PERRYVILLE EARNS MAJOR GRANT, LOAN

PERRYVILLE -- The approval of a $614,000 grant to repair flood-damaged buildings at the Perryville airport and a $5 million loan for an expansion at the local TG (U.S.A) Corp. were announced here Friday.

Gov. Mel Carnahan announced the funds for the city of Perryville during a Friday afternoon stop at the Perryville Municipal Airport.

The grant, awarded under the Community Development Block Grant program, will be used to repair hangars damaged during last year's flood.

The loan, also made under the CDBG program administered through the Department of Economic Development, will be used for construction and equipment necessary for a major expansion at TG (U.S.A.), a local auto parts manufacturer.

"Perryville, like many other communities around the state, was challenged by the needs of businesses substantially damaged during the 1993 floods," Carnahan told the large group of people at the airport. "It became necessary for the city to seek federal and state assistance to help with recovery efforts."

DED Director Joseph L.Driskill, accompanied Carnahan, said, "The grant and loan announced here is a good example of our commitment to provide assistance to existing businesses which are vital to Missouri's future in a global marketplace."

Perryville Mayor Bob Miget, other city and county officials, Sen. Peter Kinder, Rep. Herb Fallert, TG (U.S.A) and Sabreliner executives and several workers from both companies attended the news conference.

More than a year ago, Hangar Number 9, the site of Friday's gathering, was under 14 feet of water. The hangar has been completely renovated by Sabreliner, which leases space at the airport. The money will be used to repair four additional hangars at the airport.

"We are pleased and thankful that, with the help of Gov. Carnahan and his staff, the city of Perryville will receive funds necessary to complete repairs to our leased airport facilities," said Jackson L. Forney, vice president of operations for Sabreliner.

Forney added that the Perryville plant is important to the community and to the future of Sabreliner and its employees.

"In the two years before the flood, an average of 400 Sabreliner employees worked at this facility," he said. "The employment figures have been about half that since the flood."

Sabreliner of St. Louis, which has invested more than $10 million in equipping the facility over the years, recently spent $1 million in modern equipment and restoration.

Sabreliner is currently in the planning or bidding stages for more than $100 million in government contracts. Following Carnahan's announcement, Forney said that Sabreliner will be able to win and to perform those contracts and once again achieve full employment.

"I want to acknowledge the support and assistance of Sabreliner's many friends in this area," he said. "Without the help of city officials and private citizens, along with extra efforts of our employees, I doubt operations could have resumed here."

TG (U.S.A.) President Kunihiko Nakashima said the announcements were "a giant step to Perryville economics."

"This expansion loan will assist our company in deciding about other expansions," he said.

TG (U.S.A.), which currently operates in 200,000 square feet, will double its size to 400,000 square feet.

The company employs about 650 people. The expansion is expected to increase that by as many as 300 jobs.

Miget agreed that the funds were invaluable for the area's economy, helping put the airport back in good shape and helping an existing business with expansion.

"This will help us retain jobs and add more," he said.