Kansas governor approves megaproject incentive package meant to woo secret company

by Noah Taborda, Kansas Reflector

Topeka — Gov. Laura Kelly signed into law Thursday a financial incentive package intended to woo a secret company that could bring billions of dollars to the state and thousands of new jobs.

The Attracting Powerful Economic Expansion Act, or APEX, looks to give Kansas the edge over competition in Oklahoma for the site of an unnamed company’s production plant. The project would bring 4,000 new jobs to Kansas and inject $4 billion in business investment into the state economy.

The new program provides a refundable tax credit of up to 15% to be paid back over 10 years, payroll reimbursement of up to 7.5% and a relocation incentive fund.

“This positions Kansas to potentially land a once-in-a-generation opportunity that could transform our economy,” Kelly said. “This tool is about more than just one project. It makes us an economic powerhouse ready to compete on a national and global scale. That means thousands of new jobs, billions more business dollars injected into the economy, and more opportunities for Kansas families.”

The state Senate and House both approved the measure, despite pushback from some legislators on both sides of the aisle over the secrecy of the project and how quickly the act moved through the Legislature. However, supporters argued Kansas had to act quickly or risk losing out on another major economic opportunity.

The Department of Commerce has argued the state needs the program after whiffing in the past on 11 of these so-called megaprojects.

Estimates from nonpartisan legislative staff indicate the package would cost well over $1 billion, but an analysis by Wichita State University indicated the measure could eventually generate $2.5 billion annually in new economic activity. Lt. Gov David Toland, who also serves as commerce secretary, said the act would put Kansas on a level playing field with the rest of the country for these megaprojects.

“The APEX bill gives us a realistic shot at winning large economic development projects that will bring huge business investment and job creation to our state,” Toland said. “We are excited about our chances with the current prospect that would be transformative for our state and deliver long-lasting benefits to Kansas.”

The act would sunset on May 1, 2024, and limits the number of agreements the state can reach to one per year. Additionally, APEX would cut the state’s 4% corporate income tax rate by 0.5% once per project.

Should the company leave the state 10 to 15 years after the deal, a claw back provision allows Kansas to recoup some of the financial investment. Any agreement or payout rate changes require approval from the State Finance Council.

That panel of leading lawmakers met Thursday to discuss the planned offer to the secret company.

“The passage of APEX is a win for communities across Kansas,” said Curtis Sneden, president of the Greater Topeka Chamber of Commerce. “It’s time to show the nation that Kansas is ready to compete at a new, unprecedented level.

Kansas Reflector stories, www.kansasreflector.com, may be republished online or in print under Creative Commons license CC BY-NC-ND 4.0.

See more at https://kansasreflector.com/2022/02/10/kansas-governor-approves-megaproject-incentive-package-meant-to-woo-secret-company/

Today’s high to be near 54

Today’s high will be near 54, as wind gusts pick up, according to the National Weather Service forecast.

Gusts will be as high as 30 mph this afternoon, and there will be a slight chance of light rain to the north of the Greater Kansas City area, the weather service said.

A cold front moves in tonight, bringing with it colder weather on Saturday, when the high may reach 30, according to the weather service.

Wind chills Saturday morning will range from slightly below zero to the single digits. Sunday will see a high near 34, the weather service said.

Next week, temperatures will rise to above normal, and there could be a high of 53 on Monday, according to the weather service.

The latest forecast points toward a system moving through mid-to-late next week, with rain likely followed by a chance of snow, the weather service said.

Today, there is a slight chance of sprinkles before 11 a.m., with a high near 54, the weather service said. A north northwest wind will be 11 to 21 mph, gusting as high as 30 mph.

Tonight, it will be mostly clear, with a low of 14 and a north northwest wind of 11 to 18 mph, gusting as high as 28 mph, according to the weather service.

Saturday, it will be sunny, with a high near 30 and a north northwest wind of 5 to 11 mph, becoming west in the afternoon, the weather service said. Winds may gust up to 20 mph.

Saturday night, it will be partly cloudy, with a steady temperatures of 28, according to the weather service. A calm wind will become south southwest 5 to 8 mph in the evening, and winds may gust as high as 20 mph.

Sunday, it will be sunny, with a high near 34, the weather service said. A north wind of 5 to 14 mph will gust as high as 26 mph.

Sunday night, it will be clear, with a low of 22, according to the weather service.

Monday, it will be sunny, with a high near 53, the weather service said.

Monday night, it will be mostly clear, with a low of 31, according to the weather service.

Tuesday, it will be mostly sunny, with a high near 62, the weather service said.

Tuesday night, it will be mostly cloudy, with a low of 50, according to the weather service.

Wednesday, there will be a 50 percent chance of rain, with a high near 64, the weather service said.

Wednesday night, there is a 70 percent chance of rain, with a low of 30, according to the weather service.

Thursday, there is a 40 percent chance of rain and snow, with a high near 44, the weather service said.

Safe and Welcoming ordinance approved in KCK

The modified Safe and Welcoming ordinance was approved Thursday night on a 6-4 vote by the Unified Government Commission.

The vote was after around three hours or so of discussion, including organized opposition and advocacy that included several persons who turned out at City Hall lobby and on Zoom to speak. Advocates held a rally outside City Hall.

The new ordinance, which applies only to Kansas City, Kansas, and not to other communities in Wyandotte County, says that UG resources cannot be used to enforce federal immigration law, and also creates a community identification card for those who do not have an ID card. It also says the UG is an inclusive and welcoming city for immigrant members of the community.

Irene Caudillo, executive director of El Centro, said passing the ordinance would not only affirm but would go beyond the touted description of this community as diverse. It would make sure all residents feel safe and respected. She added the ordinance had no provision that required law enforcement to bend or break the laws for anyone. Some advocates said the ordinance would make it easier for crime victims to work with police.

A retired police officer, Duane Beth, told the commission during the meeting that this ordinance would cause more problems than it would fix. He said a third-party administrator of the ID card program would not have accountability.

UG Commissioner Christian Ramirez said the ordinance is something to make the community better and greater. “To hear the rhetoric that all we immigrants bring is violence disappoints me very much so,” Commissioner Ramirez said. Immigrants are helping to make the community better, he said. He also thanked the mayor for putting the item on the agenda, as some commissioners had asked for a few years, and it hadn’t been placed on the agenda until now.

UG Commissioner Harold Johnson said he was the first UG commissioner to support the proposed ordinance, back in 2019. They held two public sessions on the topic.

This ordinance will help immigrants as well as the elderly, people released recently from correctional institutions and others, he said. Others may include victims of domestic violence who have lost their IDs when they suddenly moved, and those who have been evicted without having the opportunity to get their IDs.

The ordinance also had the support of Commissioners Melissa Bynum and Andrew Davis.

Mayor Tyrone Garner broke a 5-5 tie on an earlier substitute motion by Commissioner Tom Burroughs to table the ordinance, then the mayor moved forward on the original motion.

“I made a commitment to this community that I would not sit on this and I would bring it forward,” Mayor Garner said. “We owe it to the people of Wyandotte County that we make these hard decisions.”

Opponents of the ordinance called for a vote of the people on the issue, however, the way the laws are written, that would be difficult, according to attorneys. A ballot initiative, brought forward through a petition signed by 25 percent of the voters who turned out in the previous election, could take place, according to attorneys. If it is presented, then the commission could decide whether to pass the ordinance or put it on the ballot, and if a majority passed it, it would become law for 10 years. The UG also could take an advisory election among the registered voters, but it would not be binding on the commission and would cost more than $80,000, according to information from the UG attorneys.

There also were comments from Commissioners Burroughs and Mike Kane that community residents said they did not have enough information about it, and the two commissioners supported a community educational effort.

Mayor Garner said, however, that the issue has been out there for about five years and information has been available to him and other newly elected officials who sought it out. They also placed information about it on the UG’s website, and discussed it at a January UG committee meeting that is available online for viewing.

“When I looked at this initiative, I saw it as something that would foster unity, opportunity and hope in Wyandotte County, especially being one of the most diverse communities in the United States,” Mayor Garner said.

“We’re a united Wyandotte County, we’re a united community,” Garner said. “I care about people, I believe this commission cares about people, I believe most people in this community care about anyone that wants to all Wyandotte County home, and that’s a message of love.

“Love that we need to have for one another in Wyandotte County, because we are a unified community. No one should be left behind, when we talk about people and people’s lives. No one should be feeling disenfranchised,” Mayor Garner said.

He quoted from the Declaration of Independence, and said approving the ordinance was the right thing to do for Wyandotte County and for people’s lives.

The ordinance had been pending before the UG Commission for around five years, and it was not placed on the agenda for the past few years.

The compromise ordinance was worked on by attorneys, who removed various provisions from an earlier version of the ordinance to lessen the liability for the UG.

The ordinance applies to the Kansas City, Kansas, Police Department, and Chief Karl Oakman said they haven’t notified federal immigration agencies in recent years about individuals’ immigration status.

The ordinance does not apply to the Wyandotte County Sheriff’s Office, which as an elected county office is not under the direction of the UG Commission concerning its department’s policies. The sheriff’s office notifies immigration officials of immigration status if it has been requested to do so about specific individuals, according to information presented Thursday.

Also under the ordinance, the BPU does not have to accept the new ID cards if it does not want to, according to attorneys.

Commissioner Andrew Davis took offense at a remark made during the public hearing by a resident who was strongly opposed to the ordinance. The resident said she had access to phone numbers when the citizens need to make a call, and she said she was not talking about calling the police department or fire department. Davis felt threatened by the remarks.

Commissioner Burroughs responded that not until the commissioner made his comments did he hear that white supremacy and racism had become an issue. “This is not what this discussion should be about,” Burroughs said.

More information about the meeting, including public comments by many speakers, is at https://www.youtube.com/watch?v=FGfQkbCorks.

To see an earlier story about a UG committee where this topic was discussed in January, visit https://wyandotteonline.com/modified-safe-and-welcoming-ordinance-receives-committee-approval/.