Governor Perdue Announces OneGeorgia Equity Awards

Atlanta, GA - Governor Sonny Perdue today announced approximately $5.3 million in grant and loan awards from the OneGeorgia Authority (Authority) to 14 of Georgia’s most economically distressed communities to create jobs and implement economic development projects. Governor Perdue, who chairs the Authority, pointed to the diversity of the projects awarded today as a continued trademark of the flexibility of the Equity Program.

“From traditional infrastructure and speculative facilities to supporting business growth and expansion to nature-based tourism initiatives, this program is responding to the economic diversity of rural Georgia. I am especially proud that two of the awards made today will support our farmers and facilitate value-added processing in rural Georgia. Supporting the growth of our homegrown businesses and industries is an important component of the OneGeorgia Authority,” said Governor Perdue.

The regularly scheduled Authority board meeting was held today at the Thomson/McDuffie campus of Augusta Technical College located in Thomson. The Authority was created utilizing one-third of the state’s tobacco settlement to assist the state’s most economically challenged areas. The Authority will receive about $1.6 billion over the 25-year term of the settlement.

The equity awards, round two of FY2003 funding, are designed to assist communities and regions build the necessary infrastructure to support economic development. Project awards are given through three competitive rounds annually and are capped at $500,000. Tier 1 and 2 communities and in some cases, Tier 3 communities, are eligible for Authority assistance. The next equity application deadline is June 3, 2003.
Equity award recipients include nine grants totaling $3,055,832 and five loans totaling $2,233,952. Awards announced today included:

Development Authority of Warren County - $500,000 loan to refurbish machinery to operational standards to support the re-opening of Wheland Foundry in the only county with a double-digit unemployment rate currently above 12%. The company anticipates hiring 95 employees within 12 months and 225 employees within four years. Livingston Company, a merchant-banking firm, will serve as the principal developer and majority owner of the Gray iron foundry. The plant will produce automotive parts including brake drums and rotors.

Development Authority of Seminole County and Donaldsonville - $500,000 loan to assist in the development of a regional peanut shelling facility to be constructed in Donaldsonville. American Peanut Farmers is a 65-member group of growers in five Southwest Georgia counties who propose to process 60,000 tons of peanuts annually, creating 70 full-time equivalent jobs and additional indirect jobs while also providing an opportunity to expand the farm dollars generated and retained within Georgia through value-added processes.

Albany-Doughtery Inner City Authority - $500,000 loan to assist with site improvements in the development of the 120 room Hilton Garden Inn Hotel and adjoining 20,000 SF Conference Center along the Flint River in downtown Albany. This project is located near the community’s existing 10,000 seat civic center and is seen as a key component of Albany’s Downtown Riverfront Revitalization Master Plan adopted in 1998. The applicant expects more than 100 jobs to be created as a result of this project.

City of Folkston - Resubmission: $496,900 grant to assist with the construction of Discovery Hall at the Okefenokee Education and Research Center. Discovery Hall will include a hands-on interactive display area, a 300-seat auditorium, classrooms, and a laboratory to further enhance existing tourism and eco-system educational opportunities provided by the Okefenokee Swamp. The project anticipates the creation of 26 new jobs to support this unique nature-based tourism initiative.

Wilcox County Board of Commissioners - $419,165 grant to assist with infrastructure including a rail crossing, street and drainage improvements to the 93-acre Wilcox Industrial Park located in Rochelle on Hwy 280 and strategically located less than 15 miles from I-75. The applicant demonstrated strong local commitment by collaborating with Georgia Tech and Georgia Power for preliminary engineering work in the site selection process and subsequent purchase of the property for further development.

City of Tifton - $500,000 grant to assist with infrastructure improvements to serve the new 83,000 SF conference center located at the Rural Development Center as well as the development of an adjacent 40-acre industrial park targeted to agriculture incubator start-ups from nearby NESPAL (National Environmentally Sound Production Agriculture Laboratory).

Fall Line Regional Development Authority - $150,000 grant to assist with the cost of an engineering feasibility study for the development of a 1,000-acre+ regional industrial park at the future intersection of Highway 441 and the Fall Line Freeway. The applicant’s strategy, taking advantage of a major, proposed highway in rural Georgia, is an excellent example of collaboration and a regional vision for the future.

Development Authority of Bainbridge and Decatur County - $449,017 grant to support the extension of a rail spur into the 700-acre Commodore Decatur Industrial Park, providing stability for an existing industry. Providing rail access will enhance the marketing strategy for the undeveloped tracts of the park as well as in the retention of 14 jobs and the creation of three new jobs at Georgia Gulf Sulphur also located in the industrial park.

Douglas-Coffee County Industrial Authority - $500,000 loan to assist with the construction of a 100,000 SF strategic growth facility in the Perimeter West Industrial Park located just off Hwy 206 in Douglas. The applicant, having lost two major employers within the last year, indicates a strong marketing strategy including the creation of a local economic development council, a color brochure to further market the facility, along with marketing the facility through GDITT and other state agencies.

Development Authority of Early County - $233,952 loan to assist in the renovation of a 61,000 SF existing industrial speculative facility located in the 187-acre Early County Industrial Park. The facility will be leased to Peanut Corporation of America for a peanut butter and peanut processing and manufacturing facility. The company proposes to invest $1.5 million in the facility and create 45 new jobs.

Joint Development Authority of Franklin, Hart and Stephens Counties - $25,000 grant to support a professional market segmentation and consumer analysis study as this tri-county authority establishes a goal of branding the Lake Hartwell region as the “Great Lake of the South”. The study will be conducted by a unit of the Economic Development Institute at GA Tech, known as the Tourism and Regional Assistance Center. The tri-county authority intends to build on the natural beauty of the lake, interstate access, strong heritage and history, while also balancing the preservation and protection of its natural and historic resources.

Joint Development Authority of Baker, Dougherty, Lee and Terrell County - $15,750 grant to assist with the cost of a feasibility study to determine the economic impact of promoting nature-based tourism within the four-county area. The JDA’s strategy includes marketing the region’s hunting plantations and other natural settings in the four-county area. The study will be conducted by the Tourism and Regional Assistance Center at GA Tech.

Jeff Davis County Board of Commissioners - $500,000 grant to assist with establishing a culinary arts training center in an historic antebellum house built around 1900, known as the “Big House”. Funds would be used to renovate and adapt the building to develop a culinary school, partnering with Altamaha Technical College for recruitment, training and placement of students. This project builds on the success and collaboration of Second Harvest of Coastal Georgia and Savannah Technical College in Savannah, targeting individuals with little or no job skills to cook delicious meals while learning the internal operations of the food and hospitality industry. Data from the Savannah project indicated that 65% of those graduating continued to be employed at the end of six months in the food industry. The project is innovative and provides an opportunity to diversify the economy of an area with a 9.3 unemployment rate - among the highest in the state.

City of Baxley - $500,000 grant to assist with the expansion of the Wastewater Treatment Facility for the Appling County Industrial Park West located in Baxley and the continued development of the Tri-County Industrial Park (Appling, Bacon & Jeff Davis) located on US Hwy 341. Expansion of the wastewater treatment facility is necessary to support the anticipated capacity needs of both industrial parks in a region with above average unemployment rates.

The Authority board also recognized EDGE awards today made since the last board meeting. The EDGE (Economic Development, Growth & Enterprise) fund is designed to provide financial assistance to eligible applicants that are being considered as a relocation or expansion site and are competing with another state for the location of the project. The nine EDGE projects totaling $8,540,000 leveraged against total project costs of $179,612,192 that have been awarded since the December 2002 board meeting include:

Jefferson County Development Authority - $500,000 grant to assist with securing land for a 50,000 square foot expansion to the existing facility of Glit/Microtron Corporation in Wrens, Georgia. Glit/Microtron, owned by Katy Industries headquartered in Middlebury, Connecticut, manufactures non-woven floor maintenance tools and maintenance scouring pads at the Wrens facility. This expansion will consolidate three facilities into one location, allowing the company to operate more efficiently by combining its manufacturing and logistics operations. The company expects to create a minimum of 77 new jobs and support the retention of 200 existing jobs.

Carrollton Payroll Development Authority - $2,000,000 grant to assist with site preparation, water main extension, sanitary sewer main extension, access roadway extension and other costs to serve the new 300,000 square foot manufacturing facility to be built by Decoma International. Decoma International is a Canadian-based company headquartered in Concord, Ontario and is the manufacturing arm for exterior vehicle appearance systems for the world’s automotive industry with facilities located in the United States, Canada, Mexico, Europe and Japan. Products include automotive exterior components and systems, such as fascia (bumpers), front and rear end modules, plastic body panels, roof modules, exterior trim components and lighting components for cars and light trucks. The company will produce facies for a broad range of automobile manufacturers. The initial product line will benefit Mercedes Benz. The project will initially create 302 jobs over the next two years at the Plowshare Road industrial site in Carrollton, Georgia.

Toombs County Development Authority - $340,000 grant to assist with street improvements and telecommunications infrastructure to assist with The Trane Company expansion in Vidalia. The Trane Company is a division of American Standard Companies (ASD) based in New Jersey. The Vidalia facility has been manufacturing air handlers for air conditioning systems since 1990 and employs 529 in Toombs County. This expansion will allow the company to manufacture electric heat assist units, which will be installed in air handlers for air conditioning systems. The application indicates the company’s primary goal is to be the most responsive, cost efficient, quality producer in the industry. The expansion is projected to create 67 new jobs in 3 years and up to 100 in 10 years.

Okefenokee Area Development Authority - $1,200,000 grant to assist with the construction of a 75,000 square foot van conversion manufacturing facility for Sherrod Vans in the Waycross-Ware County Industrial Park. Sherrod Vans is a privately held conversion van manufacturing company located in Jacksonville, Florida that has been in business for the past 20 years. The company converts van, truck and SUV chassis into option and luxury packages for the Big Three automakers. At the facility in Waycross, Sherrod Vans will purchase automobiles from the Big Three automakers, install luxury options packages and sell them back to the dealers. Sherrod Vans anticipates employing 150 people within three years.

Albany Dougherty Payroll Development Authority - $1,000,000 grant to assist with the construction of a 75,000 square foot manufacturing facility for American Signature Bedding Company located in the Pecan Industrial Park in Albany. American Signature Bedding is a wholly owned subsidiary of Schottenstein Stores Corporation based in Columbus, Ohio. The company operates a diverse line of businesses including Value City Department Stores, Filene’s Basement Stores and Discount Shoe Warehouse Stores. American Signature Bedding will manufacture mattresses and box springs to be sold in company-owned Value City Furniture Stores located in the Southeast. Operations are scheduled for start-up in December 2003. American Signature Bedding anticipates employing a minimum of 100 people within two years

City of Milan - $150,000 grant to assist in the construction of a railroad spur on U.S. Highway 280 between Abbeville and McRae, enabling the City of Milan to recruit and retain Dash-Multi Corporation. Dash-Multi Corporation, a privately held holding company based in Maryland Heights, Missouri, operates a variety of company’s producing chemicals, knitted textiles, plastics, recycled rubber and flooring products. At the Milan facility, Dash-Multi Corporation will process crumb rubber from scrap tires to produce a variety of rubber products such as friction mats, general flooring and roofing applications. Dash-Multi Corporation anticipates employing 15 people at startup with plans to increase as sales permit.

Clinch County Development Authority - $350,000 to assist in the purchase of land, site preparation and the construction of a distribution center in Homerville for Sunny Ridge Farms, Inc. Sunny Ridge Farms, Inc., a subsidiary of Haines Electric Corporation based in Winter Haven, Florida, grows, purchases, packages and distributes blueberries, raspberries, and blackberries. The Clinch County distribution center will contract with blueberry growers in the region to package and distribute blueberries grown locally, eliminating the need for the growers to transport their products to Florida. The company anticipates the creation of 50 new jobs at the distribution center. Sunny Ridge Farms also owns packaging and distribution centers in Baxley, Georgia; Orlando, Florida; British Columbia and Los Reyes, Mexico.

Development Authority of Peach County - $2,500,000 to assist the company in a proposed expansion for the Blue Bird Body Company in Fort Valley, Georgia. Blue Bird is a wholly owned subsidiary of the Henlys Group in England. Henlys is the leading school bus and commercial transit manufacturer in North America. Blue Bird also manufactures luxury motor coaches under the name Wanderlodge. The company will expand its commercial-bus and motor home manufacturing facilities in Peach County while also manufacturing school bus chassis’ for the Lafayette, Georgia plant. This expansion supports the retention of 1590 full-time jobs in Tier 1 Peach County .

Downtown Waycross Development Authority - $500,000 to assist in the renovation of the Phoenix Hotel in downtown Waycross to be used as the corporate headquarters of an existing Ware County company located in Waycross. The hotel contains a total of 60,651 square feet, with a net area to be renovated at 55,053 square feet of which the Company will lease 37,850 square feet. The remaining square footage will be divided for retail and commercial development and community space. The Company currently employs 80 people in its existing headquarters and expects to add 14 new positions.

Since its creation in 2000, the Authority has served as a catalyst for rural economic development by pumping more than $121 million of the state’s tobacco settlement dollars into economic development projects or as direct financial assistance to Georgia farmers.

The program has made143 awards totaling nearly $72 million in its first three years of operation to cities, counties and development authorities. These awards are leveraged against total project costs of more than $735 million and have positively impacted 87 of Georgia’s most economically depressed counties. Significant, long-term returns are expected on the state’s investment through the creation and/or retention of more than 12,000 direct jobs associated with these projects. A number of these projects will also stimulate indirect job creation through supplier contracts and other enhanced strategic initiatives including tourism, workforce training/development and value-added processing.

In addition, the Authority has provided nearly $50 million for direct investment into Georgia’s agricultural community. These payments include $39 million to the Georgia Tobacco Community Development Board and distributed directly to Georgia farmers to help compensate for the drop in demand for tobacco and also $10 million to farmers located in the Flint River Drought Protection Area.

For additional information, please visit https://www.onegeorgia.org.