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CITY COMMISSION AGENDA ITEM |
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Department: |
City Manager’s Office |
Commission Meeting Date: December 5, 2017 |
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Staff Contact: |
Britt Crum-Cano, Economic Development Coordinator |
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Recommendations/Options/Action Requested: |
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Receive Plastikon Healthcare, LLC application and set a public hearing date for December 19, 2017 for consideration of Catalyst Program incentive package. |
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Executive Summary |
In April 2017, the City Commission approved the Catalyst Program, a program aimed at spurring economic development in East Hills Business Park and Lawrence VenturePark.
The City has received an application from Plastikon Healthcare, LLC for participation in the City’s Catalyst Incentive Program. Plastikon is a contract manufacturing organization that specializes in the formulation and packaging of liquid medical devices and pharmaceuticals. Plastikon is requesting a 70% 10-year property tax abatement on the new addition as they are planning to build the addition to LEED Silver equivalency. Plastikon will not need to access the land portion of the Catalyst Program as they already own the ground necessary to accommodate the expansion. Additionally, the company will be pursuing a sales tax exemption certificate to access a sales tax exemption on materials used in constructing the addition via a State of Kansas program.
The company is proposing a 50,000-square foot expansion of their current facility located in East Hills Business Park at 3780 Greenway Circle, Lawrence, Kansas. The expansion is needed to create space for an aseptic injection molding technology suite and accommodate future space for a large volume sterile pharmaceutical suite.
Phase I construction includes construction of the 50,000-square foot addition at an estimated investment of approximately $3 million. Phase II will cost an additional $1 million for completing the interior build-out of the aseptic injection molding technology suite, finishing space for an additional clean room and adding utility upgrades and other infrastructure.
Completion of both phases is scheduled for 4th quarter 2018, with total capital investment for buildings, machinery, and equipment estimated at $7.3 million. It is anticipated that with the completion of both phases, Plastikon will increase their staff by an estimated 13 employees to support injection molding projection.
Plastikon has tentative plans to add additional facility expansions to their site in East Hills Business Park as they are awarded new contracts in the future.
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Strategic Plan Critical Success Factor |
Economic Growth and Security |
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Fiscal Impact (Amount/Source): |
The fiscal impact to the City of the Catalyst Program is positive but the exact amount is unknown until projects are constructed. Because the program only offers a partial property tax abatement, any new development will result in net positive tax base to the City and the other taxing jurisdictions. |
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Attachments: |
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Reviewed By: (for CMO use only) |
☐TM ☒DS ☐CT ☐BM |
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