SEIDA Annual Report 2012

2012 ANNUAL REPORT

Athens Utilities Board ▪ Blue Ridge Mountain EMC ▪ Chickamauga Electric System ▪ Cleveland Utilities ▪ Dayton Electric Department ▪ Electric Power Board ▪ Etowah Utilities ▪ Murphy Power Board ▪ North Georgia EMC ▪ Sequachee Valley Electric Cooperative ▪ Tri-State EMC

The Southeast Industrial Development Association (SEIDA) is a regional economic development association facilitating the creation of jobs, capital investment and additional power load throughout its service delivery area.

SEIDA provides a coordinated approach to the delivery of a range of services to assist businesses with locations, expansions, and identification of financing opportunities, infrastructure development, and marketing and demographic research on behalf of the power distributors of TVA power for a three-state, twenty-two county region in North Georgia, Southwestern North Carolina, and Southeast Tennessee.

Rotors, Motors, Floaters and Toters‌.the SEIDA team moves economic development forward any way we can.

Industrial Recruitment and Expansions New Locations 7 Capital Investment $1,196,150,000 Jobs Created/Retained 5,978 Existing Industry Expansions/Retention 35 2

Economic Development Success in the SEIDA Region At its 2012 Annual Meeting, the Southeast Tennessee Development District (SETDD) recognized key community partners and initiatives, including those of the SEIDA region, with its introduction of the SETDD Flame Award.

The Award stands as a symbol for passion and initiative that can start with a small thought and ignite, gaining energy that results in a powerful action. It acknowledges both the past contributions of the individual and reminds others who share their commitment of the work yet to be done.

Dunlap Mayor Dwain Land and former Sequatchie County Executive Claude Lewis received the outstanding Economic Development Project of the Year Award in recognition of their tireless service and infectious enthusiasm working with SEIDA staff in the successful location Mann + Hummel, USA, a German automotive supplier to the Sequatchie Valley in rural Tennessee.

Economic Development Project of the Year

Pictured L to R: Stephanie Watkins, SEIDA Project Manager; Claude Lewis, Former Sequatchie County Mayor; Kathy Johnson, SEIDA Program Director; Dwain Land, City of Dunlap Mayor; Beth Jones, SEIDA & SETDD Executive Director

Pikeville, Tennessee www.seida.info

Business and Industry Locations and Expansions Several existing industries within the SETDD and SEIDA region announced plans for expansion. Among those announcements were Phillips Brothers Machine Company, which expanded into the former Blue Bird facility located in LaFayette, Georgia and Syntec Industries also located in LaFayette.

Phillips Brothers Machine is expected to employ nearly 100 people while Syntec will add 60 new jobs at their LaFayette, Georgia location says Tom Watters, Chief Operations Officer of Syntec.

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Pictured L to R: Evitte Parrish, Walker County Chamber Board Member; Kathy Johnson, Program Director SEIDA; Michael Phillips, Plant Manager; Randy Phillips, Owner; Commissioner Bebe Heiskell, Walker County; Larry Brooks, Walker County Economic Development; Virgil Sprayberry, Walker County Development Authority

Tennessee Galvanizing announced plans to expand its Jasper, Tennessee facility located at 1535 Industrial Boulevard. The expansion represents an investment of $2.3 million and the creation of 35 manufacturing jobs.

Tennessee Galvanizing provides metal galvanizing, a process of coating a metal, usually iron or steel, with a protective covering of zinc. The company has been in business for 20 years and will be expanding its current 23-acre location in order to handle a new centrifuge process and additional warehouse space.

Tennessee Galvanizing Groundbreaking Ceremony October 2, 2012 Pictured L to R: Kathy Johnson, SEIDA; Leigh McClure, SETDD; Marion County Commissioners Marshall Raines, Donnie Sartin, Ralph Pickett; David Ware, Tennessee Galvanzing; Patsy Hazelwood, TECD; John Graham, Marion County Mayor; Billy Simpson, Jasper Mayor; Donald Downum, IDB Chair

www.seida.info

Whirlpool Opens New $120 Million Facility in Cleveland Some 18 months after the initial announcement on Labor Day 2010 of plans for a state-of-the-art 1.4 million square foot manufacturing and distribution facility, the local leadership of Cleveland and Bradley County officially welcomed the new Whirlpool Cleveland Division on March 5, 2012.

The $120 million dollar manufacturing facility contains more than one million square feet of production space and is LEED certified. An additional 400,000 square foot distribution center is scheduled to open later this year.

Once the new plant is in operation, assembly operations, products and processes will slowly transition from the old facility to the new site location and should be fully operational by mid-2013.

In addition to the 1,500 people Whirlpool employed at its previous location at King Edward Avenue in Cleveland, a total of 130 jobs will be created at its new location on Benton Pike.

Whirlpool Grand Opening

Doug Berry, Vice President Economic Development, Cleveland Chamber of Commerce, visits with guests.

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Whirlpool Oven Range with Signatures of Attendees to Grand Opening Ceremony

Business & Industry Grants and Administration ED staff packaged and administered the following industrial projects throughout the year:  FastTrack Industrial Development Program grants in the amount of $48,000 for O’Neil Color & Compounding in Marion County and $2.2 million for Amazon in Bradley County. Both projects have been successfully completed.  Over $110 million in State of Tennessee Endowment Grant and local matching funds to assist Wacker Chemical and Whirlpool Corporation in Bradley County.  $1.9 million in EDA funding to improve sewer capacity to the Amazon sight in the City of Chattanooga and $1.5 million for the Chattanooga/Hamilton County Business Development Center.  $750,000 IDB grant to assist Mann + Hummel, USA in Dunlap/Sequatchie County, Tennessee.

New Flags and Signage for Mann + Hummel, USA

Lighting Retrofitting at Mann + Hummel , USA

LaFayette Airport Expansion SETDD and SEIDA wrote letters in support of the City of LaFayette’s application to request OneGeorgia Authority grant funds in the amount of $500,000 that would assist in the expansion of its regional airport.

The City of LaFayette was awarded those grant funds and held a groundbreaking ceremony at its LaFayette Barwick Airport in August 2012.

www.seida.info

SETDD RD/IRP Loan Funds Assist Small Business in the Region Located in Trenton GA in Dade County, D & B Custom Powder Coating, LLC (D&B) was established by Brenda and Dewayne Gass in 2006. Powder coating is a method of applying decorative and protective finish to a wide range of materials and products that are used by both industries and consumers. Upon opening in 2006, SETDD loaned EDA/RLF funds for the purchase of their original equipment. The business repaid the loan before its term end.

It wasn’t long until additional loan funds were requested to allow D&B to double the size of their current building from 5,000 sq/ft to 10,000 sq/ft providing additional space for the new equipment and sandblasting capability. In addition, D&B will purchase equipment to provide hydrographic printing service for two local companies and will develop other potential industrial, automotive, and individual market opportunities in the Southeast.

This expansion will also add 5 to 8 jobs over the next three years.

Staff continues to work with local communities, banks and other funding institutions to produce life-long relationships like D&B.

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Entrepreneur Development In an effort to bring additional services focused on economic development within our rural communities, The Southeast Tennessee Development District (SETDD) requested and received USDA Rural Development RBEG funds to initiate a regional entrepreneur and small business development assistance initiative in the rural communities within the Development District and Southeast Industrial Development Association (SEIDA) service area. The RBEG funds are being utilized to develop and implement an “Entrepreneur Ready” initiative to foster rural economic development through entrepreneurship and small business.

Pictured L to R: Alisa Farmer, USDA Rural Development; Bobby Goode, USDA Rural Development State Director; Beth Jones SETDD Executive Director; Kathy Johnson, SETDD ED Director; David Collett, USDA Rural Development Regional Director

Last year, SEIDA created a new initiative called “Entrepreneur Resource Rallies, Growing Entrepreneurs in Rural Communities.”

This initiative was created to encourage small business/entrepreneurial development and to make small business owners and entrepreneurs aware of what resources are available to them. What better way to create that awareness than to have all those resources available to them, in one room, at one time? Thus, we created “Entrepreneur Resource Rallies” (ERR), where small business and entrepreneur resources rally together to promote their services to those individuals who may have just started a business or who are considering opening a business. To date, six rallies have been held throughout the SEIDA region. They have been well-attended and extremely successful. www.seida.info

Entrepreneur Resource Rally Events Entrepreneurs in the North Georgia region of Fannin, Towns and Union Counties have access to available business resources such as those recently featured at the Growing Rural Entrepreneurs Resource Rally event held in conjunction with SEIDA, the local development authorities and Chambers of the North Georgia Region. Held on March 16, the event drew more than 125 business owners and hopeful entrepreneurs to hear from seasoned entrepreneurs about their strides and struggles through business ownership. In addition, attendees had the opportunity to explore the business resources accessible in Fannin, Towns and Union Counties. Nearly 30 resource providers, including SETDD, Georgia Small Business Development Center, USDA Rural Development, and many other agencies, were present at the event. These providers discussed services specifically designed to assist entrepreneurs and small business owners.

Blue Ridge Mountain EMC and local Chambers of Commerce host SEIDA at North Georgia Technical College in Blairsville, Georgia for a regional Entrepreneur Resource Rally event

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On May 4th, SEIDA and the Southeast Tennessee Development District (SETDD) in partnership with Chambers of Commerce from Bledsoe, Grundy, Marion, and Sequatchie Counties and Monteagle Mountain held an Entrepreneurial Resource Rally event drawing resources and participation from more than 12 resource organizations and over 30 individuals. Resource providers discussed services focused on entrepreneurship and small businesses. Participants heard from keynote speaker Chip Manning, Babson Center of Global Commerce.

Chip Manning, Babson Center of Global Commerce

Entrepreneur Resource Rally held in Kimball, Tennessee

August 17, 2012, marked the 2nd Annual Business and Innovation Resource Rally in North Carolina. SETDD and SEIDA in partnership with local Economic Development professionals and Chambers of Commerce from Cherokee, Clay and Graham Counties hosted the event drawing resources and participation from more than 19 resource organizations and over 75 individuals. Participants heard from a panelist of successful small business owners including keynote speaker Shane Cooper of DeFeet. Networking among not only the audience members but also the resources was highly favored by all. Plans are to continue this successful initiative for years to come.

Kathy Johnson, SEIDA; Shane Cooper, DeFeet; Rachel Sylvester, Blue Moon Elise; Erik Brinke, Blue Ridge Mountain EMC; Josh Carpenter, North Carolina Economic Development

Larry Kernea, Murphy Power Board and SEIDA Chairman

www.seida.info

Entrepreneurs and small business owners from across Northwest Georgia were invited to an Entrepreneur Resource Rally event at Dalton State College on Friday, October 26. The Entrepreneur Resource Rally was co-sponsored by Dalton State College Bell Tower the Center for Economic Research and Entrepreneurship of Dalton State’s School of Business and the Southeast Industrial Development Association.

The workshop included an interactive discussion with a panel of experienced entrepreneurs who shared their best practice and secrets to success. Information about financing opportunities and federal, state, regional, and Dalton State College’s School of Business Center Economic Research and Entrepreneurship local resources were presented, as well as opportunities for Staff and Accounting Club Members for networking. There were over 75 in attendance at the event who heard from keynote speaker, Mary Ellen McClanahan with the Georgia Department of Economic Development’s Entrepreneur/Small Business Division.

Additional sponsors of the event included North Georgia Electric Membership Corporation and the US Department of Agriculture Rural Development.

Supporting partners include the Chambers of Commerce from Catoosa County, Chattooga County, Chatsworth-Murray County, Dade County, Dalton State President Dr. John Schwenn; Laura Sparks Gordon County, of North Georgia EMC; Kathy Johnson of the Southeast Industrial Development Association; Stephanie Watkins Greater Dalton, of Southeast Industrial Development Association; and Walker Eunice Cooper and Dr. Larry Johnson of the Dalton County.

State School of Business’s Center for Economic Research and Entrepreneurship

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“Resource Row”

Regional Conferences and Sponsorships The Tennessee Valley Authority’s 7th Annual Economic Developers forum was held February 16-17, 2012 in Nashville, Tennessee. The forum offered informational work sessions that allowed local, regional and state economic developers the opportunity to hear from and network with site consultants and other economic development professionals as we endeavor to become more Efficient‌.Engaged‌..Empowered in serving our communities.

The Consultants Forum and Area Development Magazine brought together a distinguished lineup of speakers among site, business and research consultants and other automotive industry leaders and corporate executives to provide the most current insights into where the latest auto related projects will invest and why.

With new announcement of labor agreements, plant expansions and OEM facilities, an intense two-day program of sessions, panels and round table discussions designed to help economic developers frame their marketing strategies and find the right course of action to attract automotive suppliers and other industry related companies in 2012 was held on April 10-12, 2012, in Atlanta, Georgia.

Pictured L to R: Tom Johnson, Advantage West; Stephanie Watkins, SEIDA; Kathy Johnson, SEIDA; Dennis Shea, Area Development; Elyse Cochran-Davis, DaltonWhitfield JDA

www.seida.info

The Tennessee Economic Development Council (TEDC) Annual Fall Conference is a three-day event, featuring speakers from across the economic development community. The annual event rotates between the grand three divisions of the state and was held in Chattanooga on September 26-28, 2012. Regularlyfeatured guests include state commissioners, marketing experts, researchers and independent consultants. These speakers inform members of current national and state-wide economic development trends and best-practices across the field.

Select Tennessee Certified Sites Program The Select Tennessee Certified Sites Program was developed as a rigorous process aimed at elevating Tennessee’s sites to the level of preparedness necessary for corporate investment. The program will market certified sites to a targeted group of site selection consultants and business leaders in Tennessee’s key industry clusters.

In an effort to assist our communities with the application process, SEIDA held an informational workshop on July 11, 2012, for our local elected leadership and economic development professionals. Approximately 20 individuals were in attendance.

At the time the workshop was held, two of our communities had already submitted Round 1 applications for consideration. We continue to work with those communities as well as other communities that wish to submit in Round 2.

Pictured above: Kendrick Curtis, Tennessee ECD Technical Program Director/Select Tennessee Sites

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Greater Chattanooga Regional Growth Initiative— Thrive 2055 Our region is known for breathtaking natural beauty, bountiful opportunities for outdoor fun and distinct business advantages that make the region one of the most desirable in the nation. Through a remarkable sense of community spirit and a process of public-private partnerships, our citizens have made their home a hub for successful business enterprise, a regional tourism center and a gracious place to live. Over the past few years the greater Chattanooga region has experienced tremendous economic development with the investments of Volkswagen Group of America, Alstom, Wacker Polysilicon USA ,IVS, and Mann+Hummel. The Electric Power Board also recently completed the nation’s largest 100 percent fiber optic network, which gives all homes and businesses within a 600 square mile area the option of accessing up to 1 Gbps speeds and provides a new competitive edge for the region to attract significant tech industry. These growth pressures not only exacerbate existing environmental, infrastructure and fiscal issues, but also they create new ones. While area residents and leaders remain excited about the rapid growth of the region, concerns have emerged over preserving the high quality of life and natural beauty of the Southeast region.

In an effort to address these pressures, SETDD is partnering with local governments, businesses and citizens from 16 counties from Southeast Tennessee, Northwest Georgia, and Jane Byington, District Director US Northeast Alabama to create a 40 year action plan for Representative Phil Gingrey (L); Tom Hunter, ARC (C); Earl Gohl, ARC Federal Co making the most of our economic opportunities while -Chair (R) preserving what we value about our home communities. We recognize the value of local governments coordinating with neighboring jurisdictions in order to focus on the most impactful efforts that benefit the most citizens for the least cost to taxpayers. The initiative will be citizen led through working groups and a volunteer coordinating committee. As our world becomes more competitive, we believe we must New Charging Stations Outside TVA plan to grow together to continue to be a place where Headquarters in Chattanooga, TN people thrive. For more information visit www.seida.info www.thrive2055.com.

Southeast Industrial Development Association 1000 Riverfront Parkway Chattanooga, Tennessee 37402 P.O. Box 4757 Chattanooga, Tennessee 37405

www.seida.info Your Regional Source for Sites, Facilities and Financing