Tax abatement approved

3 commissioners question city's policy

City commissioners Tuesday night unanimously approved a tax abatement that puts the city in the running for 31 new jobs.

But some commissioners also said they wanted the city to look at becoming more judicious with tax breaks in the future.

Commissioners signed off on a request for a 55 percent, 10-year tax abatement for a $4.5 million building expansion for API Foils’ existing manufacturing plant at the East Hills Business Park.

“All the information I’ve seen says this is a good tax abatement,” Mayor Mike Amyx said.

The tax abatement had received a positive recommendation from the city’s Public Incentives Review Committee, and a report by Kansas University economists on behalf of the city found that the project would provide $6 in communitywide benefits for every $1 of property tax abated.

All the jobs in the expansion would pay more than the city’s living wage of $10.73 per hour, with the lowest wage at $14.42 per hour. All 31 jobs also pay salaries that are higher than the statewide average for similar jobs.

Now, API leaders have to determine whether the offer is sweet enough. Bill Piercey, vice president of finance for API Foils, said his company’s British-based parent company would review the project. He said the company also is considering a site in Rahway, N.J., where it has its U.S. headquarters.

International sites also may be considered for the plant, which makes hot stamping foils used to put the shine on a variety of packaging products.

Piercey said he expects the company to make a decision about where to locate the project by the end of June.

City commissioners also may have a decision to make about whether they want to change their property tax abatement policy for future requests. Commissioners David Schauner, Boog Highberger and Mike Rundle all said they wanted to review whether the city’s tax abatement policy was still appropriate given that the state has passed a new law that exempts all new business equipment from taxation.

At the meeting, commissioners received comments from three members of the public who urged the city to reconsider its tax abatement policy because they believed it did not do much to lessen the tax burden on residential home owners.

City Manager David Corliss said he would prepare a report on how the new state law may impact the city’s tax abatement policy. He also said he would investigate how other Kansas communities are reacting to the new state law.