De Soto works to land Huhtamaki expansion

Packaging company Huhtamaki Americas has asked state officials for additional tax incentives to bring a $100 million expansion to De Soto.

Dave Anderson, mayor of the city in northwest Johnson County, told the Special Committee on Assessment and Taxation this week that the expansion would add more than 100 jobs to his city, where Huhtamaki already owns a packaging plant.

That plant currently employs 440 people, one of 11 centers the Finnish company operates in the U.S.

Anderson said his city had agreed not to levy property taxes on the expansion for 10 years in a bid to attract the project. He said that despite the tax abatement, the city still stood to increase its revenue 15 percent from a franchise tax on electricity used by the expansion, money he said the city could use for water and sewer improvements.

But the company is wanting to make sure it gets all of a 10 percent tax credit offered by the state, and getting that total could require a change in state law.

John O’Dea, a company vice president, said the expansion could go to another state if the company isn’t guaranteed to receive the full credit.

“It is imperative that we seek the most financially beneficial state in which to expand,” O’Dea told the committee.