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Valley Center approves 75% rebate on new taxes for Village Coach Works expansion
Summary
The council approved a property tax rebate to incentivize Village Coach Works to add 6,500 square feet, machinery and three new jobs; the rebate is structured as a 10-year program with the first five years guaranteed and annual reviews.
City economic development staff presented a recommendation and Wichita State analysis supporting a property tax rebate for Village Coach Works’ planned 6,500-square-foot expansion in Valley Center.
Staff said the company will add capital investment, about three new employees and onsite machining that the city characterized as higher-wage advanced manufacturing work. Staff told the council the proposal mirrors Sedgwick County and Wichita abatement policy and recommended a 75% rebate of the increased city portion of property taxes for the investment.
Staff summarized: the company qualifies for a set of abatement percentages under the city’s policy — 40% for capital investment, 25% for employer-paid health benefits that meet the policy threshold, and an additional 10% for being in a regional growth sector — resulting in the 75% rate. Staff also said the city received an economic-impact analysis from Wichita State’s Center for Economic Development and Business Research showing a greater-than-1:1 return on the abated dollars (Wichita State’s report is included in the packet).
Council approved a motion that uses the 2024 city portion of general property taxes ($5,021.32) as the baseline and rebates 75% of increases in city general property taxes attributable to the project for tax years 2026 through 2029, with a review in 2029 for a possible additional five-year term, and annual verification of benchmarks during the guaranteed period. Staff specifically described the abatement as a rebate: the city will continue to collect taxes and rebate the city portion back to the company per the agreed schedule.
Why this matters: The agreement is intended to retain and expand an advanced-manufacturing operation in Valley Center, add onsite machining and a small number of higher-skilled jobs, and meet the city’s stated 1:1 return-on-investment requirement.
The packet included a provision that the first five years are guaranteed with annual compliance checks. The company’s representative, Jeff, did not attend the council meeting.
The council voted to approve the abatement as presented and directed staff to return for review of the subsequent five-year term in 2029.
