$16 M Awarded To Boost Georgia Business

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.

Chico's Expands to northeast Georgia

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.

(Governor's Office News Release)

200 Jobs Coming

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

(Governor's Office News Release)

Georgia Drives Closer to English-only License Testing

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.

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Trauma Care An Economic Issue

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.

Businesses Opening in Columbus, Norcross

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.

Click here for more Georgia business stories.

Cooper Tire Plant closing in Albany

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.

Recession not slowing economic development push

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.

Planning board offers new way to boost region

A so-called mega-region concept would help spur business development and lead to solving major problems in Georgia and neighboring states--so says a regional planning commission.

The proposal pushes the idea that different cities and communities can find more economic and problem-solving success by selling themselves as a group instead of individually. The Piedmont Atlantic MegaRegion would include communities from North Carolina through parts of Georgia into Alabama.

The concept comes from the Atlanta Regional Commission, a planning group for the metro Atlanta area. ARC chairman Sam Olens says this approach can make it easier to attract international business. And with a down economy, it’s even more critical.

"When you’re in a bad economy, instead of sulking about the economy, let’s make the plans so when the economy improves we’re in fifth gear maximizing that potential strength. So now’s the time to in fact create those partnerships so you get out of the starting gate faster."

Olens says a good example of an area with name recognition is Raleigh-Durham’s Research Triangle.

He says the mega-region concept could also lead to solutions for Georgia’s transportation and water resource problems.

Savannah officials' trip to China blasted

Savannah Mayor Otis Johnson and five other city officials are going on a $17,000 trip to China that some City Council members are blasting. Tony Thomas says, he and other council members weren't told about the trip.

"Some people will call it a sight-seeing trip. Some people might call it information gathering," Thomas says. "But, I don't see anything productive coming out of going on the last few days of that trip."

The taxpayer-funded portion of the trip amounts to four days in Beijing, where the only official business is a meeting with Georgia economic development officials. Johnson and other officials could not be reached for comment.

Business groups fighting coal plant ruling

Georgia business groups are appealing a judge's decision to halt the construction of a power plant, warning that the ruling could stall other energy plants and hamper economic development throughout the state.

The Georgia Chamber of Commerce warned Wednesday that the decision could have far-reaching implications, driving up energy costs and preventing the construction of natural gas, oil and biofuel plants across the state.

Fulton County Superior Court Judge Thelma Wyatt Cummings Moore's ruling relied on the Supreme Court's decision last year that carbon dioxide could be regulated as a pollutant, and environmental activists said it set a precedent.

In the ruling, Moore contended that federal air pollution laws required permits for all pollutants that could be regulated under the federal Clean Air Act - including carbon dioxide. The gas, which is blamed for global warming, is not currently regulated.

The decision halted the construction of the $2 billion Longleaf Energy Plant, which would become Georgia's first new coal-fired plant in more than 20 years.

Environmental groups praised the decision, saying it will help them stave off 30 other coal plants now in active litigation. At the very least, they said, it's a sign that energy companies will face more challenging legal hurdles over coal-fired power projects.

The plant is expected to create more than 100 full-time jobs and give millions of dollars in tax revenues to Early County, where almost a quarter of the 12,000 residents live in poverty. It would power more than a half-million homes through utilities in Georgia, Alabama and Florida.

Each year it would emit as much as 9 million tons of carbon dioxide, worrying critics who say it could cause health problems in a county that already suffers above-average air pollution.

But the chamber contends the ruling went too far, sidestepping the efforts of federal lawmakers and regulators debating whether to regulate the gas.

The chamber claims that the ruling could delay the construction of any "sizable" new building that relies on natural gas for heat - from office buildings to malls.

"It would be devastating," said George Israel, the chamber's chief executive. "It would cause delays in almost everything, from hospital expansions to school auditoriums."

Israel told the Albany Herald newspaper:

“We’re shocked at the decision.”

“If this ruling is allowed to stand, it will not only hinder the ability to supply power to the state, it will have a major negative impact on future economic development in Georgia.”

Israel, local Albany officials and a lawyer for LS Power met with the newspaper on Tuesday to lay out their opposition to the ruling.

The court will decide by Aug. 29 whether to hear the appeal. The Sierra Club, which filed the lawsuit, said the ruling does not affect alternative energy projects.

"Georgia needs to be on the front of the clean energy economy," said Patty Durand, the group's president. "It's too bad the Georgia chamber chooses not to be a leader of a change that's inevitable."

Click here for more GPB News coverage of the battle over the Longleaf Power Station.

(With The Associated Press)

Appeal on coal plant ruling

Georgia business groups are appealing a judge's decision to halt the construction of a coal-fired power plant. They say the ruling could stall other energy plants and hamper economic development throughout the state. A Fulton County judge made her ruling based on the U.S. Supreme Court's decision that carbon dioxide could be regulated as a pollutant. The judge’s decision halted the construction of the Longleaf Energy Plant in Early County in southwest Georgia.

Perdue's line item vetos for '09 budget

Governor Perdue line-item vetoed $142 million in cash this year, including cash projects and debt service on $22 million in vetoed bond projects. The Governor’s vetos break down as follows:

Department of Economic Development:

• $125,000 to the Tourism program for the development of a five year business plan for the Georgia Tourism Foundation
• $150,000 to the Tourism program for the restoration of Augusta's historic Powder Works chimney
• $3,000,000 to the Tourism program for the National Infantry Museum
• $250,000 to the Tourism program for the Georgia International and Maritime Trade Center Authority to perform an economic impact and environmental improvement study

Department of Education:

• $900,000 to the Technology/Career Education program in order to provide funds for a Classroom Technology initiative

Department of Human Resources:

• $31,007 for the Brain and Spinal Injury Trust Fund program to provide for increased operating expenses

Department of Juvenile Justice:

• $600,000 for the Children and Youth Coordinating Council for “Connecting Henry, Inc” to provide for a multi-jurisdictional collaborative to address the high drop out rate in the community

Department of Public Safety:

• $250,000 to the Field Offices and Services program for the purchase of equipment for the Columbia County State Patrol Post
• $250,000 to the Public Safety Training Center to fund expenses for the North Central Georgia Law Enforcement Academy

The Board of Regents:

• $360,000 to the Public Service/Special Funding Initiatives program for the Georgia Water Planning and Policy Center at Albany State University and Georgia Southern University
• $200,000 to the Teaching program for the planning and implementation of a program at Kennesaw State University for disadvantaged youth

Department of Technical and Adult Education:

• $25,000 to the Economic Development (QuickStart) program for Base Closure and Realignment (BRAC) job retraining program for Atlanta Technical College
• $250,000 to the Technical Education program for the creation of a college and technical facility in Catoosa County at Bentley Place

Department of Transportation:

• $5,200,000 to the Airport Aid program for the Paulding County Regional Airport ($4,000,000), Cherokee County Airport Authority ($700,000), and the Glynn County Airport Commission ($500,000)

The General Obligation Debt Sinking Fund:

• $683,200 to finance educational facilities for county and independent school systems through the State Board of Education specifically for the design and construction of a charter school to be operated by the Cobb County School System through the issuance of $8,000,000 in 20-year bonds
• $1,155,000 to finance educational facilities for county and independent school systems through the State Board of Education specifically for career and vocational equipment per House Bill 905 through the issuance of $5,000,000 in 5-year bonds
• $657,580 to finance projects and facilities for the Department of Transportation, specifically for rail lines for Lyerly to Coosa, Nunez to Vidalia, Ardmore to Sylvania, St Augustine Road Rail Switching Yard Expansion and McNatt Boulevard Extension rail crossing through the issuance of $7,700,000 in 20-year bonds
• $170,800 to finance projects and facilities for the Department of Transportation, specifically for the construction of a welcome center for Tallulah Falls on the Rabun County side through the issuance of $2,000,000 in 20-year bonds

NY county using water to woo southern companies

The drought in north Georgia is getting one upstate New York county to market its abundance of water to southern companies.

With the falls in New York's Niagara County there's plenty of water, and officials there want business in the South to know about it. They're planning a media campaign highlighting the area's wealth of power and fresh water.

Fred Teeter is with the Niagara County Office for Economic Development. He says if the drought continues, businesses in the South may need an option.

"Building permits for industry are starting to be held-off or denied, so that becomes a serious problem for everyone. It's our intention to certainly just make southeast companies aware of the availability of water in our area".

Teeter has visited at least four southern states, including Georgia and North Carolina which have been hardest hit by the drought. But Teeter admits that when it comes to nice weather, the South definitely has more of it.

Minnesota tries to lure Delta

Days after Delta Airlines announced that it would merge with Northwest, some Minnesota lawmakers are hoping a multi-million dollar tax break could lure the company away from Atlanta. Delta officials have already said they intend to remain in Atlanta, if the proposed merger with Northwest is approved by federal regulators.

But, Minnesota Republican Representative Tom Emmer thinks his proposal -- which includes real estate and a plan to zero out the new company's corporate tax rate -- could convince Delta to relocate.

"Rather than stand on our capitol steps and wave goodbye, we'd like to make a run and let the Governor at least make an offer to your folks as to why we not only believe Minnesota has the best quality of life options to offer, but also that it’s a great place to do business and they can do so competitively."

Georgia lawmakers responded with confidence to the proposal.

Republican Chip Pearson heads the Senate Economic Development Committee. He says Georgia has and will continue to work with Delta to ensure Atlanta remains the carrier's headquarters.

"It doesn't surprise me that they would throw something at the deal to try to get them to move that way. Although if you've changed planes and been outside the terminal in Minnesota in January, I don't really know what you could really throw at someone to make them want to go there."

For more than a decade, Northwest has received numerous tax breaks from the state of Minnesota. And, if they move from Minnesota, Northwest would have to repay the state almost 250 million dollars.

More than 1,000 employees work at Northwest headquarters in eight buildings in and around the St. Paul-Minneapolis area.

Perdue and state delegation continue China business trip

Governor Sonny Perdue’s economic development trip to China has yielded at least one company’s announcement to base its U.S. headquarters in Georgia.

PAX Technology is a Chinese firm that provides secure card electronic payments systems and point-of-sales software. It plans to establish a sales center in Atlanta, bringing about 20 jobs. Within the past two years, a handful of Chinese companies have announced they’ll bring 60-million dollars in investment and more than 650 jobs to Georgia.

Perdue and a delegation of 60 Georgians are in the midst of a five-day business trip to the world’s most populous country. Their goal is to bring more jobs and money to the state.

The trip has also included the opening of a Georgia trade office in Beijing, and the announcement of an exchange between the University of Georgia and Tsinghua University in China.

Perdue confirms opposition to Sunday alcohol sales

Governor Sonny Perdue says he does not support the bill now in the State House that would allow alcohol sales in grocery and convenience stores on Sundays.

On Wednesday a House committee attached a Sunday sales provision to the bill that would allow alcohol sales at a new baseball stadium to be built in Gwinnett County. Perdue says it's not fair to put the two measures together.

"I was hoping Gwinnett County could have a stand-alone bill for their economic development out there. I haven't supported (Sunday sales) in the past, I don't now and frankly I'm very concerned. It puts Gwinnett County's business in jeopardy if the House chooses to take that up".

Perdue says people have six days to gather-up alcohol and store it if they want to drink on Sundays. The Governor did not say whether he would veto the bill if it passes.

Lobbyists for grocery and convenience stores have been banking on public opinion to sway the Governor and State Senate.

Atlanta starts developing 50-year plan

Metro Atlanta. Click on image for interactive
map. (metroatlantachamber.com)

With the state gripped in a drought, concerns that Atlanta's economic engine is sputtering and persistent gridlock fears, the Atlanta Regional Commission figured it was a better time than ever to start shaping the city's future.

The commission launched a two-year project Thursday to develop a 50 year growth plan for the 10-county region, and the state's water crisis wasn't far from the minds of the more than 1,000 business and government leaders who attended the launch.

Organizers boasted they were doing their part to conserve water by not offering it at the dozens of tables, saving some 70 gallons of water. And the message: "Conserve, conserve, conserve" flashed on a video documenting the city's rapid growth.

"The only good thing about the water crisis is it's made us forget about traffic," quipped Sam Olens, the commission's chairman. "Well, maybe not."

The commission will host a series of forums designed to help shape Atlanta's future in 50 years. They will include eco-friendly building, alternative fuels and land and water conservation.

"Now more than ever we need to look beyond our more short-term planning horizons and our geographic boundaries to develop a fresh vision for the Atlanta region's place," Olens said.

Glen Hiemstra, a Seattle planner, outlined three ways for the city to evolve. One path is the city to become a "green leader" embracing more alternative energy and becoming a hub, once again, for passenger train service. Another is for the city to become a "Techtopia," focused on attracting businesses in the nanotech, life sciences and energy fields.

A third route is to become a haven for the city's growing senior population, which is expected to double by 2025.

"Will our communities be ready for that?" asked Hiemstra. "To be ready for that, they need to have lifelong livable communities."

All three paths are part of a "big picture which if accomplished makes Atlanta as vital and admired - as successful - as it is today."

"If you want to change the present, change the future," he said. "The future is not just something that happens to us. It's something you do."

Atlanta Regional Commission

Click here for more GPB News coverage about Georgia business development.

(The Associated Press)

17-mill goes to rural counties' economic development

More than 17-million dollars in grant money was awarded today to help kick-start economic development in rural areas of Georgia.

The money comes from the OneGeorgia Authority, which uses tobacco settlement money to help less-populated counties and towns attract new companies. It also helps expand existing business, and boost public infrastructure.

Nearly 10-million dollars is going to 7 rural counties and their development authorities. It includes 6-million earmarked for Treutlen County’s area development of the Range Fuels ethanol plant, which just had its groundbreaking Tuesday. Another million-and-a-half dollars goes to Twiggs County, to buy land for a new sporting goods distribution center.

Other money awarded is going to development and improvements in the northeast Georgia counties of Franklin, Hart, and Stephens.

Macon's Water Advantage

Macon has found a silver lining to Georgia's drought. Local economic development officials traveled to a Chicago trade show recently and brought the Macon Water Authority along with them. They told business leaders from around the country that all of Georgia is not running out of water.

Despite the fact that Macon is under level two drought restrictions, their reservoir is full. In fact it's got 6.5 billion gallons. The city built the new reservoir and water treatment facility after a massive flood in 1994.

Officials with the Macon Economic Development Commission say their new water marketing strategy appears to be paying off. Just two days after the show, one food service company sent a representative to check out Macon. That company could employ up to 200 people.