Gadsden City Council approves tax abatement to keep 340 jobs, funds transit studies and park rate changes

GADSDEN, Ala. — The Gadsden City Council on Feb. 18 adopted a package of resolutions that included a tax abatement for Prince Metal Stamping USA, two transportation planning contracts with Volkert Inc., a property purchase for a city welcome sign, engineering services for a sidewalk project, amended rates for the new Knocklaw Falls Campground and approval of a recent legal settlement.

The action on the Prince Metal Stamping USA agreement drew the most attention because city officials said it is intended to keep about 340 jobs in Gadsden. “By doing this, Prince is saving 340 jobs here in the Gadsden area,” Mayor Ford said during the discussion. Council members voted to adopt the tax-abatement resolution after a brief discussion of the company’s expanded equipment costs.

The council also approved two contracts with Volkert Inc.: a fixed-route transit evaluation study for $94,543 and a 2050 long-range transportation plan for the Etowah Metropolitan Planning Organization for $229,521. City staff said both projects are eligible for 80% reimbursement through Alabama Department of Transportation (ALDOT) planning funds; the council adopted the resolutions by voice vote.

Councilman Robinson presented a resolution authorizing CDG Inc. to provide construction engineering and inspection services for sidewalk and streetscape improvements on Chestnut Street between Sixth and Seventh and on Sixth to Broad for $159,751; staff said this work is covered by an ALDOT grant and requested immediate consideration. The council approved that resolution as new business.

The council also adopted a resolution to purchase property at 2510 Rainbow Drive for $40,000 to install one of several new “Welcome to Gadsden” signs. Members said four signs are planned and that designs will be posted online; officials added they are coordinating sign placement and mounting with the highway department so signs meet right-of-way and breakaway requirements.

Parks and Recreation requested an amendment to admission and rental rates for the new Knocklaw Falls Campground so the city can begin taking reservations in advance of its planned March opening; council members approved the amended rates, which staff said bring the new campground’s prices in line with the city’s other two campgrounds. The agenda and meeting discussion did not list the specific new rate amounts.

Councilwoman Menacher asked the council to consider and then adopt a settlement agreement that staff said stemmed from a negligence action arising from a nuisance abatement; City Attorney Lee Roberts summarized the matter as “a negligence action arising out of a nuisance abatement” when asked to provide a brief synopsis after the vote. The resolution to approve the settlement passed.

Votes at a glance

- Resolution authorizing purchase of property at 2510 Rainbow Drive for a welcome sign: adopted; purchase price $40,000 (Item 9).

- Resolution authorizing tax abatement agreement with Prince Metal Stamping USA Inc.: adopted; company’s project cost cited up to $5.5 million for equipment; city staff said the city’s estimated foregone taxes are approximately $140,000 over 10 years and that the abatement is intended to retain about 340 local jobs (Item 10).

- Resolution authorizing agreement with Volkert Inc. for a fixed-route transit evaluation study: adopted; project cost $94,543; reimbursable at 80% through ALDOT planning funds (Item 11).

- Resolution authorizing agreement with Volkert Inc. to develop the 2050 long-range transportation plan for the Etowah MPO: adopted; project cost $229,521; reimbursable at 80% through ALDOT planning funds (Item 12).

- Resolution authorizing agreement with CDG Inc. for construction engineering and inspection services for sidewalk improvements on Chestnut and Sixth Street: adopted; budgeted $159,751; identified as ALDOT-funded (new business presented by Councilman Robinson).

- Resolution amending admission and rental rates for Knocklaw Falls Campground and adjustments to rental policies: adopted; purpose is to open reservations ahead of a planned March opening (new business presented by Councilman Robinson). Specific rate amounts were not specified in the meeting record.

- Resolution approving a settlement agreement arising from a negligence action related to nuisance abatement: adopted; amount and detailed terms not specified in the meeting record (presented by Councilwoman Menacher). City Attorney Lee Roberts provided a brief synopsis after the vote.

What council members said and staff context

Mayor Ford and other council members framed the tax abatement as a job-retention measure: officials said the abatement applies to construction-related transaction taxes and non-educational property taxes tied to a major addition at Prince Metal’s existing facility. Mayor Ford said the company’s equipment estimate rose from $4.5 million to $5.5 million because of anticipated tariff costs; the city official characterized the $140,000 in foregone tax revenue as the approximate total over a 10-year period.

On transit, city staff noted the transit routes need updating to shorten route times and improve usability; staff said one route can take up to an hour and a half to complete, and the study will evaluate route reconfiguration and renaming.

During department reports Mayor Ford and other members also briefed the council on ongoing efforts including Operation Spring Cleaning (relocating crews to Mill Village), outreach to state and federal delegation offices on the Eastern Connector project, and a municipal-court amnesty day on March 4 offering consideration of up to 50% off fines when paid in full that day.

What the meeting did not resolve

Council comments referenced ongoing work on the Eastern Connector federal approvals and property discussions in Banks Park; council members said they are pursuing coordination with regional and federal highway officials and congressional offices but the meeting did not include or produce a formal action on those items.

Next steps

Staff will post the new welcome-sign design online, begin reservation processing for Knocklaw Falls Campground ahead of its March opening, and proceed with the Volkert contracts and sidewalk engineering as approved. Several items are contingent on ALDOT reimbursements or related agency approvals.