Brundidge grants SCFG tax abatement

Published 11:00 pm Wednesday, May 8, 2013

The Brundidge City Council voted Tuesday in favor of a 10-year abatement of ad valorem taxes for Southern Classic Food Group in Brundidge.

The tax abatement will also include non-educational sales and use taxes during the construction period, along with property taxes and mortgage and recording fees.

Britt Thomas, Brundidge city manager, said Chuck Caraway, SCFG owner, had been talking with the city and Pike County Economic Development Corporation about expansion plans for the food processing company if certain things fell into place.

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“On Monday, Chuck Caraway presented the city with an application to consider the tax abatement,” Thomas said. “The SCFG expansion will be a $2.8 million capital investment. Fifty-five additional employees will be hired over a four-year period with a $1.4 million payroll.”

The tax abatement granted to SCFG by the city will amount to about $60,750 in state sales and use taxes and $27,250 in city taxes. The county’s education tax will not be affected. The abatement in property taxes for the city will amount to $40,000 over the 10-year period.

The abated property tax savings to SCFG will be $116,381 over the 10-year period.

By granting the tax abatements, which will total about $67,000 for the city.

SCFG opened in Brundidge in January 2001.

Thomas said the 10-year tax abatement granted to the Walmart Distribution Center in Brundidge runs out in 2013. The city will begin receiving tax funding from the DC in 2014. The amount could be between $80,000 and $90,000 a year.

The council also voted to provide additional funds for “Camp Brundidge,” which is the city’s summer program for children in Kindergarten through eighth grades. The council agreed to increase its funding from $10,000 to $12,174.

The request for the additional funds was made by the Pike County Board of Education, which has partnered with the City to fund and operate Camp Brundidge for a six-week period.

The camp will be staffed with five certified teachers and the programming will include math, English, language arts and some physical activities. The camp will begin at 7 a.m. and will end with the feeding program at 1p.m.

The council awarded the bid for the City’s Drinking Water State Revolving Fund Water Improvements project to Baird Construction Company in the amount of $842,587, which was $6,485 under budget.

The project will tie in the city’s water meter system and install a new meter reading system that will make it possible for the water meters to be read at City Hall.

Thomas said the improvements to the system will increase the water pressure throughout the city. If one well goes out, the other two wells will take over the load.

Funding for the project was made available through the Alabama Department of Environmental Management (ADEM) loan/grant program, which includes a $54,000 grant and a 2.76 percent 20-year loan.

In other business, the council reviewed the Water Prevention Annual report and declared several items surplus property. The items will be posted for auction on

Council members will attended the League of Municipalities Convention in Montgomery May 18-20. The Council will not meet on May 21.