Aspen Aerogels will pay $741,000 to the City of Statesboro for grants the city obtained in a partnership to provide infrastructure to the industrial park.
The City of Statesboro voted Tuesday morning to formally terminate an agreement with Aspen Aerogels, Inc. so that the city can be paid back for grants obtained to pay for infrastructure.
In 2022, the State of Georgia and the Bulloch County Development Authority announced that Aspen Aerogels would invest $325 million in a manufacturing facility in Bulloch County, which was expected to create 250 jobs. Hiring was slated to begin in the second half of 2022 and production was supposed to begin in late 2023.
In May 2023, Statesboro and Bulloch County were awarded $750,000 in EIP grant funds to assist with utility infrastructure for the Aspen Aerogels site. The basis was that the project was slated to be the largest economic development project in Bulloch County history. The funding came from the Georgia Department of Community Affairs, was obtained by the local governments, and guaranteed by the private entity.
Development Authority of Bulloch County Vice Chair Billy Allen said the decision to build here was a testament to the region’s “commitment to innovation, particularly in the electric mobility ecosystem.”
But at the start of 2025, the facility was still not operational as construction was not complete. In February 2025, Aspen Aerogels stopped construction and signaled it would be backing out of the site.
As part of the claw back agreement, Aspen Aerogels must repay the $741,000 the City has drawn in grant funds to date. Upon receipt of funds, the City will forward the funds to the Georgia Department of Community Affairs. This action will relieve all parties of future obligations under the grant.
City Manager Charles Penny said $11,000 will also be paid for the grant preparation, which includes consultants, but there is no line item for that within the agreement approved by council on Tuesday.
The total cost of the infrastructure installation was $1.7 million, city officials said during the council meeting Tuesday. The Development Authority of Bulloch County also provided the 90-acre site to AA for free. The company was also provided a partial 10-year waiver of property taxes with the exception of fire protection and school taxes.
Councilwoman Shari Barr said the money is getting paid back but the infrastructure is still there for the next business to use. Penny said he wanted to give a ‘shoutout’ to the Development Authority because they’re criticized but they worked hard to protect the community.
