Danville's White Mill going high tech

For generations, the gigantic White Mill on Memorial Drive was home to laborious but reliable textile jobs. Then, the mill went silent for more than a decade, a symbol of the demise of both the textile industry and the Dan River Region’s weak economy.

HOW MANY JOBS COULD THIS CREATE?
400

WHAT WOULD THE ANNUAL SALARY BE?
$40,000 a year

WHAT COMPANY WILL OCCUPY THE BUILDING?
Officials say despite “rumors floating around,” there are no tenants lined up for the building as yet, and that the prevailing local rumors about U.S. Department of Homeland Security being the tenant were unfounded. “I don’t know where the heck that came from. We haven’t even discussed it; we haven’t talked to anyone,” Gieser said.

WHY WAS DANVILLE SELECTED?
Officials said Danville’s fiber optic network was the reason the project came to fruition, because plans call for the building to house information technology companies, secure records storage and other high-tech firms.

WHAT PROPERTY WAS INCLUDED?
“We will own everything from bridge to bridge (King Memorial Bridge to Union Street Bridge), except the appliance store (Danville Appliance Sales & Service),” Gieser said. “The appliance store was not a critical component to our plan.”

WHAT WILL HAPPEN TO THE WALKWAY?
The old covered walkway that connects the White Mill to the Long Mill across the Dan River will be demolished, officials said.

Now, the White Mill is going to see rebirth as a center of technology — a rebirth Danville City Council member Gary Miller likened to the mythical Phoenix, rising from the ashes to begin life anew. Hundreds of jobs and hundreds of millions of dollars in investment were announced Friday.

The former Dan River Inc. Number 8 Mill, commonly referred to as the White Mill, has a new owner —White Mill Development LLC, which is headed up by Gibbs International Inc. of Spartanburg, S.C.

Mayor Sherman Saunders said the project will “transform downtown” with a $400 million investment in the future of the community, bringing 400 high-tech jobs that will have an average salary of $40,000 per year.

“Our job is to revitalize the economy,” Delegate Danny Marshall said of the Tobacco Commission’s $2.45 million investment in the project.

Marshall noted that this project is one of the largest amounts the commission had invested in this area.

Karl Stauber, president and CEO of the Danville Regional Foundation, said his organization was excited to be a “partner in the economic and cultural transformation” of Danville’s downtown area. The foundation has committed $1 million to the project.

Members of Danville City Council also praised the project, with Adam Tomer calling it “a new chapter in the history of Danville” and Fred Shanks noting that even before the 400 high-tech jobs become available, there will be many construction and jobs available while the mill is being rehabilitated.

New owner talks about plans

John Gieser, vice president of mergers, acquisitions and real estate for Gibbs — and vice president of White Mill Development — spoke at the announcement about the company’s plans for the iconic mill’s future.

Gieser said it will take some time before the mill is ready for tenants.

“It’s not going to happen tomorrow,” he said. “It needs a tremendous amount of work, inside and out.”

Gieser said Danville’s fiber optic network was the reason the project came to fruition, because plans call for the building to house information technology companies, secure records storage and other high-tech firms.

Without the fiber optic network running down Memorial Drive, in front of the building, “this project would not be feasible,” Gieser said.

Gieser was asked how he can guarantee 400 jobs if there is no client signed up for the project.

“There is a significant demand for high quality technology space,” he said. He predicted it will be 12 to 18 months before the building is ready for tenants, and between six and nine months before it is even cleaned up enough to show to potential clients.

After the formal announcement, Gieser expanded on that statement.

Gieser said that despite “rumors floating around,” there are no tenants lined up for the building as yet, and that the prevailing local rumors about the U.S. Department of Homeland Security being the tenant were unfounded.

“I don’t know where the heck that came from. We haven’t even discussed it; we haven’t talked to anyone,” Gieser said. “The bottom line is, we can’t even talk to anyone until we have a building that’s cleaned up. You can’t walk them through a dilapidated textile plant; you’ve got to have a clean shell and you’ve got to have a plan laid out. Only after we are in that position can we go out and start looking at potential clients.”

Gieser said the row of buildings along Memorial Drive, in front of the mill building, are all under a sales contract that will complete the development package.

“We will own everything from bridge to bridge (King Memorial Bridge to Union Street Bridge), except the appliance store (Danville Appliance Sales & Service),” he said. “The appliance store was not a critical component to our plan.”

Asked about the old covered walkway across the Dan River, that connected the White Mill to the Long Mill, Gieser said, “That has to go away.”

Gieser said he understands the owners of the Long Mill property also own the old walkway, and would be taking it down.

Immediate opportunities

After the formal announcement, Gieser was approached by several local contractors who asked about the bidding process for the rehabilitation of the plant.

Gieser accepted their business cards, and told them the bidding process is being worked out and would begin soon.

“They are ready to rock and roll on this, City Manager Lyle Lacy said as he watched Gieser talk to contractors. “I think they’re going to be going through proposals pretty quickly.

“What a great day.”

Grant agreements

With the city promising more than $2 million for the project, and the Tobacco Commission anteing up $2.45 million, formal performance agreements were drawn up and signed by the parties involved.

The Tobacco Commission agreement calls for White Mill Development to provide proof that the end-user/tenant meets certain capital requirements, that the promised jobs come into play and that it meet its capital investment obligations.

Before any portion of the Tobacco Commission money is disbursed, White Mill Development has to invest at least $1 million in the project. The agreement spells out how long the developers will then have to complete each step of the process, and what the penalties — which include returning the money — will be if those dates and goals are not met.

The city’s agreement provides for a $2 million grant, in five $400,000 payments over five years, based on the developers reaching set goals in both capital investment and employment opportunities.

The agreement gives the developers five years to finish the project and put the promised 400 high-paying jobs on the table — and requires the company to guarantee those jobs will be available for at least five years after the project is completed, or repayment of the grant money will be required.

The city’s agreement covers the $1 million investment from the Danville Regional Foundation as well. The foundation will give the developers $500,000 once presented with proof of title to the property.

The foundation will also reimburse the developer $1 for every $3 the developer spends developing the site, to a cap of $500,000.