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January 28, 2010

Shaw Industries eyes $17 million investment in Calhoun

By Lydia Senn

CALHOUN — Gordon County Commissioners and Calhoun City Council recently agreed to allow the Development Authority of Gordon County to move forward with a plan that could create up to 300 jobs.

Project Renew, a partnership with the Development Authority and Dalton-based Shaw Industries Group, has the potential to bring in a total of 300 jobs. Shaw Industries is the world's largest floorcovering manufacturer.

The Shaw facility at 1255 S. Industrial Blvd. closed last spring due to the downturn in the economy, however the company has agreed to retool the facility with a $17 million investment. If the first phase of the Renew program is successful, the company would invest another $32 million.

The project could initially create 175 new jobs. If it’s successful, another 125 jobs could follow.

The money Shaw is putting into the project would go toward purchasing new equipment to make new products. However, Shaw is asking for tax abatement in return for their investment and potential job creation.

“The company is investing a great deal in this project,” said Jimmy Phillips, Gordon County Chamber of Commerce president.

Phillips said the company approached the Development Authority this past summer to discuss what kind of tax incentives both the City of Calhoun and Gordon County could offer.

“Any company wants to know what are the incentives of picking your community,” Phillips said.

The county Board of Commissioners has voted to allow for the property tax abatements, which would put a hold on any real or personal property taxes. For the next five years the company would not owe taxes on the land on which the facility sits, or any of the contents inside the facility. However after five years, taxes would be paid back to the city and county.

There is also a clawback agreement, meaning if the company fails to live up to their end of the agreement, all of the taxes would be owed.

“We need jobs,” said Alvin Long, Board of Commission chairman. “This (agreement) isn’t anything we can’t do, especially to bring in jobs and business in Gordon County. Getting people working is what we’ve got to do.”

Phillips also points out that Gordon County was moved to a Tier 2 county in the Department of Community Affairs’ (DCA) annual ranking of counties based on job rates. Gordon County is now eligible for an $8,000 tax credit per new job created. Shaw could benefit from the tax credit. Phillips said that any company in Gordon County that will be creating two or more jobs is eligible for the tax credit.

Now that the Development Authority has the city and county’s approval to move forward, the next step is approval of a bond resolution for no more than $39 million in bonds.

After that, sometime next month, a bond confirmation proceeding will take place in superior court. According to Bill Thompson, Development Authority attorney, this procedure requires District Attorney Joe Campbell to sue the Development Authority and Shaw in order to confirm the value of the bonds; the bonds are then advertised and a court hearing date is set to take place in front of a superior court judge. At this point, Thompson said, the public will have an opportunity to object to the bonds issued.

Additional reporting by Elizabeth Crumbly.

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