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A  SITE  SELECTION  SPECIAL  FEATURE  FROM  MAY 2002
Great Plains


Kansas Flies High
With Aircraft Investment

    Since the early 1900s when Clyde Cessna built his first airplanes, Wichita business leaders have put out the welcome mat for the aviation industry. In the early 1980's the industry suffered a downturn, and Wichita saw the loss of 15,000 workers.
      City leaders were concerned in the recent slowdown that the city would see a huge increase of out-of-work aerospace workers. Fortunately, that hasn't happened. In fact within the last year, Wichita continued to see aircraft investment, as well as support industry investment.
      Cessna Aircraft announced last fall the construction of a new, $60 million service center that will employ 500 workers. Cessna officials say the new 443,000-sq. ft. (41,154-sq. m.) building will house service bays, repair and overhaul shops for its Citation fleet of aircraft. Areas schools and colleges will supply the much-needed labor for the Cessna center.
      "We'll talk to area schools and colleges to begin recruiting individuals with the needed skill-set to help staff this service center," says Ron Champman, Cessna's senior vice president for customer service. "We anticipate the need to double our workforce during the first five years of operations."
      Value-added manufacturer Air-technics has built a $5 million, 61,500-sq. ft. (5,713-sq. m.) office and manufacturing facility in Wichita. The company specializes in electronic assembly and has customers in the aviation and defense industries that have fueled double-digit growth for the company.
      Kansas City area officials hope the recent emphasis on biotech investments will continue to attract business and research facilities to both sides of the state line shared with Missouri. Meanwhile, municipalities on the Kansas side of the line continue to stretch south and west, attracting their own cadre of industries to complement the metro area.
      Officials in Lenexa have targeted four sectors for development: retail, manufacturing and distribution, research and development, and high tech. Helping them to push those initiatives is a layout of some 40 business parks that feature a major league roster of companies like Coca-Cola, Deluxe Corporation, UPS, JCPenney, Federal Express, Ford Motor Co., Aerial Communications, BE Aerospace and John Deere.
      The city and its neighbors are well situated in Johnson County, which recently ranked first among counties across the nation in the percentage of adults with at least a high school diploma (92.9 percent).
      Not far to the west sits the town of Lawrence, home to the University of Kansas and to recent locations and expansions by such companies as Allen Press, Reuter Organ and Classic Eagle. Lawrence and surrounding Douglas County comprise the region's fastest-growing metro area.
      But the central cities of Topeka and Manhattan, as well as western towns like Salina, are also growing into links in the chain of economic vitality stretching across the sunflower state. GO Topeka, the capital city's economic development arm, aims to add 14,000 people to the area payroll by 2005.
      Overall, the state has come a long way in developing an international profile as well, something not often attributed to a landlocked state. Exports increased eight percent last year to a record $5.4 billion, and in the past three years, Kansas exports have jumped one billion dollars, or 25 percent, on robust demand from Japan, Canada, and Mexico. Leading export sectors are transportation equipment and food products, followed by crops, machinery and chemical products.
      "The impressive growth in exports is proof that Kansas companies excel in the international marketplace," said Lt. Governor/Commerce Secretary Gary Sherrer in March. "Their success in generating export business has a significant, positive impact on the Kansas economy."
      Nebraska Incentives Bring Business Investment to the Table
      Nebraska's Employment and Investment Growth Act (LB 775) has had some real punch in attracting new investment in the Cornhusker State since it was passed in 1995. To date over 340 projects have been announced throughout the state totaling an investment of $3.8 billion.
      The act has also created more than 28,000 new Nebraska jobs. The Act grants a variety of tax credits for businesses investments from $3 million to $20 million. The credits include refunds of sales and use taxes paid on depreciable property, a five percent tax credit on compensations paid to new or additional employees, and a personal property tax exemption on aircraft acquired for specific projects.
      Nash Finch, an Omaha food distributor, announced in January a $5 million expansion of its facility. The new expansion will allow the firm to hire an additional 30 to 40 employees.
      "We did look at other facilities, but LB 775 was the incentive that made Omaha the target site," says Jeff Poore, vice president of Nash Finch logistics and distribution. "The expansion shows our commitment to growing our Nebraska business and the Omaha division's key future role in the company's success."
      State officials also point to the decision by Wal-Mart to build a distribution center in North Platte. Economic development officials expect Wal-Mart to apply for state tax incentives for the project. The center will warehouse grocery items to be distributed to Wal-Mart's retail stores within 250 miles of the area and will employ up to 600 workers.
      "If not for these measures," notes Development Corporation of North Platte's Executive Director Richard Baier, "Wal-Mart would be taking its distribution center and jobs to another state right now. The project, once complete, will have a major impact on the city, Lincoln County and region."
      The Nebraska Legislature also passed additional incentives to encourage high-paying jobs in the Cornhusker State. The Invest Nebraska Act, LB 620, provides tax credits to withholding taxes paid by the company up to 5 percent. The benefits earned are used for employee training, education, or relocation costs.
      The relocation benefits hit the right mark with Union Pacific Railroad, which will move 600 to 700 jobs into its new headquarters building in Omaha.
      The 1.1 million sq. ft. (92,900 sq.) Union Pacific building will house 4,100 UP employees and will contain a training center, employee cafeteria and wellness center. State officials point to the new Invest Nebraska Act as the impetus for the deal.
      "I think Invest Nebraska is going to do this for a lot of places," says Speaker of the State Senate, Doug Kristensen, "but the crown jewel is the Union Pacific investment."

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