Quality Culvert Inc. was approved Friday for tax abatements , paving the way for the company to begin operations here and hire 125 workers over the next three years.

The Athens City Council unanimously approved abating $36,960 per year in property taxes for 10 years. The company, headquartered in Astatula, Fla., near Orlando, is to locate in the old Martin Industries building, which has been vacant since 2003. The asking price on the Martin building was $1.9 million, but Limestone County Economic Development Association President Tom Hill said he did not know the selling price. The company is expected to close on the real estate deal early this week.

The council also granted a one-time sales and use tax abatement of $135,312 for Quality Culvert. The company, in turn, will pay new education property taxes of about $27,720, which will go directly to schools, and one-time education sales and use taxes of $98,062, which will also go to schools.

The company plans to invest $8.4 million in the project and will initially manufacture large-diameter plastic culverts. It will add concrete and metal culvert lines in 2007 and 2008.

Hill and the city have been working on what they referred to as “Project Quality” for several months, trying to meet company requirements.

“This is one of those fun things to announce,” said Council President Ronnie Marks. “We’ve been looking forward to it for a long time. First, it was on the table, then off the table, then back on the table. Now, I think we’re locked in. This is how it is working with business.”

Marks said that at one point, when the deal seemed “off the table,” Hill and the council enlisted the aid of state Sen. Tom Butler, D-Madison, who went to Gov Bob Riley for help. Marks said it was on a holiday, but Riley personally called company officials to get the project back in the works.

One of the final hurdles was funding the construction of a rail spur. However, that project hit a glitch when the city went to the Alabama Department of Economic and Community Affairs, requesting a $680,000 grant to build the spur. The remaining $160,000 cost was to have been split by the city and company.

However, when the council went to ADECA, the cupboard was nearly bare for the year. ADECA had just $400,000 it could contribute to the project.

“Based on that, the city and county talked and each agreed to contribute $100,000,” said Hill. “The company scaled back the project to $715,000.”

Under the new project cost, ADECA will provide $400,000, Athens and Limestone County, $200,000 and Quality Culvert, $115,000. Should the rail project cost run over that amount, the city, county and company, will split the overrun.

“We haven’t spelled it out in an agreement, but the company has been good to work with so far,” said Hill.

Hill said that the company will begin with extensive electrical upgrades to the Martin building as well as installing new equipment. He said the company would hire 10 people immediately and 25 more by the end of the year. The second year, they will hire 45 and the third year they will hire 45 more to bring the plant up to full employment.

He said unskilled workers will be paid from $9 to $11 per hour and skilled trades will be paid from $12 to $16 per hour.