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Archive for Thursday, January 4, 2001

Archive for Thursday, January 4, 2001

Council supports Rehrig tax abatement

City officials offer tax cuts to attract new business and industry to DeSoto

January 4, 2001

Editor's note: 2000 was a good year for DeSoto's econcomic development. In addition to Rehrig Pacific, Intervet, Inc. has shown interest in building a new distribution and research campus in town. Huhtamaki Van Leer, Sealright's parent company, moved its North American headquarters to DeSoto and Mr. Goodcents officials announced plans to build a research facility in town, with future plans to build a training facility. Downtown DeSoto recieved a boost when the Dollar General Store opened last summer.

From July 13, 2000

DeSoto city council members will recommend the state grant a 50-percent tax abatement to Rehrig Pacific, a plastics processing company with a plant currently under construction in DeSoto.

Council members voted unanimously to support the abatement request following a public hearing on the matter at the city council meeting Thursday evening at city hall.

Plant officials asked two weeks ago for a 75-percent abatement, but lowered the request to 50-percent after some council members indicated they may not support the higher request. The city has limited property tax abatements in the past to 50-percent.

The $6 million plastics plant is being built on 17 acres on the northwest side of the Sealright plant, along the K-10 Corridor. The company is seeking a constitutional tax abatement, which is regulated by the Kansas State Board of Tax Appeals.

The tax board will have final say over the amount of the abatement. According to DeSoto's financial adviser Marty Nohe, the city's recommendation would carry significant weight with tax board members.

According to Nohe, if a 75-percent abatement had been granted for the maximum 10 years, the city would receive about $1.31 for every dollar it gave up.

The county, school district and community college, however, would have received less than a dollar for every dollar lost.

DeSoto School Board member Sandra Thierer represented the school district at the hearing. She and her fellow board members were not willing to support an abatement request that would result in a deficit for the district.

"A 50-percent abatement would yield more than $2 for the city for every dollar given up and close to $1.50 for the county, school district and community college,' Nohe explained.

Thierer said the lower request was agreeable to the school district.

"The district would come out ahead at 50 percent, so we have no problem with the request," she told council members.

The projections are based on how much tax revenue would be collected as a result of the company, including the amount of property tax not abated, jobs created, new houses and sales tax collected on products purchased by the company and its employees.

Thierer was the only member of the public to speak about the abatement request, but Rehrig officials did hear from the public on another matter.

A group of residents who live near the plant told city council members several weeks ago they were concerned about the safety of children who play in the area once the plant opens and the railroad spur becomes more active.

Rolinda Stotts presented the council at that time with a petition signed by 30 neighbors, asking it to force the company to install a physical buffer between their homes and the plant.

During the hearing, she took her request directly to Rehrig representative Ed Elder.

Elder told Stotts the spur is currently serving the nearby Sealright plant with three or four cars a week. He said the plastics plant would create about the same amount of rail traffic.

"We think that's actually pretty light," he said.

Stotts said the additional three or four cars a week would be enough to create a hazard.

"With three or four from you and three or four from Sealright, we're talking about something that could be a daily thing," she said.

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