By: NICOLAS FIERRO
Salina Post
A&B Tool Machine, a local precision machining company is seeking to expand with the support of Salina Commissioners.
On Monday's City Commission meeting, Executive Director of Salina Community Economic Development Organization (SCEDO), Mitch Robinson presented to Commissioners the information of the expansion.
What was presented
- 38,170 square foot facility/5.5 acres for the machining company.
This expansion would create 6 new jobs within the first 3 years of operation. Plus an additional 4 positions would be added in years 4 and 5 of the new space.
The average wage would be $27.07 per hour, with an additional $5.53 per hour in benefits. Entry-level employment with minimal to no experience starts at $20 an hour.
The total project investment would be $6,343,390.
How the City will fund the project
The City would cover the cost with Industrial Revenue Bonds (IRBs), except for equipment costs.
IRBs are a type of bond issued by the City on behalf of a private company to finance the construction project.
The City states the structure of IRBs, affords the company sales tax exemptions on initial purchases for construction and property tax abatements up to 10 years.
According to the City, interest payable of the bonds are exempt from federal income tax.
Project achieves 1.0 or higher Return on Investment
SCEDO examined the benefit-cost ratio and economic impact analysis provided the Kansas Department of Commerce.
Accordingly, the project achieved a Return on Investment (ROI) score of 1.0 or higher, indicating economic benefits such as, job creation and increased sales tax revenue. This would outweigh the costs of the proposed abatements.
The City stated a 1.0 or higher ROI, means a net positive impact for the community. Anything lower suggests the costs of incentives would exceed benefits.
The current building A&B operates in, is a 9,000 square foot facility on 2259 Centennial Road. The current building will continue to pay in property taxes once A&B moves out.
The City would then plan to fill the leased building with a new industrial company.
Construction is expected to start in Spring 2026.
End of 2026 is the expectant date of operation in the new building.
About A&B Tool Machine
A&B Tool Machine is a precision machine and tool production company, supplying high quality parts to industries in Salina, Kansas and the US. It utilizes advance CNC lathes (machine performing complex manufacturing operations) with a skilled workforce.
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