• “North Carolina is one of the original 13 colonies, and for over 200 years we never saw the need for a law to tell people which bathroom to use.” – Charles Hayes, retiring CEO, Research Triangle Regional Partnership.
  • “There is a stigma that gets attached to us.” – Steve Malik, owner, Carolina RailHawks and Medfusion
  • ​”We are an inclusive state. [HB2] has making us look like we are not to a lot of people.” – John Kane, real estate developer

RESEARCH TRIANGLE PARK, N.C.- The elephant wasn’t seen but roar could almost be heard. In the room if invisible and quiet, the big animal overshadowed the annual “State of the Research Triangle Region” event. HB2 – the controversial lesbian, gay, transsexual, bisexual or LGBT bill – wasn’t mentioned directly. But allusions were clear, and in interviews executives agree: House Bill 2, i.e. the bathroom bill, is bad for the state’s image as well as economic development.

“It’s unfortunate,” said real estate developer John Kane. “We are an inclusive state. [HB2] has making us look like we are not to a lot of people.”

Kane, the driving force behind the transformation of North Hills into a burgeoning area of high rises and retail, takes over as chair of the Regional partnership in just a few weeks. Right now, he and the board as well as the full-time staff of the partnership are working on a new strategic plan. But Kane acknowledged that the divisive legislation is a threat to future growth as verified in recent project delays or cancelations in the Triangle and elsewhere.

“This is not very good for economic development,” said Kane.

Companies and industrial recruiters are sensitive to cultural issues, not just taxes and infrastructure. So, too, are people who might be looking to move to the Triangle to further their careers. Many technology-focused firms, such as Red Hat, have spoken out against the bill. The region’s fast-growing technology startup community also has spoken out forcefully. And nation-wide media have reported in great detail on the bill.

The bill also has defenders, of course, but HB2 contrasts sharply from the theme of inclusion as stressed by the event’s organizers and speaker after speaker during the morning program.

“Hopefully,” Kane said, “this will get resolved.”

Whether that resolution includes outright repeal or a rewrite or keeping it as written – no one knows for certain at this point. However, Charles Hayes, the retiring CEO of the Regional Partnership, and Steve Malik, owner of the Carolina RailHawks soccer team as well as Cary-based Medfusion, made clear they oppose HB2.

“North Carolina is one of the original 13 colonies, and for over 200 years we never saw the need for a law to tell people which bathroom to use,” Hayes said firmly.

“It’s fair to say that HB2 is not an asset for recruiting businesses to North Carolina.”

Malik was one of the featured executive speakers whop during the program discussed why the Triangle continues to be a driving force for economic growth in the state. As Hayes noted in his keynote presentation, some $3.2 billion in investment was announced over the past year.

Yet Malik is worried about what HB2 means to his soccer team, which draws support from the Triangle’s increasingly cultural diverse population.

“I see the impact from two sides – the RailHawks and Medfusion,” he said. “There is a stigma that gets attached to us.”‘

Like other CEOs have said since the Republican-led General Assembly and Gov. Pat McCrory rushed passage of the bill, Malik said he expects HB2 will hurt companies in attracting workers.

“Fortunately,” he added, “we have a good talent pool from this area to recruit. But we recruit software engineers, and they tend to be very diverse people.”

Won’t it be interesting to see what’s said about HB2 at the next “State of the Research Triangle Region” event in May 2017.