City to consider abatements
Bunting Magnetics plans to add a building on its campus at the Newton Industrial Park, hoping for some help with a tax abatement.
The company is seeking an abatement it construct a 1,5000 square foot storage facility at 500 S. Spencer, and renovate the current building at 600 S. Spencer to make it a “Customer Experience” location to test products.
An application for a tax abatement from the city of Newton will be reviewed at the city commission’s Aug. 15 meeting.
The company estimates investing $254,000 in the building; $86,000 in equipment, machinery, fixtures and furniture; and $166,000 for the existing building remodel.
According to the company tax abatement application the new building will employ two full time employees. The payroll is expected to increase about $1.3 million, collectively, over a 10-year period.
According to analysis by the Center of Economic Development and Business Research at Wichita State University, the tax abatement is expected to be worth about $25,900 to the city over 10 years, $17,500 to Harvey County, $8,900 to the state and $6,100 to USD 373.
Bunting Magnetics designs and manufactures magnetic separation, metal detection and material handling equipment, as well as a complete line of printing cylinders. The company has facilities in Elk Grove Village, Ill.; Berkhamsted, England; Dubois, Pa.; Ningbo, China; and Boronia in Victoria, Australia.
The commission will also consider a tax abatement for Future Foam at the meting. Future Foam completed a $3.25 million project adding an 80,000-square-foot building. That, according to the company application, is expected to add seven jobs in the next four years.
According to analysis by the Center of Economic Development and Business Research at Wichita State University, the tax abatement is expected to be worth about $489,000 to the city, $354,000 to the county, $184,000 to the state and $128,000 to the school district over a 10-year period.
Future Foam Inc. is a manufacturer offering an array of polyurethane foam products, including carpet cushion, underlayment, toppers, mattresses, and pillows. The company operates 27 facilities in the United States, Europe and China.