The City of Spanish Fort continued its efforts to bring more industry and jobs to the area. In a special called meeting Monday morning, the City Council gave its approval to a ten-year tax abatement for Centerline Products. The company, which …
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The City of Spanish Fort continued its efforts to bring more industry and jobs to the area. In a special called meeting Monday morning, the City Council gave its approval to a ten-year tax abatement for Centerline Products. The company, which manufactures metal and copper products including architectural fixtures seen in some new residential developments, is in the process of relocating its facilities from Mobile to the new I-10 Commerce Park in Spanish Fort.
Lee Lawson, Director of Economic Development for the Baldwin County Economic Development Alliance, said the city, by granting the tax abatement, will allow Centerline to invest in the community. “Without these abatements, I don’t think the company would have made the move," Lawson said. “I think it definitely helped them make the decision to locate in Spanish Fort.”
Tax abatement is when a city or other governmental body will allow a company or organization a stay from paying a portion of its taxes for a period of time. In many cases, the abatement is granted as a way to lure new industry to an area. The Centerline request is just that. “They have plans to employ 32 people initially," said Lawson, "and growing to around 60 at an average of $45 thousand per year.”
The abatement will include city, county and state taxes, Lawson explained. “The company qualified under state regulations for a state income tax capital credit, so the state income tax credit was abated as well.” The company will not receive a complete abatement. “There is no educational portion of taxes abated,” Lawson said. “The approval will also provide abatement of sales and use taxes for Centerline during the construction of the new facility.
“Any city can abate these taxes for industrial manufacturing and distribution companies. It is an ability the city has to entice business and spur economic development,” Lawson said.
“The city was very proactive in putting the abatement together, I think it shows they are very business-friendly and want economic development.”
Centerline is also requesting a rezoning of its proposed facility in the I-10 Commerce Park. The area, which is currently zoned B-3, a General Business District, would become M-1, a Light Industrial District allowing the company to manufacture its products at the facility.
The rezoning request was unanimously approved by the Planning Commission earlier this month and sent to the Council.
A public hearing on the proposed rezoning will be held at the Council’s May 7 meeting.
The council also used the opportunity to remind citizens about this weekend’s effort to Tidy the City. On Friday, Saturday and Sunday, special dumpsters will be placed at the Spanish Fort City Hall to encourage citizens to clean up areas around the city. “We are accepting everything except household garbage, tires and hazardous chemicals," Mayor Joe Bonner said. Spanish Fort City Hall is located 7581 Spanish Fort Boulevard.