From the Wichita Business Journal:
Beauty products manufacturer to expand in Wichita
Jun 4, 2021, 12:12pm CDT
A manufacturer and distributor of beauty products plans to expand in northeast Wichita.
Millenia Productions LLC, the parent company of La Palm Spa Products, is leveraging the city’s speculative warehouse program to build a128,000-square-foot building adjacent to its current location at 3819 N. Toben.
According to city documents, Millenia is requesting industrial revenue bonds of up to $6.5 million for the project.
IRBs do not require any taxpayer commitment and the city acts as a pass-through entity for the bonds. IRBs can help developers secure lower interest rates on projects.
A cost-benefit analysis from the Center for Economic Development and Business Research at Wichita State University shows a ratio of1.43 to 1 for the city.
The Wichita City Council will vote on approving a letter of intent for the bonds at its meeting on Tuesday.
This will be the fifth facility built under the speculative warehouse program since it was rolled out in late 2017. The first two are fully leased and the city says the completed third building has “good prospect activity.”
A fourth building is under construction.
As part of the program, projects require a minimum of 100,000 square feet of space that cannot be divided into sections smaller than 25,000 square feet, with a minimum ceiling height of 28 feet.
The projects must begin construction within 120 days of approval and be completed within 15 months.
If that construction timeline is met, the property becomes eligible for a 95% ad valorem tax abatement for the first five years, plus a 50% abatement for the second five years, subject to Council approval.
The developer also receives a sales-tax exemption on construction materials.