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Hutchinson approves temporary lease for Cannabis Chem Lab, decertifies Enterprise Center TIF
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Summary
The Hutchinson City Council approved a two‑year incubator lease for Cannabis Chem Lab at the Enterprise Center and adopted a resolution to decertify the site’s TIF district and forgive an interfund loan; staff said the move will add immediate jobs and put the property back on the tax rolls.
The Hutchinson City Council on April 14 approved a temporary lease for Cannabis Chem Lab to occupy space at the Hutchinson Enterprise Center and adopted a resolution to decertify the related tax‑increment financing (TIF) district and forgive the associated interfund loan.
Miles, a city economic development staff member, told the council the company needs roughly 8,000 square feet to start operations and expects to create about eight jobs immediately, growing to “about two dozen” positions within two years. He said many positions are expected to pay “$70 to $80,000” while lab technicians would earn roughly “$20 or $25 an hour.” Miles said the company has already bought a separate building in town but needs temporary incubation space while that site is renovated.
Miles also asked the council to approve decertification of the Enterprise Center’s TIF district so the facility can host non‑manufacturing tenants such as the chem lab. He estimated the original interfund loan to pay soil corrections was about $137,000, with approximately $100,000 remaining to be forgiven. “We’re really close to the end of the TIF District anyway,” Miles said, describing decertification as a way to bring the center back on the tax rolls.
Council moved and approved the lease before voting to adopt the decertification and forgiveness resolution. The motions were made on the floor (lease: motion by Chad, second by Pat; TIF resolution: motion by Pat, second by Dave) and carried by voice vote.
City staff said the lease is intended as an incubation relationship with term and extension options; the company operates a small lab in South Dakota and has customers and equipment ready to deploy. Staff also said the enterprise center strategy is to help new businesses scale into permanent facilities when they are ready.
No public opposition was recorded in the transcript. Council discussion focused on the practicalities of renovating the company’s purchased building and the benefits of attracting higher‑wage technical jobs to Hutchinson.
