There were some big numbers thrown around Monday when Dennis Lauver updated Salina City commissioners on area economic development activity.

Lauver, the chief executive officer and president of the Salina Area Chamber of Commerce, told commissioners Monday that local officials are seeking $1.02 million in federal aid as part of a proposed expansion package by a group of businesses that will create 41 new jobs with "above average" wages.

Those economic incentives equal slightly more than $27,000 a job to create the new positions, Lauver said.

That may sound like a lot of money, but it's far below incentive packages offered by Newton officials to secure a new manufacturing plant that is projected to employ 400 at the end of three years.

Lauver told Salina commissioners those incentives total about $45,000 a job. That includes providing land, both for free and with the option to purchase land at below-market rates.

Salina and other Kansas cities were in the running for the plant, Lauver said, but couldn't put together packages to match Newton's offer.

In another big-dollar deal last year, Reno County, Hutchinson and South Hutchinson landed a $50 million plant promising 400 jobs. Incentives include: 109 acres of free land plus an option for additional parcels at $1 an acre; a 10-year property tax abatement; $2.175 million in cash; plus other goodies.

It's a jaw-dropping package but that's the kind of world we live in today. Competition among communities hungry for jobs and growth mean that each year these incentive packages will grow richer.

Can Salina and Saline County afford to play this game?

The answer to that question is another question: Can we afford not to play this game?

We must look at these packages in the long term. To attract its new plant, Newton officials are offering about $18 million in incentives. But that is balanced by $11 million in payroll in the first year, climbing to a $21 million payroll in three years.

At full employment for five years, the plant will generate more than $100 million in payroll.

That's a rich payback in our books.

In today's economic development environment, Salina can no longer compete based on location, quality of life and other factors. If we want to go after the big, new employers, then we either pull out our checkbook or watch those jobs go elsewhere.

-- Tom Bell

Editor & Publisher

822-1491

tbell@salina.com

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Mediaman says....
Should have done more to keep what they had! Cheaper to keep what you have then to get something new!
1/4/2010

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TW says....
New2Salina must be pretty new. The north end of Salina floods, as the water has to go somewhere. I used to live in the north end and recently did a registered sex/drug offender search online. There are 86 registered offenders within 2 miles of my old home, which makes it tough on families. Another point, the fact is that larger companies tend to work with smaller companies in a region and that larger company's employees spend money in their local communities. It takes a mix. Compared to a lot of midwestern communities, Salina has done well in attracting investment and jobs since 1990. Just my take.
1/3/2010

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says....
Salina leaders are too concerned about what they want. We do not need a stupid water park, we need high paying jobs. Restaurant, convenience store and retail just dont cut it. We need high tech and skilled manufacturing jobs here. Pizza and batteries are not necessarily the future. Technology is the future. Most homes have a computer, cell phone, tv and other electronic gadget. Salina is dang near in the middle of the US with 2 major interstates intersecting. Shipping costs are lower since it will not be coast to coast/border to border. Salina has the skilled workforce and resources needed. LETS GET SOME REAL JOBS HERE AND TAKE ADVANTAGE OF OUR LOCATION AND RESOURCES!
1/3/2010

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ME AGAIN!? says....
HOW IS THE PUBLIC OF SALINA NOT TIRED OF THE GOOD OL BOY SYSTEM THAT KEEPS THIS TOWN FROM BECOMING A METROPOLIS?!?!...SEEMS WE HAVE A GREAT POLICE FORCE, THEY CAN SOLVE OPERATION FULL THROTTLE BUT COULDNT FIND A MURDERER ON DEATH ROW... DRUGS AND ALCOHOL KEEP THIS TOWN IN A PARADIGM OF HOPELESSNESS, ALONG WITH HEALTH HAZARDOUS FACTORY JOBS THAT TURN OUT WHAT? LIGHT BULBS AND PIZZA!?!? OR THE FINE JOB FOR ALLLL THE SINGLE MOM'S IN SALINA, WAITING TABLES AT ONE OF OUR FINE DINING RESTERAUNTS THAT CAN BE GUILTY FROM TIME TO TIME OF HAVING RODENT DROPPINGS IN YOUR SALAD...AW JUST MAKE A TONY'S PIZZA AND 4GETABOUTIT...WITH BOTH INTERSTATES HERE (I-135/I-70 FOR ALL YOU DRUG DEALERS) THERE SHOULD BE A MAJOR MAJOR!! AIRPORT HERE, BUT THE GOOD OL BOYS WONT ALLOW IT...THERE COULD BE A MORE THAN PROFITABLE HOTEL/CASINO HERE, BUT THE GOOD OL BOY'S ARE ALREADY RICH AND CAN GO 2 TOPEKA OR KC 2 GAMBLE, SO SCRATCH THAT....BUT HEY, YOU CANT BE MAD AT THE GOOD OL BOYS FOR LONG, CAUSE HERE COMES SUMMER! AND YOU KNOW WHAT THAT MEANS! WATER PARK TIME!!!...WILL IT BECOME ANOTHER TOILET FOR TODDLERS WITH UNATTENTIVE PARAENTS JUST LIKE THE MUNICI-POOL WAS!? DONT ACT LIKE ITS JUST ME SALINA, WAKE UP IN 2010, TOO INFINITY, AND...WELL BEYOND THAT IS BEYOND ME, SO..CIAO!
1/3/2010

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New2Salina says....
corporate america is the reason we are in the situation we are in. Small business is the backbone to our economy yet all monies go to big companies. The north side of Salina needs some major redevelopment. Plenty of space for a factory, etc.
1/2/2010

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Incentive? says....
Salina has an incentive,
a 12 million dollar Water Park. That should draw in major industry
to locate here, don't you think.
1/2/2010

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says....
what happened to the business growing to make their own revenue for their own expansions? Isn't that how its supposed to work? Or at least that's always their excuse for paying lower than average wages, so they can create more jobs???
12/31/2009

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Invest in Small Businesses says....
Tom, you have to remember that the very rich have been destroying American jobs by the millions. One researcher found that in the ten years between 1995 and 2005, the largest US companies (S&P 500) eliminated 20 million American jobs, while small businesses created 15 million jobs during the same time period. This should tell us all we need to know when it comes to investing for new jobs.
12/31/2009

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