Gov. Kay Ivey has awarded the city of Good Hope in Cullman County a $200,000 Community Development Block Grant to go toward extending sewer service to AGCOR Steel’s new 128,000-square-foot facility.

The city will use grant funds to provide 3,600 feet of sewer force mains, 1,000 feet of gravity sewer mains and a new lift station for the facility.

“Working with communities to create new job opportunities is vital to the success of Alabama’s economy,” Gov. Ivey said in a statement. “I am pleased to award this grant which is a first step in helping Good Hope and AGCOR generate new jobs and new business within the community.”

The Good Hope city council voted in February to offer AGCOR a tax incentive to be paid for by a half-cent sales tax increase. The company will relocate from Vinemont.

“This is the first manufacturing plant ever for the City of Good Hope,” Mayor Jerry Bartlett told the Cullman Times in February. “That’s a big deal.”

The Alabama Department of Economic and Community Affairs will administer the grant, which was made available to the state by the U.S. Department of Housing and Urban Development.