Mega mystery company coming to Kansas?

[SubGod22]

Sounds like we may have a location announcement this afternoon for the new Integra factory.

KSN - Integra to make another announcement today

WICHITA, Kan. (KSNW) – Wichita City Council and Sedgwick County Commission members will attend an announcement at 1 p.m. Wednesday at Integra Technologies at 8300 E. Thorn Drive.

On Feb. 2, Integra announced it would build a new factory in Wichita. The factory is expected to be 1 million square feet and create 2,000 jobs.

That state is putting forth roughly $304 million in taxpayer-funded incentives over the next 10 years to help build it.

I may be out of the office and away from a computer when this takes place, but if nobody has touched on it by the time I get back I'll post what we find out.

[SubGod22]

I figured it would land in Bel Aire, but I did not expect it to be the location that was chosen.

WBJ - Integra chooses Bel Aire for its $1.8 billion semiconductor facility

Bel Aire will be the site of a new 1 million square-foot semiconductor facility within the next five years.

The Wichita-based Integra Technologies, which assembles and tests computer chips, announced Wednesday it will build its new production facility on a 100-acre site at the southeast corner of K-254 and Rock Road.
.....
Up to five suppliers will also be able to build on the Bel Aire acreage adjacent to Integra. Robinson also said a training facility will be constructed at its current Thorn Drive location.

[SubGod22]

Some updated info about the project was apparently dropped as well.

KSN - Integra Technologies to create 2,500+ jobs, put HQ in Bel Aire, training in Wichita

He also said the expansion will create more than 2,500 high-paying jobs, an increase over the previous prediction of 2,000 jobs, and more than $2 billion in capital investment in the first five years.

I believe the initial reports were 2000(ish) jobs and I think $1.8B in investments.

Robinson said the company chose the Bel Aire location because it needed room for a one-million-square-foot headquarters and production facility with room to expand. The approximately 100-acre site will also have 20 acres of solar panels to help power the facility.

Is this 20 other acres of solar panels, or are these 20 acres on the roof of the facility and equate to 20 acres worth? Seems to be a bit wasteful to take up 20 additional acres with such abundance or roof space available to put them.

[SubGod22]

I'm going to put this here since the APEX project is a part of it, but there's more to this article than just that.

WBJ - Report: Kansas tops list again for economic development deals per capita

For 2022, Kansas ranked first in the nation in private investment per capita with 138 deals, earning Site Selection Magazine's Governor's Cup for the second straight year.

“Our trophy case is getting full, but believe me: This new era of economic growth is just getting started,” Gov. Laura Kelly said in a news release. “We will continue our efforts to build a strong workforce, attract young people to the state, and maintain a stable economy so that companies in Kansas and around the world know that we are a reliable partner.”  

Texas, meanwhile, was the winner for total qualified capital investment projects per capita.

The Governor's Cup award is based on data from Site Selection's parent company, Conway Inc., and its proprietary Conway Projects Database, which tracks project that total at least $1 million, create at least 20 new jobs or add at least 20,000 square feet of new floor area.

Kansas saw 138 deals in 2022 — one less than the year before.

The governor does mention later in the article that she's working on getting APEX extended, since it's set to end at the end of the year and she says that there are still nine additional megaprojects in the pipeline.

It will be interesting to see if Topeka extends this or not. I get some of the arguments on both sides.

[shox1989]

I worry about the APEX giveaways as well. The two projects so far sound great. A Panasonic plant that adds 4000 high paying jobs and a possible whole new industry to NE Kansas and the Integra Plant bringing the computer chip manufacturing industry to the Wichita area. These two projects could have HUGE long term benefits to the state.
I can't believe there would be nine more projects of this magnitude in the pipeline. I kind of feel like we have hit a couple of home runs with these two and we should slow down and let these industries develop before giving away a lot more taxpayer funded incentives to some additional projects.

[SubGod22]

AOL - Local incentives approved for massive microchip factory near Wichita

The Sedgwick County Commission pledged $500,000 to help pay for the company’s workforce development and training, adding to the $250,000 the Bel Aire City Council approved for training costs on Tuesday night.

Beyond the cash incentives — which will be paid out in annual installments of $100,000 from the county and $50,000 from Bel Aire — Sedgwick County and Bel Aire plan to approve a tax incremental redevelopment district.

TIF districts allow local governments to freeze the property taxes paid to state, local governments and school districts on undeveloped or blighted areas for 20 years. When the areas are redeveloped, any additional property taxes collected above the original amount are spent in the TIF district or to pay off bonds on investments in the district.

The TIF district won’t apply for at least the first 10 years because Bel Aire also plans to exempt Integra from paying any property taxes.

This was the next step in getting federal funding.

[SubGod22]

A little more on the incentives.

WBJ - These are the incentives Integra secured from Bel Aire, Sedgwick County

From Bel Aire, Integra secured a 35-year agreement that involves:

• A 100% property tax abatement for 10 years
• Sales tax exemption on construction materials
• The creation of a tax increment financing (TIF) district, which will capture the incremental increases in property taxes to cover certain projects costs for a 20-year period
• Annual payment of 50% of Bel Aire’s share of ad valorem taxes for years 21-30
• Annual payment of 25-35% of Bel Aire's share of ad valorem taxes for years 31-35, depending on the value of the property
• $250,000 in training and workforce development funding (paid $50,000 annually for five years beginning in 2024)

From Sedgwick County, Integra secured:

• Approval of the TIF district
• $500,000 in workforce development funding (paid $100,000 annually for 5 years beginning beginning in 2023)

Within six years, Integra will be required to invest at least $1.5 billion, begin operations, and employ a minimum of 1,600 full-time employees, according to both agreements.

Government agencies will also be expected to perform a traffic study to determine what changes and road improvements will be required to support the project, such as sidewalks, traffic lights, turning lanes and other intersection improvements along K-254 at Rock and Webb roads.

[SubGod22]

I've put similar things in here before because APEX plays a part.

KZRG - Kansas Governor touts $16 billion in private sector investments since 2019

Governor Laura Kelly announced today that since her administration took office in 2019, Kansas has attracted more than $16 billion in private sector investment. This significant economic development milestone has resulted in more than 57,000 jobs created or retained.

“My administration works every day to grow our economy so that Kansans in communities both large and small can find the kind of jobs they can raise a family on,” Governor Laura Kelly said. “This is just one more milestone that shows we are being recognized around the globe for creating a climate where businesses can thrive.”

Kansas has already generated more than $1.2 billion in private sector investment in 2023. This achievement continues a track record of success: In both 2022 and 2021, Kansas ranked first in the nation in private investment per capita and won the nation’s foremost economic development award, the Governor’s Cup from Site Selection magazine.

That is a lot of private investment. And I don't personally have much issue with tax incentives being given to help companies bring jobs in, especially when the state keeps turning out surplus revenues. Fewer taxes for everyone sounds good to me.

If we can keep generating this kind of investments from those already here and those wanting to move here, we'll be in great shape down the road.

If we continue to lower taxes, be business friendly and still have a relatively low cost of living compared to many places, you could start to see some better population growth as we keep more people here and attract others looking for decent jobs and easier living. Not that we don't have some other deterrents, but there are a lot of positives to be had if we can keep the momentum.

[SubGod22]

I'm not sure if it's been mentioned previously, but I have it on good authority that Integra will find out about their CHIPS funding no earlier than November and maybe as late as Christmas.

Once they're approved, and I can't imagine them not, they will have two years to begin production.

A reminder, this will be a 1,000,000sqft facility with potentially seven suppliers and such built nearby.

Integra is planning to use all local companies to build everything as well from what I understand. And they'll be under pressure to keep things moving as Integra will have a firm time frame to be up and running.

[SubGod22]

WBJ - Integra waits on funds for it $1.8 billion Bel Aire campus

The company, which plans to implement the second-largest economic development project in Kansas history, applied in the spring for the newly-enacted CHIPS funding, and the wait to hear back began — a wait that's been delayed nationwide.

But after continuing to meet filing deadlines, Integra, like other semiconductor industries across the nation, continues to wait in anticipation of funding for its new combined headquarters and production facility in Bel Aire. Along with obtaining the state-coveted APEX funding, Integra has been promised Sedgwick County and city of Bel Aire funding. The CHIPS funding requires, state, county and city funding sources.

Because of the delay in a CHIPS funding decision, Kansas' APEX (Attracting Powerful Economic Expansion) agreement has been extended from Oct. 1 to Dec. 1, Sen. Jerry Moran's (R-Kan.) office said. Integra must receive the CHIPS funding to proceed with the new venture.

Integra's proposed 1 million square-foot facility, which CEO and president Brett Robinson has said would only be possible with CHIPS (Creating Helpful Incentives to Produce Semiconductors Act) funding, would create more than 2,500 jobs and more than $2 billion in capital investment in the first five years, the company has said.
.....
The expansion would generate an economic impact of more than $801 million annually in increased growth and demand for local companies, according to a CEDBR economic impact study. The two-year construction project would create an additional $303 million in one-time spillover economic activity in the region and state, the survey said, and for every 100 jobs the project creates, it will support an ongoing 230 jobs in the region.
.....
While the Wichita company waits for a CHIPS announcement, hiring efforts have pushed forward. Integra expects to take about five years to build the factory that's capable of producing around 4 billion units a year, and plans to grow by around 2,000 employees when the 100-acre Bel Aire plant at K-254 and Rock Road is complete.

"Within 10 years, we'll be up to around 20 billion units," Robinson said. "From there, we'll be at a scale where we can really start to capture market share."

Integra, which in 2020 was named to Inc. Magazine's 5,000 fastest-growing private companies, supplies a unique part of the semiconductor. The company also has a plant in California.
.....
More than 4,000 applications have come through the pipeline already, with about 20% coming from out-of-state applicants, Robinson said. Many, according to Robinson, will have spouses looking for work. That means an increase in workers looking for jobs in the Wichita area.

Leave it to government to not be efficient and have to push things like this back. It sounds like Integra has been asked for more info and details which should be a good sign moving forward. Considering the importance of having semiconductor production in the US, I can't imagine Integra, being one of the largest right now, wouldn't get this funding. This would be a big ****ing deal for this region.

[SubGod22]

WBJ - New agreement with De Soto lays groundwork for Panasonic's $4B Kansas plant

Under the new agreement, Panasonic will be granted a 100% tax abatement over the next 20 years on the 300-acre project site in exchange for financial support for city infrastructure needs.

Revenue from the TIF district will support various projects, including:

• $9.6 million to rebuild portions of Lexington Avenue, 103rd Street and Astra Parkway
• $47 million for the rehabilitation of the city’s water treatment plant
• $40 million for the rehabilitation of the city's wastewater treatment plant
• $11 million to build a 2 million-gallon water tower adjacent to the Panasonic plant
• A combined $11.45 million to partially fund the purchase of a new firetruck and the construction of a 23,500-square-foot fire station along Lexington Avenue
• $28 million to build a five-mile sewer main extension to the project site

The TIF district is estimated to generate approximately $200 million in revenue over the next two decades.

Revenue from the TIF district will be used to fund roughly $147 million of $229 million in infrastructure needs. The remaining costs will be split among:

• De Soto: $2 million
• Johnson County: $15 million
• Johnson County CARS program: $2 million
• And the Kansas Department of Transportation: $63 million

To receive the TIF incentives, Panasonic must invest a minimum of $1 billion into the EV plant project and maintain operations at the plant through at least 2045. The company must also maintain at least 2,500 full-time employees annually.

The company recently finalized its executive leadership team for De Soto and has started hiring for plant jobs.

The plant is expected to open in the first quarter of 2025.

[shocktown]

WBJ - Integra waits on funds for it $1.8 billion Bel Aire campus



Leave it to government to not be efficient and have to push things like this back. It sounds like Integra has been asked for more info and details which should be a good sign moving forward. Considering the importance of having semiconductor production in the US, I can't imagine Integra, being one of the largest right now, wouldn't get this funding. This would be a big ****ing deal for this region.

Is this venture in peril with deadlines passing?

[SubGod22]

Is this venture in peril with deadlines passing?

Having an indirect connection through a company that is in talks to do work on the facility, they are still very much believed to be granted the federal dollars and are frustrated with how DC has been dragging its feet on dispersing funds from this pot.

Nobody involved seems to be worried about the funding not being granted.

[shocktown]

Having an indirect connection through a company that is in talks to do work on the facility, they are still very much believed to be granted the federal dollars and are frustrated with how DC has been dragging its feet on dispersing funds from this pot.

Nobody involved seems to be worried about the funding not being granted.

I worry because it is an election year and everything out of DC is political. Kansas , being a safely red state an d Ma Kelly already winning re-election, the administration will be doling out Chips and Infrastructure bucks between now and Election Day to Purple states in an attempt to buy votes just like they are handling student debt forgiveness.

[SubGod22]

Latest word through the grapevine is Integra still believes they'll get the CHIPS funding, but will be in one of the final groups as the project is smaller, relatively speaking, than many of the others getting it right now. But they believe they'll still get it because of their specialization and expertise in their field. So while it's been delayed longer than one would hope, there is still apparently a strong belief amongst everyone involved that the funding will be there and I think they're projecting late summer.

This info doesn't come from Integra specifically, but from those in the know around them.