Michelin program benefits businesses

By: Brittany Whitley Staff Writer | Opelika Auburn News
Published: February 09, 2010

Three area business are among the first recipients of loans from Michelin Development through a program designed to create new jobs in the community.
Michelin North America Inc. announced plans to open a Michelin Development office in east Alabama in 2009 in the hopes of helping offset some of the impact of its plans to close the Opelika BFGoodrich plant, which employed more than 1,000 people. The plant closed its doors in October. Michelin is the parent company of BFGoodrich.
The goal of the development program is to provide low-interest loans to small- and medium-sized companies in the area in hopes of creating new jobs.
Monday, Michelin Development announced that the first three loans, totaling $500,000, have been extended to Johnny’s New York Style Pizza in West Point, Ga., Froglegs Inflatable Playzone in downtown Opelika and the Event Center LLC., which will open in the former Coca-Cola building in downtown Opelika.
Froglegs received $50,000, Johnny’s Pizza received $150,000 and the Event Center received about $300,000, said John Tully, president of Michelin Development.
“This morning’s announcement represents the first wave of the $2 million in loans that will be awarded to small businesses in the east Alabama area,” said Valerie Pascoe, public relations for Michelin Development. “The loans these businesses received will potentially create 85 jobs.”
More loans are in process, Tully said, adding that if the initial $2 million was provided for loans in the area runs out, there is a possibility that more money could be put into the program.
“When we’re approaching the end of the $2 million, we will evaluate the number of jobs we created and if we’re not satisfied we will put more in,” he said.
Twanda Pappas, Froglegs owner, plans to use the money to expand her business.
“We were to a point where, when the recession hit, it was getting harder and harder,” Pappas said, “We’re going to move to a new location in the spring in Auburn. It’s going to be a bigger place, so we’re going to incorporate more things into it.”
The expansion will hopefully create new jobs, she said.
“It’s (the program) based on hiring more people in the future; if I expand I’m going to have to (hire people) anyway,” she said.
Michelin continues to accept loan applications, according to the program’s Web site, www.michelindevelopment.us. Applications can be submitted online through the site.