Ark Valley News - Kechi attracts insulation company

Kechi attracts insulation company
By David Dinell
Last Updated: July 03, 2015

Construction work could begin soon in Kechi on the new base of operations for NorthStar Comfort Services Inc., which now is at Kellogg and 127th East.

To entice the business, the Kechi City Council approved the intent of issuing up to $800,000 in industrial revenue bonds issued. The move came at its June 25 meeting.

NorthStar is having to move because of a highway expansion project scheduled for that section of Kellogg.

As planned, the business will have 12,000 square feet of warehouse space and 2,300 square feet of offices. The site is east of Snowbird on the east side of Kechi near K-254 and Woodlawn. Some 18 to 20 employees will be moving over to the new site, said owner Jim Boone.

Boone looked at other possible locations, but picked Kechi because of its lower taxes and its access to K-254, including acceleration and deceleration ramps, which Boone said are important.

"It just felt safer for my folks," he said.

The company works on insulation for new and existing homes. It also does some work in the commercial sector and is involved in the window tinting business. Boone, a rural Valley Center resident, has been part of the family owned business for 48 of its 68 years. He's looking forward to the new chapter in the business' life.

"I'm excited about it," he said. "It feels good — it really does."

There's more work to be done on the bonds, but the vote is a first step, Boone said.

An IRB means banks can use the city's credit status as a tool to enable businesses to get going with a minimum of taxes. The city itself doesn't issue the bonds, but they are issued through it.

The bonds can be sold on the market. However, in this case, Boone is buying them, simplifying and speeding up the process.

There could be holdups in the complex process, but due to Kellogg construction, Boone is not wanting to wait.

As soon as a deal is closed and engineering done, Boone's contractor, McCollom Construction Inc. of Augusta, will begin work. Boone would like to be able to move in by year's end.

Plans also call for there to be fencing or other screening between the business and nearby residential units.

"We're going to try and be good neighbors," he said.

Also, as part of the project development, the council approved a contract for drainage improvement work at the site.

Boone said he's received a lot of cooperation from Kechi officials.

"Everyone is trying hard and working well together," he said. "Bob (City Administrator Bob Conger) has been great."

Boone is buying a little more than 2 acres at the site at a price that will be disclosed later when the deal closes.

The company could be hiring more employees if the construction industry picks up.

But just landing the company is big news, say Kechi officials.

"We're very fortunate to have them coming here," Conger said. "They'll bring jobs and are a new face to the local economy. It's a good deal for the city and a great way to spur economic development."

Added council member Kevin Opat: "I'm excited about some growth."

Conger hinted that Boone's company could be the first of a number of new businesses coming to Kechi as he plans to seek out and discuss property options with other ventures. He said he's not at liberty to name anyone right now, but indicted in his notes to the council that he is in "various meetings with local property owners wishing to develop businesses."

"We're hoping things get better and businesses find Kechi to be a good place to locate," he said.

In other action, the council:

•Approved the appointment of head of public works Larry Kallenberger as Kechi's director on the Kansas Municipal Gas Agency board and city clerk Laura Hill as alternative.

•Authorized Mayor Ed Parker to sign a letter to Sedgwick County Commission Richard Ranzau protesting proposed changes to the city's area of influence in county zoning matters. At issue is the ability of the city to have a voice in zoning matters that are near but not in the city limits. Officials say that's important as factors such as possible odors or unsightliness of a structure could have an effect on the city's property values and its residents.

The mayor and council have invited Ranzau to the July 9 meeting to explain his rationale in supporting the initiative. In the letter, city officials tell him the system has worked well for 30 years and asks him: "What is the reason for the change in currently policy? Have there been problems? Who initiated the change?"

•Approved a resolution raising the base water rate for city customers. The increase is from $15 a month to $22 and is effective Jan. 1, 2016.

•Approved an ordinance that puts new court cost and confinement fees in place. The new fees are $81 for court costs and $75 as jail processing fee. The city doesn't have its own jail and uses the Sedgwick County Jail or other detention facilities as needed.

•Heard from Conger that city treasurer/finance director Nicole Bailey is leaving her position to take a job as a budget analyst with the city of Wichita's water department.

"I hate to see her leave," he said. "She's been a tremendous asset in the short time she's been her. He also said she took "things to another level." Council members had similar positive remarks to say about Bailey. She has been on the job only since October, but Conger said that she has a rapidly rising career and the move was not a total surprise. Conger will begin the search for a new finance director and is open to someone who wants to do the job on a part-time basis. Bailey said she's had an "excellent experience" in Kechi and enjoyed working with people who look forward to coming to work each day.

She leaves in mid-July, but will return to two meetings after that to assist with the budget process.

•Held a budget workshop before the regularly scheduled meeting including setting a timeframe for next year's budget. The council will conduct a public hearing on the budget Aug. 13 and send it to the Sedgwick County clerk Aug. 25.