BY OBSERVER STAFF
OPELIKA — The Opelika City Council held a special called meeting Feb. 24 and approved a Project Development Agreement with Faith Technologies Incorporated (FTI), authorizing tax abatements and incentives tied to a $79.25 million capital investment and the creation of approximately 200 full-time jobs in the Northeast Opelika Industrial Park.
The meeting, held at Opelika Municipal Court, included a public hearing that drew multiple residents who questioned the timing of the meeting, the availability of information and rumors that the facility could be a data center.
After discussion, the council unanimously approved both the development agreement and associated tax abatements.
Manufacturing facility planned for former JoAnn distribution center
FTI, a Wisconsin-based company specializing in construction, engineering and advanced manufacturing, plans to renovate and equip the former JoAnn Fabrics distribution center at 3101 Anderson Road.
Through its Excellerate brand, the company manufactures engineered electrical assemblies and modular power systems used in industries including health care, emergency management, EV charging infrastructure and large-scale commercial construction projects.
City Economic Development Director John Sweatman told council members the facility is not a data center.
“Faith Technologies is not a data center, and I can’t say that more clearly,” Sweatman said. “It is not a stepping stone to a data center. This building will never have the power capacity available to entertain that idea.”
FTI Real Estate Development Manager Matt Rehbein echoed that statement during the meeting.
“We are not a data center, and we’re not working toward being a data center,” Rehbein said. “We manufacture electrical assemblies and modular systems to support power management needs.”
Rehbein said the facility will operate within traditional industrial utility levels and will not require increased power or water capacity beyond standard industrial service.
Investment and job creation
According to the agreement, FTI expects to invest approximately $79.25 million in developing, constructing and equipping the facility. The project is anticipated to create at least 200 full-time jobs, with an average salary of approximately $65,000 per year.
Initial employment targets require at least 50 full-time employees by September 2026. The project is projected to be placed in service by February 2027.
In a statement released following the meeting Mayor Eddie Smith said the project strengthens Opelika’s advanced manufacturing base.
“This investment represents new jobs and new facilities as well as confidence in our people, our leadership and our business-friendly environment.”
David Jahner executive vice president of FTI said the company looks forward to building relationships in Opelika.
“Becoming part of the Opelika community is an exciting step forward for FTI,” Jahner said. “Our continued growth is grounded in safety and our Culture of Care, a commitment to our team members’ and to creating a workplace where people feel valued, respected and empowered. We look forward to building meaningful relationships and contributing positively to the Opelika community.”
Tax abatements and incentives
The council approved:
- A 10-year abatement of all state and local non-educational ad valorem (property) taxes
- Abatement of construction-related sales and use taxes, excluding those designated for education
- A 15-year exemption for non-educational city ad valorem taxes
- Job performance incentive payments of up to $570,000 over 10 years, based on employment thresholds
- Workforce training reimbursements and local purchasing incentives
Sweatman explained that abatements are authorized under Alabama state law for qualifying manufacturing projects and must be approved before equipment arrives onsite.
“The tax abatement has to be in place and approved before any equipment can arrive, or it doesn’t qualify,” Sweatman said.
He also emphasized that taxes designated for schools, hospitals and dependent children services are not eligible for abatement.
“Our school systems benefit day one,” he said.
Council members noted that incentives are performance-based, meaning employment and investment benchmarks must be met before payments are issued.
Public concerns raised
During the public hearing, several residents expressed frustration over what they described as limited information in the agenda packet and short notice of the special called meeting.
Jason Manns, who lives near downtown Opelika, said the agenda materials lacked detail.
“There’s no cost-benefit analysis to the city,” Manns said. “Just tell us what’s going on.”
Others questioned whether elected officials had signed non-disclosure agreements and whether the project could eventually lead to a data center in Opelika.
Morgan Carpenter, a resident since 1972, said the confusion could have been avoided with greater transparency.
“I think everything here tonight — the confusion and concern — could have been avoided if we’d had more transparency,” Carpenter said.
Some speakers urged the council to table the vote to allow more time for public input.
“I just want to ask y’all, since I don’t really see any transparency in any of this, that you consider tabling this until information can be shared with the citizens of Opelika so we know what’s going on and you can get some input from us,” Mike Bass said. “You can’t get any input from us when we don’t have a clue what’s going on. So if y’all would table it and just give a little time so we can find out something.”
Special meeting explained
Sweatman said the special meeting was called to meet the company’s timeline for equipment delivery.
“In eight years, we’ve never had to call a special meeting,” he said. “But the company couldn’t afford to wait until the next scheduled council meeting.”
Under Alabama law, abatements must be approved prior to project investment to qualify.
Following discussion, the council voted unanimously to approve both the Project Development Agreement and the tax abatements.
The agreement takes effect immediately
City officials said the investment aligns with Opelika’s long-term economic development strategy by strengthening the advanced manufacturing sector, expanding the city’s tax base and leveraging existing infrastructure in the Northeast Industrial Park.
