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Date ArticleType
1/9/2013 Member News
East Tennessee Regional Megasite Announced


Megasite announcement
Dandridge Mayor and EDOC Chairman George Gantte makes the announcement Wednesday afternoon that Jefferson County officials are working to certify an 1,800-acre megasite at the Interstate 40 and 81 split, with an eye toward attracting an auto manufacturing facility that would bring thousands of jobs to the area. (Standard Banner. January 10 ,2013. Photo by Steve Marion)

 



Auto plant is megasite’s aim

A proposed industrial “megasite” at the Interstate 40/81 split has the potential to transform Jefferson County’s economy by attracting an auto manufacturer with thousands of jobs, members of the county Economic Development Oversight Committee (EDOC) announced today (January 9, 2013).

The Southeast’s leading site selection firm has identified an 1,800-acre area on the north side of the intersection as a prime candidate for “megasite” certification, which could lure one of nine major car manufacturers looking to build new plants within the next few years.

Dandridge Mayor George Gantte, who chairs the oversight committee, said the plan has the potential to help address a top economic goal that emerged several years ago from the “Building a Better Future” community planning process: to make the county a viable place to settle for the next generation of workers.

“This is a game-changer for Jefferson County and the whole region in terms of the ability to attract high quality jobs to the area,” he said. “Jefferson County and the entire region must rally around this effort because it is important for our future and the future of our children and grandchildren.”

Gantte was joined at the announcement by other EDOC board members, Chamber of Commerce board members, County Mayor Alan Palmieri, Commission Chairman Marty Mills, Jefferson City Mayor Mark Potts, and other local officials, all of whom pledged their assistance in the certification process. Held at The Point in Dandridge, the event drew about 150 people, including U.S. Congressman Phil Roe, who congratulated local officials on a “terrific vision.”

Though research by McCallum Sweeney Consulting, of Greenville, South Carolina, has been going on for more than a year, certification efforts are just beginning, said Garrett Wagley, the Chamber’s Economic Development Coordinator. The firm chose the proposed site from a pool of 11 in East Tennessee due to its location at the intersection of two major interstates, proximity to existing suppliers, established manufacturing labor base, and other factors — but before it can be certified local officials must acquire options on the land from current private owners (who have yet to be consulted), commit to infrastructure improvements, and cross many other hurdles in what is expected to be an eight to 12-month process.

The economic results could be significant, however. Five certified megasites in the TVA service area have sold to major corporations, including VW in Chattanooga, Toyota in Mississippi, and Hemlock Semiconductor in Clarksville. These have generated $5.5 billion in economic impact and more than 32,000 jobs. A site the size of the one proposed for Jefferson County could support an auto plant with about 2,000 jobs, as well as thousands more at suppliers likely to locate nearby, officials say.

“Certification would put us one big step closer to fulfilling the vision of producing good-paying jobs for local people,”  said County Mayor Alan Palmieri. “This is a golden opportunity for us and all of East Tennessee.”

Over 100 property owners will receive certified letters this week informing them about the project and asking them to consider signing three-year options to sell. Property owners are also invited to an informational meeting next Tuesday, January 15, 2013, (5-7 p.m.) at the Expo Center in White Pine. EDOC has retained a firm to work on property  acquisition, a public relations firm, and a support team of lawyers and accountants to work on the certification process.

The certification process, which will be reviewed by McCallum Sweeney, is “not easy,” said Gantte. “There are some significant questions we must answer, but the East Tennessee Regional Megasite has tremendous potential to help us create high quality jobs, a larger tax base, and an enhanced educational system and quality of life.”

Making the site attractive to an auto manufacturer would take hundreds of millions of dollars, and the cost would be shared by the state and local governments. Plans call for a seven-mile rail spur to the site from Morristown, a new I-81 exit (Exit 2), and major water and sewer line extensions.

Representatives of McCallum Sweeney were drawn to the site because of its proximity to two interstates, the potential for a large footprint, and good local workforce with manufacturing experience. It is actually one of four considered within Jefferson County. The site is also more than 75 miles from the closest megasite, which keeps it from infringing on another auto plant’s labor pool.

Palmieri pointed out that many local workers in the Jefferson County labor pool of 24,000 have experience in manufacturing. A project like this offers opportunities for young people, as well as security for the aging population through a secure tax base, he said.

“This is such an exciting project and opportunity for our county and the region,” said Chamber Board Chairman Daryle Keck. “There has been a lot of hard work already done and much more to do, but I know our county will pull together and make this happen. This is a great time to live and work in Jefferson County.”

Gantte said EDOC members have traveled to similar sites in Mississippi. Brad Maul, who was Wagley’s predecessor, was instrumental in planning before leaving to take a job with TVA and continues to offer assistance in his new position, he added. Gantte also thanked Chamber President Don Cason for key work on the proposal.

Planners believe it will fit into a gap in the automotive manufacturing landscape. Light vehicle sales bottomed out at 10.4 million in 2009 and last year recovered to 14.5 million, with expectations of 15 million this year. Sales are expected to return to pre-recession levels over the next several years, and nine auto makers are looking to increase U.S. capacity over the next five years.

“It takes up to two years to build a plant and even more time to plan,” said Gantte. “So, that capacity planning is happening now and over the next one to two years. It’s during this planning process that companies start looking for the appropriate place to construct. We want them to look at the East Tennessee Regional Megasite in Jefferson County.”

Wagley said modern auto plants and their owners are environmentally conscious. Sites generally include generous buffers.

“It’s not Detroit anymore,” he said. “Modern day auto manufacturing plants are very clean, very environmentally conscious. They are generous in their community commitment and involvement. They are very aware of keeping the impacts low on their neighbors.”

In terms of global heavy-shipping, the reopening of an expanded Panama Canal next year will make East Coast ports more important and boost heavy manufacturing in the Southeast.

To qualify for certification, the land also must have all environmental and geological tests completed. EDOC will work  with McCallum Sweeney on the process. The general public is also invited to the open house about the plan next Tuesday at the Great Smoky Mountain Expo Center. A website, www.ETNmegasite.com, has also been set up, as has an info line at (865)397-4285.

“This would have a positive economic impact on a wide area in the very same way that VW and Nissan have demonstrated in Chattanooga and Smyrna,” Gantte said. “It has the potential to be the largest economic development success story n the northeast corridor from Knoxville to the Tri-Cities. We plan to make it happen.”


For more information, please contact:
Garrett Wagley -Jefferson County Director of Economic Development
Phone: (865) 397-4285
Email: gwagely@selectjefferson.com
* Please Visit www.ETNmegasite.com *