Hutchinson has added 850,000 square feet of manufacturing space during the past six years. That means more business, more jobs and a larger tax base.
Contributing to that growth is RD Machine, which is in the midst of an expansion to add 21,000 square feet to its facility in Hutchinson’s east side industrial park. Hutchinson City Council unanimously approved this past week a development agreement for a tax-increment financing district for the upgrade. The TIF district received the go-ahead earlier this year.
TIF districts allow a portion of a property’s taxes to be “captured” to help pay for qualifying costs for development. The TIF captures the difference between the original taxes paid and what new taxes would be paid from the development for a set period of time. The city previously approved TIF districts for sites such as the State Theatre, Cornerstone Commons and Cobblestone Inn & Suites. Cities use incentives to help move new construction projects forward and grow the long-term tax base. Qualifying expansion costs on the RD Machine project cannot exceed $566,935.
The development agreement approved this past week lays out the city’s plan to implement the TIF district, and RD Machine’s requirements as well.
“They need to make sure the money is spent on qualified expenses. They need to provide us with documentation so that we can keep everything in line for the auditors,” EDA Director Miles Seppelt said. “There is a certain job creation component.”
RD Machine’s production facility moved to Hutchinson in 1997 but is one of the more recent success stories of the city’s enterprise center. Owners took the opportunity provided by the Economic Development Authority to use the temporary space to test out jet water-cutting technology.
“That was a big success,” Seppelt told a Leader reporter this past month. “They got more business than they can shake a stick at. Because they have this new capability.”
That capability, which is moving out of the Enterprise Center to make room for the next tenant, will now be on display in RD Machine’s new expansion.
