TALLADEGA COUNTY — Tax abatement approvals were cleared by the County Commission Monday night as Honda Manufacturing of Alabama LLC announced a new $64.5 million expansion project.The addition, which is set to begin on May 1 and near completion in 2009, will create 20 jobs and include 27,000 square feet of additional building space that will house and operate a steel banking facility alongside HMA’s current steel stamping lines.
New equipment is also included in the multi-million dollar expansion to continuously enhance Honda’s more than 300,000 annual vehicle turnaround.
“The addition of a steel banking facility will offer improved efficiency in costs, quality and delivery for our Alabama manufacturing operations,” said Mark Morrison, manager of corporate affairs and communication for HMA. “We believe the investment and additional employment offered by this new venture also will benefit our customers and the community.”
With a motion from District 1 Commissioner Ed Lackey and a second from District 5 Commissioner John Carter, the commission approved the tax abatement for sales and use taxes, as well as property taxes. Land abatements will last over a period of 10 years for each piece of property and begin on a property-by-property basis.
Roughly estimated, Honda will receive a $167,700 break from the annual amount of noneducational ad valorem taxes and $1,710,000 abated from estimated construction-related transaction taxes.
The agreement reads that Honda and Talladega County each agree to pay its own costs and expenses related to the abatement. The county will not charge HMA a fee to secure the abatements and the company will continue to be primarily liable for the agreement to be carried out as stated.
“Anything that will bring more jobs in for the county is a wonderful project,” said Commissioner Jimmy Roberson. “The abatements will go away, but those jobs are here to stay.”
HMA currently employs more than 4,500 associates and totals a $1.3 billion investment in Alabama. Since October 2006, Honda has shown plans for a $91 million additional investment and this addition will bring the manufacturing company to well over the $100 million mark.
In other business Monday, the commission:
O Passed a resolution declaring May 2007 as Older Americans month
O Approved moving the Beat 18 voting site in Munford from the Munford Fire Hall to the old Munford High School Gymnasium. The new polling station will be open in February 2008.
O Allowed the Talladega County Emergency Management Agency to seek bids for 2007-2008 Communications Improvements; UHF and VHF Public Safety Radio Communications equipment and accessories; and replacement LCD display monitors.
O Tabled food bids for the county jail and multi-functional plotters until further review and discussion
O Allowed county engineer Tim Markert to seek bids for a self-propelled chip spreader and hay bales to be used for mulch. Markert asked that if anyone interested in bidding hay bales would contact him at 761-2130. Bales should consist of 80 percent Bermuda, Bahia, wheat or fescue and not weigh less than 50 pounds.
O Approved an ABC license for Mystik Food Mart off Stemley Bridge Road and Cold Water Friendly store off Pribes Mill Road in Munford.
