Cullman City Council signs off on AGCOR Steel incentive
Published 9:12 pm Monday, March 26, 2018
- Cullman County Associate Commissioner Garry Marchman and Good Hope Mayor Jerry Bartlett talk alongside AGCOR Steel’s Zac Smith and attorney Heath Merherg while the Cullman City Council meets in executive session Monday on a sales tax sharing agreement for the company’s planned expansion in Good Hope.
The first-of-its-kind local sales tax abatement for industry cleared its third and final hurdle Monday night with the Cullman City Council signing off on the $400,000 incentive.
AGCOR Steel, a manufacturer and retailer of metal siding and metal trusses currently located in Vinemont, will move its operations to Good Hope, saving 25 jobs and creating 25 new ones as the locally grown company plans to stay in Cullman, turning down a tax incentive offer elsewhere.
Good Hope and the Cullman County Commission already approved the deal which would rebate $400,000 in sales tax — split between the county, Good Hope and the city — to pay for the 53-acre tract in Good Hope for the first expansion.
The agreement didn’t quite sail through the city Monday as it did in Good Hope and the county commission. A question over when exactly the rebate would take affect prompted officials to meet in executive session to clarify the wording of the agreement before it was approved unanimously.
“It’s a bit of an oddball,” said Dale Greer, Cullman Economic Development Agency executive director. “It’s rare to have an industry that actually sells what it manufactures. We couldn’t have done it if AGCOR didn’t have the large portion of sales on the retail side.”
It marks the first time that the three entities have worked together on a project like this.
Good Hope will also be applying for a Community Development Block Grant to help cover the costs of building a new sewer pump station for the site that is projected to cost around $250,000, Mayor Jerry Bartlett said.
“This is the first manufacturing plant ever for the City of Good Hope,” he said. “That’s a big deal.”
AGCOR Steel initially planned to build its new facility in Berlin, but residents there opposed its request to vacate a portion of CR-1615. The change would have affected a county school bus route and a new water main line.
In other business, the Cullman City Council:
Approved Feb. 26 meeting minutes.
Approved request from Rachel Bryant of Karma in Cullman for a special event permit to hold a Suicide Awareness and Prevention Walk on September 8th from 3-6 p.m. at Depot Park.
Awarded bid for various types of concrete to the lowest responsible bidder, (DCA) Ready Mix USA, LLC.
Awarded bid for various types of rock to lowest local bidder Good Hope Contracting Co. There was one lower bidder from outside Cullman, but the city chose Good Hope Contracting since it was within 5 percent of the low bid.
Adopted the 2018 Municipal Water Pollution Prevention Resolution for the City of Cullman.
Granted a tax abatement for REHAU Automotive, LLC for a capital investment of $10,403,780.
Approved change order No. 1 in the amount of $96,655 for The Creel Company, Inc. on the UV Replacement at the wastewater treatment plant.
Approved entering into contract with St. John & Associates for engineering services related to the city sewer system.
Authorized Mayor Woody Jacobs to replace vehicles and other equipment damaged by the 2018 hail storm utilizing the State of Alabama’s bid list.