COLWICH, Kan (KSNW) – A major job provider in the city of Colwich is planning a big expansion.
“Plans are to put in a $70 million gallon per year grain ethanol facility,” says ICM President Chris Mitchell.
The ICM expansion is projected to bring dozens of jobs to the city.
“We would expect that there is in the range of 50 employees, permanent employees here in the community,” says Mitchell.
The company has been a staple in the city for 20 plus years. The new facility would go on an 80 acres piece of land just outside their main facility.
“They are a great asset to our community,” says Mayor Terry Spexarth.
Mitchell says the proposed project costs around $150 million dollars and they’re hoping the city will approve some measures to help with the property taxes.
“We are in discussion with the city of Colwich and have asked to grant a property tax abatement through industrial revenue bonds,” says Mitchell.
Mayor Terry Spexarth says the city is considering ten years of tax abatements, but when that period is over, it could bring a lot of money into the community.
“We would receive about $1.8 million which includes the school district, the state and Colwich,” says Spexarth.
The city council still considering the proposal.
Spexarth says, “In negotiations last night I think the city is willing to do a payment in lieu of taxes or maybe a small reduction cost, not 100 percent.”
ICM and the city will meet again Tuesday where Spexarth expects the city will have a vote on what they can afford to provide ICM.
“If they want to give them 100 percent they are allowed to do that, like I said next Tuesday they will decide what to offer them and we will move on from there,” says Spexarth.
Even if the city support is approved, ICM still has to figure out the water supply.
The mayor says the city does not have the resources to supply the 70 million gallon facility.