At Tuesday night’s meeting, the City Commission approved development agreements for two new economic development expansion projects.
The City Commission approved an agreement with CD Custom Enterprises for a new 50,000-square-foot manufacturing facility for its high-production industrial metal operation.
CEO Alan Carsten said the Newton company has seen continuous growth since its founding in 2012 and currently has about 45 employees. With the expansion, they intend to create about 20 new full-time jobs over the first five years, with an average salary of $51,439.
“We are very, very conservative in our estimates on employment,” Carsten said. “And the employment we’re looking at adding will potentially be higher-paid jobs due to the fact that with automation, we need skilled, highly trained people.”
The new facility is expected to cost about $6 million to construct, with $1 million in furnishings and equipment. CD Custom intends to begin construction within the next six months, with completion in 18 months. The new facility will be located east of CD Custom’s location on Southeast Ninth Street in the Newton Industrial Park.
The development agreement 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 property tax abatement delays the collection of property tax on the newly constructed improvements; the property continues to pay taxes at its existing valuation. The City has no liability or cost associated with the IRBs, and the IRBs do not add to the City’s debt.
Air Capitol Investments
The Commission also approved a development agreement with Air Capitol Investments for a new 38,000-square-foot warehouse and logistics facility on Industrial Road in the Newton Industrial Park.
Developer Lou Robelli plans to build the facility as a spec building to be leased for storage or manufacturing. Robelli is the developer of several large-scale distribution warehouses built in recent years along I-135 in Park City.
The new facility is expected to cost about $3.5 million to construct, with $300,000 in furnishings and equipment. Air Capitol intends to complete construction within the next 12 months. They expect to create approximately 28 new full-time jobs over the first five years, with an average salary of $33,000.
This agreement again includes the City’s good faith intention to grant a 10-year, 100% property tax abatement and issue Industrial Revenue Bonds (IRBs), including a sales tax exemption for construction materials and equipment.
The Commission approved a new set of guidelines for the licensing of mobile food vendors. Newton Fire Marshal Andy Harder has worked with fire departments in surrounding communities as well as the Kansas Food Truck Coalition on a set of consistent regulations for food truck inspections and permits. A vendor would need to be inspected in a participating community, and that permit would be valid in all the other communities for that year.
The regulations include fire safety provisions, location of sales, waste, noise, signage and utilities. The ordinance will not take effect until Jan. 1, 2025, providing time to adjust the regulations if necessary for local events and needs.
- Received the City’s 2023 year-end financial report. The City ended the year about $2.3 million under budget, mainly due to increased interest earnings and sales tax revenues.
- Awarded a contract for the Country Club sewer lift station to serve Fox Ridge Addition to Smoky Hill LLC for $295,000.
- Updated the City’s stormwater regulations to include escalating penalties for non-residential illicit discharges and failure to comply with City violation notices.
- Received 2023 annual reports from City departments and outside agencies.
For more information, please contact Communications Director Erin McDaniel at 316-284-6055 or emcdaniel@newtonkansas.com.
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