Salina commission approves industrial revenue bonds for A & B Tool and Machine

The Salina City Commission on Nov. 24 voted 5–0 to approve resolution 25‑8317 supporting the issuance of industrial revenue bonds (IRBs) for A & B Tool and Machine.

The project, as presented in the public hearing, would relocate the company from a leased 9,000–square‑foot facility at 2259 Centennial Road to a new 38,170–square‑foot building on a 5.5‑acre site at South Ohio and McIntosh. A SCEDO representative told the commission the estimated total investment is $6,343,390, including $135,500 for land acquisition and $5,672,415 for building construction; separate fixed equipment was described as part of the financed items for the IRB package. Company representatives said the business expects to add six jobs within three years and a total of 10 new positions by the end of year five; average wages were described as about $27 per hour plus roughly $5.53 per hour in benefits.

Staff and presenters explained the proposed IRB terms and local incentive mechanics: the project was found to qualify for the city's target‑industry incentives and, under the proposal, would receive up to 100% abatement of property taxes on the bond for a 10‑year period and related sales tax benefits tied to construction and eligible equipment. The economic‑impact analysis used by staff was prepared in part through Kansas Department of Commerce resources and showed benefit/cost metrics used to evaluate the request.

Commissioners asked about the nature of the new positions and the baseline tax payment for the property the company is vacating; staff said IRB structures typically set abatement percentages and do not automatically preserve the prior tax baseline for the vacated building. There were no public objections during the hearing.

The commission moved and seconded the resolution and approved it by voice vote, 5–0. The hearing was closed and the commission returned to other business.