SPANISH FORT, Ala.—Prospects got a little sweeter Monday night for an industrial site in the I-10 Commerce Center when the City Council approved tax abatements allowing LAC Acquisition Co. LLC to proceed with the proposed conversion of the former Kelco Metals Inc. building into a candy manufacturer.

Dominic Perrotta, representing LAC, said the deal entails buying out the one-man operation of L.A. Candies, currently based on Spanish Fort Boulevard, and ramping up production at the Sgt. E.I. “Boots” Thomas Drive site. The new L.A. Candies then plans to hire 50 employees, with an annual payroll of about $2 million, and increase the staff by 50 each year, totaling 150 employees within three to four years.

Metals reseller Kelco originally set up shop in the commerce center in anticipation of doing business with the ThyssenKrupp steel plant north of Mobile, but with steel demand in decline—and the German steelmaker’s plans in limbo—the Spanish Fort project has stalled. Building Official Bruce Renkert said he anticipates no Planning Commission action will be needed because the site is already zoned industrial and should fit LAC’s needs as approved.

The council approved a one-time abatement of $54,450 in construction-related transaction taxes not already set aside for educational purposes as well as a 10-year abatement of $4,365 each year in noneducational property taxes.

City Attorney David Conner noted that because Kelco already received an abatement on the actual property purchased, LAC’s considerations will be applied to additional equipment and property improvements only.

Perrotta said the estimated value of improvements to the lot totals almost $1.68 million.

Josh Thornton with the Baldwin County Economic Development Alliance said based on preliminary economic impact figures, the city could expect to recoup its investment within the project’s initial three-year lease. His figures were based primarily on U.S. Department of Labor statistics illustrating the percentage of household income allocated for retail purchases and the corresponding sales tax revenue generated.

Thornton also pointed out that L.A. Candies expects to create “well-paying” jobs in the $15 per hour range that are expected to pump the disposable income of its employees back into the local economy.

The new confection manufacturer could open its doors as early as July, Perrotta said.

In other business, the council:

City Hall will be closed Monday, May 25, in observance of Memorial Day.

The council will hold a 5 p.m. work session in the conference room of City Hall on Monday, June 1, followed immediately by a 6 p.m. meeting at the Prodisee Center.