City could have buyer for industrial park
Although the City of Tonganoxie hasn’t made any final decisions about how to prepare the its new industrial park site for development, it may already have a buyer.
During the Feb. 9 regular Tonganoxie City Council meeting, Steve Jack, Leavenworth County Development Corporation executive director, said a large global company was looking to move to the Midwest and Tonganoxie is in its radar.
He said the company was looking to make a major investment in the community and build a large facility.
The unnamed company was looking for 200-500 acres to build a $175 million facility and create 175 jobs with potential for expansion. The average wages will be in the top 10 percent for the area.
“There are still many steps down the road, but at this stage we are just trying to respond to their request to get an understanding on what it would cost them to relocate,” Jack said.
City staff and Tom Kaleko, senior vice president at Springsted Inc., the city’s financial adviser, came up with a price of $15,000 an acre it would present to the company.
Kaleko said the city should be very comfortable with the $15,000 an acre price for this project.
But even as the city and LCDC make plans for a site tour, the city’s industrial park committee is still looking to partner with a private developer in case the prospect of a global company coming to Tonganoxie falls through.
Councilmember Tom Putthoff said the industrial park committee wanted to put out a request for proposals for private developers to bid on the project.
“(The committee) talked about it we felt that this was a pretty good way of going out to try and see if there is any interest in this property at all,” Putthoff said.
Springsted Inc., is going to help the city draft the RFP documents.
Kaleko once again reiterated a previous comment about the city being better off sharing the cost and risk of development with a private developer than trying to fund the whole thing itself.
In other business the council:
• Unanimously approved change order no. 2 from BRW Construction LLC authorizing the deduction of $13,950 and the addition of $850 for the interceptor phase II project.
• Unanimously authorized Tonganoxie Mayor Mike Vestal to sign a certificate of substantial completion for the interceptor phase II project as recommended by BG Consultants, the city’s engineering firm.
• Unanimously approved pay application no. 3 to BRW Construction in the amount of $11,311.30 for work completed on the interceptor sewer phase II project.
• Unanimously authorized the semi-annual lease payment of $10,530 to First Bank for two 2009 Crown Victorias.
• Voted, 3-0, to approve the semi-annual lease payment of $36,353.11 to First State Bank & Trust for the ball field construction to be repaid by the Tonganoxie Recreation Commission. Councilmember Putthoff abstained from the vote.
• Unanimously approved the final payment of $3,912.05 to the Kansas Sampler Festival for Tonganoxie’s portion of the event funding.
• Unanimously approved the payment of $10,417.57 to Meadows Construction for part of contract for the Fourth Street phase III project.
• Voted, 3-0, to approve the payment of $42,886.26 to Capital Electric Construction for work completed on the new recreation commission ball field. Councilmember Putthoff abstained from the vote.
• Voted, 3-0, to approve the payment of $161,000 to Musco Lighting for project materials on the new recreation commission ball field. Councilmember Putthoff abstained from the vote.
• Unanimously approved the payment of $5,800 for the repair of a Case 621 Loader.
• Unanimously authorized the mayor to sign the notice of acceptance for the flashing beacon system at U.S. Highway 24-40 and Northstar Road.
• Tabled the passing of ordinances 1293, 1294 and 1295, which concern chapter X, chapter XIV and chapter XI of city codes, traffic and police codes.
• Unanimously authorized city staff to advertise for an open position for the public works department for a water distribution/meter reader.
• Unanimously authorized the purchase of two new salt and sand spreaders for the public works department’s two new 2011 Ford F-250s for the amount of $5,002.
• Unanimously approved the special event application for the St. Patrick’s Parade on March 13, 2010.
• Unanimously approved to pay $18,448 for the remaining balance of the lease purchase of the Tonganoxie Fire Department’s quick response vehicle. The money is to come out of the fire department’s equipment reserve fund. The council then unanimously approved the lease/purchase of a new Ford F-250 and equipment for a new quick response vehicle.
• Unanimously approved the renewal of a contract for Leavenworth County Probation Services in the amount of $9,863 for the 2010 calendar year.
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