Monday, December 17, 2007

Banker: Financial incentives key to drawing retail business

Financing incentives historically granted to manufacturing projects by cities are now being sought for retail development projects, says a Montgomery investment banker.

October 6, 2007

Financing incentives historically granted to manufacturing projects by cities are now being sought for retail development projects, says a Montgomery investment banker.

“Retail is going to go somewhere,“ said Bob Young, president of The Frazier Lanier Company in Montgomery, an investment banking firm which specializes in municipal finance. “The question is: Where?“

Young spoke to local business owners, developers, government officials and guests for almost two hours Friday morning at the Auburn Chamber of Commerce office at the invitation of its Business Development Committee.

In his introduction of Young to the group, Thomas Sparrow said his committee felt the subject of municipal tax districts was something the community needed to understand.

“This is currently being discussed for use in Auburn as a potential fund-raising mechanism,“ Sparrow said.

Young, who gave his time to come from Montgomery and speak to the group, said the more informed that any populous is, the better off everyone is.

“I’m not aware that a forum like this has been held in any other city,“ he said. “Any time there is a public/private partnership there needs to be a full airing and discussion of the pros and cons of these types of public and private partnerships.

“Each community makes their own decision as to the viability and advisability of these participations.“

He said he knows that in other communities around our state there has been a lot of discussion about what is going to be done in a district like the one Auburn is considering.

“The code sections (of Alabama laws) that authorize the issuance of debt for infrastructure purposes have taken a few turns culminating in probably the most liberal interpretation, which kinda throws the kitchen sink in,“ Young said.

“It says you can do anything or everything. Legally, you can do that,“ Young added. “But, ultimately what is done, or is not done, is determined by every local governmental entity that allows a creation of a district to issue debt for these purposes.

“The fact that a particular opportunity is granted in the statute does not automatically mean that that is authorized and granted to every developer who puts a facility in in a community.

“Each city negotiates their own set of circumstances,“ he said.

He said what drives those for each community is competition.

“Competition is going to drive what you do and don’t do,“ Young said.

He said sales taxes contribute anywhere from 40 to 75 percent of the money for the general fund of our cities in Alabama.

“In your city, 40 percent of the general fund and another 8 to 9 percent comes from the occupational license fee,“ he said. “Economic activity generates money for your general fund here in Auburn.

“If the general fund in a city in Alabama is not healthy and growing, then something has got to go stop,“ Young said.

Young said the city must have a growing general fund.

“In Alabama, because of our low property taxes, every time a residential development takes place, you have got to have increased police and fire protection, somebody is going to ask that more ball fields or walking trails be built, and more children are going to come to the schools.

“The numbers pencil out that the ad valorem taxes are just not sufficient to carry all of that,“ he said. “So what you have got to have to keep up your municipal infrastructure is a growing general fund.

“This is the case everywhere and not just here in Auburn,“ he said. “The questions / opportunities y’all are facing here in Auburn now are one being faced everywhere in Alabama.“

Networking event targets black business owners across Alabama

It’s all about handling your business. At least that’s how Daniel Slocki, counselor at the Auburn University Small Business Development Center, sees things when it comes to positively stimulating the numbers of minority-owned businesses in Alabama.

September 28, 2007

It’s all about handling your business.

At least that’s how Daniel Slocki, counselor at the Auburn University Small Business Development Center, sees things when it comes to positively stimulating the numbers of minority-owned businesses in Alabama.

The Auburn SBDC-Black Business Awareness Fair will be held Saturday in cooperation with the Greater Peace Development Corporation. And if the figures are correct, the prospect of business ownership is one that’s looking up for minorities in the state.

According to a 2004 study by the Small Business Administration Office of Advocacy, of the 323,891 businesses in Alabama, 37,492 are minority owned with 28,684 of those businesses being black-owned.

Slocki is hoping this weekend’s business workshop will help add to those numbers.

“The BBAF is just a great way for black-owned business in Lee County and surrounding areas to network with one another,“ Slocki said. “It’s also an opportunity for aspiring minority business owners to speak with current minority business owners and ask the questions about what obstacles they’ve faced and what plans they have for expanding their proprieties.“

Dr. Jackie Dipofi, director of the Small Business Development Center, will also be on hand at the fair to answer any business-related questions.

In order for a small business to be considered as such, they must have less than 500 employees (manufacturing and mining industries), less than $6 million for retail industries and less than $12 million for all special-trade contractors according to Slocki.

But whether you attend the BBAF with intentions of simply learning the lexicon of business, or with your business plan in hand, there’s plenty of useful information Slocki says anyone can benefit from.

“Owning a small business can not only create employment options for yourself and others, but represents an opportunity to build financial wealth,“ Slocki said. “It’s not an easy task, but if you’re dedicated and willing to put in the work, you can be successful.“

Auburn Planning Commission approves more condos in downtown Auburn

A 100-unit condominium development including retail shops is one step closer to breaking ground in Auburn’s urban core.

September 14, 2007

A 100-unit condominium development including retail shops is one step closer to breaking ground in Auburn’s urban core.

The Auburn Planning Commission agreed Thursday to recommend a conditional use approval to the Auburn City Council for a multiple-family development and commercial and entertainment use at the present location of Tiger Rags, 138 S. Gay St.

The submitted site plan shows five levels: four levels above ground with one level of basement parking. There is expected to be one building with 100 residential units and 12,500 square feet of retail space where the old A&P used to be located.

The property is surrounded by Compass Bank, Burger King, the Auburn United Methodist Church and Auburn University offices. Construction is expected to begin in January 2008.

With more and more of the multi-story buildings covering the property from lot line to lot line, a commissioner suggests that the city’s planning staff needs to consider how to have developers devote space for public activities.

“We keep talking about the fact that we need to have some public spaces in our downtown,“ said planning commissioner Cheryl Cobb. “We are not seeing that happen.“

She suggested that the commission and staff start planning on how to get those public spaces so downtown isn’t solid, wall-to-wall four-story rows without any public space.

“I think it is critical for our downtown, the way it looks and the way it functions,“ Cobb said.

One of the city’s planning commissioners, John Cope, said he was tired of hearing about those needs.

“That is a council policy decision,“ Cope said. “Go to the place that has the authority over it. That is not here.

“Do it in a public forum. This is not the place, in my opinion,“ he said.

One of the two items tabled at the Aug. 9 meeting and considered in old business was denied.

The commissioners denied the city of Auburn’s request for rezoning of certain parcels in the University Service zone to the University Service-2. The location is described in packet material as South Debardeleben, south of East Glenn Avenue and north of East Thach Avenue, and the east side of Armstrong Avenue, south of East Thach Avenue and north of East Samford Avenue.

The other tabled item that involved a conditional use approval of a road service use for Carmella’s Italian Ice building and drive-thru located in the parking lot of the Bruno’s Shopping Center, 1530 East Glenn Ave., will be recommended to the city council.

Commissioners approved two annexations and a final plat approval for an 18-lot performance subdivision as part of their consent agenda.

They approved a recommendation to the city council for 40.35 acres as lot B-2A-1 in the Tommy Pace subdivision, for the Phelps annexation of 2.3 acres at 5089 Alabama Highway 147 North as well as the final plat approval of an 18-lot subdivision at Ogletree Road and Morgan Drive.

The Ward and Bayne annexation requests were moved from the consent agenda to be considered individually by members. They included lot 1, 12.67 acres, and lot 2, 20.31 acres, contiguous lots in the Bar W subdivision on Lee Road 395.

Members’ concerns included the lack of fire hydrants and inadequate turning radius for garbage pick-up and/or a school bus, but they did agree to make the recommendation to the city council for annexation.

Public hearings were held for and members agreed to recommend to the city council the rezoning of three acres at 435 North Dean Road; a conditional use to allow a duplex in a DDH zone at lot G-3, Greentree Estates and apartments in University Services at 130 South Debardeleben; and the removal of a PDD designation from 95.61 acres in Tuscany Village.

Commissioners agreed to a rehearing of restrictions agreed to in March by a lounge located at 2328 S. College St. The restrictions limited the business operation hours of the lounge to be from 4 p.m. to 2 a.m. Monday through Saturday. No time restrictions were mentioned for Sunday hours at the March hearing.

Group planning for road needs

In a series of meetings, committees of the Auburn-Opelika Metropolitan Planning Organization (AOMPO) reviewed, and approved, key changes in surface transportation planning that reflect project changes brought on by increases in construction costs.

September 13, 2007

Meetings this week looked at the financial constraints on locally sponsored transportation projects like Frederick Road and the downtown streetscape in Opelika, as well as the widening of Moores Mill bridge over I-85, the realignment of Highway 14 and Bragg Avenue and numerous bike lanes in Auburn.

In a series of meetings, committees of the Auburn-Opelika Metropolitan Planning Organization (AOMPO) reviewed, and approved, key changes in surface transportation planning that reflect project changes brought on by increases in construction costs.

The Citizens Advisory Committee and the Technical Advisory Committee met Tuesday and the Metropolitan Planning Organization (MPO) Policy Board met Wednesday at the Lee-Russell Council of Governments office in Opelika to consider the Fiscal Year 2008 Unified Planning Work Program (UPWP), the 2008-2011 Transportation Improvement Program (TIP), and seven Fiscal Year 2008 Transportation Enhancement Grants.

The MPO helps communities with local projects.

“Federal funding regulations require that communities having a population over 50,000 be designated as a metropolitan planning area. When that happens, you have to establish a metropolitan planning organization,“ said Keith Bryan, transportation planner and GIS coordinator with the Lee-Russell Council of Governments. “Their job is to review local projects within that area.“

Bryan said the UPWP is an annual document which is a listing of the current year’s project. The TIP is a multi-year document that is a planning document for projects. The long-range transportation plan is a 25-year plan.

A goal of all three is to have a viable transportation system, and a way to plan and make sure transportation needs are addressed.

The cities of Auburn and Opelika and Lee County were assisted by LRCOG in developing the UPWP, TIP and enhancement grant documents for approval by all three AOMPO committees. There are 15 individuals on the CAC, 25 on the TAC and 10 on the MPO committees.

Among the resolutions approved for applications for Transportation Enhancement Grant funds were one for the city of Opelika and six for the city of Auburn.

The Opelika resolution includes additional sidewalks, landscaping, lighting, brickpavers, etc. in Phase III of the Downtown Streetscape’s Phases I and II.

The six Auburn resolutions includes three bike lanes, interstate exit landscaping and a multi-use path as follows:

• The Shelton Mill Bike Lane involves constructing bike lanes on both sides of Shelton Mill Road from North College Street to East University Drive;
• The North Donahue Drive Bike Lane involves constructing a six-foot bike lane along each side of North Donahue Drive between Shug Jordan Parkway and Farmville Road. Part of this project is in Lee County;
• The Wire Road Bike Lanes involves construction of six-foot wide bike lanes along each side of Wire Road between Webster Road and Samford Avenue to connect student residential areas with the Auburn University campus;
• The East Glenn Avenue Multi-use Path involves construction of a concrete multi-use path along East Glenn Avenue between Bent Creek Road and East University Drive. One intent of this path is to provide connectivity to the city of Opelika; and
• Two resolutions involve the addition of multiple species of trees, shrubs and other plantings to improve the aesthetics of Interstate-85 interchanges at a new seven-lane bridge at Exit 51 and a new six-lane bridge at Exit 57.

Keeping the funding balanced causes some projects to be moved out to be considered in future years. Changes are worked out among the cities and their engineers before being presented to the committees.

Examples of increases in project construction costs include:

• A 463 percent increase in the utility portion of the Moore’s Mill Bridge overpass project going from $62,400 to $364,000 in 2008 and a 333 percent increase in the construction portion going from $1,092,000 to $4,724,429 which caused the project to be moved from 2008 out to 2010.

Auburn announces first tenant in research park

It was all smiles as Auburn University and City of Auburn officials announced the first tenant in the Auburn Research Park.

August 9, 2007

It was all smiles as Auburn University and City of Auburn officials announced the first tenant in the Auburn Research Park.

The City of Auburn and AU received confirmation this week that Northrop Grumman Corporation, a Fortune 100 company, will locate one of their new National Work Force Centers in Auburn.

According to Northrop Grumman’s Web site, the Corporation is a $30 billion global defense and technology company whose 120,000 employees provide innovative systems, products, and solutions in information and services, electronics, aerospace and shipbuilding to government and commercial customers worldwide.

Northrop Grumman will make its permanent home in the new Auburn Research Park, a 156-acre park located at the southern entrance of the Auburn University campus.

“Northrop Grumman is a home run for the Auburn Research Park,“ stated AU President Jay Gogue in a press release. “Its commitment demonstrates the potential the Park holds for fueling economic growth in the state and academic and entrepreneurial opportunities for Auburn faculty and students.“

Jimmy Sanford, chair of the Auburn Research and Technology Foundation, noted “The Auburn Research Park will provide a place for faculty and students to join with businesses to pursue ideas and transfer them into usable products and services. Northrop Grumman is the right fit to begin establishing the characteristics of our world-class facility.“

“The location of Northrop Grumman Corporation is the culmination of a collaborative effort between Auburn University, the State of Alabama, and the City of Auburn and its Industrial Development Board to attract research and high technology companies to Auburn,“ stated Mayor Bill Ham in a press release.

“We are pleased to have a corporate name like Northrop Grumman associated with the City of Auburn.“ Ham stated. “This announcement is the very reason City officials knew that it was imperative the City play a role in the development of the Auburn Research Park.“

Dr. Paul Parks, chair of the city’s Industrial Development Board stated, “For many years, the highly successful partnership between the Industrial Development Board and Auburn University has allowed the City of Auburn to recruit technology based, value added manufacturers.

“That same partnership has now resulted in the development of the Auburn Research Park and the recruitment of Northrop Grumman Corporation, an outstanding research based company. We welcome Northrop Grumman to our City and the Research Park.“

Gov. Bob Riley and State Rep. Mike Hubbard played a role in securing the State of Alabama’s $10 million commitment to the Auburn Research Park.

“We are excited to see that the Auburn Research Park, a project supported by Governor Bob Riley and the State of Alabama, is experiencing the first of many future successes with the announcement of Northrop Grumman Corporation as its first tenant,“ stated Hubbard. “Without question, the Auburn Research Park will be a catalyst for the continued economic growth and prosperity for Auburn, Opelika, and Lee County residents.“

According to Northrop’s Web site, National Work Force Center is part of a new initiative by the company to provide high-quality, cost-effective technology centers within the United States as an alternative to off-shoring.

As an American company performing national security work, Northrop Grumman has made it a priority to develop an alternative to the off-shoring business model. This unique solution - National Work Force Centers - is the first of its kind in the industry.

Northrop Grumman is currently looking for personnel to staff their new Auburn location. Temporary offices will be located in the City of Auburn’s business incubator, the Auburn Center for Developing Industries on Pumphrey Avenue.

Hammers and nails

From installing new ceilings to constructing a new school, the three school systems in Lee County have been busy over the summer making renovations and changes to facilities - most will be completed by the first day of school.

August 5, 2007

From installing new ceilings to constructing a new school, the three school systems in Lee County have been busy over the summer making renovations and changes to facilities - most will be completed by the first day of school.

Students and parents might find changes on ongoing construction at their school when they return for classes on Aug. 9. Here’s a list of each school system’s current construction projects and when they are expected to be finished:

• Auburn City Schools The renovated RUS building on Pumphrey Avenue will house facility maintenance, the transportation department and child nutrition offices. The facility will include the mechanics shop, school storage, as well as a new school bus parking area with bus wash and fuel station. The facility is slated to be completed by mid-September, according to ACS Administrative Assistant for Operations and Services Todd Freeman. The bus wash will probably be ready for use by November, he added. The addition of 20 classrooms to Auburn High School is slated to be completed in April 2008, Freeman said. Work began on the project in January, he said. By the start of the 2008-2009 school year, Richland Elementary School is expected to be open and fully operating. Construction on Auburn’s fifth elementary school is slated to be completed by spring 2008, Freeman said. The school will be similar in design to Yarbrough Elementary School.
• Lee County Schools The expansion of the Beulah High School bandroom is slated to be completed by fall, according to LCS Director of Operations Lee Lindsay. “It’s basically doubled the size of the bandroom,“ he said. Beauregard High School is having a “facelift,“ Lindsay said, with a new roof on the gym and dressing areas, renovation of the dressing facilities in the old gym and renovation of the old elementary hallway with a new floor and ceiling. In addition, he said, the lunchroom received a new ceiling and more than half of the restrooms were renovated with new fixtures, toilets, petitions, ceilings and lighting. A new roof was installed at Smiths Station Primary School, including the lunchroom, Lindsay said. Smiths Station Intermediate School received a new drop ceiling, he said. The five additional classrooms at Loachapoka Elementary and High School will probably not be ready for occupation until September, Lindsay said.
• Opelika City Schools No major construction projects were started or completed during the summer in the Opelika school system, said OCS Assistant Superintendent Kenneth Burton. Northside School received a new roof to replace one installed last year, he said. Opelika City Schools moved into its renovated central office on Simmons Street in May, just before the end of the 2006-2007 school year. The 15,000-square-foot building features more offices and storage and a private, parent conference room.
Posted by Erin Bock on 12/17 at 03:10 PM
auburn; (0) Comments | Permalink

Auburn and Opelika compete for new retailer

The cities of Auburn and Opelika, along with other communities across the state, are competing to land a retailer that could create more than 120 jobs and generate nearly $600,000 in capital investment.

July 27, 2007

The cities of Auburn and Opelika, along with other communities across the state, are competing to land a retailer that could create more than 120 jobs and generate nearly $600,000 in capital investment.

This is just one retail project of many that the sister cities along the Interstate 85 corridor are going head-to-head for.

“We’re competing against a variety of people,“ said Phillip Dunlap, Auburn’s director of economic development. “(Opelika) is working as hard as they can to recruit developments, too. We’re competing with everybody up and down this corridor. It’s not just an Opelika thing.“

With this particular retailer, Dunlap and Commercial Development Authority Chairman Dr. Warren McCord told Auburn City Council members Tuesday night that the city will need to spend approximately $1.8 million for site work in order to “win” the national company, which officials are not identifying. The request was approved.

“If we want this project, we participate,“ Dunlap told council members. “We are competing to recruit with our sister city on this retailer.“

To come to Auburn, the new tenant is asking the city to prepare the 10-acre site for an 86,000-square-foot development.

According to Dunlap, developers market the entire demographics.

“Externally, we’re considered one market, as far as Auburn and Opelika goes,“ said Al Cook, Opelika director of economic development. “But we are very competitive, both cities, in the attraction of retail.“

“Anybody coming into this market place is looking at multiple plots,“ Dunlap said. “We’re in an environment right now where it’s intensely competitive to locate those projects.

“It’s not a negative environment, but people come in and they’re looking for sites and we have to respond to those things,“ he said. “We have been targeting big-box developments or tax generators within the city of Auburn, things that generate sales taxes, which is the same thing our sister city is doing.“

Cook said that generally a big-box retailer, like the one that could create more than 120 jobs, will not go into both cities, with the exception of Wal-Mart.

“A population of the area does not want, at this point, more than one Target, more than one Lowe’s, more than one Home Depot, so it does become very competitive, in the attraction of big-box retail,“ he said.

“These large groups now, every single one of them, is looking for some type of incentive. That’s not just a phenomenon to Auburn or Opelika,“ Dunlap said. “We’re forced to (offer incentives), because where they locate makes a tremendous difference in tax sales.“

“We look at the payback, in terms of incentives,“ Cook said. “We generally work with the developer to offer the incentives in terms of public infrastructure. For instance, at TigerTown, the landscaping, public streets, lighting.

“It’s important to us that we have that tax revenue to go to our schools, repave our streets and improve the quality of life of our citizens,“ Cook said.

The sister cities are not always aware of what the other is doing to recruit an industry or retail developer.

“I can’t say what was or was not being offered, I just know that there was contact between this group and a group in Opelika,“ Dunlap said. “We’ve got to keep a defense up so we can get the sales tax for Auburn.

“There’s not animosity between the two cities; but in retail, we’re both doing what we think is necessary,“ Dunlap said. “It’s a market where people are out there asking for these things.“

VP of research excited about park’s possibilities

For some Auburn residents, the new Auburn Research Park might seem like nothing more than a sign and a bunch of orange barrels, but for Dr. Ralph Zee, it means so much more.

July 13, 2007

For some Auburn residents, the new Auburn Research Park might seem like nothing more than a sign and a bunch of orange barrels, but for Dr. Ralph Zee, it means so much more.

“I’m very excited, “ said Zee, “We’re working pretty hard to get it going.“

Zee is the acting vice president for research at Auburn University and is anxiously awaiting the arrival of the new research park that will be built at the 154-acre site on South College Street. The multi-million dollar endeavor will be an area devoted to various kinds of research and will house many types of “high-tech, non-polluting” companies, according to Zee.

The park will benefit everyone in the Auburn community whether they’re a resident, faculty member or a college student, he said. The park will bring valuable partnerships between the university and the business world and will bring job opportunities and tax revenue to the city of Auburn, said Zee.

A few types of companies that he would like to see in the new park are pharmaceuticals, computer science, software development and biofuel work.

Zee hopes that the research park will provide a public outlet for faculty research and will give the students a chance to apply their studies to real-world situations. He also believes that the park will give Auburn University a better reputation.

“It will give Auburn name recognition in the commercial world,“ said Zee.

Zee said that the first thing to focus on is construction. The groundbreaking is set for the end of September and should take one year to complete, he added. For more information about the Auburn Research Park, visit the Office of Technology Transfer’s Web site.

Fortune 100 company first to call AU’s Research Park home

The Auburn Research Park has its first tenant.

July 13, 2007

The Auburn Research Park has its first tenant.

Although the identity of the company is being kept under wraps for now, the company will break ground in October, Auburn University President Dr. Ed Richardson said, adding that it is a Fortune 100 company that conducts aerospace engineering research.

And by the time its employees move in next fall, Richardson said, the research park itself will be growing exponentially - he said he expects the companies that are part of the 154-acre site off South College Street to change the landscape of economic development and research in Auburn and around Alabama.

For AU itself, the research park will provide a location for the practical application of research already being done on campus. Richardson said everything from exotic diseases to bioenergy can be applied from the classroom to technical companies housed at the park.

Richardson said he expects the park to generate countless jobs over the next decade, developing an economic boom for the City of Auburn and the state.

The idea for a research park started two years ago to promote the development of technology and to attract top-notch professors and graduate students, he said. The city contributed $5 million to the joint venture, which was used to create its infrastructure, and Gov. Bob Riley helped secure $10 million from the state to construct the first building.

The aerospace engineering research company will take up about a third of the first building. Richardson said there is interest from two more companies in fill in the rest of the approximately 50,000-square-foot structure.

Before the first building is finished and occupied, Richardson said construction of the second building will have begun. Money generated from the lease payments in the first building will be used to pay for construction of the second. Eventually, he said, the project will be self-supporting.

The benefits the endeavor has will have a ripple-effect throughout the state, starting in Auburn, he said, adding that the park will be a “major recruitment tool” for the various colleges at AU.

For instance, he said, a great opportunity exists for the Samuel Ginn College of Engineering. Not only will the new Shelby Center for Engineering Technology, which will be complete in the next few years, provide a state-of-the-art facility for professors and students, but the relationship with the research park will be a selling point as well, he said.

The park will also provide jobs and tax revenue and enhance property values for area residents, Richardson said, adding that he expects the benefits to spread throughout Alabama as Auburn partners with other universities, including a deal with the AU College of Engineering and the University of Alabama-Birmingham Medical School in developing advanced technologies for magnetic resonance imaging (MRI) in the detection of diseases.

Such a venture will not only benefit Alabama, but mankind as a whole, Richardson said.

ATC honored by regional group

The Auburn Training Connection (ATC) was presented with a 2007 Innovator Award from the Southern Growth Policies Board on June 3 in St. Louis, Mo., as part of the Southern Workforce Summit conference.

June 23, 2007

The Auburn Training Connection (ATC) was presented with a 2007 Innovator Award from the Southern Growth Policies Board on June 3 in St. Louis, Mo., as part of the Southern Workforce Summit conference.

Missouri Gov. Matt Blunt presented Auburn Mayor Bill Ham with the Innovator Award for the State of Alabama at the opening session of the conference.

This is the first time ATC has submitted their information for the award.

“I think it shows the efforts that we’re making to help with workforce development,“ ATC Director Cary Cox said. “It’s good that somebody recognized those accomplishments, so it’s something that we’re proud to get.

“One thing we really learn is that (other workforce organizations are) having the same problems we are,“ Cox said. “They are having difficulty finding skilled labor, something happening in the whole southeast.

“It’s good to go and look at the best practices of what other people are doing. We can learn from them, and hopefully, they can learn something from us,“ Cox said.

ATC is a partnership among industry, education, and government to provide skills training programs and manufacturing career opportunities for the citizens of Auburn, Lee County and surrounding counties in Alabama.

Formed in 2002 by Auburn University’s College of Business Outreach Program and the City of Auburn’s economic development department, ATC works with industry to create specialized programs that address both existing workforce needs, and to provide for a continually renewing skilled workforce.

Each year, Southern Growth Policies Board honors innovative Southern initiatives that are improving the quality of life in the region. The 2007 Innovator Awards were chosen in the context of creating an enterprising and globally competitive workforce in the South.

Area schools to get millions

Long before Gov. Bob Riley signed the record $1.07 billion education bond issue into law Wednesday, public school administrators throughout Lee County already had plans for the millions in funds coming their way.

June 14, 2007

Long before Gov. Bob Riley signed the record $1.07 billion education bond issue into law Wednesday, public school administrators throughout Lee County already had plans for the millions in funds coming their way.

The bond issue was approved by the Legislature on May 31. It’s the largest bond issue for school construction ever in Alabama and will provide funds to replace or repair decaying school buildings across the state.

Auburn City Schools will receive $4,321,704, Lee County Schools $8,297,566 and Opelika City Schools will get $3,594,574, according to figures released by the governor’s office.

Auburn City Schools will use the funds to renovate the cafeteria at Auburn Junior High School and to finish the school system’s transportation and maintenance shop project on Pumphrey Road, said ACS Superintendent Dr. Terry Jenkins.

The state education bond issue funds will also go toward installing security cameras in all of the elementary schools, Jenkins said.

Opelika City Schools will initially use the approximately $3.6 million in funds from the bond issue to serve as a financial “cushion” for the planned Opelika High School construction project, OCS Superintendent Dr. Mark Neighbors said.

The estimated $38 million OHS project, which includes renting trailers for up to two years and other associated costs, is currently on hold until funding can be secured.

If the bond issue funds are not used during the OHS project, Neighbors said the monies could go toward the future expansion of existing schools or to build a new elementary school in the growing northeast corridor of the school district.

Lee County Schools will use the approximately $8.3 million in funds to renovate schools and construct new schools, particularly in the Smiths Station area in preparation of the expansion of Ft. Benning in Columbus, Ga., said LCS Public Relations Coordinator Cindy Irvin.

Every school system in the state is required to provide a five-year capital plan to the Alabama Department of Education every year, which outlines construction needs and future plans and makes it easier for them to determine how to spend such funds.

Construction of new schools and repairs to old education buildings could begin by the end of this year, state schools Superintendent Dr. Joe Morton said Wednesday after Riley signed the law.

The bond issue divides the money with public colleges receiving 25 percent and K-12 schools 75 percent. For K-12 schools, the funds will be divided among all school districts based on enrollment, with even the smallest districts receiving at least $200,000. Morton said some larger districts will be able to mix the money from the bond issue with funds from other sources, but he said the bond issue formula assures that small rural districts without other options will receive some construction money.

Morton said some school systems that have already made plans for construction projects shouldn’t have to wait long before they receive some of the money.

“They need to be getting ready now. Hopefully some bonds will be available by the end of the year,“ Morton said.

Postsecondary two-year colleges and four-year institutions will also benefit from the education bond issue. Auburn University will receive $35,546,573, according to figures released by the governor’s office.

Officials give an update on construction at the airport

Airport officials updated local media on the progress of construction at the Auburn-Opelika Robert G. Pitts Airport Wednesday.

June 7, 2007

Airport officials updated local media on the progress of construction at the Auburn-Opelika Robert G. Pitts Airport Wednesday.

With Alabama clay at their feet and a blazing sun overhead, attendees listened as Airport Director Bill Hutto pointed out how a new access road will tie into the area, where new hangars will be erected and where the airport’s long-awaited new terminal - the “centerpiece” of the expansion, he said - will one day stand.

Hutto was joined by State Rep. Mike Hubbard, R-Auburn, who is credited with securing $2.5 million in state funds for the expansion project over the past four years.

Hubbard said the existing airport facilities are inadequate and that because of the growth the Auburn-Opelika area has seen in recent years, the area is “underserved” by the current facilities.

“It’s something this community needs very badly,” Hubbard said of the expansion. “Our area has outgrown what we have.”
Hubbard said the project is critical for economic development efforts in Lee County.

“(The airport) is a huge factor” for businesses considering the Lee County area, Hubbard said. “Everything they do hinges on the airport.”

But the airport expansion won’t just benefit new companies to Lee County, Hubbard said; companies already here will benefit, as well.

Hubbard said he has spoken with officials from one Auburn company that is considering consolidating its flight operations, currently spread throughout the southeast, at the Auburn-Opelika Airport once the expansion is complete.

That would be an economic boon to the area, Hubbard said, because the fuel for those planes would be bought locally, instead of in places like Tuskegee and LaGrange, Ga., where many private planes are based now because of space constraints.

And although Auburn and Opelika’s respective economic development departments compete against each other for new industries, they work together well when it comes to the airport, Hubbard said.

The airport expansion “is in everyone’s best interest,” he said.
Hutto described how the existing terminal facility, which was built in 1950, will be replaced on the opposite side of the airport property by a terminal that will be the face of the airport’s “new image.

“(The existing terminal) has served us well, but it is too small, too close to the runway,” he said. “It’s time that we move into something that’s modern.”

The new terminal will be served by an access road that will tie into Frederick Road, providing easy access to Auburn, Opelika and Interstate 85.

Hutto said that as company representatives fly into the Auburn-Opelika area, “they want to come to a progressive, dynamic area.

“And we’re going to look like one when they land at the airport,” he said.

Once complete, the expansion is expected to have cost an estimated $10 million - “a great investment for the community,” Hutto said, considering the jobs and tax revenues generated by new businesses in the area.

“The payoff will be much more than that ... the community is going to more than get their money back,” Hutto said.

SCA Inc. starts construction of new, larger facility

Auburn-based SCA Inc. has started construction of its facility to increase its current production capacity.

May 19, 2007

Auburn-based SCA Inc. has started construction of its facility to increase its current production capacity.

The company, located in the Technology Park North off West Veterans Boulevard, was recently named a Tier 1 supplier to Hyundai Motor Manufacturing Alabama.

As a Tier 1 supplier, SCA will produce automotive trimmed exterior plastic parts for Montgomery’s Hyundai plant. The expansion is predicted to bring an additional $7.7 million in capital investment to Auburn and is expected to create 45 additional jobs.

“We are pleased to be awarded as a Tier 1 supplier to Hyundai Manufacturing in Alabama,“ SCA Plan Manager Dave Lee said in a press release. “When we announced our location in 2004, we initially expected to expand our operations within four to six years.

“However, with the recent news of our new contract with Hyundai, we have moved the timetable for our expansion plans up considerably. We appreciate the support the City of Auburn has shown us during our time here. We will continue to strive to be a model corporate citizen for Auburn.“

“Without question, the location of Hyundai’s manufacturing plan in Montgomery and the subsequent announcement of Kia’s new facility in West Point, Ga., has forever changed the scope of industry in East Alabama,“ Auburn Mayor Bill Ham said in a press release. “Alabama is emerging as a force in the automotive industry, both in automobile manufacturers and their suppliers.

“We are delighted that SCA has chosen to expand their current operations in Auburn. When the city looks to recruit an industry, we look at the long-term picture. It is important to us that a company not only makes the initial investment, but continues to expand their business within our community.

“We are extremely proud of SCA’s accomplishments since their initial location in 2004 and look forward to a long-lasting partnership with them.“

SCA announced plans to locate its first U.S. manufacturing facility in Auburn in 2004. Since that time, the company has invested more than $5.23 million and currently employs 70 people.

Company officials are expected to begin hiring in October. The expanded production is expected to come online in February 2008; by that time, SCA will have invested more than $13 million in Auburn.

Fore more information, contact SCA at 887-6720 or Auburn’s Economic Development Department at 501-7270.

Area a top spot for business

In its May issue, Inc. Magazine ranked the Auburn-Opelika area No. 19 on its Top 20 BoomTown List of best small cities to do business and ranked it No. 30 nationwide, which is 15 spots ahead of last year’s No. 45 ranking.

May 7, 2007

In its May issue, Inc. Magazine ranked the Auburn-Opelika area No. 19 on its Top 20 BoomTown List of best small cities to do business and ranked it No. 30 nationwide, which is 15 spots ahead of last year’s No. 45 ranking.

“I’m glad to see Opelika-Auburn recognized in this manner by Inc. Magazine,“ Opelika Mayor Gary Fuller said. “It is no surprise to me that we’re in the Top 20 of Best Small Cities or that we moved up 15 spots to No. 30 nationwide. All segments of our economy are strong. Opelika is truly a great place to live, work and raise a family. I’m very confident job growth in Opelika and Auburn will continue by expansion of existing business and new plants. Jobs, high paying jobs, provide the engine that creates residential and retail growth.“

On a slide show presentation at Inc. Magazine’s Web site, http://www.inc.com, a photo of historic Downtown Opelika graces the No. 19 spot under “The Top 20 Small Cities For Doing Business.“ The Auburn-Opelika area was the only small Alabama city on the Top 20 List compiled by Michael Shires, a professor of public policy at Pepperdine University. The list was based on an employment base of less than 150,000. The Auburn-Opelika area’s hottest industries included, business services, wholesale, education and health.

“I think that both Auburn and Opelika together is an excellent area,“ said Phillip Dunlap, Auburn economic develop director. “We have a major university, interstate, good quality of life, excellent school systems and all that goes into making it a desirable place to live.“

In a “Boomtowns ’07” article, Joel Kotkin writes in the magazine, “As always, our rankings put the focus on job growth, which we believe is the best measure of economic vitality. Strong job growth suggests that an economy is expanding-which means plenty of opportunity. What’s more, the Small Business Administration estimates that as many as three-quarters of new jobs are created by small companies; as a result, regions showing strong job creation are likely to be hotbeds of entrepreneurial activity. To compile the rankings, Inc. examined job-growth data, supplied by the Bureau of Labor Statistics, on 393 metropolitan statistical areas. We analyzed current-year employment growth, as well as average annual job growth over the past three years, and compared job growth in the first and second halves of the period comprising the past 10 years.“

Opelika Economic Development Director Al Cook said the area is definitely booming.

“Anytime our area is recognized as being one of the hottest areas in the country it’s a good thing,“ Cook said. “This is just another bullet in our collective bandoleer.“

Meanwhile, Alabama received an award Monday in Montgomery for having the best state economic development agency. Dunlap was there to hear the announcement as Site Selection magazine named the Alabama Development Office as the winner of the 2006 Competitiveness Award. During the announcement, Gov. Bob Riley pinpointed the recent accomplishments made by the City of Auburn staff, recruiting approximately 17 companies last year and drawing in nearly $162 million in capital investment.

“He said that within the last year we had an exceptional year and that’s why (the State of Alabama) is so successful, because communities like Auburn are out there trying to recruit this business for Alabama,“ Dunlap said.

City of Auburn officials weigh in on survey

After answering questions and checking their yes’s and no’s, citizens who participated in Auburn’s 2007 survey were given an opportunity to answer this question: If you could change one thing about the City of Auburn, what would you change?

April 18, 2007

Officials with the City of Auburn are still analyzing the good, the bad and the ugly.

After answering questions and checking their yes’s and no’s, citizens who participated in Auburn’s 2007 survey were given an opportunity to answer this question: If you could change one thing about the City of Auburn, what would you change?

Approximately 625 of the 749 who filled out the survey commented on the city and what they would change.

More than a third of the comments related to development, construction, commercial and residential growth, zoning or protecting the “village” character of Auburn.

“I think this question evokes a spontaneous, almost visceral reaction,“ said Sheila Eckman, Ward 2. “These responses - shown at the end of the survey document - are almost entirely about growth, in one way or another. To me, this is the most significant part of the survey and I would encourage everybody to read it online.“

Gene Dulaney, Ward 7, described the comments about growth as a Catch 22.

“The things that we value the most are the things that attract people here and create our concerns,“ Dulaney said. “The question is obvious, it’s just the answer is tough to come up with. How do you balance those things and how do you prepare for growth?“

“I agree that we have to be concerned about the growth and deal with it proactively, but I think from a zoning ordinance standpoint there’s been a lot of work there and that we have a lot of quality developments out there,“ he said. “Plans are good, but implementing those plans are just something we have to live with every day.“

“The thing that I guess it struck me was that you look at the high marks we get for quality of life and quality of services and for our school system and parks and rec and it was interesting to me that all those things we view as successful are the things that attract people to our community.“

“We know people are concerned with the impacts of growth, so we have the planning department working with a number of other departments and the school system on growth modeling,“ said Charlie Duggan, city manager. “We should have that project completed and moving into land-use planning early next year.“

The growth model should be complete by December, but Duggan said that’s when things will really pick up.

“Then we have to actually use it to get us good scenarios. It’s not a Christmas present where they’ll say ‘here’ and we’re done,“ Duggan said. “It’s the start of the project which will be incredibly important for helping us make growth decisions in the future.“

The model should give the city staff, council and planning commission a platform to ask questions about growth and development in Auburn.

“The key is that there weren’t a whole lot of surprises on the citizen survey,“ he said. “These are things the city usually has to work on; infrastructure, providing adequate public safety and growth.“

Duggan said the city reviews previous citizen surveys to see what items the public continues to focus on, so that the council and city staff can turn their attention towards those assets.

Some of the other concerns included in the survey comments were speeding, traffic calming devices in neighborhoods, traffic congestion throughout the community and road improvement possibilities.

“We have been reviewing a draft of a traffic and road improvement study and hopefully within the next few months have that finalized to present to the council,“ Duggan said.