VIDALIA — Vidalia has received its first monthly payment after officials signed a lease Friday with a manufacturing company planning to use the town’s building formerly used by Fruit of the Loom.

Vidalia Mayor Buz Craft said the company behind the development, dubbed Project Blue, has up to 90 days for due diligence on the facility to make sure the former distribution center will fit its operations. During the 90-day due diligence period, the company could opt out.

“If everything goes according to plan, we will probably be able to make an announcement on the company sometime in August,” Craft said.

Craft said talks with the company have been positive.

“So far, everything keeps looking better and better,” he said.

Project Blue is an industrial development project with plans to utilize the former Fruit of the Loom warehouse and distribution center, which was vacated March 31. Project Blue, a manufacturing company, is expected to employ a minimum of 300 people with 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.

Concordia Parish Economic Development Executive Director Heather Malone said the amount in cash Vidalia receives on the lease per month would vary because the company would be receiving credits and rebates for certain expenses including making improvements to the building. Malone said the town would receive some cash every month.

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 last year.

In May 2016, Martin Mills Inc, a subsidiary of Union Underwear Company, announced 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.