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Big projects likely to push Augusta growth

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Projects on the periphery of Augusta involving national security, weapons-grade plutonium and nuclear reactors won't lend themselves to photo ops, but Mayor Deke Copenhaver is counting on them to propel the city out of the recession.

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Staff

"Really, what we're looking at is billions of dollars being invested in this local economy," the mayor said. "To my mind, it is the perfect storm of economic development."

During the next eight years, more than $14 billion -- most of it not stimulus money -- will be poured into projects at Fort Gordon, Plant Vogtle and Savannah River Site, creating thousands of temporary construction jobs and permanent high-tech jobs.

The gross domestic product of Richmond, Columbia, Burke, McDuffie, Aiken and Edgefield counties is about $16.5 billion, according to the U.S. Bureau of Economic Analysis.

"You're talking about almost doubling the size of the region's economy," said Mark Thompson, the Cree-Walker Chair of Business Administration at Augusta State University.

With the projects security-sensitive and taking place at restricted areas, the public might not get to watch their progress, but the effects will be felt, Dr. Thompson said.

Good-paying jobs and steady paychecks mean more demand for everything from restaurant meals to new cars, but whether that will dry up once the programs have run their course in the latter part of the next decade remains to be seen.

Doug Bachtel, a University of Georgia demographer and professor in the college of family and consumer sciences, cautions that while these projects will undoubtedly boost the economy, they could do little to help struggling families. The jobs require specialized skills, and according to 2007 U.S. Census Bureau estimates, 18.7 percent of Augusta's over-25 population don't have high school diplomas, compared to 17.1 percent statewide.

"The unemployed might not be employable in those jobs," Dr. Bachtel said, "Go into these developments with your eyes wide open and understand that they're not a panacea, a cure-all."

The developments include:

- In Burke County, Georgia Power customers are funding a $6.4 billion expansion of Plant Vogtle nuclear power plant. Two new reactors will be shipped by barge up the Savannah River and assembled at the plant, requiring up to 4,000 construction workers and up to 900 long-term employees, according to the plant's operator, Southern Nuclear.

- At Savannah River Site, the U.S. Department of Energy is investing $4.8 billion in a Mixed Oxide Fuel Fabrication Facility, which will convert surplus plutonium into commercial nuclear reactor fuel. That project should employ 2,000 for construction and up to 1,000 permanently, according to Jim Giusti, an Energy Department spokesman.

- About $1.3 billion in DOE funds is going into an SRS Salt Waste Processing Facility, which will process radioactive Cold War nuclear waste, employing 400 for construction and 100 long-term.

- From President Obama's economic stimulus package, $1.6 billion is being used to speed up SRS environmental cleanup projects, creating about 3,000 jobs with contractors chosen for specific tasks. The jobs should last for the duration of the program, which runs through 2011, Mr. Giusti said.

THE NATIONAL SECURITY Agency/Central Security Service Georgia facility, a half-million-square-foot intelligence-gathering center at Fort Gordon, is harder to gauge in terms of investment and job creation because of the secrecy surrounding it. An NSA spokeswoman said the design and construction contract costs are $286 million, but that doesn't factor in outfitting the massive building with sophisticated equipment and other features, which could drive up costs hundreds of millions of dollars more.

NSA also hasn't finalized how many people the facility will employ, though Department of Defense construction documents speculated there could be up to 3,000 military personnel assigned there.

The center is expected to have a mix of service members and civilians, and many of them could be transferred in from other NSA centers or moved out of existing national security operations at Fort Gordon.

Dr. Bachtel said if workers at the various facilities turn out to be out-of-town transplants who commute from the affluent suburbs, Augusta's proximity could only mean more traffic and more wear and tear on roadways. An influx of residents could put burdens on schools and police and fire services, translating to higher taxes.

"This could be the beginning of some very interesting challenges," Dr. Bachtel said. "But those challenges are much better than the spiral of decline like you're seeing in southwest Georgia. Be thankful for your problems."

RICHMOND COUNTY DEVELOPMENT Authority Executive Director Walter Sprouse said the projects' benefits should be viewed from a regional standpoint, not a Richmond County standpoint.

He said he suspects the companies will care more about a potential hire's experience and work ethic than his or her educational attainment, and they'll likely offer training and partner with technical colleges to bring the workforce up to speed on rapidly-evolving technologies.

"It's going to be a tremendous shot in the arm," Mr. Sprouse said.

Roadway infrastructure to accommodate commuters is already in place in Augusta, he said, and the key will be maintaining it.

Thom Tuckey, the executive director of the CSRA Alliance for Fort Gordon, is concerned about Robinson Avenue in Grovetown, which leads to Fort Gordon's gate 2, the entrance closest to the NSA center.

Traffic there is already difficult in the morning, and if 1,000 more people were to be employed at the fort, it could get worse, he said. Fort Gordon isn't building barracks for NSA workers, and there's no more housing available on post.

"I think what it's gonna result in is a lot of crash planning taking place," Mr. Tuckey said.

Reach Johnny Edwards at (706) 823-3225 or johnny.edwards@augustachronicle.com.

Comments

SCGAL53

Justus, this should be a clue to those needing an education. However, if they don't want even a GED, I'm sure there will be more fast food places opening up around Ft Gordon. The young people who lack even a high school diploma and are looking for career opportunities need to go back to school.
As the article stated, there will be civilian jobs. They just have to be educated in the appropriate fields and have good work ethics.
There's nothing confusing about that.

Grasshopper

I think its sad that young people don't take advantage of the opportunities out there. I work as a consultant for an engineering firm the projects I do are huge and its the Americans picking up the trash behind the illegal workers. There was one young laborer who worked hard. So I offered him to teach him how to read drawings and codes, he refused said he wouldnt understand. I found it sad that these kids today wont even try. I wonder if Mexico schools are better than ours these guys cant speak English but can learn to read a set of plans. They dont always get it right, but at least they try.

patriciathomas

The influx of government money into this area will lead to the increased influx of private money in an effort to get the government money. In the cases of Fort Gordon and SRS, that means growth for Augusta. The down side is the increased radiation in the aquifer down stream from a watershed perspective. Even with the super effort made by SRS to contain, the radiation means increased risk of leukemia in this region. Growth in production facilities at SRS, or storage facilities for waste, means increased risk. The down side for Ft. Gordon is that a lot of the businesses that follow the military are not the types a community seeks. There's good and bad affiliated with most things. Growth is one of them. To get the good, we must be willing to accept the bad.

UncleBill

The graduate with a Science degree asks, "Why does it work?" The graduate with an Engineering degree asks, "How does it work?" The graduate with an Accounting degree asks, "How much will it cost?" The graduate with an Arts degree asks, "Do you want fries with that?"

UncleBill

I guess the addendum for Augusta would be, " Hey, can you spare some coins so I can get something to eat?"

disssman

I wonder if text messaging, eating out, playing loud music, shopping, game playing and dressing like Gangstas for da man are important areas of employment, if so we in Augusta will have a lot of employment, if not I can only see Section 8 increasing. In all honesty this is the time to show your real colors as CONServatives and refuse to work for any company receiving stimulus money. To work and receive pay from such a company would indicate a CONservative is acknowledging the need for, and supporting the Presidents program.

workingmom

Good point, UncleBill.

FallingLeaves

I don't think that's a fair thing to say, Uncle Bill. My family was asked by a local lawyer what he should do about his son that wanted to go to school for an Art degree. He was worried about him becoming a starving artist. We got him in touch with my uncle, who is an internationally renowned artist who earned an "Arts" degree in a rather rare choice of subjects. My uncle and the young man went over his interests, favorite subjects and his school records and determined he should go to school for an Arts Degree. He narrowed his specialty down to Medical Illustration and is now making more than his father ever did. So much for "do you want fries with that?" Not everybody can or wants to be a scientist, engineer, or mathematician. We need people with Arts degrees just as much as any other degree. BTW, in this economy, it's a good guess that there are some engineers and accountants out there flipping burgers. If you've got a better job than that, count your blessings and do your best to keep it.

jhvenier

Patricia, dont have a flipping clue do you? What kind of projects a side from the MOX do you think is going on??? Clean up!!! I would hope that is a plus to everyone? The new nuclear plant will also be a plus, just like all in the USA, no contamination. If young people or anyone with any drive wants a job in the trades, there are shortages. Check out the union halls or the colleges for trades classes, there will be many needs.

double_standard

Uncle Bill that is an excellent point.

FallingLeaves

No, it is not a good, nor excellent point. It is a joke, and an old and inaccurate one at that. And since a couple of people here actually took it seriously, it's apparently not even funny.

SargentMidTown

18.7 percent of Augusta's over-25 population don't have high school diplomas, compared to 17.1 percent statewide.....most of these are generational welfare people. Richmond counties biggest industry is federally funded housing. The products of federally funded housing are crime, poverty and ignorance. Mandatory birth control would be healthy for these people.

http://www.nola.com/news/index.ssf/2008/09/labruzzo_sterilization_plan_f...

Welfare is causing moral decline: http://www.theatlantic.com/doc/200807/memphis-crime

SargentMidTown

It sickens me every time I see a welfare baby factory walking around with multiple intercourse trophies. These trophy children will grow to repeat the ugly cycle.

Craig Spinks

Please read and think about Dr. Bachtel's last sentence.

1941

Georgia should not get one dime of the stimulis money, They feel as if the president have not done anythin good, for the country, so why take the money. Hypocrits.

HillGuy

Maybe it's just me, but I don't necessarily see it as a positive that any growth for Augusta is always dependant on large government spending projects. Augusta needs to diversify its economy to not be so dependent on government spending. Military towns are not exactly the most vibrant places economically. Augusta needs more private investment, more entrepreneurism, more creative economy jobs.

yvalentine6

It isn;t just you, Hillguy. I see so many empty storefronts across town and I also meet people with very creative ideas for a small business. They just need some start-up money and then they will be tax paying employers who make a real contribution to the city.

Ode to Augusta

It is difficult for private enterprise to invest in an area where 18.7% of the 18-25 year old population does not have a high school degree (though that statistic does explain alot about this area). It is certainly a hinderance for the area becoming vibrant unless you count more liquor stores, car washes, and pawn shops are more creative economy jobs.

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