Cullman council OKs 10-year tax abatement for REHAU expansion; $12.5M investment to create 70 new jobs

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The Cullman City Council enjoyed a visit from Boy Scouts (left to right) Brody Taylor, Reid Huddleston, Aidan Screws and Walker Huddleston, who are learning about local government as they work toward becoming Eagle Scouts. (W.C. Mann for The Cullman Tribune)

CULLMAN, Ala. – The Cullman City Council on Monday night approved a 10-year abatement of “all state and local noneducational ad valorem taxes, all construction related transaction taxes, except those construction related transaction taxes levied for educational purposes or for capital improvements for education” for auto component manufacturer REHAU, to support an expansion of the company’s Cullman production facility.  The project is expected to represent a $12,485,375 capital investment by the company and create 70 new jobs.

The council also approved a resolution to submit an application to the Alabama Department of Economic and Community Affairs (ADECA) for $450,000 in Community Development Block Grant (CDBG) funds to implement a Neighborhood Improvement Project on Katherine Street.  If Cullman receives the grant, the City will have to provide $337,845.01 in matching funds: $87,845.01 in cash and $250,000 in “in-kind services provided to install the water, sewer, drainage and street improvements” which comprise the project.

Other council business

The council approved special event requests from: 

  • Christy Turner of Cullman Parks, Recreation & Sports Tourism to hold the annual EvaBank Midnight Run around the Civic Center on Aug. 2, 2019 from 10 p.m. until 2 a.m.
  • Steve Cummings of the Cullman County Republican Party to hold “Possum Day” at the Festhalle Aug. 24, 2019 from 4:30 p.m. until 9:30 p.m.

The council also approved:

  • Ordinance No. 2019 – 21 to amend previous Ordinance No. 2018-34 requiring the installation of street lights in subdivisions.  The amended ordinance will now require that: “The Owner/Developer will be responsible for the installation of all components of the street lighting system approved by the utility provider and required and approved by the Planning Commission. The City of Cullman shall be responsible for the maintenance and replacement of all components of the street lighting system upon its approval by the utility provider and completion by the Owner/Developer in accordance with the plans and specifications as approved by the Planning Commission and City of Cullman Engineering Department or said departments designated by the Mayor.”
  • Resolution No. 2019 – 70 to enter into a professional services contract with St. John & Associates for engineering on an Industrial Access Road in Industrial Park VI. 
  • Resolution 2019 – 71, added at the last minute, for a change order on the US. Highway 278 streetscape project.  No details were given.

The Cullman City Council meets on the second and fourth Monday nights each month at 7 p.m. in the Cullman City Hall Auditorium. The public is invited to attend. 

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W.C. Mann

craig@cullmantribune.com