AFC Feed, a joint venture between the Alabama Farmers Cooperative and Purina Nutrition, plans to build a $7.4 million animal feed and blending facility and warehouse on Market Street Northeast.
General Manager David Riggs told the city of Decatur’s Industrial Development Board on Thursday that this will be a new 60,000-square-foot facility. It will be built on the Alabama Farmers Cooperative's property.
Half of the building will be warehouse storage. The other 30,000 square feet will be for commodity shipping that’s separated into 11 bays. This where the company will prepare the bulk feed for membership cooperatives and independent feed stores.
The project is expected to create nine jobs with a payroll of $360,000 annually, which equates to an average of $40,000 annual salaries for employees, not including benefits.
Riggs said his company plans to start the project immediately with the goal completing it by the end of the year.
“This will alleviate the pressure on our existing manufacturing,” Riggs said.
AFC Feed uses grain, soybeans, cotton seed, corn and other ingredients to make food for cattle, horses, rabbits, poultry and other farm animals.
“This will be an expansion of what we’ve done for years,” Riggs said.
Mayor Tab Bowling said he appreciates that AFC is willing to expand and further solidify its operations in Decatur.
“Their commitment to Decatur is evident,” Bowling said.
The IDB held its meeting over teleconference, which is allowable under Gov. Kay Ivey’s March 18 order. IDB attorney Barney Lovelace said he spoke with the Alabama League of Municipalities and they agreed that “the IDB can consider abatement request because abatements are the minimally essential duty of the board.”
The board voted unanimously to grant AFC $518,875 in tax abatements, including an estimated $280,000 over 10 years in non-educational property taxes. The company will also receive a one-time abatement of $102,375 in city sales and use taxes on capital spending and a one-time abatement of $136,500 from the state and Morgan County.
The project will create $345,000 over a 10-year period in property tax revenue benefiting schools. Another estimated $34,100 in sales and use taxes created during the capital expenditure phase will be divided between the Decatur, Hartselle and Morgan County school systems.
The capital expenditure phase also will create $34,125 in non-abated city sales and use taxes that have traditionally gone to Decatur City Schools.