NEWTON, Kan.— At Tuesday night’s meeting, the Newton City Commission approved a development agreement with Hillsboro Industries for a new 56,000 square-foot manufacturing facility on East First Street.
The Hillsboro-based truck bed and trailer manufacturer has seen tremendous growth in demand for its products, especially aluminum livestock trailers, which currently have a wait time of over two years.
Lisa Kemph, Hillsboro Industries’ director of finance, said the company intends to maintain and enhance its facility in Hillsboro as it develops the Newton site.
“We have had the kind of growth most people dream of when you go to work for a small company,” Kemph said. “We have been actively looking for a second site location for probably two years now. Newton was a stand-out community.”
Kemph said Newton’s current and planned housing development projects as well as the larger labor pool were key factors in choosing this site for their second facility.
The new facility is expected to cost about $8.1 million to construct, with $2.8 million in furnishings and equipment. Hillsboro intends to begin construction within the next six months, with completion in the spring. They intend to create approximately 50 new full-time jobs at the Newton plant, with an average salary of $58,000.
The site is located on East First Street immediately east of Prairie View, west of Hillside.
The development agreement calls for the City and County each to contribute up to $125,000 for street improvements on First Street, including a turn lane and aprons to improve site access. It also includes the City’s good faith intention to grant a 10-year, 100% property tax abatement and to facilitate the issuance of Industrial Revenue Bonds (IRBs), including a sales tax exemption for construction materials and equipment.
The Harvey County Commission will consider the agreement at its Dec. 5 meeting, and the City will consider the issuance of IRBs at a subsequent meeting.
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