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GEORGIA DEPARTMENT OF ECONOMIC DEVELOPMENT

BOARD OF DIRECTORS MEETING MINUTES

Cateechee Conference Center 140 Cateechee Trail Hartwell, GA 30643

August 16, 2017 2:00 – 5:00 pm

Compiled by: Commissioner’s Office Georgia Department of Economic Development 75 Fifth Street N.W., Suite 1200 Atlanta, Georgia 30308 Phone: 404 962.4003 Fax: 404.962.4009 Pursuant to notice duly given, the Board of Directors of the Georgia Department of Economic Development met on date, time and place stated above.

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Attending Board Members Mr. Dennis Chastain Mr. Wayne Christian Mr. Rene Diaz Mr. Kent Fountain, via telephone

Mr. Ron Garrard Mr. Tom Griffith Mr. Allen Gudenrath

Mr. Randy Hatcher Mr. Penn Hodge Mr. Eric Johnson, via telephone Mr. Jay Neely Mr. Monty Osteen

Mr. Marisa Simpson, via telephone Attending Advisors Ms. Anne Kaiser Ms. Pat Merritt Mr. Kevin Shea Guests Present The Honorable Brandon Johnson Mayor, City of Hartwell Mayor

The Honorable Chairman Joey Dorsey Chairman, Hart County Board of Commissioners The Honorable Alan Powell Georgia House of Representatives Ms. Nicki Meyer Executive Director,

Hart County Chamber of Commerce Mr. Dwayne Dye Director of Economic Development,

Hart County Industrial Building Authority Mr. Thomas J. Cunningham, Ph.D. Senior VP and Chief Economist,

Metro Atlanta Chamber Ms. Gretchen Corbin Commissioner, Technical College System of Georgia

Mr. Ray Perren, Ph.D. President, Lanier Tech Mr. Tim McDonald Executive Vice President, Lanier Tech Mr. Juergen Moller General Manager, IMS Gear Georgia Inc. Ms. Andrea Daniel, Ph.D. President, Athens Tech Mr. Günter Knoll General Manager, Häring Precision USA LP

Georgia Department of Economic Development Staff

Commissioner Pat Wilson, Deputy Commissioners, Directors and Staff

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Board Administrative Procedures Chairman Jay Neely greeted the group and called the meeting to order at 2:01 pm. Roll Call is included in this document. Neely asked for a motion to approve the minutes of the previous board meeting held in May, 2017. Rene Diaz motioned to approve the minutes. Dennis Chastain seconded it. The group including members on the telephone (as noted above) unanimously voted for approval. Neely then introduced GDEcD General Counsel Andrew Capezzuto to address the group regarding the attached Resolution which transfers custody of a Troup County property from GDEcD to the Technical College System of Georgia for the purposes of maintenance. Capezzuto read the resolution aloud to the Board and asked if there were any questions. There were no questions. Ron Garrard made a motion to accept the resolution. Rene Diaz seconded the motion. Neely called for a vote. All present members and those on the telephone (as noted above) voted in favor of passing the motion. None were opposed. Both Chairman Neely and Secretary Osteen signed the copies of resolution, and it has since been forwarded to the State of Georgia Attorney General’s office. Moving on, Neely thanked the communities of Hart County including the City of Hartwell, the Hart County Board of Commissioners, the Hart County Industrial Building Authority and the Hart County Chamber of Commerce for their collective roles in hosting the Board today and he called on Mr. Dwayne Dye, with the Hart County Industrial Building Authority, to provide welcoming remarks. Welcoming Remarks Dwayne Dye, Director of Economic Development with Hart County Industrial Building Authority, greeted the group. Mr. Dye was the primary contract in Hartwell and is credited with assembling the community leaders to welcome and host the Board. First, he introduced City of Hartwell City Manager, David Aldrich who spoke on behalf of the Mayor who was unable to join the meeting. Aldrich was grateful for the Board’s visit and he stressed that economic development is the lifeline of the community. Next up was Joey Dorsey, Chairman of Hart County Board of Commissioners. Dorsey welcomed the Board members and GDEcD staff. He’s proud of the recent wins that the County has experienced and admitted it could not be done without the Department. He especially thanked all the project managers for their work in the community. Representative Alan Powell was next. He called Hartwell and Hart County the last frontier before reaching the Carolinas via Interstate 85. He thinks it's the best place for “business to do business.” He welcomed the group to hang around and spend money. Last of the community partners to greet the Board was the Hart County Chamber of Commerce represented by Nicki Meyer and Christine Blomberg. Christine was recently named the Chamber’s new executive director. She presented a PowerPoint presentation, which highlighted the county’s assets. She described community resources: shoreline, location, culture and recreation (art, theater, botanical gardens, state parks). Blomberg also discussed workforce development, area tech schools and the newly opened College & Career Academy. Hart County currently boasts a 92.4% high school graduation rate. Wrapping up, Blomberg asserted that Hart County provides a high quality-of-life: “...live well, play well, Hartwell.” Hart County Industrial Building Authority At this time, Dwayne Dye detailed the efforts of the Hart County Industrial Building Authority. Identifying the strategic location of exit 177 along Interstate 85 as Hart County’s only exit and the need to make the most of it, HCIBA recognized the tremendous value of working together with neighboring

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communities instead of working separately. The Franklin/Hart/Stephens Counties Joint Development Authority, formed in 1997, has since then and even through the 2008 recession, worked collaboratively to successfully develop and market the Gateway Industrial Parks (Phases 1-3). Their concerted efforts over the past nearly twenty years have resulted in a return on investment of $7.19MM: $251MM and 1,556 jobs. Another source of pride for the Hart County IBA is its focus on workforce development. Unemployment is in the mid-4% range down from 13.8%, thanks in part to a careful choice of sectors and long-term strategic planning. The high school graduation rate that in 2006, was in the 60%-range, is now near 95% (2017). Work with local employers to provide opportunities for high school students and grads -- from producing PSAs to apprenticeships has been rewarding. Chairman Neely introduced Mr. Thomas Cunningham. Global Auto Industry Trends and the Outlook for Georgia Thomas Cunningham, Ph.D., Senior VP and Chief Economist for the Metro Atlanta Chamber addressed the Board on the topic of the global auto industry and Georgia’s role. He affirmed that Georgia is thriving. The state has been growing at a rate faster than the nation for almost five decades. He compared Georgia’s “large and dynamic economy” to that of a national economy similarly sized to that of Austria. He forecast Georgia’s growth to continue to trend like the US national economy and that Georgia will grow faster. Cunningham shifted his discussion to the southeast. He pointed to how the auto industry has been migrating from the Great Lakes to the Southeast. Mercedes-Benz’s move to Alabama was an impetus. Ultimately, this became a bigger win more so for the entire southeast region than it was for Alabama. Cunningham pointed out that geographically within the southeast, Georgia is centrally located, an obvious advantage. He stated that the industry money is in auto components which has followed Mercedes-Benz but not overnight. Referring to the workforce, he says, there is “a lot of room to grow,” with Georgia showing in the mid-range of concentration/intensity of auto production jobs. Conversely, the Great Lakes is more heavily concentrated, with more of their “jobs are dependent on the industry.” He added, “paychecks go further” in the southeast and lower overhead costs in Georgia are both fueling growth. Cunningham states that “Georgians are far from being overly dependent on this industry.” Overtime, he sees Georgia continuing to do well. After a short break, the Board meeting resumed. Chairman Neely introduced Ms. Gretchen Corbin. Apprenticeship Innovations for Georgia’s Emerging Automotive Workforce As Commissioner of the Technical College System of Georgia, Gretchen Corbin, spotlighted the significance of partnerships with the automotive industry, apprenticeships, and the partnership between technical colleges and economic development. She introduced Dr. Ray Perren.

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Mechatronics for Millennials – The IMS / Lanier Tech Apprenticeship Ray Perren, PhD., President of Lanier Tech, came to the podium. He introduced his co-presenters, Tim McDonald, Executive Vice President of Lanier Tech, and Mr. Juergen Moller, General Manager, at IMS Gear Georgia Inc. Perren recalled Lanier Tech’s history. Open since 1964, Lanier Tech strives to meet the workforce demands of the community. Automotive technology, offered since the beginning, has evolved with industry innovations. Perren, McDonald and Moller highlighted the successful IMS apprenticeship program and its exposure to careers in the automotive components industries. IMS, a Tier2 company with 350 employees in Gainesville, is headquartered in Germany where they design and program their production. Ultimately all production design is transferred to regional plants around the world for use by the local workforce. The apprenticeship program resides in Germany and is customized for the US market. Georgia is the only state with a US Department of Labor registered apprenticeship. With emphasis is on a community connection, IMS links with local schools to identify and train students, actively recruiting in high school. The apprenticeship itself offers multiple entry points leading to a rewarding career with a solid foundation and no ceiling for advancement. Commissioner Corbin returned to extol the value of apprenticeships and how the Technical College System of Georgia can work with businesses and communities to customize a program that suits an industry. She then introduced Dr. Daniel. The Fully Immersed Apprenticeship – The Häring / Athens Tech Partnership Andrea Daniel, Ph.D., President of Athens Tech and Günter Knoll, General Manager, at Häring Precision USA LP spoke to the Board about Häring apprenticeships. Daniel took time to acknowledge the partnerships that Athens Tech has cultivated with many including GDEcD, Deputy Commissioner Ben Hames, Hall County and Dwayne Dye. She admits these relationships have enhanced the apprenticeship program. German-based manufacturer Häring, collaborated with Athens Tech even before their location announcement to align training goals. They work together to identify milestones within the curriculum and to create a capstone project. Knoll, from Häring, described the facility where Häring hosts the program stressing consistency with the Lavonia plant. In addition to apprenticeship training, students work closely with coaches/tutors on the German campus to acclimate to and navigate the locale. Governor Deal's visit to the Häring Academy in Bubsheim during a recent workforce development mission to Germany made a lasting impression on Athens Tech students. Corbin thanked the speakers from both Lanier Tech and Athens Tech, calling them, “two incredible examples” of programs at TCSG. She then introduced Mr. Ben Hames. The Strength of Georgia’s Workforce Ben Hames, Deputy Commissioner, Workforce Division at GDEcD, addressed the Board. He applauded both Lanier Tech and Athens Tech, calling them “the MVP of apprenticeships.” He recognized the valued partnerships created across the board between the individuals, the communities near and far and the industries benefitting from apprenticeships. Hames discussed creating a sustainable workforce pipeline needed to support a growing economy. Workforce demands in Georgia are “diverse and broad-based,” which is a point of pride for Georgia. Working with the private sector at the Governor’s directive, the High Demand Career Initiative (HDCI), has identified 10 high demand careers which again point to a healthy diversity: entry level (welding) to advanced occupations (electrical engineering).

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Hames quoted a recent study from the PEW Research Center which indicates that Georgia is among the ten “high magnet / high sticky,” states that not only draws talent but also retains it. As a young state – in 2014, Georgia was the eighth youngest state in the nation with a 36.1-year median age, Hames reiterated Dr. Cunningham’s observation that “Georgia is a growing state.” Hames says, the US population is “voting with their feet and their pocketbooks.” Georgia’s Workforce continues to be a competitive advantage over “peer-states” with steady improvement for the past four consecutive years. This is the right direction, and Hames declares his department can do more and do better to pull further away from the crowd. His team works to reach the 250,000 Georgians without jobs and also to reach veterans before they exit their service. Hames acknowledged the various incredible partners, like those who spoke at today, for investing in Georgians which is critical to maintaining a competitive workforce. Chairman Neely returned to the podium, thanking Hames and praising his efforts with Workforce. Further, he acknowledged Commissioner Corbin for her background in economic development and her great energy. Next, Neely called on Pat Wilson for the Commissioner’s Report. At the podium before providing his report, Commissioner Wilson also recognized Corbin and how effectively she carries out Governor Deal’s vision to connect TCSG with economic development. He attributed her “consider it done” attitude to success of the many GDEcD projects. He also thanked the City of Hartwell, Chairman Dorsey, Representative Powell and the Chamber of Commerce for their warmth and hospitality. Commissioner’s Report – Pat Wilson The Commissioner’s Report updates the Board on highlights from each of the Department’s divisions: Film In July, Governor Deal announced the FY17 film impact numbers. Georgia-lensed feature films and television productions generated a direct spend of $2.7 billion. (For perspective: ten years ago, in 2007, the direct spend was $65 million.) The 320 feature film and television productions that shot in Georgia created a recording-breaking total economic impact of $9.5 billion. According to the most recent figures from the Motion Picture Association of America, Georgia’s motion picture and television industry is responsible for more than 92,100 jobs and nearly $4.6B in total wages, including indirect jobs and wages. And, we don’t see this industry slowing down anytime soon. Tourism In Valdosta, the second annual ExploreGeorgia.org Songwriters Series kicks off on August 19. It will continue through the fall with five additional performances in Augusta, Athens, LaGrange, Savannah and Rome. The series celebrates the “Year of Georgia Music,” which was a 2016 marketing initiative developed by Georgia Tourism to promote the state as a premier destination for live music and music heritage. The Governor's Tourism Conference will be held September 10 – 13, 2017, at the Jekyll Island Convention Center. If you are interested in learning more about either event, please check in with Kevin Langston. Global Commerce Tom Croteau and his team had a fantastic week in terms of project announcements:

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On August 8, Governor Deal announced that ASOS, a leading online global fashion and beauty retailer, will establish an East Coast e-commerce fulfillment center in Union City, creating more than 1,600 jobs and investing more than $40 million in Fulton County.

On August 9, the GDEcD Team traveled to Macon to announce that Irving Consumer Products, a leading producer of paper products, will invest $400 million in a state-of-the art tissue manufacturing facility in Macon-Bibb County. This project will create 211 jobs.

On August 10, Healthy Pet, a global leader in natural fiber processing for use in pet care, will create 15 new jobs and invest $9.3 million at its existing facility in Jesup-Wayne County.

Coming up next month, on September 19, Governor Deal will announce Global Commerce’s FY17 numbers. A formal invitation will be sent via email soon. The event will take place at Honeywell's new North American software center headquarters in Midtown Atlanta. International Trade Trade is starting the fiscal year strong with more than 321 companies assisted since July 1. The Trade team, led by Deputy Commissioner Mary Waters, is focused on the business community statewide, and much of their work occurs outside of the metro Atlanta region:

last year, the team worked with 821 companies in 120 counties

2/3 of the dollar value of exports supported came from outside of the Metro Atlanta region. International Relations On June 4, Governor Deal & GDEcD leadership traveled on Delta’s inaugural flight to Seoul. There the delegation met with Kia’s leadership in Korea. They continued on to Japan where they met with prospects, paid “thank you” calls to companies already located in Georgia, and hosted a reception in Tokyo. While in Japan, Governor Deal and others visited with executives from Rinnai, a home appliances manufacturer. And, earlier this month the Governor announced that Rinnai would create 150 jobs and invest $69 million in Spalding County. In fact, Rinnai expects to create a total of 300 jobs over the next 10 years. Over the next few months the International Relations division will be hosting a breakfast event to introduce the Centers of Innovation to the Consular Corps; planning travel to Europe and Asia; and preparing to welcome to Georgia visitors representing the U.K., Finland, Hong Kong, Japan and Latvia. Centers of Innovation The Centers of Innovation team has been busy. On July 31, Gov. Nathan Deal announced the launch of the Georgia Defense Exchange (GDX), an interactive online directory designed to assist Georgia businesses in finding new opportunities in Depart of Defense contracting. Last year alone, defense contracts executed in Georgia were valued at $6.4 billion. GDX will open new opportunities for both traditional defense-related businesses and service-oriented companies with no experience in defense contracting. The Commissioner told the group that the Director of Logistics for COI Jannine Miller had recently been recruited by former Georgia Governor and U.S. Department of Agriculture Secretary Sonny Perdue to join him in Washington as his senior advisor for rural infrastructure. Commissioner Wilson spoke highly

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of Jannine’s efforts and leadership specifically mentioning Jannine’s work on the Georgia Logistics Summit. Workforce Commissioner Wilson revealed that the Workforce division is partnering with Trust Dale TV to produce a four-episode television series titled “Great Georgia Jobs.” This series will feature success stories and will highlight employment-driven resources made available through Georgia’s workforce system. It will air in every region throughout the state beginning in mid-September. Georgia Council for the Arts The Arts team recently learned of some exciting news: the book they produced called, “Inspired Georgia,” was included on the 2017 list of Books All Georgians Should Read by the Georgia Center for the Book. This is a big honor for the team. GCA also announced the first round of their FY18 grants on July 1; they awarded just over $1 million and 114 grants to arts entities across the state. And, the Vibrant Communities Grant deadline is August 31. If you are interested in knowing whether or not your county is eligible, please see Karen Paty. Marketing and Communications The Commissioner praised the Marketing and Communications team for being behind the scenes making the Department look and sound good. He shared their recent big news: they collected three Gold Winner awards from the International Economic Development Council (IEDC) for excellence in promotion:

for the China investment video that was shown at the May board meeting. He went on to say that the video gives senior-level decision makers at China-based companies a good understanding of what it would be like to live and work in Georgia

for the new in-country Chinese investment website WeSpeakBusiness.cn - since the site’s launch, we’ve see a 200% increase of traffic from China to Georgia.org

and for a social media campaign to promote the China video and website Commissioner Wilson congratulated Deputy Commissioner Greg Torre and the entire marketing and communications team for their achievements. Legislative Commissioner Wilson reported there are several study committees that the department is monitoring: two on rural development, a review of tax incentives, and an information technology corridor. He expects more details at the November board meeting. Wrapping up, Commissioner Wilson indicated the GDEcD Team will be available after the meeting to

share details with Board members. He thanked the group and turned the meeting back over to

Chairman Neely.

There being no further business, Neely thanked the Hartwell community for hosting and coordinating the program. Also, he personally commented how much he appreciated hearing the powerful stories

about the partnership between the local workforce, the tech schools and the successes of apprenticeships. He announced the next GDEcD Board of Directors meeting will be held on November 1, in Savannah (exact location is still to be determined). Then, Chairman Neely adjourned the meeting at 5:06 pm.

Respectfully Submitted:

Monty OSteen

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