VIDALIA — Officials with Vidalia say they hope to sign a lease Friday with a company that will bring at least 300 new jobs to the town’s former Fruit of the Loom building.

Vidalia Mayor Buz Craft said talks with the company representatives behind “Project Blue” have been positive and Friday’s lease agreement is a good step. 

“We are continuing on the right path,” Craft said Wednesday. “The day before yesterday we had a meeting with some of the company representatives, and there are even more encouraging things I wish we could talk about.”

Project Blue is an industrial development project looking at the Fruit of the Loom warehouse and distribution center, which was vacated by Fruit of the Loom on March 31. Project Blue, a manufacturing company, is expected to employ a minimum of 300 people at an annual payroll of $9.2 million.

Project Blue would pay Vidalia $1.3 million annually in a lease agreement for the former Fruit of the Loom facility. The company has the option to purchase the facility for $12 million. The town owns the facility after Fruit of the Loom donated the building.

Natchez Inc. Executive Director Chandler Russ said the company still has a 90-day due diligence period where they can back out if the facility is not up to standard for the company’s manufacturing purposes.

“Unless we have hiccups between now and then, we should have a lease in place Friday,” Russ said. “It is a very positive step toward the completion of Project Blue. We are turning the building over to them so they can do the due diligence they need to make sure it fits their needs.”

At the end of the up to 90-day period, Russ said the company behind Project Blue could potentially be announced.

Craft said he is excited about the future of Vidalia.

“I am ready to keep moving forward with a mind on cleaning the town up, improving and working together to keep making this a great place to live,” Craft said.

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

The town ended up working out a lease agreement at a later date that allowed Fruit of the loom to remain until March at a lease of $40,000 per month.

Fruit of a Loom was employing approximately 167 people when the announcement was made, but fewer than 100 employees were left by February.