North Carolina lost out on one of the most heavily contested economic development projects in recent memory on Friday when heavy equipment-maker Caterpillar announced it would build a new plant in Georgia.

The selection came after Caterpillar had chosen sites in North Carolina for three major expansions over the past 18 months. Still, the loss stings, as it would have brought 1,400 jobs to an area just west of Wilmington that has been pining for just such a project.

"We hate that it's not coming because North Carolina has a darn good relationship with that corporation," said state Sen. Bill Rabon, a Republican who represents Brunswick County. "They gave us a good hard lick."

Caterpillar had considered an industrial park along the border between Brunswick and Columbus counties.

Although state officials discussed offering Caterpillar an economic incentives package valued anywhere from $70 million to $90 million, the talks remained informal. The company never filed paperwork with the state showing where else it was looking and what other states were offering.

"It never got to the point where we were negotiating incentives," said Tim Crowley, a spokesman for the state Department of Commerce. "There would have had to have been some action by the General Assembly for the level of funding this one would have required."

He added that he believes had it reached that stage, North Carolina's package would have been competitive. Georgia and Caterpillar officials didn't disclose the incentives package the company received.

Caterpillar never said publicly where it was looking. In a statement released Friday, the company said it chose a site near Athens, Ga., for several reasons.

"The Athens site was selected from among dozens of locations considered due to its proximity to the major ports of Savannah and Charleston, a strong regional base of potential suppliers, a positive and proactive business climate and a good pool of potential employees with manufacturing experience," said Mary Bell, a vice president with Caterpillar's Building Construction Products Division, based in Cary.

The company's decision cast a cloud over the state's Maritime Advisory Council meeting Friday morning, where an outside consultant presented a draft report outlining the steps needed to make Wilmington a premier port and help the state attract more economic development.

Rabon said the state's ports are limiting North Carolina's ability to attract new industry, such as the Caterpillar project and a Continental Tire facility that also recently considered locating in the area. Continental chose a site in South Carolina where it is building a $500 million facility expected to employ 1,500 people.

In a meeting with a top Caterpillar official, Rabon said they "discussed nothing but port issues."

"This port's problem has cost southeastern North Carolina two major industries, 2,800 jobs in the last 90 days," he said.

Rep. Dewey Hill, who earlier said he didn't think port issues would be a problem for Caterpillar, revised his view Friday.

"Maybe infrastructure had right much to do with it," said Hill, a Democrat who represents Brunswick and Columbus counties. "The Savannah port was a real selling point there."

What, if any, improvements should be made to North Carolina's coastal infrastructure has been unclear since late 2010, when state officials put on hold a controversial proposal to build a $3 billion international shipping terminal near Southport.

Critics question the economic projections. They also say its proposed location, next to a nuclear plant, make it a security risk that could hurt tourism.