Commerce Parkway soon could be a flurry of new business activity. Two Ellis County manufacturing companies approached Hays city commissioners Thursday evening and requested 10-year, 100-percent property tax abatements.
Wheelchairs of Kansas is looking to expand operations at 500 Commerce Parkway. The business would retain its current operations in Ellis. A-1 Scaffold Manufacturing, a new company formed in the aftermath of A-1 Plank and Scaffold Manufacturing’s bankruptcy, would be located at 590 Commerce Parkway.
The city’s economic development policy allows for a 10-year tax abatement for manufacturing companies fixed on a sliding scale. The policy does allow full abatements for 10 years, but only for research and development businesses.
Commissioner Troy Hickman spoke in favor of considering an exception.
“These two businesses have been in Ellis County for a long time,” Hickman said. “They’ve had proven track records have been good community employers for the county. So I’m kind of of the mind, that in these particular cases, we may want to consider waiving that policy and give them the opportunity for the 10-year abatement.”
Other commissioners weren’t so sure. Henry Schwaller IV expressed concern about the precedent these exemptions could set, and said the commission established its current policy for a reason.
“I am not opposed to looking at a 100-percent abatement for 10 years,” Schwaller said. “I do think, though, that does puts the policy in jeopardy, and we have to think about what our rationale is.”
Discussion will continue at Thursday’s regular meeting, at which time the commission could set a public hearing for Aug. 26.
Wheelchairs of Kansas produces a variety of medical equipment, including bed frames and mattresses, wheelchairs, and walkers for institutional and home use. The company, which specializes in equipment for bariatric patients, now has more than 65 locations globally and is growing in Canada and Europe.
It employs more than 600 people nationwide, and 114 Ellis County residents.
While the company fully intends to invest in Ellis County, the tax abatement could prove a significant help in coming years, said Rod Taylor of Wheelchairs of Kansas.
“Over the last two years, hospitals in general have lost money. … We believe that with health care reform, that’s going to continue, at least, that’s what we’re being told,” he said. “So we know hospitals are going continue to try to squeeze all of their vendors, and of course, that includes us.”
For A-1 Scaffold, the business venture essentially will be a new beginning. The company has plans to scale down its operations, starting with 21 employees the first year of business and adding five more annually.
“From our perspective, it’s basically a re-start of what we have done in the past. We are committed to doing it; we are committed to seeing it in Hays,” said co-owner Jennifer Allenbaugh. “Our goal is to start small, start strong, re-employ some of the good people that became unemployed when our previous company closed up, and get back in the business.”
Other items set for possible action next week include:
* Labor union agreements with the International Association of Firefighters and the Fraternal Order of Police.
The city remains at impasse with its third labor union, Service Employees International Union. Commissioner Ron Mellick asked how these proceedings could affect the city’s budget process. City Manager Toby Dougherty said he has expressed concern to the Kansas Public Employee Relations Board — the state agency coordinating the impasse process — that efforts were not being made in a timely manner regarding the budget process. The commission, however, does have the authority to amend the budget after it is established.
In the future, Dougherty suggested beginning union negotiations earlier in the year. The city began talking with its three groups in March.
* Upgrades to the traffic signal at 13th and Canterbury. It’s possible that work would occur in November, but Public Works Director Brenda
Herrman said efforts would be made to accommodate Hays High School traffic.
Tags: Scaffold
