Tuesday’s meeting of the Savannah Economic Development Authority started with a standing ovation before the first order of business was announced.
During the customary “round-the-room” introductions, new Savannah City Manager Stephanie Cutter was greeted with an enthusiastic round of applause as the SEDA board, its advisory council and visitors all rose to their feet in affirmation.
Her introduction set the tone for an upbeat meeting that included an expansion announcement, a SEDA Innovations report and an update on a major project.
Growing business
Brandt Herndon, vice president of business development for SEDA, announced that Intercat Savannah, a longtime Savannah company, will grow its presence on Eli Whitney Boulevard in westside Savannah.
The expansion, which includes 25 new jobs, will be a $45 million investment with $35 million in capital for a new building and $10 million in machinery and equipment. Intercat currently employs 120 people.
A Johnson Matthey company, Intercat manufactures and sells specialty additives for use in the fluid catalytic cracking process and other applications primarily for the petroleum refining industry.
Savannah is home to Intercat’s research and development and manufacturing facilities.
“We have been operating in Savannah for 25 years and appreciate the opportunities this area presents for a growth-focused manufacturing business,” said Bruce Keener, Intercat’s vice president for manufacturing. “The Savannah Economic Development Authority has facilitated the execution of our plans for business health and growth over the past 10 years and effectively underpinned Johnson Matthey’s recent decision to proceed with this project to expand production capacity.”
SEDA president and CEO Trip Tollison cited Intercat’s expansion as an example of SEDA’s business retention program.
“The expansion not only means a substantial capital investment, but also increased port traffic and new job creation,” Tollison said.
“On behalf of the SEDA board of directors, we congratulate Intercat.”
Mall project moving forward
Atlanta developer Ben Carter was back in front of the board Tuesday to update a major project he first outlined last October — a $200 million, 1 million-square-foot upscale development on 170 acres in Pooler tentatively titled the Outlet Mall of Georgia.
Projected to open in 2015 in the southwest quadrant of Interstate 95 and Pooler Parkway, the luxury outlet mall will feature four anchor stores, a food court, restaurants and a variety of shops.
“We’ve had very good reception from government officials and have signed letters of intent for 50 percent of the property,” said Carter, whose portfolio of projects includes the Mall of Georgia in Gwinnett County and the upscale St. John’s Town Center in Jacksonville, Fla., as well as several developments in the Buckhead area of Atlanta.
Although no tenants have been announced, they are expected to be of the caliber of those in St. John’s Town Center. Abercrombie, Brooks Brothers, Coach and Louis Vuitton are among the tenants in the Jacksonville mall.
The development is projected to create 1,500 new permanent jobs and more than 1,200 construction jobs.
Voting in executive session later in the meeting the SEDA board approved a tax abatement package for the project.
“The numbers speak for themselves,” said Pat Monahan, retired assistant county manager who now consults with SEDA.
In exchange for $131,000 annually in property taxes, the project will produce annual sales tax revenues of $5.5 million in the first year alone, Monahan said, adding that no incentives become active until the developer reaches the 70-percent pre-leasing commitment required by private financing and construction reaches mid-point.
In addition to boosting sales tax revenues, the development has the potential to positively impact tourism by adding to the average stay, SEDA board chairman David Paddison said.