September 3, 2008

VW to Pump $511 Million Yearly Into S.E. Tenn.

Tennessee Commissioner of Economic and Community Development Matt Kisber on Friday released an analysis of the Volkswagen project in Chattanooga which shows the recently-announced assembly plant will boost incomes in the region by $511.1 million dollars annually and generate more than $55 million dollars annually in new tax revenues for both the state and local governments. The study was conducted by the University of Tennessee's Center for Business and Economic Research and released publicly Friday in advance of testimony by Commissioner Kisber before the State Funding Board in Nashville.

"This third party analysis shows Volkswagen's investment in Tennessee will bring a significant economic benefit to both the people of Tennessee and the Chattanooga region," said Commissioner Kisber. "The study shows that for every dollar state and local governments have spent on this project on a 'one-time' basis, we'll see a dollar in new tax receipts on an annual basis, yielding a strong rate of return."

"We've taken a very conservative approach to estimating the economic impact of the VW project," said Dr. William Fox, director, U.T. Center for Business and Economic Research and lead author of the study. "If this project is successful and expands, the region could see an even more pronounced benefit."

The report calculates that over the 30-year life of the project, the state will contribute approximately 58 percent of the value of the investments, with local governments contributing 38 percent and the federal government contributing 4 percent. Looking at the project from a cash-flow basis, the state will contribute $229,750,976 and receive $756,700,000 in new tax revenues for a net benefit of $526,949,024 over the 30-year life of the project. Local governments will see an even more pronounced benefit, contributing $86,200,000 in cash costs and will receive $642,700,000 in new tax revenues, for a net cash benefit of $556,500,000 over the 30-year life of the project. Taken together, state and local governments will receive more than $1 billion more than they pay out in incentives over the life of the project. In its agreement with the state and local governments, Volkswagen Group of America has agreed to fully pay 100 percent of local property taxes funding public education.

In addition to the 2,000 jobs created by direct employment at the Volkswagen facility, the report estimates another 9,477 jobs will be created in the region through construction and supplier activity.

Only One Week Left to Register!

Online registration for this year's Governor's Conference closes one week from today, so log on to the Governor's Conference Web site and register today!

This year's Governor's Conference will include a host of never-before-offered opportunities, including one-on-one meeting time with ECD's representatives from China and Canada and Stamp Your Passport, an exhibit hall giveaway featuring top-quality prizes.

For more information about meeting with a Chinese or Canadian representative, contact Andrea Fanta at andrea.fanta@state.tn.us. The representatives will be taking appointments Monday afternoon and Tuesday morning. Appointments are required, and space is filling up.

Governor's Conference giveaway information now available on the Governor's Conference Web site, where you can also find more information, register for the conference and make your travel plans.

Houston County was first settled in the 1780's. A superior grade of limestone was discovered in the rugged hills, and during Reconstruction, the flourishing communities of Arlington and Stewart developed where the lime kilns were built. Five of these lime kilns remain and two are currently listed on the National Register of Historical Places.

Source:
Houston County Chamber

Sat., Sept. 6 - Sat., Sept. 13
Stockholm and Berlin
Commissioner Kisber will participate in the Nashville Health Care Council Trade Mission in Sweden and Germany.

To request ECD Commissioner Matt Kisber to speak or attend an event, please contact Jennifer Alward at (615) 253-1852 or jennifer.alward@state.tn.us

We invite your thoughts on the ECD Hot Sheet. Please click here to contact ECD Communications with any questions, concerns or suggestions you may have.

Business Development

BERO

Jump Start Graduates 18 Entrepreneurs

The Small Business Development Center at Dyersburg State Community College and the Dyersburg-Dyer County Chamber of Commerce are proud to announce that 18 entrepreneurs have graduated from the Jump Start entrepreneurial training course.  This course was the first of its kind ever offered in the region.  Graduating ceremonies were held at the Lannom Center in Dyersburg on Tuesday, August 26.

For the past six weeks, the 18 budding entrepreneurs participated in the 36 hour training course designed to help them build their business plans.  Jamie Frakes, Director of the Small Business Development Center at Dyersburg State was the training facilitator for the class. 

"The participants received some intense training in the classroom and were required to complete outside homework in addition to their in-class activity," said Frakes. 

The course was offered through a partnership between Dyersburg State Community College, the Dyersburg-Dyer County Chamber of Commerce, and the Southeast Innovation Center at Southeast Missouri State University. Participants who complete a business plan and submit it to the Southeast Innovation Center by September 3 will be able to compete for seed capital for their business ventures through a Delta Regional Authority grant. The most viable business plans could receive an award up to $3,500 that could be used in the start-up or expansion of their small business. 

For more information about the Jump Start program, please contact Jamie Frakes at (731) 286-3201.