PDA approves $9 million lease purchase deal with Coats & Clark

ALBANY — The Albany-Dougherty Payroll Development Authority, at a called meeting Thursday, approved a five-year payment in lieu of taxes (PILOT) agreement for Coats & Clark of North America. The agreement includes Realty Income Corp., owner of the property leased by Coats & Clark for its distribution center on Holley Drive.

The PDA also authorized the borrowing of as much a $9 million to buy the 39.5 acre site, which will then be leased to Coats and Clark.

The facility, in operation since 2009, suffered major damage in the Jan. 22 tornado that tore through Southwest Georgia. Citing its long relationship with Albany and Dougherty County and its partnership with the Albany-Dougherty Economic Development Commission, the company decided to build a new distribution center in the same location as the original structure.

“Coats is proud to recommit back to the city of Albany for the foreseeable future,” Coats Craft Vice President of Finance Keith Howard said. “We look forward to continued success in Albany through our manufacturing mill and newly rebuild distribution center.”

Coats & Clark’s distribution center employs more than 100 people in Albany and more than 200 work at the company’s mill on Clark Avenue. The company has been active in Albany since 1947.

“I am very proud to solidify Albany and Dougherty County’s relationship with Coats & Clark for years to come,” Albany Mayor Dorothy Hubbard said. “Coats has made significant investments in the community for more than 70 years and is an outstanding corporate citizen.”

The newly rebuilt distribution center will be 370,000 square feet and is expected to become operational by May of next year. Investment in the new facility is anticipated to be more than $14 million.

“Albany’s Coats and Clark manufacturing operation is the world’s leading yard production facility,” EDC President Justin Strickland said. “Being able to keep their North American distribution center in our community, and in close proximity to their manufacturing facility, is a huge win for both Coats & Clark and Dougherty County.

“We look forward to strengthening the company’s legacy in Albany-Dougherty County and continuing the partnership we have enjoyed with Coats for many years.”

Dougherty County Commission Chairman Chris Cohilas agreed.

“Coats & Clark is an important member of our corporate community,” Cohilas said of the agreement. “We wanted to make sure we gave them some breathing room.”