Schier Products Company, a grease trap interceptor manufacturer based in Edwardsville, Kansas, is relocating its headquarters to Shawnee.
Kaw Point Properties LLC plans to build a 51,500 square foot commercial building for Schier Products. The company would relocate 48 employees to its new headquarters at the northeast corner of Shawnee Mission Parkway and Woodland Drive by March 31, 2021.
The Shawnee council on Monday unanimously approved issuing $8.65 million in private activity revenue bonds for financing project costs. The company will receive a 60% tax abatement for 10 years and will enter into a Payment in Lieu of Tax Agreement providing for a payment equal to 40% of ad valorem real estate taxes for the project.
The bond resolution terminates if the company fails to use bonds for the project by July 22, 2020.
Here’s a rendering of the proposed project:
Schier Products also requested use of the city’s forgivable loan program through the Shawnee Entrepreneurial and Economic Development (SEED) fund. Revenues for Shawnee’s economic development fund are generated through an Impact Fee from operations and maintenance of the landfill in the city. Schier Products requested $45,000 of SEED funds, equal to 1.5% of the company’s payroll, to assist with relocation costs.
The council voted 7-1 to approve the company’s request for assistance with relocation costs. Councilmember Mike Kemmling voted in dissent.
Kemmling did not say why he voted against the company’s request to use the city’s economic development funds, but earlier in the meeting, he voiced concerns with private projects using public funds.
The forgivable loan agreement provides for the loan proceeds to be paid when the company receives a Temporary Certificate of Occupancy, with the loan forgiven in early 2021 after the city of Shawnee verifies that the proposed jobs are relocated and retained.
There was no public comment on either item related to the project.
A final development plan must obtain approval from the Shawnee planning commission before construction can begin. Company president Charlie Ismert said they hope to break ground on the project by late summer or early fall.