JEDO approves three incentive agreements for Shawnee County projects
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Summary
The Joint Economic Development Organization approved incentive agreements for Project Omega ($1,430,000), JM Smucker ($383,000) and HF Rubber ($147,000). Presentations emphasized job growth plans, capital investment and performance-based payouts; all three motions passed by roll-call vote.
The Joint Economic Development Organization on Feb. 11 approved three incentive agreements intended to support expansions and continued operations in Shawnee County.
Ashley Layman, vice president of business development for Go Topeka, presented Project Omega, an existing financial-services firm that the packet lists for $1,430,000 in performance-based incentives. Layman said the project is intended to support 175 new jobs over five years with wage ranges “from $50,000 to over $100,000,” a reported return on investment of 39 percent and a 10-year economic impact listed in the materials as $1,370,000,000. During the presentation Layman misstated an incentive figure aloud; staff and the board proceeded using the packet amount of $1,430,000.
The board approved Project Omega on a roll-call vote, with all recorded responses in favor.
The board then approved a $383,000 incentive agreement for a renovation and small expansion at the JM Smucker plant in North Topeka. Luke Livingston, the plant's manager and director of operations, said the facility, in operation since 1971, employs about 380 people (an average salary the presentation cited as $74,000) and that the planned $20,500,000 investment is intended to renovate and add capacity rather than add immediate head count. Livingston said the company is increasing physical capacity now so it will be ready when demand returns.
That motion also passed by roll-call vote.
Lastly, the board approved a $147,000 incentive for Project Volcan, identified in the packet as HF Rubber. Company executive John Adams told the board HF Rubber has been in Topeka more than 65 years and manufactures rubber mixing machines used by major tire makers. The packet cites a $1,600,000 capital investment, a plan to add 19 jobs over five years with salaries from $50,000 to $80,000, and a 10-year economic impact of $71,000,000. The board approved the incentive by roll call and paused for a group photo.
All three incentives are performance-based, meaning payments are made as companies meet stated benchmarks over the multi-year schedules in the agreements.