Commission advances incentive package for PTMW expansion at speculative building

The Manhattan City Commission on April 1 voted 5-0 to advance to second consideration an amended economic development agreement for a speculative building at 1105 Kretschmeyer Drive that would house PTMW Inc., a metal fabrication company headquartered in Topeka.

City Manager (name not specified) told commissioners the proposal would support nearly $14 million in building and equipment investment and 146 proposed jobs. The package under consideration includes the tax-abatement schedule originally approved for the speculative building, a proposed equipment-investment grant and a jobs incentive that would pay out over a 10-year period if jobs and wage thresholds are met.

Why it matters: Staff and business leaders said the project would diversify Manhattan’s private-sector employment, help retain and attract welders and other skilled trades to the region, and generate tax and sales-tax revenues over time. Chamber of Commerce and state economic development representatives described the project as competitive with offers from other communities and supportive of the city’s strategic growth goals.

Details and terms: According to staff, PTMW would invest roughly $3.4 million in building improvements and $11 million in equipment and machinery. The equipment-investment grant discussed was $250,000 if the company completes the full equipment investment. The jobs incentive would scale with wages; staff estimated the full, sustained package would total $760,000 over 10 years if all 146 positions are created and maintained. The speculative-building abatement originally authorized by a prior commission was described as a 95% abatement for the first five years and 50% for years six through ten; staff said an additional abatement amendment under discussion would amount to roughly $774,000 over 10 years (noted in staff calculations), to be discussed further during negotiations.

Company presentation and workforce notes: Lee Hendricks, general counsel for the Bettis companies, and Morgan Padgett, senior vice president for PTMW, described PTMW’s business and growth plans. Padgett said PTMW makes prefabricated metal enclosures used in rail, power and data-center markets and that Topeka is the firm’s primary site; the company cited demand, redundancy needs and regional welding labor statistics as reasons to expand into Manhattan. David Dobbs, senior vice president of manufacturing, described planned equipment (robotic welding cells, tube lasers, powder-coating line), expected first-shift production in Q3 and a near-term plan to operate multiple shifts as the site grows.

Support and concerns from the community: Darren Solden, director of economic development at the Manhattan Area Chamber of Commerce, and Jason Smith, the chamber’s president and CEO, urged support and highlighted an estimated 20-year positive economic impact from the project using the chamber’s model. Ernie Bowdette of the Kansas Department of Commerce said PTMW qualifies for state incentive programs such as a transferrable state tax-credit tied to capital investment and the PEAK (Promoting Employment Across Kansas) payroll-withholding retention program.

Public commenters supported the project’s job creation but also raised questions. Amber Starling, a resident, said the company’s online employee reviews raised concerns about turnover and workplace practices, adding that “a pipeline into a meat grinder is not going to be sustainable for our community.” Gary Oles, a local resident, cautioned about the distributional effects of property-tax abatements across taxing entities and urged care in structuring incentives.

Vote and next steps: Commissioner (mover not specified) moved to advance the application for second consideration on April 15, 2025; the motion was seconded (second not specified) and carried in a 5-0 roll call (Commissioner Adamczak: yes; Commissioner Opelt: yes; Commissioner Mota: yes; Commissioner Mitten: yes; Mayor Karen McCullough: yes). Staff and the chamber said they would continue negotiations on incentive structure, explore whether portions of the abatement could be offset by economic development funds, and return to the commission for the April 15 second consideration.

Context and constraints: Staff emphasized that the tax abatement applies to the property owner; under a triple-net lease structure discussed, the tenant (PTMW) would benefit from the abatement rather than the building owner. City staff also said that if job creation or equipment investment is not fully realized or sustained, the incentive payouts would be adjusted downward per the agreement terms.

What to watch: The commission will reconsider the amended agreement at its April 15 meeting, when staff and the chamber expect to present any negotiated changes. Staff said Baker Tilly, the city’s financial adviser, reviewed PTMW’s financials and raised no concerns about their ability to complete the expansion.