Council reviews Superior Holdings agreement and debates raising wage floor, clawbacks and tax protections
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Summary
City staff reported that the existing Superior Holdings development agreement implements City policy 30 and requires a $21-per-hour minimum; council members, the chamber and residents debated raising the wage floor, adding COLA escalation, escrow/clawbacks and a 'but-for' clause while no immediate contract change was made.
HUTCHINSON, Kan. — The Hutchinson City Council spent an extended portion of its Feb. 17 meeting reviewing a standing development agreement with Superior Holdings (Superior Boiler) and discussing whether the city’s incentive policies should be revised.
Paul Brown, the city attorney, told the council the development agreement — adopted in 2025 — reiterates the city’s economic-development policy (policy 30), which sets a minimum job-creation threshold and a $21-per-hour minimum with health-insurance requirements. "It provides the incentives that's consistent with the city's policy, for job creation," Brown said.
Economic-development representatives and council members discussed whether the $21 floor remains appropriate. Lauren Storm of Greater Hutch/Hutch Chamber outlined state programs (HPIP and PEAK) and noted that wages and benchmarks vary by NAICS code. Storm said Superior's advertised starting pay for welders is $21.50 and that skilled welder positions rise to $27 per hour with benefits.
Several council members urged revising policy language going forward — suggestions included increasing the minimum to $22 or higher, adding an annual cost-of-living adjustment, building in escrowed clawbacks and adopting a "but-for" certification so incentives are clearly tied to job creation that would not occur otherwise. Council Member (speaker 9) proposed a workshop or study session to draft possible changes for policies 10 and 30; staff and chamber representatives agreed that future incentive conversations should be case-by-case and allow for NAICS-code adjustments.
Paul Brown advised that existing contracts bind the city until renegotiated: if the council wants different terms for future deals, it should amend the underlying policy and then apply changes to new agreements. No action was taken on the Superior agreement itself; staff said they will return with drafting options and recommended language for council consideration.
