One of the leading manufacturers of premium domestic appliances in the world will be opening a facility in Opelika, the city officials announced during Tuesday’s Opelika’s City Council meeting.
Miele has entered into a project agreement with the city to build a location that will serve as the U.S. manufacturing hub for the company. Miele will build a new 800,000-square-foot plant in the Northeast Opelika Industrial Park that will serve as the company’s major U.S. production center as its U.S. business grows.
The project could create approximately 837 jobs with an investment of $657.7 million.
“We are excited to announce the arrival of Miele to our vibrant community. We are committed to fostering innovation, creating high-quality jobs and contributing to the economic growth of our community,” Opelika Mayor Gary Fuller said. “Together, we look forward to a future filled with shared success and lasting positive impact.”
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Miele is a manufacturer of cooking, baking and steam-cooking appliances, refrigeration products, coffee makers, dishwashers and more.
Miele has launched a “long-term growth project” in Opelika, according the City of Opelika. Phase I will include the company occupying an existing facility in Opelika and creating over 150 jobs by 2026.
For Phase II, Miele has plans to build the large facility, which will create an additional workforce, by 2030.
Founded in 1899, Miele employs a workforce of 22,300 around the world through its eight locations in Germany, and the company also has one location in each of the following countries: Austria, the Czech Republic, China, Romania and Poland. The company also has two plants that belong to Steelco, its Italian medical technology subsidiary.
“Miele is one the world’s most iconic brands, and we’re thrilled to have this great company select Alabama as the home for its first U.S. manufacturing facility,” Gov. Kay Ivey said. “Miele is a wonderful addition to our state’s business community, and I look forward to the day when its new Opelika facility is turning out first-class ‘Made in USA’ appliances coming from Alabama.”
At Tuesday’s meeting, there was a public hearing attached to the resolution, but there were no participants. When President and Ward 4 Councilman Eddie Smith asked his fellow councilmembers if there was a motion for approval, all three present members made the motion simultaneously. Ward 5 Councilman Todd Rauch was not present at the meeting.
The City of Opelika news release said that Miele had been evaluating several locations in the U.S. for the facility. According to the Alabama Department of Commerce, Opelika was chosen over locations in Georgia, Tennessee, South Carolina and Mississippi.
“Overall, Opelika offers the best conditions for a successful start for our new plant, including the long-term perspective for further expansion stages,” said Uwe Brunkhorst, Senior Vice President Business Unit Cooking for Miele. “We would like to express our gratitude to the city of Opelika and the State of Alabama for their outstanding support during this selection process and we look forward to further cooperation.”
Other City Council business
Golden State Foods Corporation has announced that it will be expanding its existing facility at 4801 Northpark Drive in Opelika’s Northeast Industrial Park. The project is expected to cost $2.6 million. The council approved the granting of tax abatements and exemptions for Golden State from state and local noneducational property taxes, which will be extended for a period of 10 years.
The City of Opelika has entered into an agreement with Avenu Insights & Analytics for the collection of sales and use taxes, lodging taxes and rental taxes. The agreement will be for the “remittance, processing, discovery and recovery services,” of those taxes, according to the council’s agenda packet.
According to the packet, through the agreement, Avenu will receive $2.76 per account per transaction for providing remittance processing services and revenue analysis services. For audit services, the company will receive an amount based on an hourly rate of $80.
The City of Opelika’s Director of Economic Development Lori Huguley is retiring on Jan. 31, 2024 and the council has appointed John Sweatman, the current Project Manager of Economic Development for Opelika, to take over Huguley’s position upon her retirement.
The council accepted a grant from the Daniel Foundation of Alabama that will partially fund the Opelika Public Library’s spring 2024 exhibition “Aim High: Soaring with the Tuskegee Airmen.” The exhibition is set to cost $45,000 and the Daniel Foundation has awarded the City of Opelika a $10,000 grant to fund the event.
The council approved a Memorandum of Understanding between the Opelika Police Department and Gulf Coast GunBusters. which will allow GunBusters to destroy surrendered and seized firearms that the OPD possesses. No money will be exchanged or reimbursed during this agreement.
The appropriation contract for the 2024 fiscal year with the Arts Association of East Alabama remains on the table, but Smith said they hope they can “get it off” the table at the next meeting.
Lisa Thrift, the administrator for the Community Development Block Grant program, spoke to the council during its work session to provide an update on the CDBG’s program year 2022 which was October 1, 2022 to September 30, 2023. CDBGs are federal funds provided by the Department of Housing and Urban Development (HUD). According to the City of Opelika’s website, the goal of CDBG is to develop “viable urban communities by providing decent housing and a suitable living environment and expanded economic opportunities...for low-to moderate—income persons.”
For the program year 2022, Opelika’s CDBG received a grant award of $258,169. Thrift said through those funds the program assisted 2,093 people, and 87% of those assisted were in the extremely low category for income.
“The vast majority of these were extremely low income and needed the assistance,” Thrift said. “With the 2000 that we were able to assist, I think we did a very good job of helping the community and the people within our community.”
Thrift also highlighted that 9.7% of those assisted were Hispanic, which Thrift said was the highest number of Hispanic people assisted for the program.
“I think it’s because we’ve built a relationship with Esperanza[House] and we’ve been able to spread the word more so of what’s available,” Thrift said. “Esperanza House has been huge in helping us with that”