Manhattan, Kansas has a new industrial speculative building under construction. “Building K”, a new 112,500 square foot industrial building broke ground in April and is slated for completion in late 2024. The building, located at 1201 Kretschmer Drive in the eastern part of the community, has 4-lane access to I-70 and is minutes from the Manhattan Regional Airport with daily jet service to Dallas and Chicago on American Airlines. More information here.
In 2021, the Manhattan Area Chamber of Commerce began working on strategies to encourage private sector investment in speculative industrial and warehouse buildings. An initial step was to create a new “incentive” program that targeted private investment in Manhattan. The Chamber’s economic development team worked closely with the Manhattan city manager’s office to craft something that worked for the community. Ultimately the speculative building program was put in front of the Manhattan City Commission in the fall of 2021 and was approved unanimously.
Under the program, developers can take advantage of Industrial Revenue Bonds to get a sales tax exemption on construction materials. Additionally, the program allows for a 95 percent property tax exemption for the first five years, helping defray some of the carrying costs that prevent many private sector developers from investing in this kind of project.
“Most projects begin with a building search as speed to market is generally considered the No. 1 priority in the site selection process along with labor availability,” said Daryn Soldan, Executive Vice President and Director of Economic Development for the Chamber. “Building K enables the Greater Manhattan Economic Partnership to meet the building or site requirements on more projects.”
The Manhattan project came about thanks to another building that came on the market in 2022. Patrick Schutter of BHS Construction and Blake Bauer of Icon Investments came together to purchase the old McCall Pattern Company building when that company announced their closure. With that purchase came an additional parcel north of the structure, suitable for a new industrial building. After securing a tenant for the McCall’s building, Flint Hills Ventures turned their attention to the new project, now known as Building K.
The Chamber’s economic development team is actively marketing the building and interest in the project continues to grow. “We are optimistic about the opportunities that will be created by the availability of a facility,” said Chamber President & CEO Jason Smith
