Company agrees to triple its workforce through LCRA incentive program
Lee’s Summit, MO – Feb. 8, 2016 – High Tech Solutions LLC, a manufacturer of aerospace machined components and assemblies, will invest more than $6.4 million in a new 22,000 square-foot building and equipment at 1440 SE Broadway Dr., with support of a tax abatement incentive approved by the City of Lee’s Summit utilizing the Land Clearance Redevelopment Authority (LCRA). The agreement includes a commitment to expand the new facility by at least 21,000 square-feet within five years at an additional capital equipment investment of more than $8 million.
Under the development agreement, High Tech Solutions agrees to retain 19 existing jobs and hire 46 new employees, with 34 of those having an annual salary at or above the average Jackson County wage. High Tech Solutions currently operates in an existing facility at 1220 SE Broadway in Lee’s Summit, a few blocks north of the new building. High Tech Solutions anticipates construction to begin in March.
“This project is a direct result of the City’s newly implemented economic development incentive policy, ” said Assistant City Manager Mark Dunning. “Part of that process involved redefining and retooling the LCRA tax abatement program, which offers real property tax abatement’s for users who extend the life of properties and land that would otherwise be considered obsolete.”
Since launching in Lee’s Summit in 2010, High Tech Solutions has grown from a boot-strapped startup with two rented machines to a global aerospace industry supplier without the use of any public incentives. Dan Phillips, president of High Tech Solutions, thanked the Lee’s Summit city Council and the Lee’s Summit Development Center team for taking time to understand the complexity of the company’s global business model.
“The abatement the City provided has a direct impact on our day-to-day cost, which enables us to win more work, ” Phillips said. “We can’t charge more just because we are in Lee’s Summit. We compete in the worldwide market where work is awarded to the low bidder. The money we bring into the community comes from places like Mexico, Canada, California and Texas, not just recycling Lee’s Summit dollars.”
Under the agreement, the City agreed to expand the existing US 50/M-291 Urban Renewal Area, allowing for projects within the expansion are to pursue LCRA tax abatement. The City approved a 75 percent abatement of the incremental increase in real property taxes that result from improvements to the property. The estimated abatement over the 10-year period is $360,296 and is subject to HT Solutions meeting agreed-upon hiring and investment targets. During the abatement period, new revenues from the investment in real property and business equipment are estimated at $207,387.
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