Ark Valley News - Commercial project slated for Kechi

Commercial project slated for Kechi
By Taylor Messick
Last Updated: April 04, 2024

The business park in Kechi is getting a new resident.

On March 28, the Kechi City Council approved a resolution of intent to issue industrial revenue bonds for a Construction Teaming Group LLC project. The $1.8 million project would bring a three-building commercial facility to the Kechi Business Park near K-254 and Woodlawn.

Utilizing the city's ability to grant IRBs, the applicant will qualify for a sales tax exemption on construction materials, furnishings and equipment used for the project. Also included is a 10-year sliding-scale property tax abatement. The abatement would be 100 percent for three years, 80 percent for two years, 60 percent for two years, 40 percent for two years and 20 percent for one year. This schedule is the same one that was previously approved for the Northstar Comfort Services and Cillessen & Sons IRB projects.

City attorney Andrew Kovar said the buildings would occupy about 23,000 square feet. Construction Teaming Group plans to use a portion of the project to house its business. The remaining space will likely be leased to service-based businesses such as construction trades and wholesale businesses.

"It's important to note that industrial revenue bonds are solely what we call a conduit issued through the city," said Kovar. "The city is not contributing any money to this project. The applicant has to find their financing from a bank, their partners, their equity absolutely independently of the city."

Approval of the resolution of intent means Construction Teaming Group can begin ordering construction materials for the project using its tax-exempt status. A public hearing for the action will be held at the April 25 city council meeting before another resolution is considered by the council.

A Wichita State University cost-benefit analysis projected a 1.45 ratio — meaning the city would receive $1.45 for every dollar of abatement granted; any ratio over one is considered a net positive project. It was estimated that this project could bring 21 new jobs to Kechi. A representative said the project would begin within 30 days and could be completed in six months.