Carrot dangled for jobs

Topeka Capital-Journal, The, Aug 21, 2008 by Tim Hrenchir

By Tim Hrenchir

THE CAPITAL-JOURNAL

A well-known international company is looking at establishing a distribution center that would employ 400 people near the Target Distribution Center, the Joint Economic Development Organization was told Wednesday.

JEDO board members, six of whom didn't learn the company's name because it asked for confidentiality, voted 7-0 to offer it 75 acres of free land in the Central Crossing Commerce Park plus cash incentives that could total as much as $600,000.

Voting in favor were Shawnee County Commissioners Vic Miller, Shelly Buhler and Ted Ensley; Topeka Mayor Bill Bunten; and city council members Jeff Preisner, Richard Harmon and Deborah Swank.

Those seven people serve on the board of directors for JEDO, which teams up city and county elected officials to oversee the proceeds of a half-cent sales tax levied for economic development and road and bridge improvements. Miller, JEDO's chairman, was the only one of those voting who knew the identity of the company, said Doug Kinsinger, president and chief executive officer of the Greater Topeka Chamber of Commerce and Go Topeka.

JEDO contracts with Go Topeka to oversee the economic development program financed by $5 million generated annually through part of proceeds from the half-cent sales tax Shawnee County voters approved in 2004. Go Topeka's contract with JEDO allows it to keep information confidential when a business considering locating here needs to keep that secret from its competitors, employees, stockholders or anyone else.

Go Topeka's board of directors, almost all of whom also weren't told the name of the company involved, voted Aug. 1 to recommend the JEDO board approve the proposed incentives.

Kinsinger said the Kansas Department of Commerce also is making arrangements targeted at offering the company incentives to operate out of the commerce park.

Kinsinger said he hopes to know sooner rather than later if the company will opt to build its proposed warehouse on 75 acres at the park's northwest corner. The land is just east of US-75 highway, just north of S.W. 49th Street and just south of the Kansas Turnpike.

The commerce park currently houses one business, the Target Distribution Center, which occupies 150 acres at its southeast corner at S.W. 57th and Topeka Boulevard.

The 75 acres JEDO approved Wednesday was initially purchased for $750,000 and now has an estimated value of $2.25 million.

The package also would provide the company $1,500 for each new full-time job created at the distribution center by the end of 2012, up to a maximum of $600,000 to be paid out if it creates 400 jobs.

Kinsinger noted Wednesday that about 500 employees still work at the Payless ShoeSource distribution center, 5040 N.W. US-24 highway, which is expected to close next spring. He said he hoped construction could begin late this fall on the proposed distribution center in the commerce park, which could enable it to be operational before benefits run out for Payless employees whose jobs are being eliminated.

Kinsinger said the company that is considering Topeka wasn't interested in using the former Payless center because "theirs is a rather unique design specific to their needs, and the Payless facility would not meet their needs."

He said the commerce park's 75-acre proposed area poses challenges because that company would need to flatten it somewhat and perhaps remove a farm pond.

Steven Jenkins, senior vice president for economic development for Go Topeka, said that company also may pursue a self-funded industrial revenue bond issue that would include eligibility for a property tax exemption for the facility for up to 10 years and a sales tax exemption for labor and materials used to build it.

Also at Wednesday's JEDO meeting, Preisner expressed concern that Miller had failed to follow JEDO rules on May 14 when he prohibited Councilman Jack Woelfel -- whom Preisner had asked to represent him by proxy when he was unable to attend -- from voting or making or seconding motions.

Miller replied that it sounded like Preisner was correct and that he appreciated his bringing the matter to his attention.

Tim Hrenchir can be reached at (785) 295-1184 or tim.hrenchir@cjonline.com.