Deep coverage
The Atlanta Journal-Constitution first reported in 2012 about how supporters of Gov. Nathan Deal benefited from the location of a state poultry lab in Hall County’s Gateway Industrial Centre. The AJC also wrote earlier this year about members appointed by Deal to the Board of Regents, the Georgia Ports Authority and the Board of Natural Resources play an outsized role bankrolling the governor’s political campaigns.
When Gov. Nathan Deal announced that a major manufacturer would expand in Hall County, nobody mentioned that it would happen on land connected to his campaign chairman and other backers.
Deal announced Monday that Kubota, a leading manufacturer of small tractors, lawn mowers and recreational vehicles, would expand in his home county, bringing 650 good-paying jobs to 180 acres located in the Gateway Industrial Centre.
Kubota is expected to pay the local development authority about $5.67 million for the land, with the proceeds going to pay off Hall County for infrastructure improvements at the industrial park and to the past owners of the land. As The Atlanta Journal-Constitution reported in 2012, the partnership of owners that transferred the land to the authority includes Philip Wilheit, the governor's campaign chairman. The CEO of the limited partnership involved was Jim Walters, a longtime supporter.
A press release from the governor’s office said the state Department of Economic Development “assisted” Kubota, along with the local chamber of commerce.
Deal’s campaign said no state money was involved in the expansion, and that local officials worked with Kubota to find the site, which is about 1 1/2 miles down the road from the company’s existing facilities.
Deal is running for re-election against Democratic state Sen. Jason Carter in a race that polls show is close. But it was Deal’s Libertarian opponent, Andrew Hunt, who first raised questions Tuesday about the Kubota deal.
Hunt noted that in 2012, the State Properties Commission, which Deal heads as chairman, decided to spend $690,000 on 10 acres in the same industrial park for a new State Poultry Lab site. Hall County officials agreed to front about $10 million in local taxpayer funds to improve the 500-acre industrial park property.
The same day the county voted to spend the money, Wilheit and his partners transferred the property to the local development authority with the idea that they would get paid as lots in the industrial park were sold. Wilheit has long served as a chairman of the development authority.
Hunt sent out a release Tuesday saying he wanted to “expose” the facts about the expansion site.
“I understand that Governor Deal has friends and family whom he would like to see succeed,” Hunt said. “The more that comes to light, the more I worry about our state under his leadership.
“Government should not create jobs in the private sector because it causes great expense to everyday taxpayers. I would never invest millions of taxpayer dollars into my friends’ property, either direct or in such a manner that is in any way sketchy and nontransparent.”
At a campaign stop in Athens, Carter later said: “As I understand the facts, this is a typical Deal deal. You have got 15,000 fewer private-sector jobs (from September). He is bragging and cutting the ribbon on 650 jobs because his biggest campaign contributor will be the biggest beneficiary of the deal.”
Jen Talaber, the governor’s campaign spokeswoman, said the company chose the site and is buying the land with no state involvement.
“The governor would have been happy to have them (the jobs) anywhere,” Talaber said. “That’s 650 more families who have well-paying jobs.”
Attempts to reach Kubota for a comment were unsuccessful.
But Tim Evans, the vice president of economic development for the Hall County Chamber of Commerce, said his organization started working with Kubota about potential expansion several years ago. Company officials had been shown the industrial park land and knew it was near their current location and could be accessed without getting onto busy Ga. 365.
Evans said the average pay for Kubota workers is about $40,000 a year and expanding middle-class jobs is a huge coup for the county.
Wilheit and his family and businesses have contributed about $89,000 to Deal’s gubernatorial campaigns, and Walters an additional $37,000.
One of the governor's first acts after taking office in 2011 was to appoint Wilheit to the University System of Georgia's Board of Regents, where he serves as chairman. His son was appointed to the Department of Natural Resources board, where he also serves as chairman. Walters was appointed to the Georgia Ports Authority board. Those three boards are among the most prestigious in state government, and the AJC found earlier this year that members of those three bodies contributed nearly $1.3 million to Deal's campaign and political action committee.
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