Providing tools

Topeka Capital-Journal, The, Dec 17, 2008

Recent news that Topeka and Shawnee County may soon be home to another major distribution center was the proverbial breath of fresh air needed to soften the financial blows being reported on nearly every other economic front.

A new employer that would require about 150 workers upon opening - - and perhaps double or quadruple that number when operating at full steam -- would be a very welcome addition to the community, especially at a time when some local employers are laying off workers, the state is looking for $1 billion in planned expenditures that can be chopped from its budget and the national economy is faltering so badly the federal government is spending billions on bailouts and planning to spend more billions on stimulus measures.

We know the local deal, which calls for Seefried Properties Inc. to build a 465,000-square-foot distribution center at Central Crossing Commerce Park for Home Depot, isn't done yet, but the fact that local officials are proceeding with the steps they must take to make it a reality gives us hope.

Another distribution center won't be the right fit for the different skills of all of those who are unemployed because they lost a job they had come to depend on over the years. However, the opportunity will suit many of them, and the addition of several hundred jobs and the corresponding payroll in one sector of the economy will in turn increase demand for goods and services from other sectors.

The prospect makes the half-cent, countywide sales tax for economic development and infrastructure voters approved in 2004 continue to look like a wise investment in the community's future. That tax is expected to generate $60 million for economic development by the end of 2016, with the money being used to lure jobs to Topeka and help existing companies grow.

The Joint Economic Development Organization, which oversees use of the sales tax revenue, last month approved spending $450,000 of it to put in utility lines at Central Crossing Commerce Park to attract a distribution center for a Fortune 500 company. Local officials at that time hadn't released the name of the company they were courting.

JEDO board members earlier this year also voted to offer the company 75 acres of land at Central Crossing in south Topeka and cash incentives of up to $600,000.

The latest step in this dance with Seefried and Home Depot, which county commissioners are expected to take Thursday, involves the county authorizing the issue of up to $25 million in industrial revenue bonds to help Seefried finance construction of the distribution facility. IRBs traditionally have been used to help developers finance projects at a lower interest rate than is available through other lenders. The bonds are paid off by the developer.

Whether the IRBs will seal the deal is Home Depot's call. If the company decides against opening a new distribution center, Seefried won't be building one.

We are cautiously optimistic, though. The opportunity present now feels like a good match for all involved, and credit for that should go the Greater Topeka Chamber of Commerce, Go Topeka and JEDO officials who have worked so hard for nearly a year to bring it this far.

Shelly Buhler, District 1__584-6617; e-mail: commission@snco.us

Vic Miller, District 2__232-3452; e-mail: victorwmiller@aol.com

Ted Ensley, District 3__478-2030; e-mail: commission@co.shawnee.ks.us

County commission office__233-8200, ext. 4040; 200 S.E. 7th, Room B-11, ____Topeka, Kan. 66603