Archive for Monday, January 13, 1992


January 13, 1992


Local economic development officials had received no word this morning of a final decision from a Kansas City, Mo., company that has negotiated a lease for the shell building in East Hills Business Park.

The executive committee of the Kansas City firm's parent company had been scheduled to meet Friday to consider final approval of a seven-year lease for the shell building.

The Kansas City company, which has requested anonymity until a signed agreement is in place, would use the 81,087-square-foot building as a warehouse and distribution center.

Lawrence Chamber of Commerce officials have said the company, which had 1990 revenues of $1.7 billion, initially would employ 20 to 25 people in Lawrence. However, local officials have said the company probably would expand the local operation within a few years.

PROVISIONS for the expansion, which were written into the proposed agreement, were partially responsible for delaying the lease negotiations, Chamber President Gary Toebben has said. Chamber officials originally expected the lease to be signed last fall.

The company had said it wanted to be doing business from the shell building by March 31, however the building would have to be finished out according to the tenant's specifications before then.

Toebben said two weeks ago that Douglas County Development Inc., the public-private coalition that is developing East Hills, still planned to work with the company to try to meet that date. Local banks have pledged financing for the finishing work, which is expected to cost $300,000.

THE KANSAS City firm is seeking tax abatements of 50 percent for 10 years on its investment in the building. DCDI filed an initial request for the incentives with the city on the company's behalf.

The city has twice scheduled and twice deferred public hearings on the abatement request while the lease process has been repeatedly delayed.

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