen, the sitting Chamber of Commerce president, and leaders from businesses and industries in Apex.