KC lands two more Johnson County firms as economic development border war continues

By KEVIN COLLISON
The Kansas City Star

Kansas City’s gain was Johnson County’s loss in a string of business announcements Friday that reinforced the area’s increasingly fierce economic development border war.

Three companies will be moving to Kansas City, the largest of which is the mortgage lending operation of North American Savings Bank, members of the Kansas City Economic Development Corp. board were told.

North American will be moving 204 jobs from its current quarters in Overland Park to 903 E. 104th St. in Kansas City, and the firm plans to add 58 additional jobs over the next five years.

“We’re excited to be moving back to Kansas City; we’ve been in Johnson County the last six years,” said Bruce Thielen, senior vice president of North American Savings.

North American will get $5.8 million in incentives from Missouri and $111,000 from Kansas City. Its total investment is estimated at $6 million.

Mayor Sly James attended the regular EDC board meeting and said the announcements indicated a new attitude at City Hall about business development and retention.

“The last few weeks have been eventful,” he said, referring to a management shake-up at the EDC, “but I believe they represent a significant change in course in making the EDC a lean, mean, job-making machine.”

James also said he had met with Kansas Gov. Sam Brownback to discuss ending the incentive-driven struggle that has been moving companies a few miles across the state line.

“It’s safe to say we didn’t meet eye to eye,” he said. “We’ve had wins and we intend to compete in a targeted way to meet the job needs of our city.”

North American Savings’ shift to Kansas City from Johnson County was announced at the regular EDC board meeting.

In another move that was announced Friday, Marks Nelson Vohland Campbell Radetic LLC, an accounting firm at 7701 College Blvd., is shifting its 82-employee operation to 1310 E. 104th St. in Kansas City and plans to hire 18 additional people by 2013.

“After an exhaustive search on both sides of the state line, we were able to target space that we could design to suit our needs for future growth,” said Mark Radetic, a managing partner.

Marks Nelson will get $954,000 in tax incentives from Missouri and a 50 percent property tax abatement over 10 years from the city. The firm is investing $2.7 million.

The third company mentioned Friday, Applebee’s International and an affiliated firm, had already announced its move in late May. The move from Lenexa to 8140 Ward Parkway shifts 380 jobs. Applebee’s will be getting an incentive package valued at $12.6 million.

Other new projects announced Friday:

•Star Financial, a financial service firm now at 7431 Broadway, is expanding into new quarters at one of the former Cleveland Chiropractic buildings at 601 E. 63rd St. The firm plans to hire more than 100 people over the next five years. It will receive $230,000 in tax credits from Missouri.

•Milbank Manufacturing plans to expand into the wind turbine manufacturing market and create 57 jobs over the next five years. The new investment is $2.75 million, and it will receive $200,000 in assistance from Missouri. The firm currently has operations at 4801 Deramus and 5601 Gardner and is a leading manufacturer of electrical meter sockets.

•Superior Metal Treating, 2540 Indiana, plans to add 14 employees within five years and is building a 15,800-square-foot addition. It currently has 35 workers.

•Several other previously publicized business deals also were discussed: the Trader Joe’s opening; an expansion of Vianney Industries, doing business as Midland Metal, a family-owned plumbing fitting business; and the expansion of Portland-based Blount International into a distribution center being built at Kansas City International Airport.

To reach Kevin Collison, call 816-234-4289 or send email to kcollison@kcstar.com.