Flint Hills Industries receive tax exemptiion
Plan includes new building, more employees
Staff reporter
Continuing the tradition of encouraging business expansion, Hillsboro City Council approved an ad valorem tax exemption Aug. 21, for Flint Hills Industries, Inc., of Hillsboro.
Following a public hearing, the company was granted a 10-year exemption beginning Jan. 1, 2008, and ending Dec. 31, 2017. In exchange, the manufacturer will make payments in an amount equal to 1.5 percent of the ad valorem taxes had the property not been exempted.
Phil Wyssenbach, president of Flint Hills Industries, said his company plans to build a new 23,000-square-foot building and discontinue operations in the building it currently uses at 110 Industrial Road, Hillsboro.
"Our current building is very inefficient," Wyssenbach said. "It's difficult to heat and when the large doors are used, we lose $500-700 per week in energy."
The manufacturer said he predicted his company could have $30 million in sales in five years.
"In order to do this, we have to invest more in the building," he said.
In 2005, the company had 30 employees; currently 53 work at the plant. Wyssenbach said to meet the $30 million sales figure, there would need to be 140 employees.
Wyssenbach made it clear to the council that even if the tax exemption wasn't approved, he had no intention of moving the company from Hillsboro.
In other business:
— The council conducted a second public hearing for the purpose of applying for a Community Development Block Grant for replacing 3,500 feet of an existing four-inch water line with an eight-inch water line on Birch Street from D to one block north of Grand Avenue, and on Cedar from B to Grand Avenue.
The estimated cost of the project is $418,500 with the grant request being $209,125.
City engineer Bob Privatera of Reiss & Goodness Engineers of Wichita, reported that this project would be the same scenario as the Lincoln Street water line replacement.
Mayor Delores Dalke said the surveys that were gathered last year that proved that at least 51 percent of Hillsboro residents had low to moderate income will be used with this application.
Grant writer Rosemary Saunders said the survey revealed a 56.47 percent LMI.
The council then approved a series of resolutions deemed necessary for the city to apply for the federal grant money.
