photo by: John Hanna/AP Photo

Kansas Gov. Laura Kelly answers questions from reporters during a news conference, Thursday, Jan. 6, 2022, at the Statehouse in Topeka.

Kansas Gov. Laura Kelly envisions a day in the near future when the Kansas Highway 10 corridor is bustling with new industry and vibrant with families drawn to the state through capital investment gains.

But those hopes are largely pinned on the ripple effects that the multibillion-dollar Panasonic battery plant in nearby De Soto will have on neighboring communities along the K-10 corridor. Kelly added that the plant is the single largest one-time capital investment in the history of the state.

“I think one of the things you’re going to see over the next few years is an absolute filling-in of the K-10 corridor — from Lawrence all the way to the Kansas City area,” Kelly said in a wide-ranging interview with the Journal-World. “I think you’ll see exponential growth (along K-10).”

Kelly continued, “Panasonic will obviously have a lot of infrastructure needs. We also know that the traffic on K-10 will increase significantly as these homes are built and families move in. I was just over there cutting a ribbon on a transportation project that would increase access to Panasonic.”

Kelly said that the Panasonic project is poised to attract businesses aiming to be located near the factory, and that a number of companies have already expressed interest in making “major capital investments” in the state because of Panasonic. Those new businesses are projected to double the number of jobs within the Panasonic footprint to 8,000 over the next five to seven years, Kelly said.

“Success begets success, and that is what we are seeing,” Kelly said, adding that an incentive-laden package offered by the Legislature helped secure the deal with Panasonic, and now others are interested in doing the same.

“You’re going to see an explosion in the population,” she said, “and that will create other issues that Lawrence needs to be thinking about, much like De Soto is now.”

As the Journal-World reported in November, consultants hired by the Lawrence school district have projected an enrollment decrease of approximately 300 students over the next five years. While it’s unknown how the Panasonic plant fits into Lawrence Public Schools’ precise designs, those projections factored into a consequential decision by the Lawrence school board to close Pinckney and Broken Arrow elementary schools.

“You have to think about the capacity in your school system and internal infrastructure as people come into the area,” Kelly said, adding that the city should brace for a spike in school-aged children because many of the thousands of new job vacancies are likely to be filled by individuals in their child-bearing years. “I absolutely expect that all the school districts within the Panasonic radius will see an influx of students.”

Kelly said that her administration has been in close contact with the De Soto school district in anticipation of the town’s population boom.

“And I think Lawrence will also feel the impact,” she said.

Kelly also confirmed that she is aware of potential infrastructure plans for expansion of the K-10 corridor, but was not able to divulge details or provide a definitive timetable of future work. Previous discussions have centered on easing congestion around K-10 and I-435 to ensure safer travel, while also making the plant easily accessible — which could potentially include the addition of a third lane along much of the corridor. Kelly added that the Kansas Department of Transportation has been at the negotiating table with Panasonic “from day one.”

Other topics Kelly discussed in her interview with the Journal-World included:

Potential legal threat

Kelly said that recent actions by Kansas Attorney General Kris Kobach and a dozen of his Republican AG counterparts could dissuade companies from remaining in or relocating to Kansas and could ultimately damage the state’s economy and reputation. Kobach and a contingent of fellow Republican attorneys general addressed a letter to Fortune 100 companies, warning of serious legal consequences if they don’t strictly adhere to the U.S. Supreme Court’s recent affirmative action ruling.

While the court’s ruling struck down the use of affirmative action at universities, the AGs’ letter argues that the decision extends to all employers’ hiring practices. The letter urges companies to “cease unlawful race-based quotas or preferences” that they’ve adopted for employment and contracting practices.

“If you choose not to do so, know that you will be held accountable — sooner rather than later — for your decision to continue treating people differently because of the color of their skin,” the warning letter said.

Kelly firmly believes that she has set up the state for prosperity for years to come but that the legal threat, if acted upon, could erode those gains.

“I’ve had Panasonic and a number of other companies tell me that Kansas is one of the most efficient and easy to work with states in terms of making it attractive for companies to relocate,” she said. “When we announced that Panasonic was coming to Kansas, it made other companies take a really good look at us.”

Kelly said that imposing harsh hiring regulations would cause businesses to look elsewhere.

“If it’s difficult for businesses to hire because the government is making the state an unattractive place for a whole host of groups, they will speak with their wallets and go elsewhere,” Kelly said, adding that she has already observed a similar scenario play out over a once-controversial transgender bathroom bill implemented by North Carolina’s GOP-controlled Legislature.

“In fact, they were hit so hard, so fast, that the Legislature came back the next year and repealed that bill,” Kelly said.

Kelly also cited Florida and the attempted micromanagement of companies by Gov. Ron DeSantis and his administration. Kelly noted that the anti-business moves were causing Florida’s high school- and college-aged demographic to flee.

“The youngest (adult-level) generation is choosing to go out of state for college, and also take jobs out of state,” she said.

By striving for a skilled and diverse workforce, Kelly said she is hopeful that Kansas can avoid that same path.

“I want to make sure that Kansas is attractive to all, and that people feel like there is a place for them in Kansas,” she said.

High praise

Kelly’s administration was recently awarded Area Development Magazine’s prestigious Gold Shovel award for a third consecutive year. The magazine recognizes a handful of states that stood out from the crowd via economic development efforts — with Kansas receiving the highest marks for states with fewer than 3 million residents. Those results included 272 statewide projects that generated approximately $7.4 billion in private-sector investments — as well as the addition of more than 13,000 jobs in 2022.

“Even through the pandemic, we never took our eyes off of economic development,” Kelly said.

Kelly also touted recent news that jobs created and retained since the outset of her administration had surpassed 60,000 — a number that she said is reflective of $17 billion in capital investments drawn into the state.

“It is evidence and affirmation that the approach we took to economic development was the right one,” Kelly said.