Council makes change on Sonoco tax abatement
The Hartselle City Council agreed to change the tax abatement contract with Sonoco Products due to the company spending $1.8 million more than anticipated in its expansion project.
Earlier this year, Sonoco Products announced it would relocate its wood plug facility in Hartselle. As an incentive, the city agreed to abate more than $109,000 in taxes per year for the next 10 years, which was based on the company’s $4.6 million investment.
However, Morgan County Economic Development Association director Jeremy Nails said the total cost of the expansion is now $6.5 million. Thus, the company asked for the tax abatement per year to be increased to $132,598 for the 10-year period.
“Due to the increase of the capital investment, Sonoco Products is asking that the city increase the abatement,” Nails said.
City attorney Larry Madison said he didn’t have a problem with the abatement as long as the breakdowns and tax-saving analysis is included with the application for the abatement.
The council unanimously approved the resolution.
“Thank you for investing in our community,” Tankersley said to the Sonoco officials who attended Tuesday’s meeting.
In other business, the council:
• accepted the Federal Aviation Administration grant for $84,550 to replace the Hartselle Airport’s rotating beacon, update the airport layout plan and conduct a wetlands/stream delineation study.
• accepted the low bid of $49,5000 from TCA Electrical Contractors to replace the rotating beacon at the airport.
• approved a number of budget amendments of line items in the administration, park and recreation and public works. The only budget adjustment was to add $12,000 to the vehicle maintenance line item for unexpected repairs to the city’s garbage trucks.
• appointed Sandra Sowder to the CBD Design Review board. She was the applicant for the board.
• agreed to purchase advertising $3,490 in the Decatur-Morgan Chamber of Commerce’s book to promote Decatur and Morgan County. About 8,000 copies of the book will be printed. Tankersley said the book will be distributed to help market the area and other copies will be sold.
