Project X -- Is it Savannah's next big economic boost?

By Mary Carr Mayle

OFFICIALLY, MUM'S THE WORD. Unofficially, the buzz surrounding an economic development project known only as Project X is getting as loud as the cicadas on a Savannah summer day. When asked, those who would know are characteristically quiet, with both the Savannah Economic Development Authority and the Georgia Department of Economic Development issuing the usual "no comment."

At the Savannah/Hilton Head International Airport, the airport commission has voted to approve several major projects - including a traffic study and the repositioning of a new runway - all designed to accommodate something described vaguely as "potential new development."

Airport director Patrick Graham, choosing his words carefully in a board meeting, later declined to elaborate.

Other inquiries of city and county officials regarding Project X have been met either with "no comment" or, more often, "Project what?"

Still - despite any real specifics - the buzz continues unabated.

And it's apparent the people linked to Project X continue to take a hard look at the Savannah area. What no one seems to know - or at least isn't willing to share - is what the project is and when a decision might be made.

Maintaining the momentum

After the successful recruitment of Mitsubishi Power Systems to the megasite - a plum project that brings some $325 million in investment and the promise of more than 500 jobs at build-out - many in economic development circles felt the area was ripe for more development, much like the building of the first large distribution center created a domino effect in Crossroads Business Park.

After all, a number of projects - from Rolls Royce to American Titanium Works - showed an interest in locating on part of the megasite before the state decided to split it up.

But the recently OK'd spurt of new development at the airport would suggest this project may not be looking at the megasite.

At Gulfstream Aerospace, which shares runway space with the airport, a spokesman said the company is always looking at updating its physical plant, but has no firm plans at the moment to announce any additional projects.

Gulfstream is currently in the fifth year of a seven-year, $400 million Long Range Facilities Master Plan in Savannah.

The company has added a new Sales and Design Center, a 200,000-square-foot completions facility for Gulfstream's newest flagship, the G650; two new Research & Development facilities in Crossroads Business Park; and a new service center with nearly 680,000 square feet under roof, making it the largest maintenance facility in the world built specifically to service business jets.

More than mega-projects

Announcements of the magnitude of Mitsubishi's Savannah Machinery Works, Gulfstream's seven-year expansion plan and Portuguese manufacturer EFACEC's power transformer manufacturing plant in Rincon are fairly rare. Still, the area has enjoyed a number of economic development successes - even in what has been arguably one of the worst periods for the U.S. and global economies in decades.

Last year alone, nearly a dozen industries either located new facilities in the area or announced major expansions, bringing close to $500 million in investment and the promise of as many as 1,500 new jobs.

Where Project X might fit into this equation, in terms of scope and impact, is anyone's guess at this point. But the simple fact that it carries a code name and is shrouded in the kind of secrecy that suggests multiple confidentiality agreements have been signed would indicate that this is no "Mom and Pop" operation.

And, as major projects go, secrecy and confidentiality are nothing more than "business as usual," according to one nationally recognized site selection expert.

"There are a whole host of compelling reasons a company might not want their plans to become public knowledge too early," said Mark Sweeney, senior principal in McCallum Sweeney Consulting in Greenville, S.C., one of the leading economic development consulting firms in the country.

Why mum's the word

Many times, for example, the site-selection process starts before the project receives its final internal approval, Sweeney said.

"Usually, there is a strong indication that the company wants to move forward with the project - or they wouldn't be investing the money - and the site selection possibilities sometimes play into their final decision," he said.

"But most companies would just as soon not have the world know about something they may or may not do."

Another reason companies like to keep quiet, Sweeney said, is to protect the company from its competition.

"We're working on a project right now that's at the stage where we have to share sensitive information and everyone we share that information with has to sign a non-disclosure agreement," he said. "This can be very serious. Sometimes even the fact that a company is looking at a project conveys important information to its competitors."

Then there is the potential for internal disruption, "especially if there is a perceived possibility of relocation, such as a headquarters move," he said.

On the flip side, Sweeney, whose firm is not associated with Project X, said areas trying to lure a project also have a stake in keeping that information quiet.

"If you're a finalist for a big project, it's always in your best interests to maintain secrecy," he said. "Otherwise, you may inadvertently give another finalist information they can turn to their advantage."