Featured Project

Tax Credit Project in Clay Center

A major employer in Clay Center, GT Manufacturing, Inc., had been wanting to expand for many years. However, their growth was impeded by a five-story condemned brick structure to which some of their buildings were attached.

A team from Clay Center came to the North Central Kansas Rural Business Development Tax Credit (NCK RBDTC) committee seeking help and was rewarded with a low-interest loan to aid in the necessary demolition. Local partners in the project included the Clay County Commission, the Clay County Economic Development Group, the City of Clay Center, and GT Manufacturing, Inc.

The dilapidated structure — known as the Swift Building — was located on one of the main thoroughfares into Clay Center along Highway 15. According to Dennis Pedersen, GT Manufacturing, Inc. President, the structure was not only an eyesore but also a hazard.

The project was awarded a $50,000 5-year zero interest loan to the City of Clay Center to aid in the demolition of the Swift building. The City of Clay Center owned the Swift building and the land underneath it. The land has now been deeded to GT Manufacturing, Inc.

“Instead of expanding we were just maintaining because we were extremely limited by this hazardous structure,” Pedersen said.

With demolition now complete, GT Manufacturing, Inc. has been able to invest in expanding and finishing off a remaining metal building. Pedersen estimates that when everything is complete they will spend close to $1 million on their own to expand, bring that building up to a suitable condition, and purchase the necessary fixtures and equipment to operate in that additional space.

The company, which manufactures grain dryers, now sells in 63 different countries. Pedersen credits this market expansion with allowing the company to ride out any market weak spots. Additional usable bay and loading space as a result of this project has helped the company increase orders. The company, currently with 49 employees, has been able to add employees. More are expected to be hired in the next year.

“Last year was the best we’d had in 30 years,” Pedersen said. “This year we’re running 40% ahead of that.”

Pedersen, who has been with the company for 40 years and has spent the last six of those as President, credits the tax credit program with the growth they are experiencing today.

“This project has been hugely successful for our needs and has benefited us in a way that I imagined the program was put in place for,” Pedersen said. “Without it, I don’t think the project would have moved forward and we wouldn’t be able to do the things that we’re doing now.”

In addition to the business expansion, the demolition project also greatly improved the aesthetics around the City’s Dexter Park. The overall project total was approximately $175,000.

“In total, the project has opened the doors to a lot of opportunities that otherwise wouldn’t have been there,” Pedersen said.

For more information about the company, visit www.gtmfg.com. For more information about the NCK RBDTC program, visit www.ncrpc.org/services/economic.html.

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