Officials: Logistics Park would spur jobs in Newton

By Cristina Janney
Posted Nov 24, 2009 @ 11:52 AM
Print Comment

Representatives from the Harvey County Economic Development Council were on hand at a joint meeting of the Newton City Commission and the Harvey County Commission Monday trying to sell a plan to create a Kansas Logistics Park in Newton.

The big seller for the project was a promise of jobs.

The proponents of the Logistics Park hope the city’s location at the convergence of the U.S. Highway 50, Interstate 135, and the BNSF, Union Pacific and short line Watco and K and O rail lines will make an attractive site for manufacturers who supply the emerging wind energy industry.

“We want it to be a hub that will have efficient movement of goods from rail to truck and truck to rail,” said Mickey Fornaro-Dean, executive director of the Harvey County Economic Development Council. “We would like to lead the park with wind energy, because it has a buzz and is quick to catch.”

There have been more than 500 layoffs in the county since the economic downturn and thousands more in the aircraft industry in Wichita.

Eight companies already have expressed interest in coming to the Logistics Park. Investment by four of eight of those companies would be $727,640,000.

Those same companies could bring 3,647 jobs or the equivalent of two AGCOs relocating in the county.

The jobs would have similar pay grades, as well.

Labor positions in the manufacturing plants would average $16 to $18 per hour, Fornaro-Dean said.

Administrative positions within the wind industry average more than $70,000.

The state of Kansas is putting out about 1,021 megawatts of wind energy, but has potential to create more energy and more jobs.

“If we were to get 20 gigawatts by 2030, we would have a $7 billion payroll with a $23 billion economic impact and 12,000 jobs,” said Troy Carlson, president of Initiative Inc., which is assisting with the development of the park.

Carlson said ready access to transportation could solve some supply chain issues for companies wishing to supply the rich wind corridor within 500 miles of Newton. In some instances, windmill components can cost more to deliver than to manufacture.

“They are huge. They are massive. That is why logistics is so important,” Carlson said.

Now is the time to move forward with the project, Mickey Fornaro-Dean said, because tax credits being offered by the federal government make investment in wind energy very attractive at this time.

“This is the time for the most benefit,” Carlson said. “The clock starts ticking in January 2010.”

Representatives from the Harvey County Economic Development Council were on hand at a joint meeting of the Newton City Commission and the Harvey County Commission Monday trying to sell a plan to create a Kansas Logistics Park in Newton.

The big seller for the project was a promise of jobs.

The proponents of the Logistics Park hope the city’s location at the convergence of the U.S. Highway 50, Interstate 135, and the BNSF, Union Pacific and short line Watco and K and O rail lines will make an attractive site for manufacturers who supply the emerging wind energy industry.

“We want it to be a hub that will have efficient movement of goods from rail to truck and truck to rail,” said Mickey Fornaro-Dean, executive director of the Harvey County Economic Development Council. “We would like to lead the park with wind energy, because it has a buzz and is quick to catch.”

There have been more than 500 layoffs in the county since the economic downturn and thousands more in the aircraft industry in Wichita.

Eight companies already have expressed interest in coming to the Logistics Park. Investment by four of eight of those companies would be $727,640,000.

Those same companies could bring 3,647 jobs or the equivalent of two AGCOs relocating in the county.

The jobs would have similar pay grades, as well.

Labor positions in the manufacturing plants would average $16 to $18 per hour, Fornaro-Dean said.

Administrative positions within the wind industry average more than $70,000.

The state of Kansas is putting out about 1,021 megawatts of wind energy, but has potential to create more energy and more jobs.

“If we were to get 20 gigawatts by 2030, we would have a $7 billion payroll with a $23 billion economic impact and 12,000 jobs,” said Troy Carlson, president of Initiative Inc., which is assisting with the development of the park.

Carlson said ready access to transportation could solve some supply chain issues for companies wishing to supply the rich wind corridor within 500 miles of Newton. In some instances, windmill components can cost more to deliver than to manufacture.

“They are huge. They are massive. That is why logistics is so important,” Carlson said.

Now is the time to move forward with the project, Mickey Fornaro-Dean said, because tax credits being offered by the federal government make investment in wind energy very attractive at this time.

“This is the time for the most benefit,” Carlson said. “The clock starts ticking in January 2010.”

However, European companies that have the technology and are poised to enter the Midwestern market at this time are looking for shovel-ready projects, she said.

The city already has purchased 59 acres adjacent to the current industrial park with an option to purchase a total of 300 acres.

The logistic park would need a sewer line from the city and a paved road from the county. If interlocal agreements are signed, the park could be ready to move forward within 90 to 120 days.

A committee is being formed by the city and county to review the requirements and costs for the project.

“In our initial conversation, it seems to be quite an opportunity,” said John Waltner, county special projects manager. “The real challenge is to determine what we need to do to if we proceeded.”

In other business, the county commission:

• Approved an addition of a position to the aviation commission. Bob Myer, city attorney, said airport tenant Park Electrochemical expressed interest in having a seat on the board.

• Reawarded a bid for bonds to Cooper, Malone and McLane of Wichita.

• Denied a conditional-use permit for an auto repair business on Northeast 24th Street.

Loading commenting interface...