Deryck Wilson

For the last half-century, Hollywood has idealized the American Dream - owning a home with a white-picket fence.

But these days there's a new definition of "home sweet home," reports CBS News correspondent Sandra Hughes. Lynn and Luke Maxcy's dream is to rent a nice apartment in Los Angeles.

"I don't know if the American Dream is to rent forever, but definitely it works for us right now," said Lynn.

During the first quarter of this year, the percentage of households headed by homeowners had its sharpest decline in two decades, while the number of people choosing to rent soared.

Right now, renting is red hot.

"We'll call on a place and somebody will say, 'Yeah, we'll show it to you' and then we'll call back the next day to set it up and they say 'Oh sorry, we've already rented that,' " said Luke.

At Westsiderentals.com, an online Los Angeles rental search service, owner Mark Verge says his market is exploding.

"[There are] enormous amounts of renters coming through here that we haven't seen before. People of all ages that used to be home buyers."

The increasingly unstable housing market and continuing foreclosures have turned even those with the means to buy toward the rental market.

"Rent is no longer a four-letter word, and for many people that's a very attractive and very rational option," said Nic Retsinas, executive director of the Joint Center for Housing Studies at Harvard University.

But for those forced into this competitive rental market by foreclosure, the going is tough. Landlords are now more likely to reject potential renters with bad credit scores.

"You can't just go in and say 'I want this apartment.' It doesn't work that way," said Verges. "You have to go in and tell them you're making a commitment with this owner."

For the Maxcy's, their decision to rent is simple.

"It's nice to know you have to only pay rent and anything else that happens is somebody else's responsibility," said Luke.

Because right now, they don't want the responsibility of owning anything in this volatile housing market. For the latest rentals, as well as real estate information and community news, visit Coldwell Banker's local Greenville market center by clicking HERE!

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DSM Pharmaceuticals, Pitt County's largest manufacturing employer with about 1,200 workers on Wednesday announced that it will be reorganizing operations with a target of reducing its work force by 15 percent to 20 percent, or as many as 240 positions.

A news release said the decision is due to demand changes for services at the Greenville facility and reorganization is expected to be completed by the end of the year.

DSM Pharmaceuticals Inc. is a business unit of DSM Pharmaceutical Products, which provides custom manufacturing services to the pharmaceutical and biopharmaceutical industries in the areas of steriles, orals and topicals, including dose form manufacturing, scheduled drugs, clinical manufacturing, fill finish manufacturing, and lypholization services.

"The decisions concerning staff redeployment and potential reductions in Greenville will be difficult but necessary as we align the company's cost structure with the current demand," Bob Hartmayer, president of DSM Pharmaceutical Products, said in the news release.

"We remain committed to our employees and the Greenville community, and greatly appreciate the significant contributions of the employees who will be affected by this decision."

When employees were summoned to a mandatory meeting at 3 p.m. Wednesday, Andy Varnell knew the news couldn't be good. Experience told him that.

"We were all pretty sure it wasn't positive," said Varnell, a lab group leader who has worked at the site since 1989 and seen the change from Burroughs-Wellcome to Glaxo-Wellcome to Catalytica to DSM.

The proposed process under consideration at DSM will include three elements:

Possible employment with DSM Dyneema on the same Greenville campus. DSM Dyneema is the inventor and manufacturer of Dyneema, touted as the world's strongest fiber and a component used in: ropes, cables and nets in the fishing, shipping and offshore industries; safety gloves for the metalworking industry; and in fine yarns for applications in sporting goods and medical sector. Dyneema also is used in bullet-resistant armor and clothing for police and military personnel. It is produced in Greenville and Heerlen, The Netherlands.

Voluntary severance packages until Dec. 1;

Involuntary severance packages, if necessary.

Wanda Yuhas, executive director of the Pitt County Development Commission, said DSM's decision doesn't appear to be a reaction to possible recession but a plan for dealing with changes within the pharmaceuticals industry.

"Is there anything to panic about? No," she said. "I think the DSM folks are handling everything in a very positive, professional fashion, and there isn't anything to really say beyond that.

"Pitt County is a community where some companies are reducing jobs while others are adding on jobs," she said. "We look at our overall job growth and job investment, and we're still in the positive. I think the important thing is for people to not jump to a conclusion based on fragments of information.

"DSM and DSM Dyneema continue to be good corporate citizens and are behaving in a proactive manner," she said.

Greenville City Manager Wayne Bowers said any job losses will affect the local economy.

"I think any restructuring that results in the loss of jobs is a negative for a community, but DSM has been a good corporate citizen and will try to minimize the impact," Bowers said. "For those people who might be involved, it is certainly an unfortunate situation. Any time you lose jobs it has an impact on the economy."

For Varnell and many of his co-workers, it puts the future in doubt.

He said although the news was difficult to hear, it wasn't surprising.

"We didn't know how it was going to be presented or the numbers or anything like that," he said.

"We knew based on the workload and the contracts that have been taken out there, we knew something had to be done," Varnell said.

"They just went over the outlook for the next few years. ... We've had a big dip due to the effects in the big pharmaceutical companies. The competition from generic companies has forced them to react, which trickles down to us.

"To keep a profit for the next few years they had to do something at DSM." Despite these jobs lost, more are coming to the East in the next few months. Keep in mind that because of ECU and the college town atmosphere, there is a constant need for service industries and Greenville proves to be growing extensively. For more information, please visit the #1 site for local business information and real estate at www.ColdwellBankerGreenvilleNC.com

Paint it Purple this Weekend

Join our CREW @ 8:00am Sharp! to Tailgate with the best!

All Hands on Deck Pirate Fans. You either are to be tailgating and attending the game this weekend OR buying/selling a home with us @ Coldwell Banker Coastal Rivers Realty . No surrender!

The ECU Student Government Association, Student Pirate Club and ECU Athletics Department are calling all Pirates to wear their favorite purple ECU shirts, jackets, pants and hats for "Purple Out" at Dowdy-Ficklen Stadium this Saturday for the Pirates opening C-USA Eastern Division game against Memphis.

Currently, only student-tickets remain available for the game. Should any tickets remain available Friday, all remaining tickets will go on sale Friday morning first, come, first serve through the ECU athletic ticket office, or online at www.ecupirates.com . Kick-off for the East Carolina vs. Memphis game is scheduled for Noon (12:00PM).

Officially licensed ECU Pirate Purple apparel is available at all ECU Retail Champion partner locations.

More details about Game Day:

• Parking lots open at 8 a.m
• Pirate Walk is at 9:45 a.m. by football practice field
• Stadium gates open at 10 a.m.
• Team pre-game warm-up at 10:45 a.m. on the field
• Pre-game festivities begin at 11:40 a.m. and include: Army Golden Knights Parachute Jump, the Marching Pirates, Air Force C-130 Hercules/Coast Guard Rescue Helicopter fly-over and the Purple Haze team entrance.

Two college fairs are planned in Greenville.

A Pitt County College Fair is planned from 6:30-8 p.m. Oct. 21 at the Greenville Convention Center. More than 50 public, private and community colleges will be represented at the fair from North Carolina, South Carolina and Virginia. The College Foundation of North Carolina also will answer questions about preparing and paying for college and offer financial aid workshops at 6:30 p.m. and 7:15 p.m.

And, Historically Black Colleges and Universities (HBCUs) will hold a college fair from 9 a.m. to 2 p.m. Nov. 22 in the Family Life Center of Cornerstone Missionary Baptist Church, 1095 Allen Road.

The fair, designed for grades eight through junior college, will include college and military recruiters, scholarship information, entertainment, door prizes and refreshments. Admission is free. For more information, call 355-1003 or 561-7787.

Pitt County's government and business leaders have long said the community is recession proof given the continuing growth of East Carolina University and University Health Systems.

Wanda Yuhas, director of Pitt County's Development Commission, is no longer making that claim.

With a diverse manufacturing base, the university and area hospital, the conventional thinking has always been if there is trouble in one business area, others will be steady.

"Six months ago we would have said we were virtually recession-proof," she said, "In our current economic climate we may not, be able to say that with confidence."

Yuhas said hospital officials have said that with an already large indigent patient base, a dramatic rise in unemployment and suffering in other sectors of the business community could cause the hospital to suffer.

While none of the clients currently developing projects are canceling their plans, Yuhas said her office hasn't seen new client activity in nearly three weeks.

Still, people continue to move into the community and commercial developers continue to show interest in the community's business climate.

The credit crunch has slowed down some overseas businesses interested in Greenville. However, it's possible that same crunch will give retail developers a chance to look at areas where growth will boom when the economy picks up.

"Until the last two weeks we've been in wonderful shape. We are in good economic health, yes. We are going to take some bruises, and we expect to recover more quickly that most places would," she said.

While local business leaders work to ride out the stock market's instability, local government entities face the same instability, coupled with a mandate to maintain the same level of services.

Four of Pitt County's major government institutions have banking ties with Wachovia. Financial officers with these institutions say this week's duel between Wells Fargo & Co. and Citigroup Inc. for the purchase of Wachovia Corp. created no immediate problems in their operations, but they remain on the lookout.

"It leaves an unsettling feeling when your banking institution is in the process of being bought out to prevent bankruptcy," said Michael Cowin, Pitt County Schools assistant superintendent of finance.

East Carolina University and the city of Greenville are already discussing plans to delay projects in an effort to offset predicted revenue losses. Pitt Community College's financial aid office has more students seeking financial aid to help with school and living expenses. The state's revenue shortfall has the school system questioning what it will need to do to make up for a possible loss of revenue.

City of Greenville

The city's investments are doing as well as can be expected in this turbulent market, said Bernita Demery, financial services director.

There has been a 43 percent drop in the city's investment portfolio earnings, she said. While revenue from investments is down, the percentage of growth from property tax revenue is more than expected, 19 percent vs. the predicted 13 percent growth, she said. However, it's too early in the fiscal year to determine if the trend will continue.

"We are looking at tightening our belts, and we will look at our capital spending until we see how the rest of the year finishes up," she said.

As for the city's investments, about 34 percent is invested in Freddie Mac and Fannie Mae, Demery said. With the federal government's takeover of the mortgage institutions last month, the city is still getting a decent return on that investment, she said.

The city not only follows investment regulations of the state Department of Revenue's Local Government Commission, it has an investment advisory committee that follows the city's portfolio.

City Manager Wayne Bowers told the City Council on Thursday that the N.C. League of Municipalities, an association of municipalities, is warning its members that sales tax revenues are expected to be flat this year. Bowers said he had expected sales tax dollars to be down and budgeted for only a 2 percent increase.

"If we have no growth this year we would only have a loss of $79,000 (in revenue)," Bowers said. Greenville is better off financially than many institutions, he added.

The city banks with Wachovia Corp., keeping about $4.5 million in an operating account which is used for the city's daily finances. Demery said she's checked with the bank and it has the money on hand to cover the city's accounts.

Pitt County

Like the city of Greenville, Pitt County government banks with Wachovia Corp. County finance officer Melonie Bryan told commissioners last week the dispute between Wells Fargo and Citigroup over the bank's take over shouldn't be cause for alarm.

Pitt County has a number of different wires coming in and out of its accounts with Wachovia, Bryan said, including payroll accounts and health insurance funds. As a result, she said, deciding to end any banking relationship would be complex and take a long time to complete.

The sale of Wachovia could be beneficial locally. Bryan said, regardless of which way the sale goes, it creates a stronger banking institution for Pitt County to work through in the future.

"It may help the county because Wells Fargo brings a lot to the table," said Chris McDaniel, assistant director of financial services. "It would be a stronger bank because it would be one of the players in the banking industry."

McDaniel, who works with the investments of taxpayer dollars, said Pitt County has an assortment of low risk, low reward accounts, such as certificate of deposits, commercial paper and money markets.

The county puts this money into both short-term and long-term investments, he said, whenever it receives an influx of tax money, similar to the recent number of residents who paid their property tax early to get a two percent decrease.

"It may affect us in a reverse way," McDaniel said, referencing the economic problems on Wall Street. "With commercial paper, there aren't many buyers in that market, so the rates go up. So we benefit that way."

Pitt County Schools

The school system was feeling the economic pinch long before Wall Street's meltdown, said Cowin, assistant superintendent of finance.

"The increased cost of fuel alone has created much uncertainty for all school systems," Cowin wrote in a Friday e-mail.

There is $20 million shortfall at the state level with concerns on funding for transportation, leaving Pitt County Schools to redirect budget dollars from both instructional and operational programs to ensure money is available.

Along with fuel costs, food and supplies for the system's child nutrition program increased about 25 percent, which is a $2 million rise. Utility costs also are up.

"We are fortunate that Pitt County has not been hit hard by bank foreclosures and massive losses in jobs," Cowin said.

However, state officials, along with finance officers across the state, are watching how the stock market's tumble is impacting the state retirement system.

There's also a shortfall in the state health plan that needs to be addressed.

Cowin said he worries most about the psychological impact the recent weeks of economic uncertainty will have on school employees and people in the community.

Pitt Community College

"We've have had a big increase in students requesting federally backed Stafford loans," said Lisa Reichstein, the school's director of financial aid services. Stafford loans are federal loans made to students to supplement personal and family resources, scholarships, grants, and work-study, according to the program's Web site.

During the 2007-08 school year, which ended in early August, the school had 946 students who received Stafford Loans. In the first month and a half of the current school year, staff already has processed 900 loans, she said.

"We have had students come in with concerns about transportation costs and utilities costs. I think the increase in the cost of gas has caused some students to have problems even paying rent," Reichstein said.

Pitt Community College has about 4,800 students receiving some form of financial aid this year.

The credit crunch associated with Wall Street's problems so far hasn't kept students from getting financial aid from other institutions, she said.

Reichstein said she is concerned about how Wells Fargo's take over will affect Wachovia's scholarship program for students seeking two-year technical degrees.

Reichstein said she hasn't been informed of any cutbacks in other scholarship programs.

East Carolina University

Wachovia partnered with the university to create Wachovia Partnership East, a project that lets students pursuing education degrees take classes at affiliated community colleges, said Mickey Dowdy, vice chancellor for university advancement. The question is will the university and bank be able to renew the partnership when the new fiscal year starts July 1, 2009.

"It's a solid program and we will figure out a way for it to continue," Dowdy said.

The university hasn't received its third-quarter investment reports, so Dowdy said he didn't know how much money it's lost.

"There is no question that we lost, and we are asking people internally not to make expenditures now," he said. "Things that are committed out there and projects started, we are honoring those projects. Any gift that came in for a specific project we are not holding that up."

Kevin Seitz, vice chancellor for administration and finance, said his office is preparing guidelines for administrators, faculty and staff to advise them on a 2 percent budget cut the state is asking for. His office is asking for reduced travel and purchasing, delayed hirings and energy conservation measures.

"We knew there were going to be problems for a while, so the executive council has been working to cut $5 million from university expenditures," he said.

The university also learned from state leaders there will be a delay in securing the $36.8 million the General Assembly approved for the Brody School of Medicine's Family Medicine Center and $69 million approved to complete construction of the new dental school, Seitz said.

The design of the dental school is being finalized and the state has to give approval on the medicine center project so construction money isn't needed right now, Seitz said.

"Once we do, hopefully the money will be there for us to do it," he said

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