Kia Motors Creates Enormous Demand for Local Housing
Impact on Region Includes18,000 New Jobs

In the midst of a housing meltdown in many parts of the country, the city of LaGrange, Ga., located in Troup County, is poised to be one of the nation’s hottest hous­ing markets.
Kia Motors is currently building a new plant near LaGrange, which will employ more than 2,600 people upon completion in 2009. It is the first Kia facility in the United States. New managers, engineers and auto industry executives are now being recruited from across the country, as well as more than 200 Kia employees from Korea, to relocate to the LaGrange area to oversee the construc­tion of the automotive facility. The Georgia Department of Economic Development has estimated the total impact the Kia plant will have on the local economy includes bringing more than 18,000 new jobs to the state.
“The ripple effect of Kia Motors on the LaGrange economy is immediate and will dramatically change the town’s stature in the marketplace and increase its population by 50 percent over the next few years,” said Tom Hall, LaGrange city manager. “Kia’s suppliers are also locating their facilities here to avoid the risk and cost of transporting components and parts from a distance.”

Ready for Growth in LaGrange
“LaGrange is well prepared to attract these companies with infrastructure in place and land zoned in proximity to the Kia plant for its suppliers,” said Hall. “This new workforce will need housing, hotels, restaurants, retail and commercial services at unprecedented levels to support this influx of people.”

Magnolia, a 400-acre, master-planned community of 2,800 homes is being cre­ated specifically to appeal to the new em­ployment growth in the area. “We designed Magnolia as a classic American small town neighborhood to match the type of tradi­tional neighborhoods we believe these new residents are looking for,” said Bruno Bot­tarelli, partner with MarKent, the developer of Magnolia and affiliate of Chicago-based developer Marquette Companies. “We’re of­fering innovative housing designs that fos­ter genuine community, an important fac­tor that contributes to great neighborhoods and housing values. “Builders can establish themselves now in large-scale residential de­velopments like Magnolia in anticipation of the economic impact sparked by the major automaker and its suppliers locating to the area, many of which are beginning construc­tion of their new facilities now,” he said.
Several tier-one suppliers, which supply large car components and must be located within 15 - 20 miles of the Kia plant, will locate near the new Kia facility, bringing an additional 3,500 employees to the area. These suppliers include Glovis, Mobis and DaeLim USA. In all, 6,000 new jobs at sup­plier companies are coming to the market to support operations by 2009, according to Mike Criddle, Kia coordinator for the city of LaGrange, city of West Point and Troup County.
Additional tier-two and tier-three suppli­ers, which make parts for tier-one suppliers, are also planning to open new facilities in the LaGrange area, he said.
Criddle says this influx of people does not include the thousands of additional employ­ees required to support the construction of the new facilities and the retail and business services demanded by the new auto-related workforce.
“Because of the undersupplied housing market in the area and the urgency to pro­vide a high-quality neighborhood before the Kia plant opens, we’re seeking reputable At­lanta-area builders to participate in the de­velopment of Magnolia,” said Bottarelli. “By winter of 2009, more than 2000 residents are projected to need a home here.”
“There simply are not many other devel­opment sites available in the area, and there definitely aren’t enough rental apartments or hotel rooms to support this growth,” he said. “This is an incredible opportunity for builders looking for areas with strong hous­ing demand and real employment growth, which is unique to most areas of the country. Construction is already underway, but we’re looking for more great builders to join us in developing Magnolia.”

Meeting New Residents’ Needs
Bottarelli says Magnolia is designed to ca­ter to the variety of new residents who will be seeking housing in the LaGrange area. “We’re offering executive-style homes for top management and their families, start­er family cottages, condos and townhomes for younger singles and couples, and apart­ments,” he said.
In addition, Magnolia also provides op­portunities for much-needed commercial de­velopment of restaurants, stores and services like dry cleaners and banks to meet the needs of new residents. The development will in­clude a Main Street Retail Village Center and a 200,000-square-foot mixed-Harbor Town Retail district.
“The Kia Motors plant will have a large economic impact on LaGrange, as estimat­ed wages paid by the plant and suppliers is higher than the area’s average wage today,” said Criddle. “This means the residents of LaGrange will make more money and, in turn, spend more money locally. So it’s also a great opportunity for retailers to locate in LaGrange, both in its quaint downtown and in mixed-use communities like Magnolia.”
In spite of the growth, however, LaGrange is taking calculated steps to maintain its Southern small-town charm. “Atlanta is steadily expanding down Interstate 85, with an outward migration of residents,” said Bot­tarelli. “We worked hand-in-hand with city officials to design Magnolia so it reflects the charm of LaGrange’s quaint town square and existing low country Southern homes. LaGrange is destined to be the model for the nation’s New American Town.
“Magnolia also is the antidote to un­controlled suburban sprawl,” according to LaGrange Mayor Jeff Luken. “Unique mixed-use zoning allows for the creation of neighborhoods that combine residences and businesses so people can live, work, shop and play in the same neighborhood. Our goal is to minimize dependency on the automobile and preserve the environmental health of our town for both current and future residents.”
According to Hall, the impact Kia Motors will have on the LaGrange area will likely be similar to other towns in which auto makers recently opened operations. In 2004, Hyun­dai opened a plant in Montgomery, Ala., and dramatically changed the economy of the town almost immediately. Incomes rose 13 percent and the average home sale price in­creased 22 percent.
In 1993, BMW broke ground on a plant in Greenville, S.C., investing $1.9 billion in the state and employing more than 4,300 workers. The plant purchases inputs from 33 South Carolina suppliers, and its employ­ees earn higher incomes that stimulate local spending. A similar experience is expected for LaGrange.







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