Garriga explains what PDA is all about


DAVID GARRIGA
The Americus Times-Recorder

AMERICUS —

With the nation in deep economic recession, people want to know what organizations like the Americus-Sumter County Payroll Development Authority (PDA) do and how its efforts impact them personally. In this article I want to answer a few of the common questions about the PDA. I hope that a clearer picture will result.

• What is the PDA and who created it? It was created in the early ‘60s by an amendment to the Georgia Constitution. Many such development authorities were created throughout the nation to conduct recruiting and retention activities to create more and better jobs for citizens. The PDA and similar entities nationwide can conduct certain activities that city, county and state governments cannot. One example would be the issuance of industrial revenue bonds used to finance land, buildings and equipment for companies that agree to invest heavily in a community while creating additional full-time, long-term jobs. Revenue bonds don’t obligate the taxpayer.

• What can the PDA do? The PDA and similar organizations can purchase, improve, own and sell properties, borrow and loan money, negotiate deals, enter into contracts, hire consultants and/or staff, market and advertise, apply for and receive public sector loans and grants for projects and issue revenue bonds to capitalize projects for companies or institutions such as hospitals and universities. Although there are many other powers and capabilities available to a development authority each action must relate to the public good, be approved in a board meeting open to the public and pass legal scrutiny by a board attorney.

• Who is on the PDA board and how did they get there? The PDA has five board members; each was appointed for five years. The City and County appoint two each and agree on an additional member who serves at large. The board members serve without pay and cannot benefit from actions taken by the board. The five current members are Paul Hall, Mulcoa; Mike Donnelly, Georgia Power Co.; Bill Harris, Glover Foods; Tracy Ector, Middle Flint Area Council on Aging and Alex Saratsiotis, Accelerated Physical Therapy Inc.

• How is the PDA funded? There are four primary ways that a development authority can generate funds: 1) Issue revenue bonds as previously discussed; 2) Utilize SPLOST funding; 3) Receive direct funding from local, state or federal governments; 4) Draw income from investments and fees. In the ‘80s a SPLOST was approved for economic development by the voters. The PDA used SPLOST funds to build the Southerfield Industrial Park, later renamed the Ted Baldwin Business and Technology Park, a spec. building and to purchase other buildings in order to attract prospects to Sumter County. Eighty percent of prospects want existing space. Since the ‘80s the PDA has been primarily self-funded relying on rental income, interest on loans and savings. Recently, a staff was hired to intensify full-time economic development efforts and both City/County and PDA have equally funded an operational budget on a year-to-year basis.

• Has the PDA had any success in creating or saving jobs? Yes. In recent years the PDA has been successful in bringing in several companies. Among them were Apollo Health Street, Lowe’s, Spiegel Catalog, PharmaCentra and Southeast Rail and Locomotive Services. Each was highly sought by competing communities. Each required special incentives to locate. More than 600 jobs were pledged. Spiegel later consolidated and suspended all operations except for Canada and New England. The PDA was also the initial contact for Plantation Vodka.

In 2009 the PDA assisted numerous local companies with expansions, loaning up to $1 million for the purchase of manufacturing and processing equipment for new lines, building improvements and infrastructure development. It is likely that more than 100 new jobs will be created as a result of the expansions. An additional loan was made in 2008, for a new food processing company. It failed before opening.

• What has the PDA done to help the colleges and hospital? The PDA has granted more than $250,000 to South Georgia Technical College to improve dorms and for an advertisement campaign for the College Town theme. The recent multi-million dollar capital expansions to Georgia Southwestern State University were financed by the issuance of industrial revenue bonds by the PDA. The PDA served as the conduit for bonds sold in the open market place. In 200,7 the PDA was asked to work with a consultant to disperse Sumter Regional Hospital reserve funds in the form of grants to local doctors who had been financially hurt by the tornado and would agree to stay in Sumter County to practice medicine. Approximately $750,000 was issued.

• How does the PDA assist local government? The PDA served again as a conduit for Sumter County government by borrowing up to $3 million to bridge voter-approved SPLOST monies so that project construction could begin on time. The Sumter County Board of Commissioners is paying the loan off. The organization has also participated equally with City and County government on projects requiring infrastructure improvements such as roads, water/sewer lines and drainage.

The PDA is a very active organization handling more than 25 prospects each year in addition to calling on and rendering assistance to many local companies. The organization owns and maintains more than 600 acres of industrial park land and six large industrial buildings. It maintains close relationships with many state and private organizations such as the Georgia Department of Economic Development, Georgia Department of Community Affairs, Georgia Power Co., Georgia Electric Membership Association and Municipal Electric Association, Georgia Department of Transportation and many private consultants and developers. These relationships require monthly trips to Atlanta and many reciprocal visits by various company and agency representatives are made monthly.

As executive director, I serve as secretary to the board of directors of the Schley-Sumter-Macon Joint Development Authority and the Crisp-Sumter Joint Development Authority. I also have served on the board of directors of the Georgia Economic Development Association and a past president of the Southwest Georgia Chamber Council.