Tuesday the Manhattan City Commission received a report on the companies that have received more than $11 million in sales tax money from the City.
Here is a list of the companies and comments made by Diane Stoddard,
Assistant City Manager.
2Linc. / EMI
Existing corporation received a $75,000 grant to relocate its pipe/pump distributing business from Wichita to Manhattan in July of 1995
Company repaid $7,955 of a $125,000 loan prior to becoming insolvent in early 1997 due to illness of CEO
City is a primary beneficiary in the amount of $125,000 on a personal life insurance policy covering Mr. Gary LaGrange who is making premium payments on the policy
Local successor company (Environmental Manufacturing, Inc.) acquired
2Linc. assets and has produced 15 jobs
Transportation Design and Manufacturing
Vehicle Modifier/Alternative Fuel Vehicle Assembly Plant
Grant: $1,525,000 Primary Loan: $418,000
SKILLS Training Loan: $270,000
Job creation: 32.18 FTEs created as of 12-31-01 (projected FTEs were 138)
Total 2001 payroll: $924,166
Median annual salary for 2001: $17,333
Total 2001 sales: approx. $3 million
Grand Prix modification occurred during 2001
TDM management remains dedicated to bringing additional activities to the Manhattan facility- Current activity includes production of corn and pellet home heating stoves for Country Flame
Received prestigious EMS (Environmental Management System) certification
regarding practices and processes.
Grain Industry Alliance
Grain and Food Science Research & Consulting Consortium
Job Incentive Grant: $125,000 (voluntary update)
GIA maintains 0.8 FTEs, representing 0.3 administrative staff, 10-15 people working on projects and 2 support staff
5 current industry members
Sales were up for 2001 for the third consecutive year.
GIA is organizing a mini-conference for 2002 to address the topic
of Agri-Bioterrorism and what the food industry can do about it.
Manhattan Holdings, LLC
Seed and Venture Capital Funds: $600,000
Seed capital feeds new companies, creating new jobs, and providing financial returns.
Partners include City of Manhattan, State of Kansas through KTEC, and KSU Foundation.
Goal is to generate compounded annual returns of 12-22% through investment strategies within 5 years.
Nanoscale Materials, Inc., and NutriJoy, Inc., are success stories.
Job creation figures are reported jointly with Kansas Entrepreneurial
Center figures.
Kansas Entrepreneurial Center
Business Incubator
Special Projects Grant: $300,000 and Loan: $250,000
Incubation services to assist start-up high-growth businesses and create new high-value jobs.
Received a $300,000 Special Projects Grant for City to purchase building at 1500 Hayes Drive in 1996 and a $250,000 loan to add improvements to the facility in December of 2000.
Jobs created by KEC and MHL to date are 85 FTEs as of December 31, 2001 and 88.1 FTEs as of June 2002. Exceeds goal of 75 for 2001.
Companies assisted by KEC and MHL have created $3.6 million in payroll
with an average annual salary of $39,000.
KSU High Energy Physics
Physics Laboratory and Research Facility
Special Projects Grant: $112,500 (voluntary update)
Job creation exceeds expectations- 7 positions were originally targeted and 15 FTE positions were created as of 2001.
Median Income: Professional positions at $20,000-$60,000 and students at $7.50 to $12 per hour
The High Energy Physics lab leverages significant research funds for
the university and the community. The lab has leveraged approximately $10
million since its establishment.
Manko Window Systems
Job Incentive and Value Differential Grant: $931,000
Job creation: 156 FTEs as of December 31, 2001. Job creation far exceeds original target of 55 new positions.
There continues to be a steady increase in sales.
The City assisted the company in early 2002 with $6.8 million in Industrial Revenue Bonds to finance another expansion and equipment. The expansion will enable the company to produce tempered glass.
ASHA Distributing
Job Incentive Grant: $165,000
Opened 80,000 sq. ft. warehouse-distribution center in July of 1998 on 8-acre site, with a capital investment of approximately $2.3 million.
Created 4 FTEs as of December 31, 2001. This figure is down slightly from previous year.
ASHA Distributing facility provides important warehouse space for lease
in the community.
KanGolf, Inc.
Nine Hole Golf Course and Recreation Facility
Job Incentive Grant: $100,000
Income has improved slightly over 2000 figures
Job creation was at 5 FTEs, the same number as reported last year. Efficiencies have resulted in less maintenance personnel than projected.
The company made direct sales tax monthly payments to the City totaling $3,727 in 2001.
Company has indicated desire to restructure MEDOFAB agreement with
regard to required FTEs.
Farrar Corporation
Ductile Iron Machining Facility
Participatory Loan: $1.1 Million
Company created a total of 8.5 FTEs as of December 31, 2001 with an annual median income of $30,273.
10 year business plan shows expansion plans in Manhattan and future sales growth
Overall company sales were down 20% in 2001, due to the economy. However, sales from the Manhattan facility are on target and expected to increase steadily over the next 6-8 months.
Farrar is the only company in the U.S. which produces assembly-line ready ductile iron components for machines such as lawnmowers, race care and exercise equipment.
Achieved prestigious SHARP certification from OSHA and KDHE.
Sykes Enterprises, Inc.
Consumer Technology Support Service Center
Job Incentive Grant: $2,575,000
On-Site Improvements and Property Tax Incentives: $510,000
Overall revenues down slightly from 2000, yet company generated significant operating cash flow and ended 2001 with no outstanding debt.
Job creation: 445 FTEs as of December 31, 2001, 453 as of June 30, 2002. Exceeds original estimate of 432 jobs. Currently building workforce to 525.
Sykes maintains three primary accounts at the Manhattan facility.
Community Online
Resource Exchange (CORE)
Community Technology Center
Special Project Grant: $128,000
To date, 4.16 FTEs jobs created by the Library/CORE collaboration- down slightly from previous year.
CORE and Library reached agreement in December 1999 for the Library to assume full management of the Technology Center in order to provide program sustainability.
The Center has developed a state-of-the-art classroom with networked computers, video projector and projection screen in order to host computer software workshops.
CORE and the Manhattan Area Technical College have formed a partnership to provide many community technology workshops.
The Center serves an average of 144 people daily.
National Gas Machinery Laboratory (NGML)
Testing, Research and Educational Institute for Natural Gas Industry
Job Incentive Grant: $100,000
While NGML continues its testing of external turbochargers for the natural gas industry, testing is down. However, research is now the primary activity and generator of income for the Institute.
Job creation: Employed 8.6 FTEs at the end of 2001, 54% below projected. Overall median salary is $11.75/hour or $24,400 annually
With upgrades to its turbocharger test stand nearly complete, the
lab will be the only public or private open-loop testing facility in the
United States with the capability to test 99 percent of the turbochargers
used in the natural gas transmission, marine and nuclear industries.
Paragon Technology, Inc.
Computer Component Distributor
Job Incentive Grant: $50,000
Participatory Loan: $250,000
Company and its affiliates declared bankruptcy in Spring of 2001
Banks stand in first position for any recovery of funds-ahead of City
Unlikely that the City will recoup any funds from the company
City remains active in the proceedings, filing as a creditor in the bankruptcy case.
Paragon made its initial loan payment of $58,750 in 2000
Western Wireless
Customer Support Call Center
Job Incentive Grant: $250,000
Subscriber growth continues and WWC owns cellular licenses covering 30% of the continental U.S.
61 additional positions were added in 2001 for a total of 314 FTEs at year end. Ahead of projections and up from 258 previous year.
Median wage is $19,094 or $9.18 hourly with full benefits.
Over half of the companys 19,000 daily calls are answered at the Manhattan facility.
Seeking 100 additional employees in next 120 days.
Light Solutions, Inc.
Light Fixture Manufacturer
Job Incentive Grant: $50,000
Participatory Loan: $250,000
Defaulted on loan with the City in early 2001.
Banks and bond holders received a judgment against the company earlier in the year.
City has remained involved in the proceedings.
Building, which is locally-owned and was leased to the company, remains
in Corporate Technology Park and is available for occupancy.
Abbott Aluminum
Manufacturer of Industrial Aluminum Work Holding Equipment
Job Incentive Grant: $150,000
$500,000 building was leveraged with $150,000 in economic development funds.
Abbott has created 3 new direct jobs in 2001, down 2 from previous year.
Sales and payroll are down, but not to the level of the machining industry as a whole.
Carl Reed was a finalist as Entrepreneur of the Year by Ernst & Young.
Company recently announced collaboration with Connecticut-based company
to form an Alliance to design and market workholding products.
Mercy Community Health Foundation
Foundation Supporting Mercy Health Center
Grant: $1,000,000
Grant awarded to leverage additional funding to support expansion of local hospital and health services.
Total pledges received as of July 1, 2002 are $2,304,881.
As of July 1, 2002, three new general internal medicine physicians and one family practice physician has been recruited.
Hospital expansion is on schedule- new emergency department and intensive care unit opened April 2002.
Successful employee campaign completed and there is a current effort
to gain new pledges from the community.