Sedgwick County Economic Development Incentives: 2005-2011

7/30/2019 Sedgwick County Economic Development Incentives: 2005-2011

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Completed by Becky Eby on 10/31/11 1

I. Sedgwick County Economic Development Incentives: 2005-2011

The charts below detail the results of all Sedgwick County forgivable loans and economic development exemptions

(EDX) approved between 2005 and 2011. Unreported numbers are not included in these figures as incentive

granted in 2011 have not completed an initial compliance review and several companies have not reported up-to-

date job and average wage figures.

Sedgwick County Economic Development Incentives: Forgivable Loans 2005-2011

YearNumber of

Companies

Loan

Total

5th Year Job

Commitment

5th Year

Average

Wage

Commitment

November

2011 Job

Actual

November2011

Average

Wage

Actual

Total

Repayment

Received

2005 2 $162,500 110 $41,400 112 $42,786 $112,500

*2006 3 $217,000 555 $57,184 386 $67,399 $0

*2007 2 $37,500 718 $29,500 581 $26,000 $0

*2008 2 $5,850,000 700 $60,615 255 $75,000 $5,000,000

*2009 4 $425,000 488 $44,949 165 $127,505 $0

*2010 6 $331,500 226 $53,467 147 $51,986 $0

*2011 6 $843,000 3797 $44,165 - - $220,000

Sub Total $7,866,500

Less

Repayment $5,332,500

Total 25 $2,534,000 6594 $47,326 1646 $65,113 $5,332,500

*Loans in these years have not reached the final year of their loan agreement as reflected in the data.

Sedgwick County Economic Development Incentives: Economic Development Tax Exemptions 2005-2011

Company

2011 TotalAppraised

Value

2011 TotalTaxable

Value FTE GoalFTE

Actual

CharlesEngineering $967,570 $28,407 11 14

HuskerHawkLLC/NorthAmericaAviation,INC. $209,990 $6,165 10 -22Total $1,177,560 $34,572 21 -8


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For more detailed information on all forgivable loans and EDXs approved from 2005 to 2011 please see the

detailed charts following this report.

II. Tax Increment Finance Districts: 2011

The chart below provides information on all active, approved tax increment finance districts (TIF district) located

within Sedgwick County. While Kansas state statutes permit only cities to create TIF districts, and to divert taxes

levied by the overlapping county and school district to city projects within district, Sedgwick County has the ability

to evaluate and approve TIF districts by determining if the district will cause adverse effects on the County.

BaseYear

County PropertyTax in Base Year

Budget (All toCounty)

County Property Tax For 2011 Budget

County tax toCounty

County tax toTIF/TDF

districtTotal County

tax

% oftotal

Countytax to

County

Tax Increment Districts

21st & Grove 1995 $1,099.11 $1,145.91 $35,421.75 $36,567.66 3.1%

East Bank 1995 14,608.34 12,807.20 1 345,424.05 358,232.25 3.6%

Northeast RedevelopmentDistrict

1997 349.28 339.60 7,812.66 8,152.26 4.2%

Old Town (Cinema II) 1999 13,793.69 2 31,175.47 2 255,161.12 286,338.59 10.9%

Douglas & Hillside 2006 23,678.90 22,199.87 15,082.16 37,282.03 59.5%

Center City South - ExchangePlace

2007 282,412.85 1 304,587.09 1 - 304,588.09 100.0%

Center City South - Arena 2007 323,664.85 1 184,749.38 1 - 184,750.38 100.0%

KenMar 2009 14,798.13 14,545.95 749.45 15,295.40 95.1%

TIF District Totals $674,405.15 $571,550.47 $659,651.19 $1,231,201.66 46.4%

Tax Decrement Districts

Gilbert Mosley 1993 $2,675,373.45 $3,405,563.50 3 $661,177.39 $4,066,743.89 83.7%

North Industrial Corridor 1996 1,505,359.03 2,475,015.69 4 288,491.26 2,763,510.95 89.6%

TDF District Totals $4,180,732.48 $5,880,579.19 $949,668.65 $6,830,254.84 86.1%

1 16.25% of this revenue distributed to Gilbert Mosley district and included in County tax to that district2 10.44% of this revenue distributed to North Industrial Corridor district and included in County tax to that di strict

3 $502,143.67 of this revenue distributed to the East Bank, and Center City South districts and included in County tax to those districts

4 $255,161.12 of this revenue distributed to Old Town Cinema II district and included in County tax to that district

In addition to the chart above the following two maps show the location, as well as both the county and TIF district

tax revenue for all approved, active TIF districts located within Sedgwick County in 2011.


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III. Appendix A: Sedgwick County 2005-2011 Forgivable Loans and EDXs Reports by Year

2005 Economic Development Incentives - Forgivable Loans

Company Name Loan AmountMinimum

Conditions at Endof 5 Year Period

Conditions Actuals asof November 2011

Notes

1. Accenture $112,500

N/A N/A

Due to Accenture's relocation outside ofSedgwick County the company repaid the

principal in full as stated within theagreement.

2. Integra

$50,000

New Positions: 110 New Positions: 112Integra satisfied all of the conditions set

forth in the agreement, and in someinstances exceeded those conditions.

Annual Payroll:$4.5 Million

Annual Payroll:$4.5 Million

Average Wage:$41,400



CompanyName

LoanAmount

Minimum Conditions atEnd of 5 Year Period

Minimum Conditionsas of Last Compliance

Review

Condition Actuals as ofNovember 2011

Notes

1. Invista

$125,000

New Positions: 266 New Positions: 266 New Positions: 277 Invista not onlymet, but exceededall conditions listedin their agreement.

Annual Payroll:$26.4 million



Average Wage: $99,395 Average Wage: $99,395 Average Wage: $144,0812. Burnham

$62,000

New Positions: 89 New Positions: 75 New Positions: 24 As of their fourth

year reviewBurnham has notmet any of the

conditions of theiragreement.




Average Wage: $32,656 Average Wage: $32,656 Average Wage: $24,0003. Swift-Cor

$30,000

New Positions: 200 New Positions: 200 New Positions: 85 Swift-Cor met theconditions for

years one throughtwo of the

agreement, but didnot met the

conditions foryears three through

five of the

agreement.




Average Wage: $39, 500 Average Wage: $39,500 Average Wage: $34,117


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CompanyName

LoanAmount

Minimum Conditionsat End of 5 Year

Period

MinimumConditions as ofLast Compliance

Review


Notes

1. Convergys

$25,000

New Positions: 600 New Positions: 500 New Positions: 497 Convergys has met, orexceeded, all

conditions listed intheir agreement as of

their year fourcompliance review.

Annual Payroll:

$12.1 million

Annual Payroll:

$10.1 million

Annual Payroll:

$10.7 million




2. ZTM

$12,500

New Positions: 118 New Positions: 113 New Positions: 84 As of their fourth yearreview ZTM has not

met any of theconditions of their

agreement.








CompanyName

LoanAmount

MinimumConditions at End

of 5 Year Period

MinimumConditions as ofLast Compliance

Review

ConditionActuals as of

November 2011Notes

1. Cessna $5,000,000

N/A N/A N/A

Unable to fulfill their agreementCessna paid back the principalamount in full as stated in the

agreement.

(recommendedamount)

2. Spirit

$1,610,000

New Positions: 700 New Positions: 600 New Positions: 255 $850,000 was provided to Spiritup front with yearly installments,

up to the full loan amount,contingent upon the company's

ability to meet the yearlyconditions of the agreement.








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CompanyName

LoanAmount



Review


Notes

1. Flight

Safety $150,000

New Positions: 253 New Positions: 59 New Positions: 13



Annual Payroll: $922,815

Average Wage: $61,650 Average Wage: $61,650 Average Wage: -2. NexTech(Aerospace)

$225,000

New Positions: 85 New Positions: 35 New Positions: 35As of their year twocompliance review

NexTech has not onlymet all conditions of

the agreement, but hasalso retained 142

positions in additionto the 35 new

positions created.



Annual Payroll:$10 million

Average Wage: $47,175 Average Wage: $47,175 Average Wage: $47,175

3. CoxMachine

$25,000

New Positions: 50 New Positions: 20 New Positions: 96 As of their year threecompliance review

Cox Machine has metor exceeded, all

conditions of theagreement.




Average Wage: $37,440 Average Wage: $37,440 Average Wage: $37,4404. PremiereProcessing

$25,000

New Positions: 100 New Positions: 38 New Positions: 13 As of their year twocompliance review

Premiere Processinghas not met any of the




Annual Payroll:$435,890

Average Wage: $33,530 Average Wage: $33,530 Average Wage: $33,530


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CompanyName

LoanAmount

Minimum Conditionsat End of 5 Year

Period


Review

Condition Actualsas of November

2011Notes

1. Spartech

$15,000

New Positions: 18 New Positions: 9 New Positions: -

Annual Payroll:$3.1 million Annual Payroll:$2.8 million Annual Payroll: -

Average Wage: $34,200 Average Wage: $34,200 Average Wage: -2. Airbus

$200,000

New Positions: 80 New Positions: 40 New Positions: 106 As of their initial compliancereview Airbus has met, orexceeded the minimum








3. Cargill$40,000

New Positions: 10 New Positions: 2N/A

Cargills initial compliancereview will be completed in

December of 20114. NexTech(Processing)

$33,000

New Positions: 55 New Positions: 12

N/A NexTechs initial compliance

review will be completed inDecember of 2011.

Annual Payroll:

$6.2 million

Annual Payroll:

$4.7 millionAverage Wage: $35,000 Average Wage: $35,000

5. MartinInterconnect

$18,500

New Positions: 37 New Positions: 6 New Positions: 23 As of their initial compliancereview Martin interconnect

has not only met, but exceedall conditions of their

agreement.







6. TECTPower

$25,000

New Positions: 26 New Positions: 15 New Positions: 18

As of their initial compliancereview TECT Power has metthe majority of the conditions

of their agreement.








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CompanyName

LoanAmount


Baseline ConditionsPrior to Initial

Compliance ReviewNotes

1. ApexEngineering $220,000 N/A N/A

APEX received their loan in March and hasrepaid the principal in full as of July of 2011.

2. Mojack$35,000

New Positions: 53 Positions: 10Mojacks initial compliance review will be

held in December of 2011Annual Payroll: $2.5 millionAverage Wage: $39,623 Average Wage: $52,000

3. HawkerBeechCraft

$2,500,000Positions:Retain at least 3,600

N/AHawker BeechCrafts initial compliancereview will be held in January of 2012.($500,000,

2011-2015) Annual Payroll: N/A

4. Mid-ContinentInstrument

$10,000

New Positions: 24 Positions: 138Mid-Continent Instruments initial

compliance review will be held in Decemberof 2011



Average Wage: $43,209 Average Wage: $45,652

5. The GolfWarehouse $48,000

New Positions: 105 Positions: 211The Golf Warehouses initial compliance

review will be held in December of 2011Annual Payroll: $9.9 million Annual Payroll: $7 millionAverage Wage: $31,329 Average Wage: $33,000

6. ProjectCompound(JCB Labs)

$30,000

New Positions: 15 Positions: 9Project Compounds initial compliance review

will be held in September of 2012Annual Payroll: $1.5 million Annual Payroll: $562,500Average Wage:$62,500 Average Wage: $62,500

2004-2011 Economic Development Exemptions - EDXCompany Name

2011 TotalAppraised

Value

2011 Total Taxable

Value Abatement Term PurposeFTEGoal

FTEActual

1. Charles

Engineering $736,010 $28,407 Real Property: 1/04 - 12/13Personal Property: 1/04-12/08 (Expired)

31,500 sq. ft.

addition,machinery, and

equipment 11 14

2. CharlesEngineering

$231,560$6,165

Real Property: 1/06-12/15Personal Property: 1/06-

12/10 (Expired)

10,000 sq. ft.addition,

machinery, andequipment

3. Husker HawkLCC/NorthAmerican Aviation,INC.

$209,990$34,572

Real Property: 1/08-12/17 10,000 sq. ft.addition, 25,000

sq. ft. asphaltpaving

10 -22

Personal Property: N/A

Documents

Sedgwick County Economic Development Incentives: 2005-2011