Michael Toma, an economist at Georgia Southern University, said these financing programs give smaller communities a better chance to land a large project and generate new employment opportunities. He said local leaders often envision a “field of dreams” when looking at an industrial site, but it helps companies if as much of the preparation work is done as possible.
“If there’s infrastructure in place — water, electricity, perhaps a rail line if that’s appropriate for the site — they can look at it and say, ‘OK, I can envision this,’” Toma said. “It moves that site up the priority list.”
Gov. Brian Kemp last week announced more than $9 million in grants to be divvied up among six development authorities to help accelerate development of industrial sites. The money comes through the new Rural Site Development Initiative, which is overseen by the OneGeorgia Authority.
Three cities were also awarded nearly $6 million to support housing efforts through the Rural Workforce Housing Initiative.
Kemp has made rural economic development a priority in his two terms in office. He touted both programs as a way to spur long-term change in economically depressed corners of Georgia, helping these areas compete and be attractive for corporate investment and hiring.
“When we talk to companies, the first question they ask is if we have the workforce. The second is if we have the sites,” Kemp said in a news release. He said these grant programs are among the ways Georgia “remains in pole position for economic development for years to come.”
Sending signals
Government-owned development sites are intended to be as shovel-ready as possible.
To qualify for one of the grants, the local authority will have to certify its site as a Georgia Ready for Accelerated Development location, also known as a GRAD site. These locations have to meet certain utility service, zoning and environmental designations, and the entire list is searchable online for companies and citizens.
“By investing in site development, communities are investing in their long-term health,” said Pat Wilson, commissioner of the Georgia Department of Economic Development. “There is no better way to change a life for the better than creating an opportunity for a job.”
From gigantic projects like Qcells’ solar panel factory near Dalton to smaller sites like industrial gas producer The Linde Group’s factory in Cook County, GRAD sites are credited with making it easier for businesses to find a location for them.
The six recipients were the development authorities in Dade, Dodge, Glynn, Liberty, Peach and Screven counties. The funds they receive can be used for land grading, site studies and other public infrastructure needed to supply potential industry. Kemp’s office said each recipient “demonstrated strong community buy-in,” adding that each local government has also committed their own funds to these projects.
Toma said the grants kill two birds with one stone, physically getting a site ready for development while telling companies that these communities want you to choose them.
“It signals both a financial commitment and a sort of political wherewithal to say, ‘We can get things lined up and make our location attractive for your business,’” he said.
Housing quality of life
First announced in Kemp’s 2023 State of the State address, the Rural Workforce Housing Initiative is designed to improve housing supply in far-flung corners of Georgia.
Hawkinsville, Hinesville and Wayneboro received funds to install infrastructure and support the development of 140 housing units. Each city and their development partner are also contributing funds to these projects, which are designed to be more affordable for working class people.
“Housing our expanding workforce is critical to Georgia’s continued economic growth and prosperity,” Department of Community Affairs Commissioner Christopher Nunn said.
While some of Georgia’s largest industries are able to tap into large workforces from Atlanta, Savannah or other cities, many rural communities lack the available housing stock, Toma said. By making more affordable housing available for workers, it reduces one more barrier that a company might consider when looking at a site.
“If a person has to commute an hour each way to work, that’s 10 hours a week that they’ve lost in the car,” Toma said. “The closer you are to your place of employment, I would argue the higher your quality of life would be.”
