HomeMy WebLinkAbout10-29-2025 Special Called Industrial Development Board Meeting MinutesMEETING
NOTES
City of Fairhope
Industrial Development Board
Date of Issue: Nov 06 , 2025
uest for Tax Abatement Date Extension
RECORDED BY: E. Crai Mitchell APPROVED BY: Ric Lace , Oct 04, 2025
PRESENT: Board members: Ric Lacey, Steve 'McClure, Jeff Windham, Richard Johnson and
Mark Valentine .
Council Liaison, Jack Burrell
Baldwin County EDA: Ashton Feaster
Various guests
ITEM DESCRIPTION OF DISCUSSION NO.
I Call to Order by Ric Lacey at 5:06 p.m.
2 Board President Lacey welcomed the attendees and reviewed
the agenda for the meeting
3 Ashton Feaster presented a request to the Board to
change the original project completion date from June
of 2026 to extend it to March of 2027 , due to project
schedule issues.
Board members questioned if this change would
impact the value of the abatement or the number of
planned jobs .
Mr. Feaster responded that there would be no change
to the original request basis except for an extended
project duration . A motion was made by Steve
McClure to approve the change in project completion
and it was seconded by Mark Valentine . Chairman
Lacey called for a vote and it was unanimously
approved .
4 The meeting was adjourned at 5:36 .
ACTION STATUS
Page I of I
Resolution Number 2/11 ----------
This Resolution is made this 29th day of October , 2025 b y the The City of Fairhope
Industrial Development Board (the Granting Authorit y ), to grant a tax abatement to Segers Aero
Corporation (Operating Ent ity) & Elpizo Corporation (Developer).
WHEREAS, the Company has announced plans for a (check one):
D new project or 18[ major addition to their existing facility (the Project), located within the
jurisdiction of the Granting Authority; and
WHEREAS, pursuant to the Tax Incentive Reform Act of 1992 (Section 40-9B-1 et seq., Code of
Alabama 1975) (the Act) the Company has requested from the Granting Authority an Abatement of
(check all that apply):
~ all state and local noneducational property taxes,
Jx1: all construction related transaction taxes, except those local construction related transaction taxes
levied for educational purposes or for capital improvements for education, and / or
D all mortgage and recording taxes; and
WHEREAS, the Company has requested that the abatement of state and local noneducational property
taxes (if applicable) be extended for a period of ___ years, in accordance with the Act; and
WHEREAS, the Granting Authority has considered the request of the Company and the completed
applications (copy attached) filed with the Granting Authority by the Company, in connection with its
request; and
WHEREAS, the Granting Authority has found the information contained in the Company's application
to be sufficient to permit the Granting Authority to make a reasonable cost /benefit analysis of the
proposed project and to determine the economic benefits to the community; and
WHEREAS, the construction of the project will involve a capital investment of$ 11,552,000 ; and
WHEREAS, the Company is duly qualified to do business in the State of Alabama, and has powers to
enter into, and to perform and observe the agreements and covenants on its part contained in the Tax
Abatement Agreement; and
WHEREAS, the Granting Authority represents and warrants to the Company that is has power under
that constitution and law s of the State of Alabama (including particularly the provisions of the Act) to
carry out the provisions of the Tax Abatement Agreement;
NOW THEREFORE, be it resolved by the Granting Authority as follows:
Section 1. Approval is hereby given to the application of the Company and abatement is hereby
granted of (check all that apply):
~ all state and local noneducational property taxes,
~ all construction related transaction taxes, except those local construction related transaction taxes
levied for educational purposes or for capital improvements for education, and/ or
D all mortgage and recording taxes
as the same may apply to the fullest extent permitted by the Act. The period of abatement for the
noneducational property taxes (if applicable) shall extend for a period of _10_ years measured as
provided in Section 40-9B-3(a)(12) of the Act.
Section 2. The governing body of the Granting Authority is authorized to enter into an abatement
agreement with tne Company to provide for the abatement granted in Section 1.
Section 3 . A certified copy of this resolution, with the application and abatement agreement, shall be
forwarded to the Company to deliver to the appropriate local taxing authorities (if applicable) and to the
Alabama Department of Revenue in accordance with the Act.
Section 4. The governing body of the Granting Authority is authorized to take any and all actions
necessary or desirable to accomplish the purpose of the foregoing of this resolution.
I hereby certify that the above and foregoing was duly adopted by the The City of Fa i rhope Industrial
Development Board at a meeting held on the _29th_ day of October , 2025 .
£:it ~ (Secretary)
Tax Abatement Agreement
This Abatement Agreement is made and entered into as of this 29th day of October , 2025 , by and
between _The City of Fairhope Industrial Development Board (the Granting Authority), and
Segers Aero Corporation (Operating Entity) & Elpizo Corporation (Developer), its successors and assigns .
WHEREAS , the Company 's North American Industry Classification System (NAICS) Code , 336410
meets the qualifications of an industrial or research enterprise in accordance with Section 40-9B-3(10), Code
of Alabama 1975, as amended ; and
WHEREAS, the Company has announced plans for a (check one):
□ new project o r )!I( major addition to their existing facility (the Project), located within the jurisdiction of the
Granting Authority ;
WHEREAS, the Project is estimated to be completed by the _jg_ day of March , 2027 ;
and WHEREAS the Project will be located in the County of _-=Bc=ac:.::ld'-'-'w'-"in-'--_ (check only one)
)(inside the city limits of __ F~a_ir_h~op~e~
o inside the police jurisdiction of ____________ _
□ outside the city limits and police jurisdiction of the City of ______________ ; and
WHEREAS , pursuant to the Tax Incentive Reform Act of 1992 (Section 40-9B1 et seq ., Code of Alabama
1975) (the Act), the Company has requested from the Granting Authority an Abatement of: (check all that apply)
)I( all state and local noneducational property taxes ,
)( all construction related transaction taxes , except those local construction related transaction taxes levied
for educational purposes or for capital improvements for education , and/or
□ all mortgage and recording taxes with respect to mortgages , deeds , and documents relating to issuing or
securing obligations and conveying title into or out of the public authority , county or municipal government ;
WHEREAS , the Granting Authority has considered the request of the Company and the completed
applications filed with the Granting Authority by the Company , in connection with its request ; and
WHEREAS, the Granting Authority has found the information contained in the Company 's application to be
sufficient to permit the Granting Authority to make a reasonable cost/benefit analysis of the proposed project
and to determine the economic benefits to the community ; and
WHEREAS , at its meeting held on the 29th day of October 2025 (the Meeting), the
Granting Authority approved the Company 's application for abatement of (check all that apply):
)i( all state and local noneducational property taxes ;
Xall construction related transaction taxes , except those local construction related transaction taxes levied
for educational purposes or for capital improvements for education ; and /or
o all mortgage and recording taxes with respect to mortgages , deeds , and documents relating to issuing or
securing obligations and conveying title into or out of the publ ic authority , county or municipal government ;
WHEREAS , the Project will consist of private use industria l development property , which is composed of all
real and/or related personal property to be acquired , constructed , and installed thereon , as described in
Attachment One hereto ; and
WHEREAS , the private use industrial development property for which the abatement is applied shall be
(check whichever is applicable):
)( owned by the entity applying for the abatement ,
o leased from a public authority , mun icipal , or county government; and
WHEREAS , in the event that the private use industrial development property is leased from a public
authority , municipal , or county government, the lessee shall be treated as the owner of such property for
federa l income tax purposes ; and
WHEREAS , it shall be ind icated whether the Granting Authority intends to issue bonds in connect ion with
the private use industria l development property herein described , and , if so intends , shall attach a copy of the
inducement agreement ; and
WHEREAS , for the purposes of abatement of all noneducational property taxes (if applicable), it has been
determ ined that no portion of the Project has been placed in service or operation by the Company or by a
related party , as defined in 26 U.S.C . §267 , with respect to the Company prior to the Effective Date of this
Agreement; and
WHEREAS , for the purposes of the abatement of construction related transaction taxes (if app licable), no
portion of the Project wh ich has been requested for abatement has been purchased prior to the Effective Date
of th is Agreement ; and
WHEREAS , the Project conducts trade or business as defined as an industrial or research enterprise :
Predominately as described in the 2012 North American Industry Classificat ion System , promulgated by the
Executive Office of the President of the United States , Office of Management and Budget , Sectors 31 (other
than National Industry 31181 1 ), 32 , 33 , 55 (if not for the production of electricity); Subsectors 423 , 424 , 482 ,
493 , 511 , 517 , 518 (without regard to the premise that data process ing and related services be performed in
conjunction with a third party), and 927 ; Industry Groups 1133 , 2121 , 4862 , 4882 , 4883 (othe r than 48833 ),
5121 (other than 51213), 5415 , and 5417 ; Industries 48691 , 48699 , 48819 , 51221 , 51913 , 52232 , 54133 ,
54134 , 54138 , 56291 , 56292 , and 92811 ; and National Industries 115111 , 22111 , 221330 , 541614 , 561422
( other than establishments that originate telephone calls), 562213 , and 611512 o r any similar c lassification
system developed in conjunction with the United States Department of Commerce or Office of Management
and Budget , or any industrial or research enterprise as defined in Section 40-9B-3(a )(10), Code of Alabama
1975 , as amended , or a target of the state 's econom ic development efforts pursuant to the Accelerate
Alabama Strategic Economic Development Plan adopted in January 2012 by the Alabama Econom ic
Development Alliance , created by Executive Order Number 21 of the Governor on July 18 , 201 1 , or any
amended version or successor document thereto ,
A headquarters facility project as described in NAICS 551114 at which not less than 50 jobs are located ,
A data processing center as defined in Section 40-9B -3(a)(4 ), Code of Alabama 1975 ,
A research and development facility as defined in Section 40-9B -3(a)(23 ), Code of Alabama 1975 ,
A renewable energy facility as defined in Section 40 -9B -3(a )(22 ), Code of Alabama 1975,
A facil ity that produces electricity from alternative energy resources or hydropower production as defined in
Section 40-9B -3(a)(1 0)e, Code of Alabama 1975, or
A tourism destination attraction as defined in Section 40-9B -3(a )(25 ), Code of Alabama 1975;
WHEREAS , if the Project is a major addition to an existing fac ility, the request for abatement of all state and
local noneducational property taxes (if applicable) and/or construction related transaction taxes (i f applicable )
does not include any capitalized repairs , rebuilds , maintenance , replacement equipment, or costs associated
with the renovating or remodeling of existing fac il ities of industr ial development property previously placed in
service by the Company; and
WHEREAS , if the Project is a major addition to an exist ing facility the add ition equals the lesser of (i) th irty
(30) percent of the original cost of the industrial development property , or (i i) $2 ,000 ,000 ; and
WHEREAS , the Company is duly qualified to do business in the State of Alabama , and has powers to ente r
into , and perform and observe the agreements and covenants on its part contained in this Ag reement ; and
WHEREAS , the Granting Authority represents and warrants to the Company (a) that it has power under t hat
constitution and laws of the State of Alabama (including particularly the provisions of the Act) to carry out the
provisions of this Agreement , (b) that the execution of this Agreement on its behalf has been duly authorized
by resolution adopted by the governing body of the Granting Authority ;
NOW, THEREFORE , the Granting Authority and the company , in consideration of the mutual promises and
benefits specified herein , hereby agree as follows :
In accordance with the Act , the Granting Authority hereby grants to the Company an abatement from
liability for the following taxes as permitted by the Act (check all that apply):
:!)(a) Noneducational Property Taxes : all state and local noneducational property taxes that are not requ ired to
be used for educational purposes or for capital improvements for education for _j_Q_ years ,
~(b) Construction Related Transaction Taxes : the transaction taxes imposed by Chapter 23 of Title 40 Code
of Alabama 1975 on the tang ible personal property and ta xable serv ices to be incorporated into the Project ,
the cost of which may be added to the cap ital account with respect to the Project, except for those local
construct ion related transact ion taxes levied for educational purposes or for capital improvements for
education ; and/or
o (c ) Mortgage and Recording Taxes : all taxes imposed by Chapter 22foitle 40Code of Alabama 1975
relat ing to mortgages , deeds , and documents relating to issu ing or securing obl igations and convey ing t itle into
or out of the Granting Authority with respect b the Project.
2. An estimate of the amount of tax abated pursuant to th is Ag reement is set forth below. The Granting
Authority and the Company hereby acknowledge that this estimate reflects the amount of tax abated for the
period stated , under current law, and that the actual abatement for such taxes may be for a greater or lesser
amount depend ing upon the actual amount of such taxes levied during the abatement periods stated. (Check
all that apply):
ll( (a) If no bonds are to be issued , noneducational property taxes a re expected to be approximately
$ ___ 58 ,693_ per year and the maximum period for such abatement shall extend for a period of
_1 0_ years , measured as provided in Section 40-98-3(a)(12 ) of the Act , as amended from time to
time .
□ (b) If bonds are issued , noneducational property taxes are expected 1o be approx imately
$ _______ per year and the maximum pe ri od for such abatement shall be valid for a period of
____ years , beginning the initial date bonds are issued to finance project.
)!! (c) Construction related transaction taxes , except those local construct ion related transaction taxes
levied for educational purposes or for capital improvements for education , are expected to be approx imately
$_299 ,351 __ and such abatement shall not extend beyond the date the Project is placed in service .
(d) Mortgage and recording taxes are expected to be $ ___________ _
3. The Company hereby makes the following good faith projections :
(a) Amount to be invested in the Project: $ __ ---'1~1~5=5=2~0=0~0 ____ _
b) Number of add itional individuals to be employed initially at the Project and in each of the succeed ing
th ree years : Initially __ 20 __ Year 1 _1 O_ Year 2 _ 15_ Year 3 _ 15_; with accumulation
of 60 .
(c) Add itional annual payroll in itially at the Project and in each of the succeed ing three years :
In itially $_1 ,652 ,768_ Year 1 $_826 ,384_ Year 2 $_ 1,239 ,576_ Year 3
$ __ 1,239 ,576_; with an accumulation of $4 ,958 ,304 .
4 . The Company shall file with the Alabama Department of Revenue w ithin 90 days after the date of the
Meeting a copy of this agreement as required by Sect ion 40-98 -6(c) of the Act.
GENERALLY
5. Compliance . If the Company fails to comply with any provision in this Agreement or if any of the material
statements contained herein or in Attachment Two (Note : This attachment shall include the application for
abatement), are determined to have been misrepresented whether intentionally, negl igently, or otherwise , the
Grant ing Authority shall terminate this Agreement and take such equ itable action available to it as if this
Agreement had never existed . If it is determined that certain items , which are identified on the appl ication fo rm
for abatement of taxes , are not in compl iance with the Act or govern ing regulations , these items may be subject
to taxation for all local and state taxing authorities .
6 . Binding Agreement. Each party to this Agreement hereby represents and warrants that the person
executing th is Agreement on behalf of the party is authorized to do so and that this Agreement shall be binding
and enforceable when duly executed and delivered by each party . This Agreement shall be binding upon and
inure to the benefit of each of the parties and their respective successo rs .
7. Limitations . Notwithstanding any provision contained herein to the contrary , th is Agreement is limited
solely to the abatement of (check all that apply):
)!( all state and local noneducational property taxes ,
J)i:'. all construction related transaction taxes , except those loca l construction related transact ion taxes levied fo r
educational purposes or for capital improvements for education , and/or
□ all mortgage and recording taxes for the periods specified herein . Nothing in th is Agreement shall be
construed as a waiver by the Company of any greater benefits that the Project o r any portion thereof may have
ava ilable under the provis ions of the law other than the Act.
8 . Severability. This Agreement may be amended or term inated upon mutual consent of the Company and
the Granting Authority . Any such amendment or termination shall not in any manner affect the rights and duties
by and between the Company and the Granting Authority .
This Agreement is executed as of the dates specified below.
(the Company)
By : ______________ _
f.u '/-~& ~w/~1/-;1 ht! ;Jett/~-~,,,/-
<the Granting Authority) / 3-vt::t r P'f
By ffe~~ ?~
Name :. _____________ _ Name :. _ __,[2_'---..._/_'c... __ LA, __ c_,e_=,i~V:L-___ _
Title : ______________ _ ~ /, -t 'r Title : _ __,.~..::::..._vlPt.=.::...,:_ ________ _
Date : ______________ _ Date :.___,,_/......:...tJ-+-/-=-z;....:.....,? /'---z.J:::..._• __ _
1 1
(the Company)
By : ______________ _
Name :. _____________ _
Title : ______________ _
Date : ______________ _