VIDALIA — Officials with Vidalia are hopeful for good news on an economic development opportunity that could bring several hundred jobs to the community and pay an annual lease of $1.3 million.

Natchez Inc. Director Chandler Russ and Vidalia Mayor Buz Craft each said Monday they hope to be able to make an announcement on Project Blue in the next two months. Project Blue is the industrial development project looking at the Fruit of the Loom warehouse and distribution center, which will be vacated by Fruit of the Loom by March 31.

Russ, who said he is under a non-disclosure agreement and can only release limited information, said the potential new business would be manufacturing.

“We are not done yet, but we are making good progress with it,” Russ said. “We have extremely high hopes we will get this project to fruition.”

Russ said discussions began with Project Blue a week after Fruit of the Loom announced in May 2016 plans to close the facility.

A public notice on Project Blue is running in the Concordia Sentinel, Russ said.

A public meeting on the proposed lease will be held at Vidalia City Chambers on Vernon Stevens Boulevard at 6 p.m., March 7.

Russ said Project Blue’s owner would also have the option to purchase the facility, which appraised at $16 million.

Russ said he would reconvene in a couple of weeks with Vidalia officials and plans to take the next steps on the project.

“Hopefully we will continue to have good news on Project Blue,” Russ said. “We are to a point where we are moving the process forward and everything is looking very good at this time.”

Martin Mills Inc, a subsidiary of Union Underwear Company, announced May 11 it would permanently close the Vidalia Apparel Fruit of the Loom distribution center and vacate the building Dec. 31.

However, by September, officials with Fruit of the Loom contacted town officials about continuing operations through the end of March.

Craft announced in December Fruit of the Loom would lease the building, which was donated to the town, for $40,000 a month during January, February and March.

Russ said Monday Fruit of the Loom would vacate on March 31. Previously, Craft had said the company and town had discussed the option for a month-to-month lease to follow March, as long as the agreement did not impact an undisclosed business client interested in the building.

When Fruit of the Loom made the announcement, the facility was employing 167 people. Now, Russ said, the count is fewer than 100 as the company is scaling back in anticipation of vacating on March 31.