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The Lowndes County Commission held its regularly semi-monthly meeting Monday, Aug. 12 and considered an abatement request from auto parts manufacturer Daehan Solutions Alabama, LLC in Hope Hull.

Robert Gilpin of Gilpin Givhan, PC in Montgomery presented the request to commissioners, explaining Daehan’s planned expansion, an investment totaling $14,217,340 for machinery and equipment.

“They are asking for an abatement on the $14 million they are looking to spend,” Gilpin said. “They did not ask for an abatement on the $24 million of capital [initially invested.] 

Commission chairman Charlie King asked Gilpin for a rundown of the request and a timeline for the abatement.

“This is really what we see with manufacturers all over Alabama,” Gilpin said. “It’s kind of a standard package. We are not asking for land or cash incentives, just the standard statutory abatement for manufacturing facilities based on jobs and knowledge investment.

Gilpin confirmed that if granted, the abatement would be in effect for 10 years, although Alabama law permits abatements for up to 30 years. Education taxes cannot be abated in Alabama.

The project includes the addition of new equipment and would bring 38 new jobs to Lowndes County — 23 initially and five more each year for the next three years. The new positions would be open to production associates.

Commissioner Robert Harris asked the salary amount the new jobs would represent, but Gilpin did not have the figure readily available. The abatement request was calculated based on prior year’s production and payroll data.

Harris also asked Gilpin for assurance that the hoped-for jobs would materialize.

“The last time ya’ll came before us to ask for an abatement ya’ll were supposed to hire ‘X’ number of people in a certain period of time,” Harris said. “During that same time span, y’all also received funding from the state and they require that y’all have ‘X’ amount of people hired, just like we did. You did not meet that goal, so what is the guarantee that you’re going to meet that goal this time?”

“I don’t know about that, but I can get some more information,” Gilpin said.

King and Harris also raised questions about Daehon’s compliance with work authorization standards, specifically whether the plant verified work authorization paperwork for all migrant workers.

Gilpin stated Daehan’s E-Verify certification was included with the abatement application, and King requested the number of migrant workers employed by Daehon.

“There’s been some complaints about employees and how they are being treated,” Harris said. “We’re getting calls concerning the way that the employees are being treated. My concern is if we’re going to get an abatement for our people being treated badly, that doesn’t make sense to me.”

Gilpin explained that lawsuits alleging dangerous working conditions against automotive suppliers had included only three Daehan employees. All of those lawsuits were dismissed, he added.

The commission did not vote on whether to grant the abatement. The decision was tabled, pending further review after receipt of the information requested.