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Georgia city is denied $5.5M for NCR

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By Jessica Wehrman, Staff Writer 11:49 PM Friday, August 14, 2009

WASHINGTON — The U.S. Department of Commerce has denied Columbus, Ga.’s request for $5.5 million in economic stimulus money to convert an abandoned factory into a manufacturing facility for NCR.

The $5.5 million request — which would have purchased a building that used to house Panasonic and gone toward the construction of a new building for NCR manufacturing jobs — sparked a firestorm among the Ohio congressional delegation, who denounced the proposal even though the buildings in Columbus were not expected to house a single job formerly held in Ohio. Rather, the manufacturing work to be done in Columbus had been done by a contractor in South Carolina and overseas.

Still, U.S. Rep. Mike Turner, R-Centerville, argued that the stimulus request was part of an overall consolidation of jobs in Georgia stemming from NCR’s decision to move its world headquarters from Dayton to suburban Atlanta.

“The consolidation created, which included jobs from Ohio, is one big project and cannot be separated,” Turner said. “The administration has prevented Georgia from using our tax dollars to take jobs from Ohio.”

In an Aug. 12 letter to Richard Ellis, chairman of the Development Authority of Columbus, the Atlanta region director for Commerce’s Economic Development Administration said the application did not meet EDA criteria on leasing and procurement.

“The proposal is not compliant with EDA regulations and could not be funded,” H. Philip Paradice wrote.

Bert Brantley, a spokesman for Georgia Gov. Sonny Perdue, said the city is prepared to use its own coffers if necessary on the building.

“It won’t change anything one way or the other,” Brantley said. “The project will move forward.”

The Department of Commerce would not comment directly on the grant application, but a spokesman said the stimulus act was aimed at creating and saving jobs.

Columbus Mayor Jim Wetherington said he had yet to hear about the denial. Nor had Brantley, who wrote a letter supporting Columbus’ request.

Brantley said Columbus made a “very reasonable request” for money that would create U.S. manufacturing jobs.

Brantley said Columbus had been prepared to pay for the money out of the city’s own coffers if necessary.

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