Manhattan city commissioners passed a measure Tuesday night that will issue industrial revenue bonds for Manko Window Systems, Inc., for two new additions to its existing building.
The bonds totals $7.75 million and passed 5-0.
Industrial revenue bonds are tax-exempt loans issued by state or local governments to finance a private company’s expansion, construction or acquisition of manufacturing facilities and equipment.
Manko, which began with just two employees in 1989, employs 250 in Manhattan alone and has expanded operations to Aurora, Colo., and Des Moines, Iowa.
Manko also received industrial revenue bonds in 2002 and 2005 before it built its main facility on 800 Hayes Drive.
The new additions to the existing building will add approximately 19,000 square feet for storage and fabrication space. As a part of the deal, Manko stated in city documents that it intends to add six new salaried positions with wages starting from $20-25 per hour and 28 new hourly positions with wages ranging from $12-16 per hour.
Manko did not request a property tax abatement, which exempts all or part of the increase in the value of the real property. Construction material purchased and utilized on the additions, however, will be exempt from sales tax.
Commissioner and former Manhattan mayor Wynn Butler praised the deal.
“As far as I’m concerned I think it’s a good thing,” Butler said. “This is a great way to do economic development at a very low cost and be beneficial to the city and the organization.”
Commissioner Linda Morse also expressed her approval.
“I’m glad there’s no tax abatement with this,” she said.
“It’s always good to see a business expanding that’s going into the right direction,” Commissioner Usha Reddi added. “Also, I like that when they’re talking about hiring new people, their wages are starting at $12 and $16 per hour. That’s something as a city we’re always trying to promote.”
Manko President Gary Jones said the expansion plans have been on the table before.
“This is an expansion we shelved a couple years ago,” he said. “We acquired some facilities in different states, so we were a little bit busy trying to take care of those projects.
“Our business continues to grow.”
Mayor Karen McCulloh shared early concerns about the sales tax exemption in the plan’s construction cost, but still supported the measure.
The motion was made by Commissioner Mike Dodson.
In other items, commissioners approved a rezoning ordinance concerning 1011, 1015 and 1017 Thurston St., that will pave the way for an 18-unit apartment building.
