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OneGeorgia Authority Approves $5 Million in BRIDGE Funds for Broadband Access for Rural Areas

Friday, March 10, 2006  Contact: Office of Communications 404-651-7774

OneGeorgia Authority Approves $5 Million in BRIDGE Funds for Broadband Access for Rural Areas

LOUISVILLE , Ga. Governor Sonny Perdue and members of the OneGeorgia Authority board today approved regulations for a new financing program that will bring high speed broadband connectivity to rural Georgia . At a board meeting in Louisville , Georgia , Governor Perdue called for the OneGeorgia Authority to establish a grant program to support rural broadband access, first mentioned in his 2006 State of the State address. 

“I call broadband the new dial tone,” Governor Sonny Perdue said. “We could not imagine any business, much less an entire community, operating without access to reliable telephone service. Today broadband internet access is just as important for our 21 st century communications infrastructure.” 

The Broadband Rural Initiative to Develop Georgia 's Economy (BRIDGE) fund will provide grants for publicly owned infrastructure based on the number of rural counties receiving new or enhanced high speed broadband services.   The BRIDGE fund will grant $200,000 for single county projects and $400,000 for projects impacting two counties. Regional projects serving three or more counties will not have an award maximum.

Funding will be determined based on the strength of the regional application including technology design, strategy and sustainability. Applications and guidelines for the BRIDGE funding program will be available on the OneGeorgia Authority website, www.onegeorgia.org , in the beginning of April 2006.  Governor Perdue's FY07 budget proposal includes five million as initial funding for the BRIDGE program.  

The Board also heard an update from Don Betts, director of Georgia 's Centers of Innovation.  Mr. Betts recognized a $100,000 Center of Innovation research grant to the Georgia Institute of Technology on behalf of C2Biofuels for further research on the commercialization of cellulosic ethanol production, utilizing Georgia 's vast pine resources for an environmentally friendly source of ethanol fuel. 

Governor Perdue congratulated Valdosta-Lowndes County for being the first recipient of a $10,000 grant from the Entrepreneur Friendly Implementation Fund (EFIF). The grant award will be matched with local and other private investment to continue funding for the SEEDS Center (Sowing Entrepreneurial Economic Development Success) for a six county regional area including Berrien, Brooks, Cook, Echols, Lanier and Lowndes Counties.  A condition of the award is that Valdosta-Lowndes County will provide small business support and marketing services to the five surrounding rural counties at no cost. 

Leaders from Houston and Upson Counties were recognized as the most recent communities to earn the designation of Entrepreneurial Friendly counties. To date, 15 Georgia counties have completed the rigorous process of identifying local entrepreneurs, understanding the economical and social impact of small businesses and entrepreneurs and developing a tool kit that can be used to support small business and entrepreneurial growth in their own communities.  Statistics indicate that small businesses are responsible for the creation of nearly 99 percent of new jobs.

Three Economic Development, Growth and Expansion (EDGE) award recipients were also recognized, bringing three manufacturing facilities and nearly 1,000 jobs to rural areas of Georgia . The EDGE program provides “deal-closer” funds to local governments where interstate competition exists, as well as for negotiations for new jobs or for supporting job retention. The three EDGE award recipients include:

Fitzgerald & Ben Hill County Development Authority/Frontier RV Georgia

EDGE funds will be used to assist with building improvements to a 142,000 square-foot facility (formerly occupied by Pioneer Homes) located on 60.17 acres in Fitzgerald, in addition to the purchase of equipment in support of Frontier RV, a manufacturer of recreational vehicles based in Longview , Texas . Frontier RV will potentially utilize companies located within Georgia to supply raw materials needed in its manufacturing process (paneling, plumbing, electrical, carpeting, etc.) The estimated dollar amount to be purchased from these suppliers is $5.4 million, creating an indirect impact as a result of this project. According to the Recreational Vehicle Industry Association, the RV industry is worth $14 billion.

  • EDGE Award:  $200,000
  • Total Project Cost:  $2,312,500 (Private Investment = $1,512,500)
  • Date of Award:  2/10/06
  • 125 new jobs
  • Interstate competition:  Virginia

Development Authority of LaGrange/ae light metal casting, inc.

EDGE funds will be used to assist with building construction in support of the location of ae light metal casting, inc. to LaGrange. The new facility will be the first North American manufacturing plant and North American headquarters for ae group ag, the German parent company. Ae group manufactures assembly-ready aluminum pressure die cast parts and components for the automotive and aerospace industries. The company employs 1,600 people worldwide and has eight plants located in Germany , Austria and Poland . Major customers include Porsche, BMW, Daimler-Chrysler, GM, TRW and Airbus.  This project involves the construction of a 94,000 square-foot manufacturing facility on a 25-acre tract located in the Jim Hamilton Industrial Park .  

  • EDGE Award:  $850,000
  • Total Project Cost:  $46,578,698 (Private Investment = $39,000,000)
  • Date of Award:  2/24/06
  • 105 new jobs in two years increasing to 295 new jobs in five years
  • Interstate competition:  Tennessee , Kentucky

Toombs County Development Authority/Simonton Building Products, Inc.

EDGE funds will be used to assist with building improvements to a 100,000 square-foot speculative building in support of the location of Simonton Building Products. This facility is located on 18.27 acres at 129 North Commerce Drive in Lyons at the Toombs Corporate Center on US Highway 1. Simonton manufactures vinyl replacement and new construction aluminum windows for sale in the residential and commercial marketplace. The company is headquartered in West Virginia and has manufacturing facilities and retail stores throughout the United States . This will be the company's eighth manufacturing facility, which will produce hurricane-resistant windows.           

  • EDGE Award:  $250,000
  • Total Project Cost:  $10,200,911 (Private Investment = $9,945,911)
  • Date of Award:  2/24/06
  • Up to 500 jobs in five years
  • Interstate competition:  Bradenton , Florida

OneGeorgia Equity awards are designed to assist communities and regions build the necessary infrastructure to support economic development. The program provides financial assistance to enhance publicly-owned tourism initiatives, workforce development opportunities, downtown revitalization projects as well as more traditional economic development activities including industrial parks and associated infrastructure requirements. In addition, loans are available through the Equity Loan Fund to assist small business owners with business growth and expansion opportunities. Project awards are responsive to the needs of the rural, economically depressed counties and applications are accepted at any time. 

A total of ten Equity award recipients totaling approximately $2.7 million were recognized at the board meeting.  Three Equity award recipients not previously announced include:

Clay County Board of Commissioners – Phenomenon Trail

Equity grant funds will be used to assist with professional services required for the construction of Phase I of the Phenomenon Trail, a bicycle and pedestrian path that is an important link in the 407-mile Chattahoochee Trace Corridor. The Corridor stretches from Tennessee to Florida , and is part of the Georgia Department 's Statewide Bicycle and Pedestrian Plan. The two-phase Phenomenon Trail will be a 10-foot wide, asphalt trail 7.5 miles in length. Equity funds will be used for Phase 1 which will consist of 4.2 miles of the route, and will connect the George Bagby Lodge & Park to the eastern causeway embankment of Walter F. George Lock & Dam. Tourism is an important industry in this part of the state and this trail will likely enhance tourism opportunities in Clay County .

  • Equity Grant Award:  $140,849
  • Total Project Cost:  $1,049,849 (Other Public Investment = $909,000)
  • Date of Award:  3/10/06

Valley Partnership Joint Development Authority – Industrial Park Improvements

Equity grant funds will be used for road and site improvements to the 100-acre Talbot County Industrial Park located off of Highway 80 in the City of Talbotton .  The property was donated to the Development Authority of Talbot County and will include 15 sites. The Development Authority plans to construct a 25,000 square-foot speculative building. As recommend by the Base Realignment and Closure Commission (BRAC), Fort Benning will be expanded over the next four years. As a result, the community expects substantial population growth and military contracts, which will need “shovel ready” sites for development. In addition, up to 70 percent of county residents must travel significant distances outside the county for employment. Two prospects have committed to locate in the park with projected employment of 14 people.     

  • Equity Grant Award:  $500,000
  • Total Project Cost:  $2,182,213 (Other Public Investment = $1,627,213)
  • Date of Award:  3/10/06
  • 14 new jobs 

Southeast Georgia Joint Development Authority – Colonel's Island

Equity loan funds will be used to purchase approximately 50 acres of land needed for a 7,671 foot rail connection between Norfolk Southern and CSX Transportation rail lines. The proposed connection will shorten the time to move cargo to and from the Colonel's Island Terminal from the Norfolk Southern line. As a result of this connection, Mercedes Benz will transport 40,000 more automobiles per year (doubling to 80,000), grain tonnage transported by rail via the Port of Brunswick will increase over 200 percent, a total of 34 grade crossings will be eliminated which will allow improvement in traffic flow and a reduction of safety hazards and 5,100 vehicle hours will be saved. The proposed rail improvements will greatly enhance the competitiveness of the Port of Brunswick versus other Southeastern cities, and will have a state-wide impact as more goods and services are processed through the state of Georgia.

  • Equity Loan Award:  $500,000
  • Total Project Cost:  $110,994,197 (Private Investment = $96,300,000)
  • Date of Award:  3/10/06
  • 58 new direct jobs initially (a GSU study estimates an additional 259 new indirect jobs)

Governor Perdue also recognized the most recent ESB (Entrepreneur Small Business) Loan Guarantee Recipient, the Bank of Dudley. The Bank of Dudley received a loan guarantee in the amount of $100,000 on behalf of Middle Georgia Biofuels, Inc. Middle Georgia Biofuels is a start-up venture engaged in the research and production of alternative fuels in Laurens County .  

The OneGeorgia Authority was created utilizing one-third of the state's tobacco settlement to assist the state's most economically challenged areas. The Authority is expected to receive about $1.6 billion over the 25-year term of the settlement.

Since the authority was created in October 2000, more than $143.2 million has been awarded in grants and loans.  These projects support the creation and retention of 29,998 jobs in 110 of Georgia 's most economically depressed counties. For additional information, please refer to the authority's website:  www.onegeorgia.org .

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