THE CHARLOTTE REPORT.

As it does in any city, growth brings with it problems, which Charlotte turns into opportunities.

For the Charlotte region, the past decade could be called the "Knock-Out Ninetiess." That's when the state's most populous metro area won the growth-and-public-relations battle to become one of the most attractive business locations in the country.

During the decade, Charlotte was the second-fastest growing city in the United States, behind Phoenix. The city grew by more than 125,000 from 1990 to 1998, for a total population of 521,478, according to the N.C. Office of State Planning. Driving much of that growth were the more than 16,000 companies that announced expansions in, or relocations to, Mecklenburg County during the decade, says Charlotte Chamber Vice President Tony Crumbley. The county also experienced record-high business investment and job expansion in the first six months of 2000, when 552 companies announced plans to create 9,628 jobs, Crumbley says.

But along with Charlotte's growth have come issues that challenge virtually every prosperous metro area in the country -- education, transportation, strong leadership, air quality and affordable housing. How these issues are resolved will directly impact the area's ongoing vitality, but at this point, none appears to be a detriment to recruiting.

From 1988 to 1998, Charlotte's labor force grew by 27%, according to the N.C. Employment Security Commission. Compare that to a statewide increase of 14% and a national figure of 13%. Charlotte has to contend with a low unemployment rate, and joblessness is expected to remain minimal. Based on state and federal figures, the unemployment rate for the seven-county Charlotte region at the end of May was 2.9%, slightly higher than the 1999 mark of 2.6%, says First Union Corp. economist Mark Vitner.

However, the low rate isn't a barrier to continued economic growth, he says. "This area continues to attract 30,000 new residents a year. Plus, we have a natural increase of 10,000 people - births, minus deaths -- a year. That creates a steady supply of workers, and our rate of population growth ranks in the top 10 nationally. That's what businesses look for. Virtually every growing metro area has a low unemployment rate."

Bill McCoy, director of the UNC Charlotte Urban Institute, agrees. "If good jobs come, people will find them," he says.

Leadership

Traditionally, leaders from the big banks and other large employers have called the shots in big decisions affecting the city. Recently, the Queen City has seen such leaders either joining civic debates late or sitting them out entirely, even when they involve such major issues as building an uptown arena for the Charlotte Hornets and a court decision on school busing.

"We're beginning to see a change that we were bound to go through," says McCoy. "The big corporate guns are disengaging.

Bill Lee [former CEO of Duke Power Inc.] died; Ed Crutchfield [former CEO of First Union Corp.] is sick; and Hugh McColl [CEO of Bank of America] is about to retire," McCoy explains. "Duke Energy's Rick Priory spends as much time in Houston as he does in Charlotte, and First Union's Ken Thompson is trying to make the bank healthy again." Plus, as these Charlotte-based companies have become national entities, rising business executives are more apt to be transferred than they were 15 to 20 years ago.

On the arena situation, business leaders initially stayed in the background as Charlotte Hornets co-owner Ray Wooldridge and the Charlotte City Council sparred over whether to build a new facility uptown. Not until four months into the process did business leaders meet with Wooldridge and turn out in force at public hearings. "There wasn't anyone from the businesses saying, 'We need this arena. This is important to the city; let's move forward,'" McCoy says.

Allen Tate, whose Charlotte-based realty...