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City grants tax abatement for Hwashin

Officials with the City of Greenville have approved approximately $700,000 in tax breaks for Hwashin America Corporation.

The Greenville City Council voted unanimously at its Oct. 13 meeting to grant the company a 10-year tax abatement that covers all state and local non-educational taxes and all construction related transaction taxes with the exception of those levied for educational purposes or for capital improvements for education.

The abatement was granted in response to the announcement of Hwashin’s $34-million, 100,000 square-foot expansion that is set to add 50 new jobs to an already existing 750 employees.

The expansion will aid in the production of Hyundai’s Elantra line.

In December, the city granted Hwashin a 10-year tax abatement to aid in its plans to install new tooling equipment at the plant.

Greenville Mayor Dexter McLendon said that the tax abatement was an easy decision to make, given Hwashin’s notable contributions to the county’s wellbeing.

“I would like to point out—and I think this is very important—that this is not educational taxes,” McLendon said.

“It lets you know how much Hwashin is putting into the community, and into our school system. They help out with buying ads and different things, but it’s $86,000 up front in used tax, and it’s an average of $62,500 per year for 10 years, so a total of $624,780 when added all together is about $700,000, and we appreciate that.”

Though a completion date for the project has not been set, construction on the new expansion to the Greenville facility is scheduled to begin later this month.

In other business, the council also approved a slate of 2014-2015 municipal contracts, including authorization of:

υ the City’s entering into an agreement with the Alabama Criminal Justice Information Center for the police department’s access to the criminal justice networks at a cost of $7,140

υ the City’s entering into a contract with the Butler County Commission and sheriff for housing of city prisoners in the amount of $100,000

υ the City’s entering into a contract with Quality Correctional Health Care to provide medical treatment for city prisoners at a cost of $2,728.38 per month

υ pound services agreement with the Butler County Commission in the amount of $1,000 per month plus $13 per euthanization

υ the renewal of the City’s airport manager’s contract with James Travis Capps Sr. in the amount of $24,000

υ the lease of airport facility by James Travis Capps Sr. at $250 per month plus 5 cents per gallon of fuel sold

υ the City to enter into service contract with Butler County Commission for economic development in the amount of $80,000

υ the City to enter into service agreement with the Greenville Area Chamber of Commerce in the amount of $25,000

υ the City to enter into service agreement with the Butler County Children’s Advocacy Center in the amount of $10,000

υ the City to enter into a service agreement with the Covington County Chapter of the American Red Cross in the amount of $1,000

υ the City to enter into a service agreement with the Family Sunshine Center in the amount of $2,500

υ the City to enter into agreement with the Butler County Emergency Management District in the amount of $30,000

υ the City to enter into agreement with Greenville Housing Authority for drug enforcement officers in the amount of $51,500

υ the City to enter into computer/technology maintenance agreement with Master Technology Solutions, LLC