More than $16-million in grant money is headed for boosting economic development around the state.
The money comes from the OneGeorgia Authority, which uses tobacco settlement money to help rural counties and towns attract new companies. The money also helps expand existing business and boost public infrastructure.
Of the several counties getting money, four are for economic projects connected to the new KIA plant—about $7-million combined.
The Governor’s office says the grant money awarded to all projects statewide will lead to the creation of more than 2,000 jobs combined over three years.
Georgia Governor Sonny Perdue announced today that women’s fashion retailer Chico’s FAS, Inc. (NYSE:CHS) plans to expand its distribution center facilities in Barrow County with an initial investment of $15 million, which is expected to create 189 full-time jobs over the next three years.
“Georgia’s strong business assets continue to make it a compelling location for distribution centers,” said Governor Perdue. “Our state’s unmatched transportation network, business-friendly environment and ready pool of qualified workers translate to success.”
In order to expand its facilities in Winder, Chico’s purchased the former Hagemeyer Building on Barrow Industrial Parkway. The 300,000-square-foot building, which is close to the current Chico’s distribution center, will house an additional distribution facility. When the expansion is completed by year-end, there will be more than 450 full-time Chico’s employees in Barrow County. Employment opportunities at Chico’s Winder Distribution Center will be posted on their website, www.chicos.com .
Chico’s located a distribution center in Barrow County in 2002 and expanded that facility in 2004 and 2006. In 2006 the company also opened an adjacent call center to service its direct-to-consumer business for its Chico’s, White House | Black Market and Soma Intimates brands.
“We are fortunate in having the opportunity to purchase this nearby facility that will enable us to expand our current distribution operations, providing sufficient capacity to serve our needs through 2016,” said Jeffrey A. Jones, Executive Vice President and Chief Operating Officer of Chico’s FAS.
“We welcome Chico’s third major expansion of its facilities in Barrow County since 2002,” said Linda Moore, VP of the Barrow Economic Development Council. “Chico’s is an excellent corporate citizen and I know our residents are grateful in these economic times for the increase in jobs and investment.”
Susie Haggard, project manager with the Georgia Department of Economic Development, assisted the company in its location.
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About the company
Chico’s FAS Inc. is a women's specialty retailer of private branded, sophisticated, casual-to-dressy clothing, intimates, complementary accessories, and other non-clothing gift items. The Company operates specialty stores in 48 states, the District of Columbia, the U.S. Virgin Islands and Puerto Rico. The company’s brands include Chico’s, White House | Black Market and Soma Intimates, which together operate more than 1,000 stores in addition to catalog and e-ecommerce operations.
A new state law heavy with tax breaks helped lure technology equipment-maker NCR to Georgia.
NCR, the company that makes equipment including ATM’s and cash registers, is relocating its headquarters from Ohio to metro Atlanta. With it come 1,250 jobs to Duluth, along with another 870 to Columbus for a new production plant.
The deal was sealed with a more than $60-million incentive package--most of which used the so-called Mega Tax Credit bill signed by Governor Perdue last month. Georgia’s offer doubled that on the table from Dayton-Ohio officials.
Sam Williams, president of the Metro Atlanta Chamber of Commerce, says yes--the state’s investment outlay is large, but two lawmakers who sponsored the bill ensure its viability:
"Senator Ron Stephens and Representative Larry O’Neal scrutinized the numbers from a payback point-of-view to make sure that this was more than justified even in an economic downturn."
The process to lobby NCR reportedly began in February, around the time the legislation was introduced to state House lawmakers.
Officials with the Department of Economic Development say NCR is eligible for up to $56.9 million over five years. But that amount will be offset by a net gain of $49 million from items like income and sales taxes, to be felt over 10 years. Officials say added value to the deal for NCR includes global access through the airport, consistent population and workforce growth, and access to multiple university resources.
ATLANTA—Georgia Governor Sonny Perdue announced today that Chicken of the Sea International plans to return tuna canning to the United States and open a domestic canning operation in Lyons. The company will create 200 jobs and invest $20 million.
“We are proud that Georgia will be home to Chicken of the Sea’s first domestic canning operation,” said Governor Perdue. “Our state’s strong workforce and extensive transportation network make it a natural choice for food processing plants that want to keep costs down and reach their markets quickly and efficiently.”
Chicken of the Sea is bringing canning operations to a 200,000-square-foot facility in Lyons, where workers will process frozen tuna loins into shelf stable Chicken of The Sea canned tuna to be shipped throughout the United States. The company expects to begin operations in October and will utilize Georgia Quick Start to train its employees.
“State and local officials in Lyons presented us with a tremendous opportunity that ensures our ability to compete in the marketplace for the long term,” said Shue Wing Chan, President of Chicken of the Sea International. “The state of Georgia provided a business development package that makes for a smooth transition. We expect this new canning operation will ensure Chicken of the Sea will remain viable and competitive, and we are looking forward to being part of the Lyons community.”
“We are extremely excited that Chicken of the Sea realizes the great potential of opening a major facility in Toombs County and has decided to join our family of respected companies,” said Sam Polk, Chairman of the Toombs County Development Authority. “The decision reflects on Toombs County’s efforts to improve economic opportunities in our region. The jobs and investment will greatly assist in our efforts to strengthen the industrial base. On behalf of the Toombs County Development Authority, I thank Chicken of the Sea for the positive contribution to our citizens.”
Chris Pumphrey, project manager for the Georgia Department of Economic Development, assisted the company in locating a site for its operation.
About the company
A seafood category leader, Chicken of the Sea provides a variety of shelf-stable seafood products, including tuna, salmon, crab, shrimp, oysters, clams, mackerel and sardines. The Chicken of the Sea brand and famous Mermaid icon are among the most recognized brands in America. For more information, visit www.chickenofthesea.com
Just in from the Governor's Press Office: Gov. Sonny Perdue has been named Bio Governor of the year. That award come's from the Biotechnology Industry Organization, or, cleverly enough, BIO.
The group hailed Perdue's efforts to grow bio-sciences in Georgia. Perdue is probably best known for his push to limit liability lawsuits against Georgia-based bio companies. The group, however, also noted other efforts in a statement. Here's a sample:
“Governor Perdue’s support of biotechnology has been vital for our industry’s success in Georgia” said Jim Greenwood, President and CEO of BIO. “He has been a stalwart advocate of the biosciences in Georgia and truly understands the promise of our industry to provide revolutionary therapies and cures for patients, increase agricultural sustainability and develop alternative fuels. In addition, I would like to personally thank the Governor and his team at the Department of Economic Development for being such great partners in helping to plan and organize the upcoming 2009 BIO International Convention.”
Governor Sonny Perdue announced today that Savannah will be the filming location for the upcoming Disney film, The Last Song. The movie is expected to bring approximately 250 jobs to the state.
“I signed the 2008 Entertainment Industry Investment Act in support of our efforts to recruit film, music and digital entertainment projects to Georgia,” said Governor Perdue. “These industries are thriving and growing, boosting the state’s economy and employing thousands of Georgians.”
The script was written by noted author Nicholas Sparks. The production of the film will take place in Savannah and other nearby coastal locales. Julie Anne Robinson will direct The Last Song which is expected to start production in Georgia in mid-June and be completed by mid-August, 2009. Producer Dara Weintraub also produced another film in Savannah called The Clearing, which starred Robert Redford, Willem Dafoe and Helen Mirren.
Georgia’s new, more competitive incentives offer a 20 percent tax credit for qualified productions, which are then eligible for an additional 10 percent tax credit if they include an animated Georgia promotional logo within the finished product. The incentive covers more than just the film and television industries. The program also offers credits for commercials and music videos, as well as the first incentive in the nation to cover other areas of development including animation, interactive entertainment and video game development.
Nine feature films, two television series and one television pilot were produced in Georgia in the first quarter of 2009. A Sony Pictures produced television series began production in Georgia in April and three feature films are currently in production. Seven more feature films are slated for the state in the coming months.
The Film, Music and Digital Entertainment office, a division of the Georgia Department of Economic Development, assists local, national and international entertainment industries with expertise and resources. The staff points movie production companies to Georgia’s highly-trained crews, state-of-the-art facilities, and diverse locations. Georgia’s temperate climate and easy access afforded by Atlanta’s Hartsfield-Jackson International Airport, are also factors that attract the industry’s interest.
Since the inception of the office in 1973, more than 600 major motion pictures, independent films, television series and pilots, and TV movies have filmed on location in the state. As a result, over $5 billion dollars has been generated for the state’s economy.
Georgia is moving towards becoming the first state in the country to mandate English-only tests for driver's licenses. And members of the business community are worried that the proposal could cost the state money in commerce.
The plan would require English only tests for permanent driver's licenses. Right now, the state offers individual driver's license tests in 12 languages other than English. But Republican Senator Jack Murphy is concerned that people who can't read the signs written in English are driving in harm's way. He says that's all Senate Bill 67 aims to fix.
"It is purely a safety issue. It has not a anti-immigrant bill and I take exception to the people that're saying that."
One of the people criticizing the bill is Peter Isbister, who's with the Mexican American Legal Defense and Educational Fund. He says the bill could have a chilling effect on economic development in Georgia, tempting businesses to look elsewhere for expansion. Issbisster points to the city of Nashville, Tennessee, where a similar proposal was rejected.
"When we see foreign investors comparing and evaluating where they want to where to go, where they want to invest, I think the message that Nashville is sending is a much more attractive one than Georgia will be sending with this bill."
That's why Issbister and other opponents of the bill wore stickers that read "SB67 equals Kia, Go Home."
Korean auto-maker Kia Motors plans to open a 2,200-acre manufacturing plant in West Point later this year.
Helen Kim is with the Korean American Coalition in Atlanta. She says the bill is sending the wrong message to:
"...hard-working families and individuals that live here - Korean and other immigrant citizens and residents, but especially to these international companies like Kia and Sandy Corporation that have been courted actively by the state to come here, bring jobs, invest money."
Right now, about 5,000 people per month request testing in a language other than English, according to the Georgia Department of Driver Services. If the bill does become law, temporary driving permits could still be given in another language.
State House lawmakers passed the Bridge Act on Monday. The bill requires high schools to offer college and career program tracks to students.
The bill requires students in the ninth grade to have an individual graduation plan. Supporters say curb the number high school dropouts by letting students decide which focus of study fits them best.
The bill's sponsor, Republican Fran Millar from Dunwoody, says right now, two out of every three high school students fail to graduate. And that, he says, shapes Georgia's image.
"The biggest problem we have in this state for economic development is not transportation, it's not water. It's the fact that our work force is perceived as uneducated. And until we can prove to people we have an educated workforce, we'll continue to have two Georgias."
Millar says no matter which path is chosen, each student would receive the same rigorous diploma.
The bill garnered near-unanimous support in the House and now moves on to the Senate.
A group of business leaders is pressuring the General Assembly to improve Georgia' trauma care system. They say it's not just a health issue, it's also about economic development. Members include Senator Don Balfour and Medical College of Georgia President Dr. Daniel Rahn. The group says Georgia will have trouble attracting business if we can't guarantee their employees will have access to emergency care. The group plans to work with lawmakers over the next several weeks. Experts studying the issue estimate that $80 million is needed each year to adequately fund a statewide network.
State approval has been given for a natural gas pipeline to fuel the Kia Motors plant under construction in west Georgia. The 12.5 mile line will connect to an existing line already feeding LaGrange.
Under terms of Publis Service Commission approval, the city of LaGrange must provide construction and economic data within 30 days. An operations safety plan is also required for Coweta County.
The KIA plant in West Point is scheduled to open at the end of this year--capable of building 300,000 vehicles at full capacity.
In a statement, PSC Chairman Doug Everett says the new pipeline will promote west Georgia’s economic development.
Two digital imaging companies have announced plans to bring several hundred jobs to Georgia over the next few years.
YesVideo is hiring 300 people for a regional plant set to open in Norcross in Gwinnett County next month.
The Santa Clara, California-based firm converts home movies and videos to DVDs and other digital formats.
Steven Bush is the city's economic development manager. He says the jobs are quality positions:
"They are going to be a lot of tech jobs; a lot of jobs that require some training.”
Bush says salaries will be in the mid-40's. He also notes that the conversion service is available at 30,000 retail locations, including Walgreens, CVS and Costco.
The firm is the second high-tech company to open its doors in Norcross recently: Solar powercell maker Suneva opened a $75 million dollar plant in Norcross late last year.
Meanwhile, in west Georgia, Kodak is adding on a third production line at their Columbus plant.
A Kodak spokesperson says they'll add another 50 spots to the current 250 jobs over the next three years.
The plant makes digital printing plates for the packaging and printing industry.
In Georgia Public Broadcasting Radio’s occasional “MoneyCrunch” series, which airs on Georgia Gazette news magazine weekday evenings at 6 P.M., we explore the effects of proposed budget cuts on communities and constituents around the state. Duck pond in front of the Georgia Visitor Information Center at Plains. (Photo: Dave Bender)
Last week, an obscure state law saved a state welcome center in Plains from the chopping block, to help cover a $2.2 billion shortfall in the 2010 budget.
Entrance to visitor center. (Photo: Dave Bender)
But, on Monday, officials at the Georgia Department of Economic Development said The Georgia Visitor Information Center will remain open, despite a pending recommendation to slash its $186,000 budget.
Democratic State Sen. George Hooks at the Capitol. (Photo: Dave Bender)
Americus state Senator, George Hooks cites a 1977 statute that says Georgia, by law, must have a visitor center in any town whose resident becomes a president:
“'...and it shall be,' - not 'may be,' but 'shall be,' - maintained and supplied with materials," Hooks told legislators.
Those materials feature the state’s charms in hundreds of glossy tourism magazines, colorful photos and souvenirs.
A visitor’s center at Sylvania was also facing closure. The two centers are among eleven similar facilities around the state.
The GDEcD’s Alison Tyrer, however, says her office would like to keep both the Sylvania and Plains centers open:
”We are looking at all possible options for both centers. However, it’s very early in the legislative process so we would prefer not to speculate on what those options might be at this time,” Tyrer said in a written comment on the issue.
The Plains center is a replica of a rustic wooden farmhouse, surrounded by fields and piney woods. A pastoral two-lane road out front links the town to nearby Americus. The road, and the parking lot of the 31-year-old building are both empty on this Monday afternoon.
Map, pins and and "Post-its" left by guests who have visited the site. Penny Smith, who manages the facility, is behind the desk. (Photo: Dave Bender)
Manager Penny Smith sits inside and waits for tourists:
“…you don’t get bored, because it’s God’s nature… and that’s why the visitors love it so much, because you’re in another world, and when you’re here you don’t think about the outside; what’s going on outside this area - it’s just peace and harmony and such a wonderful feeling…”
She's worked here for eight years, and says the visitor center is her whole world. Smith shared her patch of Georgia with 56,000 folks who stopped by last year:
"Our visitors are 'destination visitors;' they're not just stopping to go to the restroom or get a roadmap. They're here to spend time and money and see what there is to see in the state."
Sign of town's pride. (Photo: Dave Bender)
The biggest local attraction is former President Jimmy Carter, who lives in Plains with former First Lady Rosalynn.
While a National Park Service visitors center closer to Carter’s home focuses on the 39th president, Smith says her facility offers a lot more:
"When we have the visitors captured here, we use that time to tell them about other places in Americus, down the road; make motel, hotel reservations – just service the visitor overall. They don’t do that at the park service.”
Their money's part of more than thirty-four billion tourism dollars that Georgia raked in last year. Those dollars paid for almost 250,000 jobs – among them, Smith’s and two assistants.
Plains peanut processing facility and road sign on the way to the visitor center. (Photo: Dave Bender)
Plains Mayor Boze Godwin says the 700 residents of his struggling rural town – and the vicinity - need every tourist dollar that comes through the center:
“I think it’s important not only for Plains, but for the whole county because they do refer people to businesses here. In the past we had a tog shop here, and that closed – but they would send people to that to buy clothes – so they helped the whole area, not just Plains … and they do a great job.”
Hooks, Godwin and Smith hope that statute will be enough to keep the visitor center open to greet the next busload of tourists.
Click here for more GPB news coverage of the state budget.
Georgia economic development officials were left red-faced as a veteran state lawmaker said the department's plans to shutter a visitor center in former President Jimmy Carter's hometown of Plains violated state law.
The Georgia Department of Economic Development's budget plan eliminated $186,407 for the visitor center as part of agency budget cuts.
But at a budget hearing Thursday at the state Capitol, state Sen. George Hooks, a Democrat from Americus, said Georgia law dating from 1977 requires the state to "construct, operate and maintain a tourist center" near the home of any Georgian elected president.
Economic Development Commissioner Ken Stewart said he was not aware of the law and said "we will certainly go look at our options."
(AP)
Click here for more GPB coverage about budget cutting statewide.
Georgia's first cellulosic ethanol plant now has an 80-million-dollar boost. The U.S. Department of Agriculture has approved the loan to Range Fuels in Soperton in Treutlen County in south Georgia.
The money is authorized under the 2008 farm bill as part of the Biorefinery Assistance Program. The program provides loan guarantees to develop, construct and retrofit viable commercial-scale biorefineries producing advanced biofuels. The program is designed to create energy-related jobs and economic development in rural America.
The plant is expected to produce an estimated 63 jobs. When fully operational in 2010, the plant is expected to produce approximately 20 million gallons of cellulosic ethanol per year.
Georgia poultry farmers are waiting to see whether they will have any chickens to raise at the end of the year. Chicken producers are reeling from last summer's spike in corn prices - up to $7.50 a bushel. The University of Georgia Center for Agribusiness and Economic Development says record prices for diesel fuel aren't helping and consumers aren't eating out as much. As a result, many producers are cutting back.
The Houston-based Dynegy Corporation said on Friday it was walking away from the joint venture with New York's LS Power to construct a coal-fired power plant in southwest Georgia. Dynegy says they took the decision due to tight credit markets and economic uncertainty. However, LS Power, who’ll own 100-percent of the proposed $2 billion facility, say they're going ahead with the project, set along the ChattahoocheeRiver. Project Manager Mike Vogt:
"We're going to push forward with the development of this plant, and ultimately customers -- hopefully in Georgia -- will decide that it does have a place and will decide that it does have a place."
Vogt says his company is also appealing a court decision from late last year that halted the project over air pollution concerns:
"The briefings will be finished in January 2009, and the court of appeals will make their decision sometime before June of 2009."
Environmentalists say the facilities' smokestacks will emit unchecked amounts of carbon dioxide, sulfur, and coal dust. Supporters of the project say it’ll bring hundreds of jobs and millions of dollars in tax-revenue to EarlyCounty – one of the state's poorest. Click here for more GPB News coverage of the proposed Longleaf Power plant.
Georgia House members are considering loosening regulations for builders as a way of stimulating the economy.
With the housing market in the gutter, and unemployment rates following the nose dive of the construction industry, state lawmakers like Rome Republican Representative Katie Dempsey say looser building regulations could aid the economy. Dempsey says the key would be to make construction guidelines uniform throughout the state.
"Just one area in particular, buffers. Different counties sometimes create different amount of buffers. Even just your fencing and landscaping can be added on and can be cost prohibitive for development," Dempsey says.
Buffers are generally no-build areas designed to protect the environment and are often costly to developers.
Meanwhile, the national public is opposed to reduced economic regulations, according to recent polling. Last month an LA Times/Bloomberg poll showed half of all respondents blamed the economic fallout on lax governmental regulations throughout the economy.
Power producer Dynegy Inc. on Friday said it plans to dissolve a development joint venture with LS Power Associates LP, due to constrained credit markets and economic uncertainty.
Dynegy will record an undisclosed loss in 2009 related to the transaction while LS Power will receive about $19 million in cash during the first quarter to reflect the relative value of assets exchanged.
The two companies agreed to the dissolution and that Dynegy will acquire exclusive rights, ownership and developmental control of all repowering or expansion opportunities related to its existing portfolio of operation assets.
LS Power will acquire full ownership and developmental rights associated with various "greenfield" projects under consideration in Arkansas, Georgia, Iowa, Michigan and Nevada, as well as other power generation and transmission development projects not related to Dynegy's existing operating portfolio of assets.
"Today, the development of new generation is increasingly marked by barriers to entry including external credit and regulatory factors that make development much more uncertain," said Bruce Williamson, Dynegy's chief executive.
"In light of these market circumstances, Dynegy has elected to focus development activities and investments around our own portfolio where we control the option to develop and can manage the costs being incurred more closely."
Click here for previous GPB News coverage of this developing story.
More than 2-thousand full and part time workers in Albany are losing their jobs at the Cooper Tire plant. The news came in a phone call. Cooper Tire CEO Roy Armes called Governor Sonny Perdue, then notified Albany officials. The plant was selected from four U.S. based Cooper plants to shut down. The decision came following a two month study that looked at each facility. During that time residents hung 1-thousand blue and white bows to show their appreciation for one of the areas largest employers. Barbara Holmes is with the Albany-Dougherty County Economic Development Commission.
"The most important thing is not just that we're losing these jobs, but these are families that will be affected."
Holmes says the economic impact to southwest Georgia is around 500-million dollars. Cooper blames the closure on higher costs and shrinking demand in the automobile business.
Georgia like the rest of the nation is suffering through the recession. But a group of state economic development leaders on Tuesday said Georgia is well positioned to weather the storm while still expanding its global reach.
That’s because they say key ingredients remain strong in Georgia. They point to workforce training, ability to attract a young population, and Georgia’s transportation infrastructure.
Ken Stewart with Georgia’s Department of Economic Development acknowledges the state’s construction and textile sectors have taken hard hits in the ailing economy. But he says for the past six months, the state has been pushing its aerospace, life-science and agriculture industries worldwide.
"What we do is we go sell what we know is sustainable. We’re selling our strategic industries in a proactive and focused way. It’s a simple process. We say which industry segments to we want to grow--where are the companies throughout the world within those industry segments that are leaders and need to have access to this marketplace."
In their trips to bring new business to Georgia, officials say it’s what they cannot control that’s been the problem--the general global economic malaise postponing company expansion plans. Sam Williams is president of metro Atlanta’s Chamber of Commerce:
"They’re not saying we don’t want to come to metro Atlanta or Georgia...they’re saying we still want to come, but we’re having problems borrowing money and arranging our capital financing to accommodate growth and expansion there. So they’re saying ‘let’s keep in touch, we still want to do this, but let’s talk in March, let’s talk in June’."
Williams is hopeful that a proposed economic stimulus package by the incoming Obama-administration to target the nation’s infrastructure might benefit Georgia. Williams says investment in the state’s transportation grid can quickly open the door to new jobs.
Economic development officials plan to push Georgia lawmakers in January on issues such as transportation funding and rolling back tax rates on businesses.
