At Tuesday night’s meeting, the City Commission approved a development agreement with GAF Materials and set the stage for its new manufacturing facility at the Kansas Logistics Park.
In the agreement, the City commits to issuing up to $350 million in Industrial Revenue Bonds, which provide GAF with a 10-year, 100% property tax abatement on the new development as well as a sales tax exemption for construction materials and equipment financed by the bonds. Unlike General Obligation Bonds, IRBs do not count against the City’s bonding authority and the City has no liability for repayment.
Before GAF can receive those benefits, the company must invest at least $75 million in the project. GAF also agrees to hire at least 137 full-time employees within four years.
Tommy Richardson, GAF’s vice president of operations, said it had been a great experience working with City and Harvey County Economic Development staff as they planned the project and negotiated terms.
A number of local residents and regional partners spoke during the public hearing for the IRBs. Andrew Nave, executive vice president of economic development for the Greater Wichita Partnership, spoke in favor of the project, calling it the largest capital investment in the Wichita region in the past five years.
New Jersey-based GAF is the largest roofing manufacturer in North America, with more than two dozen manufacturing plants in the United States. GAF has not yet announced its specific plans for the Newton development.
Since 2021, GAF has optioned 230 acres of land in the Logistics Park at Southeast 12th and Hillside. The property is currently owned by Tindall Corp. The City has an option to purchase the property back from Tindall for its original price, $1.18 million. And the City, in turn, has an agreement to sell the property to GAF for approximately $1.84 million. The deadline to complete the sales was extended to May 1.
The development agreement also calls for the City to provide rail improvements to the project site. In August of last year, the City was awarded $3.04 million from the Kansas Department of Transportation for rail extension to serve the site, contingent upon GAF moving forward with its plans. The City also committed to pursue grant funding to pave Hillside between East First and Southeast 12th streets, and approved rezoning the property to I-3 heavy industrial.
A Cost-Benefit Analysis performed by the Center for Economic Development and Business Research at Wichita State University showed a positive economic benefit for all taxing entities.
- Approved closing Athletic Park Circle on June 17 for the Cookie Daze 5K.
- Eliminated parking on North Pine Street from 7th Street south 140 feet.
For more information, please contact Director of Communications Erin McDaniel at 316-284-6055 or emcdaniel@newtonkansas.com.
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