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The Birmingham City Council on Tuesday gave a thumbs up for a $10 million expansion of a manufacturing facility near Leeds.
A resolution approved by councilors will allow Birmingham’s Industrial Development Board to issue up to $10 million in industrial revenue bonds to finance Culton Holding Inc.’s expansion of a manufacturing facility at 1811 Woodlands Industrial Drive. It sits on the northeastern corner of the junction of Interstates 459 and 20 near The Shops at Grand River.
City officials said the project will be funded through private financing, with the IDB serving merely as a conduit.
Edward Gaal, an attorney with Bradley Arant Boult Cummings, the firm overseeing the deal, spoke to the council Tuesday before the unanimous vote.
He said there will be no city or IDB funds used for the agreement. The parties are simply asking the council for consent to issue the bonds, something that is required under the board’s certificate of incorporation.
“There is in no way liability to the city,” Gaal said.
Culton Companies Inc. manufactures trade show displays, commercial interiors and interactive environments for museums.
The company purchased the existing 130,000-square-foot facility on Woodlands Industrial Drive from EBSCO Industries earlier this year.
Leaders estimate the expansion will mean 15 to 20 new jobs for the area.
According to city staff, a letter of credit for the project was provided by CB&S Bank, which is supporting the issuance of the new industrial bond for a term of up to 20 years. In other business, the council also approved $2 million to go toward the 85th Annual Magic City Classic, to be held Oct. 31 at Legion Field.
