Ark Valley News - Expansion to bring jobs to Park City

Expansion to bring jobs to Park City
By David Dinell
Last Updated: May 26, 2016

Park City council members had no problem giving the green light to $9 million in industrial revenue bonds for a business expansion.

The bonds were approved at their May 24 meeting and will be used by aerospace subcontractor FMI Inc. and bring around 80 new jobs to the city. The bonds provide a 10-year exemption from property taxes.

The bonds carry no risk to the city or its taxpayers. With that in mind, and new employment, members such as Tom Jones sailed the measure through.

"This is the right thing to do," he said.

The approval was the final step in the financing process, said bond counsel Sarah Steele of Gilmore & Bell, and company officials were anxious to get the measure passed and continue to "move dirt" on their third building. The building will be on a tract of land between their other two buildings.

FMI, or Forming and Machining Industries, is at 5615 N. Broadway and has been in business since 1992. The company's customers include numerous larger area companies include Cessna Aircraft Co. and Spirit AeroSystems. Parts built by the company have gone into noted large commercial aircraft such as the Boeing 777s and 787s. Officials say one of their specialties is fast turnaround time when needed.

The bonds will be used to buy new equipment along with manufacturing expansion.

"They're currently pretty tight for space," Steele said.

Some $7.2 million of the financing are what are known as federally tax exempt small-issue manufacturing bonds and those were bought by Wichita's Intrust Bank.

The company is buying the remainder of the bonds to take advantage of the property tax exemption.

The entire transaction process has a mid-June target date, Steele said.

In other business, the council:

•Heard that the new disc golf course is open and ready for use. The course is in McLean Park and will be the site of a tournament the weekend of May 28 through 30.

•Approved appropriations of $239,794. There are open purchase orders of $444,211.

•Authorized the city staff to collect bids for street improvements to Gary Street from Ulysses and Forestor south of Cloverdale to the dead end. Estimated cost of the project is $80,500.

•Received an update from public works director Rick Norman who reported that the Park Department has augered 36 holes at McLean Park for the new disc golf course, completed electrical repairs on the tennis court lights and undertaken mowing and trimming in the parks. The Street Department also has been moving and trimming, its oversight has been on the medians. Staff also have been street sweeping. For the Water and Sewer Department, the average daily work orders from May 1-15 was 29. Also, repairs to the broken main on 45th Street were completed May 12.

•Approved an ordinance amending and creating sections of the city's code relating to the adoption of the 2012 edition of the International Building Code.

•Authorized amending the city's code relating to the speed limit on Hydraulic Street from the South City Limits to 61st Street North. The limit will be changed from 30 mph to 35 mph.

•Approved engineering design, bidding and construction inspection for Prairie Hills Addition, Phase IV, for water, sewer and paving.

•Approved the purchase of a new commercial grade Ferris mower for $7,461, which includes a $2,000 credit for a trade-in mower from Maximum Outdoor Equipment of Wichita. The price is $230 more than the lowest bid, which was for a Grasshopper brand mower, but utility supervisor Jerry Martin said he believes the extra money would be worth it as the Ferris is "considerably" more rugged and more suitable for the city's needs.

•Were reminded by member George Glover of the city's annual fishing Derby, which is from 9 to 11 a.m. June 18 at Chisholm Pointe Pond on North Grove Street. There is no cost to take part and the public is welcomed.

•Listened to City Administrator Jack Whitson discuss road improvements. The city has a lot of demand to fix its roads, but limited funds, he said. He is looking at an affordable seal coat that could be used on the roads and will be forwarding more information on it to council members for discussion at a future meeting. He also said that the reconstruction of the heavily used intersection of 53rd Street and Broadway will be done in concrete in order to make it last longer. Several members mentioned wanting to create a list of streets that need repair. "We need to be proactive on this," said member George Capps.

•Did not bring forth topics that were raised during a May 17 special meeting. Those issues related to the sale of exotic animals in the city limits, considering the installation of drainage pipe in the existing ditch in front of the convenience store and Days Inn on 53rd Street North and dividing Prairie Hills Addition into two separate homeowners association.

Six members and the mayor were present. John Lehnherr and Jim Schroeder were absent. There was no executive session. The next meeting is at 7 p.m. June 14 at City Hall.