Open Road BrandsEconomic

Development Exemption RequestOffice of Economic Development

October 1, 2019

Open Road Brands

• Founded in 2009

• Designs and distributes decorative retail items around the world

• Customers include Walmart, Bass Pro, Cabela’s, Hobby Lobby, Menard’s, Home Depot

• Located at 1425 E. Douglas (near Douglas and Hydraulic streets)

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Open Road Brands

• Currently imports from China – tariffs have increased cost

• Build new 60,000 sf manufacturing facility (40th and Webb Road)

($5,300,000)

• Added new machinery & equipment ($2,300,000)

• Total capital investment = $7,600,000

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40th St. N. & Webb Road

Open Road Brands

• 100% property tax abatement

• 5 plus 5 year basis

Base New Jobs 5 YearProjected

Jobs 27 33 60Wages $45,500

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Open Road Brands

• $99,226 is estimated value of one year tax abatement on improvements (appraised at 80% of capital investment)

City $25,500 State $ 1,170County $22,918 USD 375 $49,638

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Cost/Benefit Analysis (MODIFIED):

ProjectedCity of Wichita 1.50 to 1

City of Wichita – Gen Fund 1.38 to 1City of Wichita – Debt Serv 1.78 to 1

Sedgwick County 1.29 to 1USD 375 1.18 to 1

State of Kansas 8.64 to 1

Open Road Brands

• Recommendation:

• It is recommended that the City Council close the public hearing, and approve the first reading of the ordinance granting Open Road Brands, LLC a 100% tax exemption on the identified real property improvements for a five-year term, plus a 100% tax exemption for a second five-year term, subject to City Council review and authorize the necessary signatures.

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Office of Economic Development

Open Road BrandsEconomic Development

Exemption Request