AUBURN, AL (WTVM) - The City of Auburn is continuing to grow.
Alabama Speaker of the House Mike Hubbard announced Wednesday three industrial development grants from the State Industrial Development Authority for projects in Auburn.
"The Industrial Grants Program is to provide state assistance to encourage industries to locate to Alabama and to expand in Alabama. The industry grants provided a range of things from building roads to provide access to new industrial buildings and it all ties back to creating jobs and that what is all about, creating private sector jobs," says Hubbard.
The funds are provided to the Grantee for use in preparation of a Project Site for qualifying projects that are a new facility, rehabilitation of an existing facility or an expansion of an existing facility.
"It's an incentive that is granted to industry to help defray part of their cost of starting their facility, so it gets reimburse back to them, buts it's based on investment, how much investment they make in the project," explains Philip Dunlap, City of Auburn's Director of Economic Development.
The City of Auburn received industrial development grants for three projects:
Arkal Automotive USA, Pyongsan America, Inc. and CNJ, Inc. will all receive over $265,000 combined for expansions and related manufacturing equipment that serves the automotive industry.
These three projects total more than a $30 million capital investment with the creation of 167 new jobs.
"What we're seeing in our economy is we're having a lot of expansions. We recruited a lot of companies years ago and when you bring them in they have an opportunity for more business, they create new jobs on an ongoing bases so you build in your expansion when you recruit the project to the community," says Dunlap.
"Whenever you can turn $265,000 into over million dollars, that's a pretty good return," explains Hubbard. "I believe that what we're supposed to do here in Montgomery and that is to provide assistance to local and private industry more importantly to encourage them to grow and prosper."