RIVER VALLEY REGIONAL COMMISSION 2014 COMPREHENSIVE ECONOMIC DEVELOPMENT STRATEGY UPDATE

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1 RIVER VALLEY REGIONAL COMMISSION 2014 COMPREHENSIVE ECONOMIC DEVELOPMENT STRATEGY UPDATE CEDS Committee The Comprehensive Economic Development Strategy (CEDS) Committee has been very active this year working on the issue of workforce development. The first half of the year was spent gathering information about the new College and Career Readiness Index which will be used to measure schools and students success. The State School Superintendent spoke at the August 2013 River Valley Council meeting as a result of the CEDS Committee s desire to work more closely with school superintendents and to support their efforts to educate the children of the region. Minutes of the CEDS Committee meetings are attached as an appendix to this document as well as a list of the committee members. Survey of Community In order to determine the strengths, opportunities, weaknesses and threats of the region, the RVRC CEDS Committee distributed a survey using Survey Monkey concerning community strengths, weaknesses, threats and opportunities to citizens in the region. A total of 216 responses were received which is an increase of 128 from the previous year. Below is a summary of the responses. Economic Strengths (from highest to lowest): Strong community leadership, Tourism Assets, Attractive/livable communities, and Local health care facilities Economic Weaknesses: A well trained workforce, Quality local/regional school system, Transportation network, and Housing options Economic Threats or Limitations: Flight of younger generation from our community, Vacant Main Streets (town centers and/or shopping areas), Declining industries, and Lack of Labor Force training opportunities Economic Opportunities: Available land, Attractive communities/quality of life, Tourism attractions, and Access to transportation, air, highway, rail Economic Development Goals: Encourage the growth of existing businesses and industries, Increase job skills of local labor force, Diversify the economic base, and Create a strong entrepreneurial climate 1

2 Public/Private Partnership: Persons were asked to identify public/private partnerships in their community. The top response was Chamber of Commerce, Local government, and Economic development council. Local Partners in Economic Development: Key community organizations to be involved in the creation and implementation of the CEDS were identified. These include Economic Development Authority, local government/county government, Chambers of Commerce, and Elected officials. State of Georgia Economic Development Resources: Critical resources/actions needed from the state of Georgia were identified. At the top of the list were strategic grants to leverage economic development projects followed by tax credits for job growth, incentives for job growth and better information about existing state programs. When asked for one action the State of Georgia could undertake, the majority of responses included tax incentives, tax reduction and money (in various forms). This survey is in agreement with the 2012 survey conducted by the CEDS Committee which identified workforce development as one of the top issues in the region. Because of this, the CEDS Committee will continue to work to identify ways to assist local school districts and technical colleges to improve the quality of the regional workforce. Changes to Regional/Local Economy Company Closures/Additions Company Add Jobs Private Investment Lose Jobs Closing Date Pratt & Whitney 45 $3,546,354 Announced Plant expansion in early 2014 Allens, Inc. 92 8/6/ /15/13 AAFES 95 7/25/13 Callaway Gardens 15 7/9/13 USAA (financial center) /26/2013 Koch Foods 750 $49,000,000 3/13/ ,000,000 7/5/13 2

3 Blue Cross Blue Shield 600 4/13/13 Liberty Utilities 32 6/13/13 Tyson Foods (Vienna) 170 5/31/13 Hostess Brands 200 $4,400,000 7/13/ /1/13 Dolly Madison 420 X Fall 2012 Stewart Webster Hospital 76 X 3/20/13 AFS America 65 $3 million 7/23/13 Eagle System 359 2/16/12 Glover Wholesale Co. 150 (110 Columbus 40 Americus) X 2/11/13 Knology 60 $5 million 2/23/13 Exide 95 3/22/12 Technologies PharmaCentra 60 7/13/13 Southeast /13/13 Food Distribution Stella Jones /13/13 Synovus $1,900, /13/13 Columbus Regional Healthcare System 47 5/13/13 Conart *This business has since closed. Cott Beverages X 5 $2,000,000 7/5/05 Road America 350 7/4/05 HPPE 10 $1,200,000 7/4/05 Performance Design Packaging 8 7/4/05 FDL 30 $500,000 7/4/05 Hundai 350 $35,000,000 8/13/13 Dymos Childre s Wing Shack 2 PT $20,000 7/5/05 3

4 Allens, Inc. has had two (2) seasonal layoffs in the past year; however, staff is generally rehired in the spring when business picks up. Cuts totaling 25% of the budget have been announced for Ft. Benning. This will have a negative impact on retail and housing. The Department of Defense has announced that the Third Brigade will remain at Ft. Benning removing uncertainty about its future. This retains approximately 8,000 jobs in the region. KIA continues to grow in West Point/Harris County. Early in 2012, a milestone was reached with the company assembling its 500,000 th vehicle since opening the auto plant in late The company has announced that it plans to invest $1.6 billion in the WestPoint plant over the next decade. Hundai Dymos, a parts manufacturer for Hundai, has announced a new plant in West Point/Harris County which will create 350 jobs. The automotive sector has become an important one in the past ten years with over 8,000 jobs created by suppliers and the KIA automotive plant. Synovus, as well as other local banks, is improving its financial picture announcing a profit this year for the first time in several years. This improvement is allowing an increase in small business lending which in turn is improving the unemployment picture slightly. Housing has increased in the Columbus area but that has not spread to the other counties in the region. Dolly Madison closed nationally as well as in Columbus in the Fall of An investment group (Hostess Brands) purchased the company and re-opened the plant in Columbus in July of Of the approximately 400 jobs that were lost when the plant closed, approximately 200 were regained. The closing of rural hospitals is a disturbing trend across the country and unfortunately the River Valley Region has not escaped. The Stewart Webster Hospital in Richland closed in the Spring of 2013 costing 76 jobs and the Flint River Hospital in Montezuma closed its emergency room in September 2013 repositioning itself as a crisis stabilization unit. The hospital is also adding an Urgent Care Unit. The food business was not immune to the economy. Tyson Foods in Vienna laid off 170 employees in the Spring of 2013 and Glover Wholesale (a food distributor) closed its doors in Americus and Columbus taking with it 150 jobs. Koch Foods purchased and reopened Cagles chicken processing plant in Harris County saving 750 jobs. The plant is looking to expand and hire an additional 700 persons. Bright spots in the region include expansions with AAFES, Liberty Utilities which purchased Atmos Energy, Knology which built and opened a new office in Harris County, and Exide Technologies in Columbus hired an additional 95 people. Blue Cross Blue Shield has announced it will hire 600 people to handle the anticipated increase in business from the new healthcare legislation. 4

5 PharmaCentra is part of Sumter County s growing economy and has added another 60 jobs. The City of Cordele (Crisp County) has also experienced several expansions with Stella Jones and Southeast Food Distribution. While the numbers are not huge, steady gains in job numbers are very important for the local economy. Many of the counties became partners with Georgia Power and local land owners when Georgia Power announced it was looking for locations for solar farms. While this is not a large job creator, it will generate revenue for private property owners as well as tax revenue for local governments. In July of 2013 the Georgia Ports Authority signed a Memorandum of Understanding with Cordele Intermodal Services. This agreement ensures a direct 200-mile rail route between Cordele and the Georgia Port Authority s Garden City Terminal in Savannah and serves as a gateway to Southwest Georgia and adjacent regions of Florida and Alabama. The River Valley Region was one of only three (3) regions in the state to approve the Transportation Improvement Act of This is expected to generate approximately $594,061,269 in new monies for transportation projects over a ten year period as well as create over 16,000 jobs. Disaster Mitigation Planning County Status Approved Date Expiration Date Chattahoochee Approved 11/3/ /3/2014 Comments Clay Approved 5/23/2013 5/23/2018 Will adopt October 2013 Crisp Approved 1/3/2011 1/3/2016 Dooly Expired 1/17/ Update is in progress Harris Approved 6/21/2010 6/21/2015 County soliciting RFPs Macon Approved 9/4/2013 9/4/2013 Will adopt October 2013 Marion Expired 12/29/ Update is in progress Muscogee Approved 9/6/2012 9/6/2017 Quitman Approved 3/19/2012 3/19/2017 Randolph Expired 5/15/2007 5/14/2012 Update is in progress Schley Approved 4/28/2008 4/28/2013 Update is in progress Stewart Approved 9/29/2008 9/29/2013 Update is in progress Sumter Expired 7/12/2007 7/12/2012 Update is in progress. Talbot Approved 3/24/2010 3/24/2015 Update is in progress. Adopted updated plan in September Taylor Approved 8/20/2013 8/20/ Webster Expired 7/30/ Update is in progress 5

6 Regional & Local Project update County Type of Project # of Jobs Status Stewart Richland Downtown Redevelopment 2 Under construction. Should be finished by November Macon Rail Spur and Road Construction 60 Road is almost complete and rail spur is in design. Macon/Ideal Goat Processing Plant 25 Application is in development. Dooly/Unadilla Natural Gas Line 50 ret. Researching funding options Dooly/Vienna Redevelopment of Downtown Building 2 Application Funded. Clearing special conditions. Talbot Technology & Workforce Unknown Researching funding options. Development Center Talbot Infrastructure Unknown Researching funding options. improvements to existing Industrial Park Talbot Development of Fall Line Unknown Researching funding options. Industrial Park site work, infrastructure Clay County Biomas Plant 26 New 110 Forestry Related Jobs Developer seeking financing. Clay County Phenomenon Trail 0 Under Construction Taylor County SWGA Medical Group 4 Opening in January 2014 Taylor County Joy Learning Academy 4 Opening 11/2013 (est.) Taylor County Flint Energies (expansion) 10 Seeking local permits. Construction to begin in late 2013 or early Dooly County Develop Industrial Park in 250 Researching funding options. Pinehurst Dooly County Expand Vienna Industrial 250+ Researching funding options. Park and add a rail spur Dooly County Build a speculative building 115 Planning stage. in Unadilla Dooly County Improvements to Unadilla 100 ret. Planning stage. Industrial Park including well and tank. Sumter Americus Motor Sports 200 Researching funding options. Complex Muscogee Whitewater 700 Completed Region Transportation 16,000 In progress over a 10 year period. Crisp County Improvement Act Inland Port acquire additional land and improve infrastructure 3,000-5,000 Phase I is complete and the port is in operation. Marion County New Family Dollar Proposed new building. Marion County Dollar General becomes Proposed Dollar General Market Dooly County/Vienna New Family Dollar Construction is complete and the store is open. 6

7 Suggested Regional Prioritized Projects The CEDS Committee identified the following projects as having a regional priority. Activity Category Time Frame Responsible Parties & Partners Cost Funding Source(s) Projected Jobs Priority Facilitate the development of programs within the local school systems that prepare students for the workforce utilizing the assets of the Technical Colleges, the University System, and others. Facilitate the continued development of the in-land port in Cordele as a way to stimulate economic growth. Support and facilitate the Americus Motorsports Complex (AMC) Using GPS technology, capture the various visible and underground components of the region s water, sanitary sewer and storm sewer infrastructure. Identify and address telecommunications deficiencies in the region via the Digital Economy Plans Provide information and support on alterative means of promoting tourism within the region including Local BOE WIA Bd Local Colleges & Universities SWGA United Planning Complete within 2 years AMC Sumter PDA Local Advisory Committee Local Govts Planning On-going RVRC Local Govts Local govts GDEcD Local CVBs $30,000 Member Dues Local BOE WIA Bd Local Colleges and Universities $50,000 Member Dues SWGA United Private Industry SBA Bonds Private/ Investors $60,000 Member Dues Local Govts $65,000 US Department of Commerce $30,000 Member Dues Local funds

8 technology, tv/film (Camera Ready Designation) and development of packages Support the development of value added processing industries, farmer's markets and neighborhood groceries supplied by local farmers to provide fresh food in the region. GDAg GDEcD Local HD $50,000 Local dues GDAg GDEcD 35 7 Conclusions: The River Valley Region has undergone difficult times in the past six (6) years because of the recession. While Georgia was severely impacted by the recession, this region was a little slower to feel the start of the recession and may be taking a little longer to come out of it. The quality of the workforce is one of the serious issues facing this region. Both existing and future businesses cannot survive much less thrive without trained employees. This region has a bright future with many opportunities including the historic downtowns and tourism attractions as well as available land. The CEDS process will continue to bring together public and private sector partners to identify opportunities and solve problems within the region in order to create a healthy and prosperous community. 8