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Jackson Paper gives Rabun nod
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| Rabun Apparel announced in March 2006 that it would permanently close the yarn and textile plant in Rabun Gap that employed 930 workers. All of its employees were gone by the end of the year. |
By Donald Fraser Staff Writer
Jackson Paper Manufacturing Co., is coming to Rabun Gap. Maybe.
"We have made the decision to come to Rabun Gap," said Tim Campbell on Friday.
Campbell, president and chief executive officer of Jackson Paper, said he was drafting a letter to the Georgia and Rabun County economic development authorities "advising them of the decision."
There are "contingencies involved," but Campbell noted "they are pretty simple."
The major contingency is securing Fruit of the Loom's Rabun Apparel manufacturing site. The facility is being auctioned off June 30.
Campbell also said there was "a zoning language problem" with Rabun County's current zoning ordinances that broadly prohibit paper manufacturing plants.
The heavy industrial district section of Rabun County's Official Zoning Ordinance and Subdivisions Regulations specifically prohibits "paper or paper pulp manufacture." It also prohibits other industrial uses, such as petroleum refining, glue manufacturing and metal smelting.
Jackson Paper's current pulp mill operation in Sylva, N.C., takes in recycled corrugated cardboard and converts it to medium-grade paper for use in corrugated cardboard production. According to the company's Web site, Jackson Paper produces about 300 tons of paper daily and employs about 100 people. The company will continue operations in Sylva, Campbell said.
"That hasn't come up in negotiations," said Rabun County Commission Chairman Virgil Kilby.
He said he was opposed to a paper mill operation, such as the pulp and paper mill in Canton, N.C., coming to the county.
Jackson Paper recycles paper, and Kilby added, "That's the only thing I'd be in favor of." He also said he believed commissioners would change the current ordinance.
"I would think that they would have to ask for a variance," said Commissioner Mary Elizabeth Law. She also "served eight years, more or less" on the county's zoning board.
"First, I'd have to know what it's zoned," Law said, noting that the plant was constructed before the county adopting zoning regulations. "It might be agricultural."
Law checked with the county's planning office and confirmed that the Rabun Apparel site was currently zoned limited industrial.
Law wondered whether Jackson Paper's process actually was considered paper production. "This may be a legal question," she said. "It sounds to me like a legal question."
Jackson Paper also is "in a due diligence period for project financing," Campbell said. It must still obtain "agreements with all affected parties," including the Georgia Department of Economic Development, the Rabun County Development Authority and Georgia Power.
At this point, Jackson Paper prefers the Rabun Apparel plant and incentives offered by Georgia over incentives offered by North Carolina to expand within that state, Campbell said.
Campbell noted factors weighing heavily in the decision were the "infrastructure available" at the Fruit plant, including a state permit for 3.1 million gallons per day of water withdrawal from the Little Tennessee River, and a state permit for operation of the plant's 2.25 million gpd wastewater treatment system. The plant also has steam and electric power generating equipment the company requires.
The water withdrawal and wastewater treatment permits would have to be transferred, Campbell said.
The wastewater treatment system "has far more volume than we use," Campbell said. Therefore, Jackson Paper will have a "cooperative arrangement" with the county regarding the sewage treatment plant.
State and local incentives also played into the decision to come to Georgia, as did a "very favorable long-term agreement for (electric) power with Georgia Power," Campbell said.
Emory Brock, Rabun County Development Authority executive director, said the authority would be in "partnership" with Jackson Paper in acquiring the 228-acre site. The Fruit property has a $7.5 million price tag.
Brock said the development authority would have to approve a bonding arrangement to fund acquisition of the site, but "that structure hasn't been finalized."
Since Fruit is auctioning the industrial site, the sale "can go a whole bunch of different ways. It ain't a done deal yet," Brock said.
A change in the job tax credit designation for the portion of Rabun County where the Fruit plant is located is also a factor in drawing Jackson Paper to the county, Brock said. Previously, the state's Business Expansion and Support Act had designated Rabun as a "Tier 4" county, meaning tax credits for new jobs provided only $750 in credit per job created.
The change to Tier 1 creates $3,500 per new employee in income tax credits annually for 10 years, Brock said. The law also allows the credit to be extended into the future if the employer cannot immediately start using it, Brock said. "That's a huge benefit."
He noted that Jackson Paper had been talking in terms of having 280 jobs at the plant.
Georgia Power is constrained by the Georgia Public Service Commission in what it can offer as business inducements, but the company "worked out the very best rate they had," Brock said.
The development authority will also apply for a $1.2 million Georgia Department of Community Affairs, OneGeorgia EDGE fund grant, Brock said.
Money from the EDGE fund "is primarily to compete against out of state competition," Brock said.
The EDGE money would be directed to the development authority, Brock said, but it might not actually receive anything for several years. The money "could go to plant acquisition," Brock said.
The DCA's Web site indicated EDGE funds can be used for public purposes, such as publicly owned land purchases and site improvement, water and sewer facilities and road improvements.
"We have made the decision to come to Rabun Gap," said Tim Campbell on Friday.
Campbell, president and chief executive officer of Jackson Paper, said he was drafting a letter to the Georgia and Rabun County economic development authorities "advising them of the decision."
There are "contingencies involved," but Campbell noted "they are pretty simple."
The major contingency is securing Fruit of the Loom's Rabun Apparel manufacturing site. The facility is being auctioned off June 30.
Campbell also said there was "a zoning language problem" with Rabun County's current zoning ordinances that broadly prohibit paper manufacturing plants.
The heavy industrial district section of Rabun County's Official Zoning Ordinance and Subdivisions Regulations specifically prohibits "paper or paper pulp manufacture." It also prohibits other industrial uses, such as petroleum refining, glue manufacturing and metal smelting.
Jackson Paper's current pulp mill operation in Sylva, N.C., takes in recycled corrugated cardboard and converts it to medium-grade paper for use in corrugated cardboard production. According to the company's Web site, Jackson Paper produces about 300 tons of paper daily and employs about 100 people. The company will continue operations in Sylva, Campbell said.
"That hasn't come up in negotiations," said Rabun County Commission Chairman Virgil Kilby.
He said he was opposed to a paper mill operation, such as the pulp and paper mill in Canton, N.C., coming to the county.
Jackson Paper recycles paper, and Kilby added, "That's the only thing I'd be in favor of." He also said he believed commissioners would change the current ordinance.
"I would think that they would have to ask for a variance," said Commissioner Mary Elizabeth Law. She also "served eight years, more or less" on the county's zoning board.
"First, I'd have to know what it's zoned," Law said, noting that the plant was constructed before the county adopting zoning regulations. "It might be agricultural."
Law checked with the county's planning office and confirmed that the Rabun Apparel site was currently zoned limited industrial.
Law wondered whether Jackson Paper's process actually was considered paper production. "This may be a legal question," she said. "It sounds to me like a legal question."
Jackson Paper also is "in a due diligence period for project financing," Campbell said. It must still obtain "agreements with all affected parties," including the Georgia Department of Economic Development, the Rabun County Development Authority and Georgia Power.
At this point, Jackson Paper prefers the Rabun Apparel plant and incentives offered by Georgia over incentives offered by North Carolina to expand within that state, Campbell said.
Campbell noted factors weighing heavily in the decision were the "infrastructure available" at the Fruit plant, including a state permit for 3.1 million gallons per day of water withdrawal from the Little Tennessee River, and a state permit for operation of the plant's 2.25 million gpd wastewater treatment system. The plant also has steam and electric power generating equipment the company requires.
The water withdrawal and wastewater treatment permits would have to be transferred, Campbell said.
The wastewater treatment system "has far more volume than we use," Campbell said. Therefore, Jackson Paper will have a "cooperative arrangement" with the county regarding the sewage treatment plant.
State and local incentives also played into the decision to come to Georgia, as did a "very favorable long-term agreement for (electric) power with Georgia Power," Campbell said.
Emory Brock, Rabun County Development Authority executive director, said the authority would be in "partnership" with Jackson Paper in acquiring the 228-acre site. The Fruit property has a $7.5 million price tag.
Brock said the development authority would have to approve a bonding arrangement to fund acquisition of the site, but "that structure hasn't been finalized."
Since Fruit is auctioning the industrial site, the sale "can go a whole bunch of different ways. It ain't a done deal yet," Brock said.
A change in the job tax credit designation for the portion of Rabun County where the Fruit plant is located is also a factor in drawing Jackson Paper to the county, Brock said. Previously, the state's Business Expansion and Support Act had designated Rabun as a "Tier 4" county, meaning tax credits for new jobs provided only $750 in credit per job created.
The change to Tier 1 creates $3,500 per new employee in income tax credits annually for 10 years, Brock said. The law also allows the credit to be extended into the future if the employer cannot immediately start using it, Brock said. "That's a huge benefit."
He noted that Jackson Paper had been talking in terms of having 280 jobs at the plant.
Georgia Power is constrained by the Georgia Public Service Commission in what it can offer as business inducements, but the company "worked out the very best rate they had," Brock said.
The development authority will also apply for a $1.2 million Georgia Department of Community Affairs, OneGeorgia EDGE fund grant, Brock said.
Money from the EDGE fund "is primarily to compete against out of state competition," Brock said.
The EDGE money would be directed to the development authority, Brock said, but it might not actually receive anything for several years. The money "could go to plant acquisition," Brock said.
The DCA's Web site indicated EDGE funds can be used for public purposes, such as publicly owned land purchases and site improvement, water and sewer facilities and road improvements.
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