Hanceville Mayor Kenneth Nail is pictured during a January 8 city council meeting.

HANCEVILLE — The City Council approved a $370,200 tax abatement Thursday for the Louisiana-Pacific Corporation to purchase a new $12.34 million press at its manufacturing facility on Industrial Boulevard.

The incentive will allow the company to replace its 23-year-old main press that has outlived its useful life, said Kevin Jackson, existing industry and economic coordinator with the Cullman Economic Development Agency (CEDA).

Louisiana-Pacific Corporation is a leading manufacturer of engineered wood building materials, including oriented strand board, or OSB, structural framing products, and exterior siding for use in residential, industrial and light commercial construction.

Much of LP’s operation is automated, with huge, two-story high machines chipping logs into small wafers, which are then dried, mixed with resin and pressed into large sheets of OSB.

The Hanceville plant opened in 1994 and employs roughly 140 people. The Nashville, Tennessee-based company has manufacturing facilities across the United States, Canada, Chile and Brazil.

“LP has been a good company to work with and a good company to Hanceville,” Nail said.

Under the abatement, the company will not have to pay $370,200 in taxes, excluding education taxes, on the purchase of the new press for up to 10 years. The agreement will go on to the Cullman County Commission for confirmation.

In other business Thursday, the Hanceville City Council:

* Approved bills payable. Councilman Charles Wilson asked about a $20,000 purchase of a new police vehicle. Mayor Nail said the council previously approved the purchase and the funds are budgeted. Nail said the police department purchased three vehicles for the price of two this year.

* Approved $2,800.23 Staples invoice for schools supplies for Kids Night Out event.

* Tabled Trident invoice. Mayor Nail said the invoice is for legal expenses on a settled case dating back to 2011. City Attorney Dan Willingham said he would investigate why the city is just now receiving a bill and report back to the council.

* Set public hearing for 6:30 p.m. September 24 to discuss proposed ordinance to rezone Skinner property on Section Line Road from B-1 to B2. Councilman James Sawyer said the owner is planning to build a storage facility on the land.

* Declared replacement of traffic signal at U.S. 31 and Commercial Street, damaged by a wreck August 23, a public works project and hired Shoals Electric to complete the job. The total cost will be $25,750, however the city will only have to pay $5,600.

* Approved revised Cullman County Hazard Mitigation Plan.

* Discussed Councilman Wilson’s proposed animal ordinance but took no action.

* Approved Cullman County Solid Waste Board’s proposed 10-year plan required by the Alabama Department of Environmental Management (ADEM).

* Fire Chief Roger Green reported 84 calls so far for August, three structure fires and 10 vehicle accidents. The department has been preparing for the Insurance Services Office (ISO) evaluation. The department is also selling $20 reflective address signs and will have a Swamp John’s dinner 4-7 p.m. September 5 at the fire station.

* Reviewed bank accounts balance sheet.

* Announced: Mud Creek Arts and Crafts Festival October 17, car show in honor of the late Nikki Altman will be September 19 at C.W. Day Park, Career Day at Hanceville school October 23 and Hanceville Quarterback Club is selling pork butts and ribs for Labor Day weekend and $10 discount cards for local businesses.

* Approved minutes from August 13 meeting.

The Hanceville City Council will hold a work session 6:30 p.m. September 10, followed by its meeting at 7 p.m.