Michelin Development lends $500,000 to local businesses

Michelin Development lends $500,000 to local businesses (Added: February 09, 2010)

Just three months after the closure of the BF Goodrich plant in Opelika, its parent company helps create a possible 85 jobs. (more)

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By Alison Flowers
Published: February 09, 2010

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Rebuild. Repurpose. Reinvest. That's how Michelin is helping local business owners turn scraps in substance.

One such owner is Lisa Beck of Event Center Downtown, LLC. Beck's vision for the historic Coca-Cola building in Opelika goes back several years. Now with Michelin's help, she is resurrecting the space.

"What we did was we salvaged old brick," Beck said, pointing at the exposed brick bar overhanging the 7700 sq. ft. ballroom of the building. "We've taken those items and put them back in the building.

Not unlike what John Tully, president of Michelin Development, is doing in East Alabama.

"People do need access to financing," Tully said. "Obviously the economy hasn't completely recovered. Bank are not lending the way small business would ike them to lend."

And Beck knows that challenge first-hand. She said she'd either been rejected at local banks or that they had simply frozen up. Either way, her plans for an elevator, outdoor courtyard--with a waterfall--needed some financial reinforcement.

"It's been much easier, less stressful, being able to move forward with it," Beck said.

Across town another business owner, Twanna Pappas, is excited that her dream of expanding "Frog Legs Inflatable Party Zone" to Auburn can be fulfilled.

"There's nothing like the face of a child that's never been in here before, and they walk in and say 'oh my god!'" Pappas said.

But Michelin Development's reach isn't limited to Opelika where the BF Goodrich plant closed. Its third loan recipient, Frank Norman, hails from West Point, Ga.

Norman plans to open a pizzeria in downtown West Point by retrofitting a historic building. "Johnny's New York Style Pizza" is set to open just a few miles away from the new Kia Motors manufacturing plant.

"Michelin is providing great opportunity for entrepreneurs to start or expand businesses that can impact quality of life in the area," Norman said.

Michelin Development opened its East Alabama office in Opelika in November 2009. AuburnBank administers loans for the program and works with the Michelin Development steering committee of local leaders. Loans start at $10,000 and are funded by Michelin North America.