Title
APPROVAL OF A RESOLUTION AND AGREEMENT AUTHORIZING A FORGIVABLE LOAN TO JCB LABORATORIES, INC OF WICHITA FOR ECONOMIC DEVELOPMENT INCENTIVES, AND AUTHORIZING THE INTRA-FUND TRANSFER OF BUDGET AUTHORITY.
Presented by: Sherdeill Breathett, Economic Development.
RECOMMENDED ACTION: Approve the Resolution and authorize the chairman to sign.
Body
Background:
JCB Laboratories (JCB) is a sterile compounding pharmacy specializing in the preparation of custom injectible pain medications and topical ophthalmic products. This is a highly specialized niche within the pharmacy industry. JCB focuses on servicing ambulatory service centers, dialysis centers, hospitals and veterinarians throughout the United States. The company was founded in Wichita in 2003 and has achived an average annual revenue growth rate in excess of 30%.
JCB is currently located at 3510 N. Ridge Rd. The company is looking to practically triple the amount of space it currently occupies to accommodate demand for their products. JCB has looked at options in Wichita for its expansion/relocation as well as outside of Kansas. The company is considering relocating to 7335 West 33rd Street North in Wichita. Brian Williamson of JCB contacted the Greater Wichita Economic Development Coalition which worked with City, County and State partners to fashion the incentive offer described below. Based on the incentives offered, JCB has decided to expand its operations here. The local incentives were offered subject to formal approval by the governing bodies. The Cost Benefit Analysis conducted by WSU reflects a ROI of 1.50 to Sedgwick County.
Analysis:
JCBs expansion project includes moving from its existing 3,000 square foot facility to an 8,100 square foot facility which will allow it to expand its production capacity.
JCB estimates that the total capital investment for the project will be $700,000 for leasehold improvements at the new facility and the purchase of new machinery, furnishings and equipment....
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