At Tuesday night’s meeting, the City Commission approved a development agreement with Hillsboro Industries for a new 56,000-square-foot manufacturing facility on East First Street.
The Hillsboro-based truck bed and trailer manufacturer has seen tremendous growth in demand for its products, especially aluminum livestock trailers, which currently have a wait time of over two years.
Lisa Kemph, Hillsboro Industries’ director of finance, said the company intends to maintain and enhance its facility in Hillsboro as it develops the Newton site.
“We have had the kind of growth most people dream of when you go to work for a small company,” Kemph said. “We have been actively looking for a second site location for probably two years now. Newton was a stand-out community.”
Kemph said Newton’s current and planned housing development projects as well as the larger labor pool were key factors in choosing this site for their second facility.
The new facility is expected to cost about $8.1 million to construct, with $2.8 million in furnishings and equipment. Hillsboro intends to begin construction within the next six months, with completion in the spring. They intend to create approximately 50 new full-time jobs at the Newton plant, with an average salary of $58,000.
The site is located on East First Street immediately east of Prairie View, west of Hillside.
The development agreement calls for the City and County each to contribute up to $125,000 for street improvements on First Street, including a turn lane and aprons to improve site access. It also includes the City’s good faith intention to grant a 10-year, 100% property tax abatement and to facilitate the issuance of Industrial Revenue Bonds (IRBs), including a sales tax exemption for construction materials and equipment.
The Harvey County Commission will consider the agreement at its Dec. 5 meeting, and the City will consider the issuance of IRBs at a subsequent meeting.
The Commission approved an amendment to Holiday Inn Express’s Community Improvement District (CID) agreement. The CID was created in 2019 to implement an additional 2% sales tax on room nights at the Holiday Inn for the purpose of funding about $1.23 million in planned upgrades to the hotel.
Holiday Inn Express requested an amendment to increase the maximum reimbursement amount to approximately $1.8 million. The City required a provision in the agreement for 30% of the hotel’s rooms to be set aside for transient guest tax occupants, and if that requirement is not met, then the City may withhold the reimbursement of the CID sales tax. The City’s guest tax revenues have decreased dramatically in recent years as the hotel has been filled primarily with long-term stays that are not subject to guest tax.
- Selected Jeff Lowrance of Lange Real Estate to provide Realtor services to market 72 acres of industrial property at the Newton City/County Airport.
- Conducted a public hearing and approved vacation of a portion of the alley north of the 500 block of North Plum, which Plum Street Cottage has been using for patio seating.
- Approved plans and specifications for water, street and drainage improvements for the east side of Fox Ridge Addition and set a bid date of 11 a.m. Dec. 21. The Commission also approved the rezoning of a portion of the west side of the development to R-2 (two-family residential).
- Conducted a public hearing and approved a budget amendment for Sand Creek Station Golf Course. Because of increased play, the course had increased expenses for payroll and supplies, which will be more than covered by increased revenues.
For more information, please contact Communications Director Erin McDaniel at 316-284-6055 or emcdaniel@newtonkansas.com.
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