Meeting Type: BCC Regular Meeting
Meeting Date: 9/16/2025
Item Status: Addendum
From: Roger H. Rendleman, County Administrator
Submitted by: Anu Gary, Administrative Services Manager
______________________________________________________________________
ITEM TITLE
Title
Resolution #2025-178 - Second Amendment to Tax Abatement Agreement between Baldwin County Commission and Novelis Corporation
End
STAFF RECOMMENDATION
Recommendation
Take the following actions:
1) Adopt Resolution #2025-178 which amends Resolution #2022-174 adopted by the Commission on September 20, 2022, granting a tax abatement to Novelis Corporation; and
2) Approve the Second Amendment to Tax Abatement Agreement between the Baldwin County Commission (the “County”) and Novelis Corporation (the “Company”), to amend that certain Tax Abatement Agreement dated as of August 5, 2022, between the County and the Company, as previously amended by that certain First Amendment to Tax Abatement Agreement dated as of September 20, 2022, between the County and the Company. The effective date of the amendment is August 2, 2022; and
3) Forward to the Office of the Revenue Commissioner of Baldwin County and the Office of Probate Judge of Baldwin County, Resolution #2025-178 and associated attachments informing the Probate Judge and Revenue Commissioner of the aforementioned grant of such Amended Tax Abatement; and
4) Authorize the Chairman to execute any and all documents deemed necessary to effect such amended tax abatement.
End
BACKGROUND INFORMATION
Current Request: At this time, Novelis Corporation has amended its Application for abatement to reflect an increased estimated investment for the project. The Second Amended Application reflects the abatement of 1) all State and local non-educational and non-hospital ad valorem taxes, less and except 1 Mill of the County-levied ad valorem tax, 2) all construction-related transaction taxes, except those local construction-related transaction taxes levied for educational purposes or for capital improvements for education, and 3) all taxes relating to mortgages, deeds, and documents relating to issuing or securing obligations and conveying title into or out of the County with respect to the Project.
General Background on Tax Abatements:
Section 40-9B-1, et seq., Code of Alabama (1975), or what is commonly referred to as the "Tax Incentive Reform Act of 1992," authorizes certain entities to grant "Tax Abatements" in their respective effort to attract new industries, and encourage existing industries to expand their pursuits in their varied jurisdictions. Section 40-9B-5, Code of Alabama (1975), which is entitled "Granting of Abatement," provides:
"(d) Any abatement of county taxes granted by a municipality or municipal industrial authority shall not be valid until the expiration of (1) 10 days following the date of physical delivery to the county commission or (2) 13 days following the date of mailing by certified mail to the county commission of a copy of the resolution granting such abatement. Proof of delivery by affidavit of service, in the case of physical delivery, or by certified mail receipt, in the case of mailing by certified mail, shall be furnished to the Department of Revenue at the same time as the filing of the abatement agreement under Section 40-9B-6. If the procedures herein prescribed are followed, any such abatement shall be effective as of the date granted."
Timeline for Novelis Tax Abatements:
On August 2, 2022, the County and Novelis entered into an Agreement, whereby the County approved Novelis' application for abatement of noneducational and non-hospital taxes and construction-related transaction taxes, with the exception of taxes levied for educational purposes or for capital improvements for education.
On September 20, 2022, the Commission approved the First Amended Tax Abatement Agreement to include the abatement of all taxes relating to mortgage and recording taxes. A revised Tax Abatement Application was attached to the Agreement as an Exhibit. On September 27, 2022, staff was informed that the Exhibit which was approved along with the Agreement was an old version of the application sent in error. The correct revised Tax Abatement Application had slight changes to the capital investment numbers. The revised numbers did not affect the good faith estimates set forth in the original Tax Abatement Agreement, and the employment numbers were in line with the original Agreement.
On October 4, 2022, the Commission acknowledged for the record the receipt of the correct revised Tax Abatement Application by and from Novelis Corporation on September 27, 2022, and approved the same being substituted for the incorrect Tax Abatement Application that was attached to the Amended Tax Abatement Agreement approved by the Commission on September 20, 2022.
Previous Commission action/date:
October 4, 2022 – Commission took the following action:
Acknowledge for the record the receipt of the correct revised Tax Abatement Application by and from Novelis Corporation on September 27, 2022, and approve the same being substituted for the incorrect Tax Abatement Application that was attached to the Amended Tax Abatement Agreement approved by the Commission on September 20, 2022 (Agenda Item CA2). The correct revised Tax Abatement Application does not affect or alter the terms of said Amended Tax Abatement Agreement between the Baldwin County Commission and Novelis Corporation.
September 20, 2022 – Commission took the following actions to approve the abatement application amended by Novelis to include the abatement of all taxes relating to mortgage and recording taxes:
1) Adopt Resolution #2022-174 which amends Resolution #2022-147 adopted by the Commission on August 2, 2022, granting a tax abatement to Novelis Corporation; and 2) Approve the First Amended Tax Abatement Agreement between the Baldwin County Commission (the “County”) and Novelis Corporation (the “Company”), to amend that certain Tax Abatement Agreement dated as of August 2, 2022, between the County and the Company. The effective date of the amendment is August 2, 2022; and 3) Forward to the Office of the Revenue Commissioner of Baldwin County and the Office of Probate Judge of Baldwin County, Resolution #2022-174 and associated attachments informing the Probate Judge and Revenue Commissioner of the aforementioned grant of such Amended Tax Abatement; and 4) Authorize the Chairman to execute any and all documents deemed necessary to effect such amended abatement.
August 2, 2022 - Commission took the following actions:
1) Adopt Resolution #2022-147, which grants a tax abatement to Novelis Corporation; and 2) Approve the Tax Abatement Agreement between the Baldwin County Commission and Novelis Corporation; and 3) Forward to the Office of the Revenue Commissioner of Baldwin County and the Office of Probate Judge of Baldwin County, Resolution #2022-147 and associated attachments informing the Probate Judge and Revenue Commissioner of the aforementioned grant of such Tax Abatement; and 4) Authorize the Chairman to execute any and all documents deemed necessary to effect such abatement.
FINANCIAL IMPACT
Total cost of recommendation: N/A
Budget line item(s) to be used: N/A
If this is not a budgeted expenditure, does the recommendation create a need for funding? N/A
LEGAL IMPACT
Is legal review necessary for this staff recommendation and related documents?
Yes, legal review and approval necessary.
Reviewed/approved by: Taylor Pecci, Adams & Reese 09/12/2025 akg
Additional comments: N/A
ADVERTISING REQUIREMENTS
Is advertising required for this recommendation? N/A
If the proof of publication affidavit is not attached, list the reason: N/A
FOLLOW UP IMPLEMENTATION
For time-sensitive follow up, select deadline date for follow up: N/A
Individual(s) responsible for follow up: N/A
Action required (list contact persons/addresses if documents are to be mailed or emailed):
1) Email correspondence to: cindy.jacovetty@novelis.com
Novelis Corporation
Attn: Cindy Jacovetty
3560 Lenox Road, Suite 2000
Atlanta, Georgia 30326
cc: Adams & Reese: Britton Bonner, Patrick Dungan, Taylor Pecci
2) Email and Courier copy of Resolution and Amended Tax Abatement Agreement including Exhibit A (Application) to:
Teddy J. Faust, Jr., Revenue Commissioner
Baldwin County, Alabama
Post Office Box 1389
Bay Minette, Alabama 36507
Harry D’Olive, Judge of Probate
Baldwin County, Alabama
Post Office Box 459
Bay Minette, Alabama 36507
cc: Roger Rendleman, Tara Hazelbaker, Beth Hodges, Heather Gwynn
3) Append to First Amended Tax Abatement Agreement in Contract files.
No upload to portal, file only.
File copy to 09/16/2025 Mtg Files, Tax Abatements files for Novelis.
Additional instructions/notes: N/A