By JAMES BELL
Hays Post
A potential microfactory in Hays is one giant step closer to becoming reality following an announcement from Gov. Laura Kelly on Tuesday.
The announcement named recipients of $100 million in Building a Stronger Economy grant awards out of 446 applications totaling $1.8 billion.
With the announcement, 35 infrastructure investment programs across Kansas were given amounts ranging from $13,500 to $10 million.
"The BASE program is vital to enhancing Kansas' economic competitiveness," Kelly said. "These grants provide essential funding to our local communities, positioning them to succeed and be a place of continued economic growth."
The program offers matching funds in an effort to address economic development opportunities that would expand the state's base of businesses and residents to recover from the effects of the COVID-19 pandemic, the announcement said.
"The BASE grants provide critical support for transformational economic development projects across Kansas and will be a huge boost to local economies," said Lt. Gov. and Secretary of Commerce David Toland. "Working in partnership with local leaders enhances the long-term sustainability of the projects and ensures that these targeted dollars will fit the specific needs of each community and their plans for future growth."
"For our state to grow and businesses to flourish, we need a strong economic foundation in communities across Kansas," said Senate President Ty Masterson. "I believe that building that foundation requires strong tax and economic policies. SPARK appropriated funds for these BASE grants because they offer unique opportunities to strengthen those foundations and build a prosperous future for all Kansans."
In Ellis County, Grow Hays Executive Director Doug Williams said giving potential manufacturing operations a leg up has been a focus that fits into the goals of the grants.
“We've had some manufacturing here, but not a lot,” Williams said. “And we need to build on that. That's an area of opportunity.”
And so the Ellis County economic development organization has been working to develop a microfactory that would be used to help manufacturing businesses take hold in Ellis County.
“In essence, what that is, is an incubator for manufacturing companies,” Williams said. “It's a 30,000-square-foot structure that would be divided into anywhere from four to six areas. And we would solicit small manufacturers who have either an idea or a product they're trying to bring to the market and offer that space to them at a reduced rate of rent, to try and help them get to the point where they can grow their business and manufacture their product.
“It's going to be very much designed for a manufacturer,” he said, “(including) proper ceiling heights, proper electrical capabilities and access to large overhead doors and things that maybe not all facilities will have.”
By breaking down barriers to entry, Williams said companies in the facility would be able to focus on developing their product.
He said he then hopes that those companies could move into their own facilities as they grow into the market.
“Hopefully, in a few years time, they would be ready for a much larger building and move them out and then move the next small manufacturer in,” Williams said. “And ideally, we would have five or six of these types of businesses in this structure. That would be the time to develop their products and grow their business from then moving out and filling up our industrial park.”
With the award, the project can move from a concept into a solid plan.
“Now that we've got the grant, we believe we have a site figured out at the corner of Ninth and Commerce Parkway, which would be just directly south of Glassman Corporation. And because we got the grant, we will now start the process.”
To kick off the work, architectural drawings will be done and bids for construction will be solicited.
“Now we go to that next phase, which is nailing down bids and starting construction sometime hopefully, this summer, depending on how quickly we can get the architectural plans done,” Williams said.
While the grant will cover $2.6 million of the project, he said the overall cost is projected at around $3.5 million. As plans develop, finding the remaining funds will also occur.
A requirement of the grant is a 25 percent match from the recipients. With a $3.5 million price tag the minimum amount to meet that requirement is $875,000.
“Projects selected must be completed within two years of the award date,” according to the announcement. “Awardees will be provided with 50 percent of award allocation in 2022. The remaining 50 percent of funding will be provided no earlier than January 2023.”