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News Golden LEAF Foundation Announces $85.4 Million Economic Stimulus Package
Raleigh (August 14, 2002) - Golden LEAF, the foundation established to use money from the tobacco settlement for the long-term economic advancement of North Carolina, has announced an $85.4 million economic stimulus package it believes will significantly improve North Carolina's economy and make the state a leader in the biosciences industry. When the economic package is implemented, it is estimated that it will stimulate at least $350 million in new investments in North Carolina, according to Lawrence Davenport, of Greenville, Chairman of the Golden LEAF Board of Directors. The centerpiece of the package is a commitment to invest $42 million in bioscience/biotechnology companies developing or manufacturing their products in North Carolina. If those investments are successful, the Golden LEAF Board anticipates making additional investments of $108 million over the next six years, bringing its total investments in the bioscience sector to $150 million. "For a long time, members of the Board of Directors have thought that the life sciences can offer tremendous economic potential for North Carolina," said Valeria Lee, President of Golden LEAF. "After considerable research and discussion, they have decided to make investing in the bioscience industry a major Foundation initiative," she said. Another initiative in the biotechnology sector will be a $10 million investment in a proposed biodiesel plant in Eastern North Carolina, which Golden LEAF officials say will be a boon to soybean farmers and put the state on the cutting edge of the alternative fuels industry. Speaking at a press conference immediately after the Golden LEAF board voted on the package, Davenport said, "In these difficult times, each of us in his or her own way must do as much as possible. By law, Golden LEAF must look at the long-term economic advancement of the state. But we have targeted areas where we can begin making investments and grants immediately that will have continuing impact and be major economic building blocks for the years to come." "These initiatives," Davenport said, "will bear fruit - new jobs, new businesses, new technology, and new investments - for many years. In fact, we expect that these initiatives will result in at least 25,000 new jobs during the next five years." More specifically, he said the Golden LEAF economic package will
With the announcement of the economic development package, the Foundation is departing temporarily from its policy of making grants only from income from invested funds. The package includes $18.4 million in direct grants funded from principal, which allows the Foundation to continue uninterrupted its regular, annual grant process. $52 million of the package is in the form of equity or debt investments in new ventures. It represents an effort by the Foundation to invest some of its resources in projects that not only will generate income for the Foundation but also encourage investments in North Carolina, create jobs, generate tax revenues, and boost the state's economy. The remaining $15 million of the package will be in the form of grants to be made this fall. "Because the Foundation is unique," said Davenport, "it can do things that State government and public agencies cannot do. We can remain true to our mission and, at the same time, complement the actions that Governor Easley and the General Assembly are taking to bolster our state's economy and ensure our future competitiveness." Golden LEAF is a statewide foundation, but, by law, it has a very specific purpose - helping tobacco-dependent and impacted counties deal with the long-term consequences of the decline of the tobacco industry. It is not a general-purpose foundation. Its offices are in Rocky Mount. # # # For additional information, please contact Email: info@goldenleaf.org
Golden LEAF Foundation |