County, city OK terms for Kansas Logistics Park

By Lauren Swanson
Posted Mar 26, 2010 @ 11:44 AM
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Newton and Harvey County commissions met Thursday in a joint session at which both bodies approved an interlocal agreement for establishing the Kansas Logistics Park.

The agreement stipulates the obligations of the city and county in establishing the Logistics Park, as well as outlining the financial responsibilities of each.

The Logistics Park is being created to offer manufacturing companies an area in which to build that has access to rail service and highways.

Tindall Corp. out of Spartanburg, S.C., is slated to be the first company to locate in the park. The company will manufacture a new type of concrete and steel base for wind turbine towers.

Newton is taking on responsibility for extending sewer and water service to the location of the Logistics Park, at an estimated cost of $3.5 million for sewer and $500,00 for water.

Half of the cost of the new water service is expected to be covered by private assessment or contribution.

The city also will foot the bill for road and intersection improvements, which could cost as much as $5.2 million, though an economic development grant may cover as much as half.

The county will assume responsibility for land acquisition, which, even after deducting the estimated revenue from selling some of the land to Tindall Corp., could cost as much as $2.9 million.

Harvey County also will pay for land development costs and drainage improvements, estimated at $30,000 and $400,000 respectively.

Pending fulfillment of financial obligations, ownership of the park will be divided between Newton and Harvey County. The city will own 66 percent of the park, and the county will own the other 34 percent.

The agreement does not specify how the money will be raised by either the city or county, but it includes that it may be financed via bonds, loans or other means at the discretion of the commissions.

At the meeting Thursday, Harvey County Attorney David Yoder summarized the contents of the agreement before the commissions heard public comment. The first member of the public to take the floor was a representative of the Economic Development Council, who cited letters of support for the Logistics Park project from USDA Rural Development state and area directors, Secretary of the Kansas Department of Commerce and Sen. Sam Brownback.

Most of the comments from attendees praised the park. Even those who expressed concern about the cost of the project generally were enthusiastic.

Commissioners conceded in their comments the project is expensive and risky. They agreed that it needs to be handled properly to insure success.

Newton and Harvey County commissions met Thursday in a joint session at which both bodies approved an interlocal agreement for establishing the Kansas Logistics Park.

The agreement stipulates the obligations of the city and county in establishing the Logistics Park, as well as outlining the financial responsibilities of each.

The Logistics Park is being created to offer manufacturing companies an area in which to build that has access to rail service and highways.

Tindall Corp. out of Spartanburg, S.C., is slated to be the first company to locate in the park. The company will manufacture a new type of concrete and steel base for wind turbine towers.

Newton is taking on responsibility for extending sewer and water service to the location of the Logistics Park, at an estimated cost of $3.5 million for sewer and $500,00 for water.

Half of the cost of the new water service is expected to be covered by private assessment or contribution.

The city also will foot the bill for road and intersection improvements, which could cost as much as $5.2 million, though an economic development grant may cover as much as half.

The county will assume responsibility for land acquisition, which, even after deducting the estimated revenue from selling some of the land to Tindall Corp., could cost as much as $2.9 million.

Harvey County also will pay for land development costs and drainage improvements, estimated at $30,000 and $400,000 respectively.

Pending fulfillment of financial obligations, ownership of the park will be divided between Newton and Harvey County. The city will own 66 percent of the park, and the county will own the other 34 percent.

The agreement does not specify how the money will be raised by either the city or county, but it includes that it may be financed via bonds, loans or other means at the discretion of the commissions.

At the meeting Thursday, Harvey County Attorney David Yoder summarized the contents of the agreement before the commissions heard public comment. The first member of the public to take the floor was a representative of the Economic Development Council, who cited letters of support for the Logistics Park project from USDA Rural Development state and area directors, Secretary of the Kansas Department of Commerce and Sen. Sam Brownback.

Most of the comments from attendees praised the park. Even those who expressed concern about the cost of the project generally were enthusiastic.

Commissioners conceded in their comments the project is expensive and risky. They agreed that it needs to be handled properly to insure success.

“It’s got to fall together like a good set of dominoes,” County Commissioner Chip Westfall said.

His colleague Marge Roberson sympathized with attendees concerned that funds for the project will come from their pockets.

“I have two pockets, too, and sometimes I feel like we’re in both of them,” she said.

After statements from the commissioners from both the city and county, both boards voted on the agreement. It was approved unanimously by both, to applause by some of those in attendance.

The agreement was then signed by all three county commissioners and Newton Mayor Racquel Thiesen. The agreement states that improvements begin “at once,” but no specific dates are given.

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