As the national economy struggles out of a recession, the Decatur area’s economy could get its own boost soon from $80 million in industrial projects.
Two Decatur companies, ConAgra Foods and Nucor Steel Decatur, asked for abatements of non-education taxes for proposed improvement projects.
At a meeting Friday of the Industrial Development Board, a Nucor spokesman said his company has also begun a $33 million pollution control project that won’t need tax abatements.
Meanwhile, DeBruce Grain Inc. of Kansas City, Mo., is considering buying the idle corn fructose production facility owned by Cargill Inc. on State Docks Road in Morgan County.
The Industrial Development Board approved tax abatements for ConAgra, Nucor and DeBruce at its Friday meeting.
Board attorney Barney Lovelace Jr. estimated the projects’ worth at close to $80 million. The tax abatements are for 10 years.
“It’s certainly encouraging in these difficult economic times that three companies are willing to do these projects,” Lovelace said. “It could be a sign that we’re beginning to see a turnaround in the national economy.”
The abatements do not include taxes that support education. If the companies complete the projects, they could generate roughly $1.5 million annually in tax revenue for the Decatur, Hartselle and Morgan County school systems.
2 for Nucor
The board approved two annual abatements for Nucor. The first is an $81,281 break on a proposed $28 million equipment upgrade of its cold mill facility.
Chad Potter of Nucor said the project would create five jobs and allow the mill the produce higher-value-added steel.
The second is an $8,709 addition to an abatement for the galvanized steel line that the board approved in 2008. The company’s total abatement on the line rises to $180,113 a year. Nucor is considering a $3 million addition that would provide flexibility allowing its galvanized line to produce a different kind of steel.
Potter said the company has already begun a project that would add a backhouse to the furnace, helping control emissions. That environmental improvement is tax exempt according to state law.
Plant purchase
DeBruce Grain is considering buying the Cargill facility for about $10.3 million. Cargill shut down the plant last summer.
The board approved a $32,446 tax abatement as an inducement to draw the company to Morgan County.
Marve Hackmeister, regional vice president for DeBruce Grain, said his company would probably dismantle the current facility and clean the site.
The project would need between 20 and 40 construction workers. After completion, it would initially employ 12 people, and that number would grow to 20 in the first 12 months with an annual $825,000 payroll, not including benefits.
In a move to clear the way for the sale, the board also approved a transfer of the property from the board to Cargill because it has paid off the bonds on the land.
ConAgra storage
The board approved $20,014 in annual tax abatements for ConAgra, which is considering building two grain storage bins for wheat and purchasing manufacturing machinery, equipment and related support facilities for its flour mill operations on Market Street Northeast in Decatur. This is a $5.3 million project.
Bill Day, ConAgra Mills Southeast regional manager, said the proposed project should help local farmers. The current facility isn’t able to take in as much local wheat as it would like, particularly with more local farmers growing grain instead of cotton.
Day said the long-term vision of the project is 1.7 million bushels of storage.