BRIGDING

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BRIDGING
the Economic Divide
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Statewide Resources for Economic
Development Financing Resources
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Programs

• Equity
• BRIDGE
• AIRGeorgia
• ESB

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GOAL
To help bridge Georgias economic divide by
enhancing the competitiveness of rural and
distressed areas.
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THE BEGINNING

• Master Tobacco Settlement (MTS)
• 2000 2025 Total of 4.8 Billion
• Policy Decision 1/3 Rural Economic Dev
• HB 1313 OneGeorgia Authority created
• OGA expected to receive 1.6 Billion
• 2 Programs EDGE and Equity

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ELIGIBLE COUNTIES
Eligible 111 Not Eligible 13 Conditionally
Eligible 35 Eligibility Criteria Total
population is less than 50,000 Percent in
poverty is 10 and greater
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EQUITY FUND
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EQUITY FUND
Capacity Building One-size-doesnt fit all
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EQUITY FUND

• STRATEGIES - Direct
• Create jobs
• Retain jobs
• Enhance quality of jobs
• Enhance the competitiveness of existing
  industries
• Diversify local and regional economies by
  attracting new industries

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EQUITY FUND

• STRATEGIES - Indirect
• Build infrastructure capacity for future economic
  development projects
• Enhance workforce development efforts
• Facilitate tourism, downtown development and
  other non-traditional economic development
  projects where appropriate

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EQUITY FUND

• Infrastructure to support development
• Workforce Development
• Downtown Revitalization
• Tourism Initiatives
• Feasibility Studies
• Outside the Box Projects

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EQUITY FUND

• ELIGIBLE APPLICANTS
• Local Governments (municipalities counties)
• Local Government Authorities
• Joint or Multi-county development authorities

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EQUITY FUND

• No competitive rounds
• Responsive to time sensitive projects
• Online Pre-application
• Efficient - encouraging use of technology
• Technical Assistance Available
• Emphasis on Regional Applications
• Use of Demographics in Scoring Projects

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EQUITY FUND

• Up to 500,000 in grant or loan
• Single County project with regional support
• Up to 1 Million for Regional Projects
• 2 or more counties demonstrating partnership
• Intergovernmental Agreement in place
• Opportunity for significant regional impact
• Apply at any time

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EQUITY FUND

• GRANT
• Publicly owned assets
• Land Acquisition
• Site Improvements
• Infrastructure
• LOAN 3
• Machinery Equipment - 7 years
• Bricks Mortar - 20 years

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EQUITY FUND
WHEN IS A LOAN LIKELY?

• If your project benefits a for-profit entity
• Project is likely to generate a significant
  revenue stream over time
• If your community has substantial resources for
  the project

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EQUITY FUND

• LOAN TERMS
• 3 Percent Interest
• 7 Year Amortization Machinery/Equipment
• Up to 20 Year Amortization Real Estate
• OGA is a Tolerant Patient Lender

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EQUITY FUND

• HOW DO I APPLY?
• Regulations Application Package available
  www.onegeorgia.org
• Rolling Application Process no deadlines
• Community should first submit a Pre-Application-
  provides pre-agreement cost approval
• Submit Full application within 90 days of preapp
• Applications will be reviewed in order received
  and level of completeness

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200,000 Grant
Equity Award
City of Dublin
Water and Sewer Improvements

• Infrastructure - Loves Travel Stop County
  Store
• Water/Sewer improvements - off I-16
• Capacity building activity opened up 200 acres
  
• Total Project Cost 4,961,364
• Private Investment 4,291,614

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300,000 Loan
Equity Award
DDA of Social Circle
Tourism Development Construction/Blue Willow
Village

• Loan funds Construction of retail development
  of unique turn of the century Victorian Village
  of 10-12 cottage shops, restaurant and museum
  featuring regional artisans and entrepreneurs.
• Total project cost 2,614,621

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Equity Award
The Blue Willow Inn

• Blue Willow Inn restaurant and gift shop attracts
  250,000 world-wide visitors annually.
• Anchor tenant in village will be 10,000 SF museum
  of natural history.

Owners ofThe Blue Willow Inn Louis and Billie
Van Dyke
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461,865 Loan
Equity Award
DA of Early County
Agri-tourism Building Construction, ME/White
Oak Pastures, Inc.

• Construction of 5,329 SF building and machinery
  and equipment to
• operate Harvest House, an agri-tourism retail
  store promoting Georgia-grown products and
  agri-business opportunities
• Georgia grown, grass fed, organic beef processing
  business
• Currently markets one-pound packages through
  Publix
• and Tree of Life organic stores
• Create 12 new jobs
• Total project cost 2,039,353 (Private
  Investment 1,416,048)

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500,000 Grant
Equity Award
Sumter County

• Infrastructure - ConArt
• Water improvements to support expansion of
  ConArt located on Hwy 180 in Cobb
• Specializing in custom architectural precast
  cement finishes
• Through intergovernmental agreement, Crisp County
  will lease
• and operate the public water infrastructure
• Retention of 150 jobs and creation of 40 new jobs
  
• Total project cost 1,720,000 (Private
  Investment 1.2M)

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500,000 Loan
Equity Award
Southeast Georgia JDA

• 50 acres of land to support a 7671 foot Rail
  connection between Norfolk Southern and CSX,
  shortening movement of cargo on Colonels
  Island
• Mercedes Benz doubling automobile transports
  from 40,000 to 80,000 annually increased Grain
  transports
• Proposed rail improvements will greatly enhance
  the competitiveness of the Port of Brunswick
• 58 New Jobs Committed
• Total project cost 110,994,197

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Equity Award
Norfolk Southern Railroad

• Track opened 9/06
• Additional 95,000 Mercedes-Benz vehicles worth
  5 billion and Multi-million dollars of grain
  exported through the terminal.
• 25 jobs saved and 25 new jobs created to-date.
• The connecting track has reduced round trip
  travel time from 13 days to 31/2 days.
• The connecting track reduced traffic delays at
  grade crossings in Brunswick by 70,000 hrs.

Colonels Island Connecting Track
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Equity Award
Worth County Economic DA 125,000 Loan

• 45,400 SF building in Sylvester for Southern
  Heritage Woodworks, Inc.
• Antique flooring from timbers found in structures
  built prior to 1900.
• Owners w/ 12 years experience plan to grow
  business
• Total project cost 688,500 (Private
  investment370,000)
• Expect to create 10 new jobs

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Equity Award
Worth County Economic Development Authority
Southern Heritage Woodworks UPDATE

• What began as a hobby in a Worth County backyard
  is now a corporation in a 60,000 SF building
  employing nearly 20 people where they still take
  great pride in producing fine craftsmanship.

Building Acquisition Southern Heritage Woodworks
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• BRIDGE FUND

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• BRIDGE

Broadband Rural Initiative to Develop Georgias E
conomy
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BRIDGE GOALS OBJECTIVES

• To support local government initiatives and
  public-private partnerships in rural Georgias
  un-served and underserved areas as they seek to
  identify sustainable and long-term growth
  strategies for the deployment of high speed
  broadband services and networks.
• Networks which can be launched to
• Spur competitive economic development activities
  
• Provide new educational opportunities/programs
• Attract retain entrepreneurs
• Deploy innovative Healthcare applications
• Enrich the quality-of-life in our rural areas

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WHAT IS UNDERSERVED OR UNSERVED?

• Underserved
• Dial up / less than 200 Kilobits per second
• Subscriber Access Cost is a barrier
• Unreliable Service
• Economic Development Growth stagnant
• Other quantifiable factors
• Unserved
• No access

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HOW CAN BRIDGE HELP RURAL COMMUNITIES?

• Provides a 5 million competitive financing
  program to support deployment of High Speed
  Broadband in rural areas of Georgia.
• Funding is available to cover costs for technical
  assistance (will be based on need).
• Funding is available to support both single
  county and multi-county broadband projects.

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BRIDGE FUND GUIDELINES

• Communities should seek Technical Assistance
• To identify stakeholders and develop strategy
• Contact UGA, Georgia Southern, Ga Techs
  TECHSMART Phase I
• Communities may submit multiple applications
• Phase I Technology Technical Assistance
• Phase II Broadband Implementation Activities
• Phase I is NOT required, but recommended

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ELIGIBLE APPLICANTS

• 111 Directly Eligible Rural Counties
• Cities, Counties, Local Development Authorities
• Multi-County or Joint Development Authorities
• 35 Conditionally Eligible Counties
• Cannot apply as a stand alone application
• Must be a regional initiative benefiting at
  least ONE directly eligible rural county
• Funding dependent on number of rural counties
  who will benefit

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FUNDING AVAILABILITY

• Phase I Technology Assessments
• Can be single or multi-county applications
• Multi-county applications must include at least
  one directly eligible rural county
• Application must outline objectives
• Generally will be funded at no more than 80
• Economic hardship argument is an option

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FUNDING AVAILABILITY

• Phase II Implementation
• Number of Counties Served Award Maximum
• Single County 200,000 Two
  Counties 400,000
• Three or more Counties No Max -Based
  on Strategy/Sustainability

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Phase II - GRANT ELIGIBILITY

• Goal is to enhance delivery of high speed
  broadband
• To a rural area currently not served or
  underserved
• Public ownership of Assets
• Bidding process must be transparent via RFP
• RFP must use open standard protocols
• Assets may be leased to private partner
• Encourage Public-Private Partnerships
• Compelling argument of Public Benefit/Need

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WHEN IS A LOAN LIKELY?

• Private ownership of Assets
• Ownership exclusively by a private entity
• Loan payments repaid to OGA
• Public Ownership Assets
• Ability to service debt via lease with private
  sector, etc.
• Strong Pro-forma / previous record of financial
  success
• Zero Percent Interest Loan Rate
• 0 Interest OGA loan to encourage extension of
  Broadband service to underserved rural areas.

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HOW DO I APPLY?

• Submit a Pre-Application
• Regulations and Pre-Application available online
  at www.onegeorgia.org
• Eligible Pre-Applications will receive letter
  from OGA
• Pre-Agreement Cost Approval
• Pre-Applications should be filed for each phase
  of the project needing

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HOW DO I APPLY?

• Submit Full Application within 90 Days
• Rolling application process
• No deadlines for submission
• Applications will be reviewed in order received
  and level of completeness

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MCDUFFIE, COLUMBIA, LINCOLN, WARREN,WILKES
COUNTIES
Demographic Score 95.79

• McDuffie Population 27,289 Poverty 18.4
  PCI 19,602
• Columbia Population 103,812 Poverty 5.1
  PCI 27,680
• Lincoln Population 8,207 Poverty 15.3
  PCI 18,354
• Warren Population 6,101 Poverty 27.0
  PCI 17,600
• Wilkes Population 10,457 Poverty 17.5
  PCI 17,489
• 4 of the 5 counties have poverty rates greater
  than 10

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BRIDGE112,000 Grant
McDuffie County
McDuffie, Columbia, Wilkes, Lincoln, Warren
Regional technology assessment Engineering
Site study Preliminary system design Serve
residents businesses in 5 counties
Collectively attract businesses Total cost
183,050 Date of award 01/30/07
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JOHNSON COUNTY
Demographic Score 99.43

• Population 9,538
• Poverty 22.6
• PCI 13,158
• Incorporated Cities Wrightsville and Kite

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BRIDGE11,600 Grant
Johnson County
Engineering Site study Preliminary system
study Identified need to develop sites
for distance learning Total cost 14,500
Date of award 1/30/07
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BAKER, CALHOUN, EARLY, MITCHELL, MILLER COUNTIES
Demographic Score 98.65

• Baker Population 4,154 Poverty 23.4 PCI
  17,866
• Calhoun Population 5,972 Poverty 26.5
  PCI 13,912
• Early Population 12,056 Poverty 25.7 PCI
  18,206
• Mitchell Population 23,791 Poverty 26.4
  PCI 15,171
• Miller Population 6,228 Poverty 21.2
  PCI 17,263
• All 5 counties have poverty rates greater than 20

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BRIDGE88,600 Grant
DDA of the City of Arlington
Baker, Calhoun, Early, Miller, Mitchell
Regional technology assessment Engineering
Site study Preliminary system design
Agricultural applications PILOT remote pivot
irrigation Small Businesses, Tourism Total
cost 118,250 Date of award 7/24/06
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PHASE II-Implementation (application in
review)South Georgia Regional ITA Regional
Information Technology Authority Baker,
Calhoun, Early, Miller, Mitchell

• Formed a Five-County Authority
• Seeking 2.3 Million from BRIDGE
• TPC 3,353,057
• Upon Award will issue RFP

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AIRGeorgia FUND
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• AIRGeorgia GOAL
• To strengthen rural Georgias economic
  development efforts by accelerating the
  completion of critical airport infrastructure
  improvements thereby placing every Georgian
  within a 30-minute drive of an airport that is
  capable of serving 85 of the corporate aircraft
  flying today.

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How can AIRGeorgia help rural communities?

• 65 of Georgias 103 public airports are located
  in directly eligible rural communities
• These 65 rural airports break down into 16 Level
  III Regional Airports and 49 Level I and II
  Airports
• AirGeorgia targeted to 49 rural airports in
  critical need of infrastructure improvements

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(No Transcript)
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ELIGIBLE APPLICANTS

• 111 Directly Eligible Rural Counties
• Cities, Counties, Local Development Authorities
• Multi-County or Joint Development Authorities
• 35 Conditionally Eligible Counties
• Cannot apply as a stand alone application
• Must be a regional initiative benefiting
• at least ONE directly eligible rural county
• Eligible applicants should be recognized as an
  official Airport Sponsor by the Georgia
  Department of Transportation and/or Federal
  Aviation Administration.

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ELIGIBLE ACTIVITIES

• Funding priorities include
• runway extensions
• installation of navigational aids
• automated weather stations
• Limited funding available for
• planning activities
• environmental studies
• other technical assistance

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AWARDING OF FUNDS

• Award amounts are not limited
• Awards will generally be limited to a minimum of
  65 and a maximum of 75 of eligible project cost
• Consideration of a higher percentage in extreme
  economic hardship situations

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WHEN IS A LOAN LIKELY?

• Applicants seeking to finance facilities and
  other eligible costs for use by private sector
  for-profit businesses and enterprises
• Such applications will generally be considered at
  3 interest rate
• Requires financial underwriting of private sector
  partner

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HOW DO I APPLY?

• Communities are encouraged to seek Technical
  Assistance from Georgia DOT/Aviation Programs
• Regulations Application Package available
  www.onegeorgia.org
• Rolling Application Process no deadlines
• Community should first submit a Pre-Application-
  provides pre-agreement cost approval
• Submit Full application within 90 days of preapp
• Applications will be reviewed in order received
  and level of completeness

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AIRGeorgia FUND
CITY OF COCHRAN
3,137,037 Grant
Level I Airport Runway Extension to 4,400
feet Develop Medium Intensity Runway Lighting
System along with Precision Approach Path
Indicators Promote Regional Competitiveness
Total cost 3,494,340 Date of award 1/30/07
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AIRGeorgia FUND
METTER-CANDLER COUNTY AA
2,222,602 Grant
Level I Airport Runway Extension to 5,000
feet Site preparation and paving Promote
Regional Competitiveness and Tourism Total
cost 3,272,126 Date of award 1/30/07
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Entrepreneurial Small Business Loan Guarantee
Fund

• ESB FUND

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1999-2005 Small Business/Entrepreneurial Growth
Establishments with 0-19 Employees
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ESB FUND

• Entrepreneurial and Small Business
• Loan Guarantee Fund
• First Public-Private Partnership
• Loan Guarantee Program up to 225,000
• Need for access to Capital in rural areas
• 111 Rural Counties are eligible
• Lending Institutions located in Georgia
• Emphasis on near bankable loans
• Georgia Grown Business Loans

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ESB FUND
Targeted To

• 111 Rural Counties
• Located outside Metropolitan area
• Population 50,000 or less
• Poverty 10 or Greater
• 50 Counties 20 or Greater

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ESB FUND

• Eligible Lenders
• State or federally charted bank or lending
  institution
• Lending institution has a physical location in GA
• Lending institution has a successful track record
• Eligible Borrowers
• Entrepreneurs, start-ups and small business
  owners
• For profit enterprise located in rural county
• Must meet ESB eligibility requirements
• Must meet lenders underwriting criteria

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ESB FUND

• Eligible Activities
• Building construction, conversion, expansion,
  repair
• Purchase of land, building, machinery equipment
• Start-up working capital
• adequate collateral required such as inventory,
  A/R, other tangible assets
• Quick Turnaround of application
• Online process completed by lender
• www.onegeorgia.org

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ESB FUND

• OBJECTIVE
• SHARED RISK - creates a WIN-WIN
• OGA will guarantee up to 50 of principal amount
• from 15,750 to max of 112,500
• Business must be vested requires 10 cash
  equity
• Bank exposure limited to 40 of the project
• Availability of technical assistance statewide
• Small Business Development Centers
• - Business Plan
• - Pro-Formas / Budgets
• - Marketing Plans

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ESB FUND

• STRATEGY
• Project cost 35,000 to 250,000
• Example
• Total Project 250,000
• Cash Equity 25,000 (10)
• Bank Loan 225,000 (5 yrs at 6)
• Loan Guarantee 112,500 (50 of 225,000)
• (and then 50 of outstanding balance thereafter)

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ESB
Pinnacle Bank, Elberton, GA

• Business expansion purchasing and setting up new
  equipment
• Metal fabrication company making fiberglass
  products mainly for granite industry
• 3 full-time jobs
• Date of award 12/20/06

Jeff and Katy, Inc.
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ESB
Flag Bank, Montezuma

• Fiberglass boat manufacturer
• Start up 3/05
• Incubated at SGTC 8/05
• Received ESB in March 2006
• Opened in Montezuma June 2006
• 2-year goal 10 employees

Floyds Fiberglass, Inc.

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ESB
United National Bank Cairo, GA

• June 2006 ESB Loan Guarantee
• Acquire existing restaurant
• Current employment 3 -create 1 additional job

Pickle Patch Deli
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ESB
Altamaha Bank and Trust Uvalda, GA

• November 2006 ESB Loan Guarantee
• Existing home décor business in Hazlehurst
• Purchase and expand from floor covering to paint
  and interior décor items
• Current employment 1 project 4 new

Triple C Home Decorating Center
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Collaboration with Partners

• Department of Community Affairs
• Georgia Dept of Economic Development
• Georgia Emergency Management Agency
• Georgia Soil Water Conservation
• Georgia Technology Authority
• Georgia Department of Transportation

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OneGeorgia Authority
Nancy Cobb-Executive Director Tonya Mole-Project
Manager Lynn Ashcraft-Finance Officer
478-274-7734 www.onegeorgia.org