Governor Perdue Announces OneGeorgia Awards

Governor Perdue Announces $16.2 million in OneGeorgia Awards

Wednesday, June 24, 2009

BRUNSWICK, GA –Governor Sonny Perdue and members of the OneGeorgia Authority Board met today at the College of Coastal Georgia in Brunswick and approved grants and loans from the OneGeorgia Authority’s portfolio of financing programs. These awards will assist with a variety of economic development projects in rural Georgia aimed at creating jobs, stimulating new private investment, supporting the retention of existing jobs and enhancing regional competitiveness through capacity-building projects. These projects, along with their respective local leadership representatives, were recognized at the OneGeorgia board meeting.

Company officials and local leaders associated with the most recent EDGE and SILF awards were recognized at today’s meeting. The seven EDGE awards, totaling $14,050,000, are leveraged against approximately $712 million in total project costs and are projected to create over 2,243 jobs within the next three years.

Macon-Bibb County Industrial Authority/Kumho Tire Georgia, Inc. EDGE grant funds will be used to assist with site preparation and infrastructure costs to support the location of Kumho Tire Georgia, Inc. (KTG), a Korean-based tire manufacturer, to Macon. The Company plans to construct a 1.3 million square-foot facility on a 130.6-acre site in the Sofkee Industrial Park. KTG is a subsidiary of Kumho Tire Company, Inc. KT) which was founded in 1960 and is the eleventh largest tire manufacturer in the world. With manufacturing facilities in Korea, China and Vietnam, this will be Kumho’s ninth facility. In addition, this facility will be first one in North America. KT manufactures tires for passenger cars, SUV’s, light trucks, commercial trucks and formula 3 competition racing cars. Customers include Ford, General Motors and Porsche. Construction of the facility is underway with production scheduled to start in late 2009.  EDGE Award: $3,800,000 / Total Project Cost: $260,533,629  450 new jobs in three years

Development Authority of LaGrange / Sewon America, Inc. EDGE grant funds will be used for building construction to support the location of Sewon America, Inc. (SAI), a Korean auto supplier, to LaGrange, Troup County. SAI plans to construct a 420,000 square-foot facility on 62.47 acres in the Callaway South Industrial Park, which is located near the KIA facility. Through its first venture in the United States, the Company will manufacture frame stampings and major chassis components, and SAI will be the largest supplier to KIA. SAI is a subsidiary of Sewon Precision Industry Co., LTD. (SPI) which was established in 1989. SPI is a Tier-One automotive supplier, primarily to KIA, and has plants in Korea and China.  EDGE Award: $5,000,000 / Total Project Cost: $161,326,852  550 new jobs in two years

Development Authority of Bryan County / Dicon Technologies, LLC EDGE grant funds will be used to assist with site preparation and SILF funds will be used to purchase equipment in support of the location of Dicon Technologies, LLC (DT) to Bryan County. The Company manufactures a variety of products in the areas of wound-care, cosmetics, diabetic care, foot care and footwear that are in large part based upon Dicon’s proprietary foam-related technologies. DT plans to construct a 30,000 square-foot facility on 5.93 acres in the Interstate Centre Industrial Park. The new facility will contain the Company’s manufacturing, research and development functions that are currently located in China. Founded in 1980, Dicon has marketable and diverse products, as well as patents and patents-pending. The Company’s customers in the footwear industry include Johnston & Murphy, Kenneth Cole, Foot Joy and Born; in the skin care industry customers include Walgreens, CVS, Sears/Kmart, Publix, Mary Kay and Big Lots.  EDGE Award of $100,000 & $525,000 SILF AWARD / Total Project Cost: $3,380,000  55 new jobs in two years

Development Authority of Harris County / Daehan Solution Georgia, LLC EDGE grant funds will be used to assist with building construction to support the location of Daehan Solution Georgia, LLC (DSG), who will manufacture interior automotive components as a Tier 1 supplier to KIA Motors Manufacturing Georgia, Inc. The Company plans to construct a 160,000 square-foot manufacturing facility on 30 acres in the Northwest Harris Business Park in West Point, which is located less than six miles from the KIA facility. Daesol America Corporation (DAC), the US holding company for Daehan Solutions Company Ltd. (DSC), is a leading manufacturer of plastic automotive components and Noise, Vibration and Harshness (NVH) engineering technology. DSC, the parent company, is a South Korean-based company whose major customers include KIA, Hyundai, General Motors, Sangyong Motors and GM Daewoo. With a history dating back to 1983, DSC has a total of seven plants; five in Korea, one in China and the other in Alabama, which was its first in North America.  EDGE Award: $1,200,000 / Total Project Cost: $36,927,000  300 new jobs in two years

Effingham County Industrial Development Authority / EFACEC Power Transformers, Inc. EDGE grant funds will be used to assist with the location of a power transformer manufacturing facility for EFACEC Power Transformers, Inc. (EFACEC), a Portuguese manufacturer of electrical transformers used in the market of power generation, transmission and distribution. Based in Porto, Portugal and founded in 1948, EFACEC plans to construct a 600,000 square-foot facility on 55.35 acres in the Effingham County Industrial Park located in Rincon. This will be its first U.S. based manufacturing plant. Although EFACEC is primarily an energy company, 46 percent of its sales come from energy products and solutions. The Company has many more areas of competency which include energy solutions to specific industries and buildings, transportation, environmental, telecommunications, maintenance services and logistics.  EDGE Award: $2,950,000 / Total Project Cost: $68,384,097  283 new jobs in two years

Development Authority of LaGrange / Sejong Georgia, LLC EDGE grant funds will be used to assist with the location of an auto supply manufacturing facility for Sejong Georgia, LLC (SGL), a newly created company that will manufacture mufflers and exhaust systems for the KIA Motors Manufacturing Georgia facility currently under construction in West Point, Georgia. SGL plans to make improvements to the 108,000 square-foot facility formerly owned by Federal Mogul and located in close proximity to the KIA plant. SGL is a subsidiary of Sejong Industrial Co. Ltd. (SJC), a South Korean-based company that was founded in 1976. SJC has plants throughout the world including South Korea, China, Russia and several sites in Europe. The company also operates a facility in Fort Deposit, Alabama that manufactures the same products for Hyundai. The LaGrange, Georgia plant will be the Company’s third facility in the U.S. when it opens.  EDGE Award: $400,000 / Total Project Cost: $30,702,834  250 new jobs in two years

West Point Development Authority / Powertech America, Inc. EDGE grant funds will be used to assist with the location of an auto supply manufacturing facility for Powertech America, Inc. (PAI). PAI is a newly created company that will manufacture four, five and six speed automatic transmissions for the KIA Motors Manufacturing Georgia facility currently under construction in West Point, Georgia, as well as Hyundai Mobis. The Company plans to construct a 211,444 square-foot facility on 42 acres of the KIA pad. PAI is a subsidiary of Hyundai Powertech (HP), established in Korea in 2001, which has supplied transmissions to KIA for the last seven years. This will be HP’s first transmission operation in the U.S.  EDGE Award: $600,000 / Total Project Cost: $150,680,000  355 new jobs in two years The Equity Fund is designed to assist communities and regions in building the necessary infrastructure to support economic development. The program’s flexibility also provides financial assistance to enhance publicly-owned tourism initiatives, workforce development opportunities and downtown revitalization projects. In addition, loan funds are available through the Equity Revolving Loan Fund to assist small business owners with business growth and expansion opportunities. City of Dublin and County of Laurens Development Authority – Road Construction The Equity grant will be used for the construction of a truck entrance and a 3,900 foot industrial access road at their 255-acre Industrial Park along Interstate 16 in Laurens County. The rural city of Dublin and Laurens County are located in middle Georgia halfway between Atlanta and Savannah. Laurens County is a hub for an 11-county area that relies on it for employment, educational, medical, recreational, cultural and shopping opportunities. The industrial park has all utilities in place; however, the current access road is insufficient to show the entire site to potential prospects. The proposed road, which will allow access and usage to the entire site, has been fully engineered to industrial standards, and can be constructed immediately upon bidding the project. Applicant has ownership of the land and has designed the site for maximum benefit to the community and region. The site will be vital for returning jobs lost in Middle Georgia, and the access road will aide in the recruitment of new companies to the region.  Equity Grant Award: $488,547 / Total Project Cost: $3,569,473

Worth County Economic Development Authority – Land Acquisition The Equity grant will be used to assist with the acquisition of 205 acres of land adjoining Worth County South Industrial Park in Sylvester to expand the Park. Worth County (WC) is located in SW Georgia and bordered by 7 counties with 62% of its workforce commuting to another county to work each day. Current unemployment rate is 8% and expected to rise due to the recent devastating news that Cooper Tire will close its Albany facility, resulting in the loss of 2,100 jobs. This will have an adverse impact on WC who has 180 residents employed by Cooper Tire. WC’s two industrial parks are at capacity and a lack of suitable industrial sites has been recognized by the EDA as a limiting factor to its economic development. Availability of sites located on a 4-lane (US Hwy 82) in close proximity to interstate routes (85, 75, and 95) and with utilities available is a tool that will enable the EDA to market the county more effectively. The selected site also has rail abutting its south border. Having regional significance, commissioners in Lee, Colquitt and Mitchell Counties have endorsed this application.  Equity Grant Award: $500,000 / Total Project Cost: $2,045,900

Madison County Industrial Development and Building Authority– Sewer The Equity grant will be used to assist with sewer infrastructure improvements along Highway 29, south of Danielsville and north of Athens-Clarke County, to encourage growth and job opportunity for Madison and surrounding counties. The Highway 29 corridor has high commuter traffic each day as over 70% of its population commutes out of the county to work. The proposed improvements would open up the area for future commercial development. Many of the goods and services that are purchased out of the county can then be purchased inside the county. It will also allow for the expansion of already existing businesses in the area. The proposed infrastructure will immediately support the expansion of Ingles, Inc., whose current 60,000 square foot facility on Hwy 29 uses a septic tank system can no longer handle its wastewater needs. The proposed improvements will include a new Wastewater Treatment Facility with 100,000 GPD capacity, a pre-treatment plant, a pump station and 8” force main, to serve a new 80,000 square foot Ingles grocery store facility. The new Ingles’ facility will create 27 full-time jobs. Ingles is contributing $335,000 for the wastewater improvements.  Equity Grant Award: $500,000 / Total Project Cost: $ 3,314,500

The AIRGeorgia Fund is intended to accelerate the completion of critical airport infrastructure improvements. Today’s AIRGeorgia award of $433,922 is leveraged against more than $2.5 million in total project costs. Telfair-Wheeler Airport Authority – Level I Airport – Runway Extension AIRGeorgia grant funds will be used to assist with improvements to Telfair-Wheeler Airport to extend the 4,030 ft runway to 5,001 ft (received ARRA/stimulus funds for this activity) and relocate an electric power transmission line (AIRGeorgia). Both Telfair and Wheeler counties connect to Georgia Ports via highway and rail but airport upgrades are needed to compete in today’s highly competitive economic environment. The existing runway is inadequate and needs extending to serve corporate and twin engine aircraft. US Highways 341, 441, 280 converging in McRae provide economic potential to attract industry and tourists to the area. The counties house a state park, hunting reserves, wildlife management areas, an equestrian facility and motocross park as well as a world-class golf course. Husquavarna, Telfair’s largest employer with 1,400 employees, expressed a need for the airport expansion as has the Corrections Corp of America (CCA) who transports inmates to and from their Wheeler and Telfair facilities.  AIRGeorgia Grant Award: $433,922 / Total Project Cost: $2,515,932

Governor Perdue and the board recognized the most recent recipient of technology grants from the BRIDGE (Broadband Rural Initiative to Develop Georgia’s Economy) Fund. The award recipient is: Burke County (as lead applicant for Jefferson, Jenkins, Richmond and Washington Counties) BRIDGE grant funds will be used to assist with the cost to develop a feasibility/business case conducted by Key Bridges that will help the five-county area (Burke, Jefferson, Jenkins, Richmond and Washington) determine their local needs and opportunities for Broadband service. Specifically, Key Bridges will work with local stakeholders to articulate a vision, conduct a needs assessment, provide application identification/suggested solutions, determine a business case-driven total cost of ownership and produce a deployment and sustainability plan. If successful, a wireless Broadband network will allow businesses within the economically-distressed five-county region to better compete in the global marketplace. TPC is $50K with a Local commitment of $10K divided among the prospective counties.  BRIDGE Grant Award: $40,000 /Total Project Cost: $50,000

The board reviewed the latest ESB Loan Fund Guarantee recipients. The Entrepreneur-Small Business Loan Guarantee Program was created over two years ago to support the growth of entrepreneurs and small businesses in less developed areas. The ESB Loan Guarantee Program is the Authority’s first public-private partnership, providing a shared risk with Georgia lending institutions for loans ranging from $35,000 to $250,000. Ghanchi & Dabhi Company, Inc., Turner County/PlantersFirst (Cordele) Ghanchi and Dabhi company, Inc. dba/Rebecca Food Mart is a convenience store located in Rebecca, Georgia. The business has been open for several years and is located in downtown Rebecca, a rural City with a population of 246 located in Turner County. Rebecca Food Mart’s products include groceries items, gas, money orders and lottery sales. Currently there is no other competition in this local market. The loan proceeds will be used to purchase the land and commercial building.  ESB Loan Guarantee Amount: $65,000

Jolie Day Spa, LLC, Dawson County/First Citizens Bank of Georgia (Dawsonville) Jolie Day Spa is a new upscale day spa located in Dawson County that offers a variety of relaxing and accommodating services. Services include various massages, facials, waxing and specialty manicures and pedicures. An exclusive line of retail spa and beauty products is also available. As the number of Atlanta immigrants grows, owners Nicole and Chad Wimpy realized a need for an upscale spa in the North Georgia Mountains. The Wimpy’s will partner with and be located near an already established and successful salon in Dawsonville, J. Thomas Salon. These two entities perfectly compliment one another offering services every client receives in one convenient location. The loan proceeds will be used for build out of space and start up expenses. The spa plans to employ at least 6 professional, licensed therapists, a spa coordinator and financial manager.  ESB Loan Guarantee Amount: $20,225

Diaco, LLC, Elbert County/Pinnacle Bank (Elberton) Diaco Innovations, Inc. dba/DIACO, LLC is an existing industrial sales company located in Elberton, GA. DIACO, LLC specializes in diamond tools and machinery for the granite countertop industry, construction industry, and stone industry. Services include the sales and installation of granite countertop fabrication tools, large CNC machinery for the granite and stone industry, and complete line of construction and concrete cutting and drilling equipment. They also carry a complete line of Parts & Accessories for all the tools and machinery sold. The loan proceeds will be used to purchase several pieces of new equipment.  ESB Loan Guarantee Amount: $29,300  The board received a final report from Ken Stewart, Commissioner of the Georgia Department of Economic Development, on the department’s community-based Entrepreneur Friendly program. To-date, 129 communities have earned this designation. Once a community had earned the Entrepreneur Friendly designation, it had the opportunity to apply for a OneGeorgia-funded entrepreneur and small business implementation grant of up to $25,000. At today’s meeting, grants from the Entrepreneur Friendly Implementation Fund (EFIF) were awarded to: Banks County $5,000; Bleckley County $5,000; Carroll County $6,500; Henry County $5,900; Irwin County $24,970; Laurens County $2,500; Lowndes County $25,000; Miller County $5,000; Oconee County $4,250, Putnam County $5,000, Screven County $5,000, Thomas County $5,000, Upson County $25,000, Washington County $5,000, Wayne County $6,500 and White County $5,000. Governor Perdue and the board also approved two research grants provided under the Centers of Innovation program. The Centers of Innovation program, funded by the OneGeorgia Authority, accelerates growth in Georgia’s Strategic Industries by integrating industry expertise, R&D innovation & state resources. Research grants are available to fuel applied research and development to assist companies in bringing new products and services on-line with the ultimate goal of diversifying rural Georgia’s economy through new jobs and capital investment. Recipient: Middle Georgia College – Industry partner: Aerotonomy, Inc. – $20,000 Innovation Center – Aerospace Project Description: “Extreme” Short Take-Off and Landing Unmanned Aerial System Prototype Build full-scale UAS test vehicle to Aerotonomy’s specifications for NASA using proprietary “Extreme” Short Take-Off and Landing (ESTOL) Unmanned Aerial Vehicle propulsion concept. With success, the company will continue to manufacture prototypes in Eastman, iterate designs with NASA, US Government and other international customers.

Recipient: Georgia Institute of Technology – Moto America, Inc. – $10,000 Innovation Center – Manufacturing Project Description: Gashopper, 3-Wheeled Ultra-Light Highly efficient Commuter Vehicle To develop the first high-fuel mileage and/or electric easily affordable commuter vehicle for mainstream consumers. The OneGeorgia Authority was created utilizing one-third of the state’s tobacco settlement to assist the state’s most economically challenged areas. The OneGeorgia Authority is expected to receive about $1.6 billion over the 25-year term of the settlement. ###