Junction City will work with Mechanized Design to try and get the company into the former Jupiter Building at 2618 Mid America Drive in the I-70 Industrial Park.

Jim Schmidt of Mechanized Design confirmed the company was  founded in 2013 in Manhattan, and currently has a temporary location on McDowell Creek Road, plus an operation in Wichita. If a deal can be worked out the company will make the facility in Junction City their headquarters.

Mechanized Design offered to buy the property for $525,000, and wanted a 10-year property tax abatement. They would use the facility as a production site for precision agriculture equipment, specifically an auto probe which helps farm users make educated decisions on on inputs for products. There would be an estimated start up of 60 units in 2015 up to 1,000 per year by the end of a five year period. Cash flow from the operation over a five-year period was estimated at $465,000.

Junction City Commissioners are interested in selling the building to generate revenue to pay off bonded debt, but they’re not necessarily in favor of a 10-year abatement. Staff have been directed to finalize terms on a possible sale to Mechanized Design.

Cheryl Beatty, Interim City Manager, said they’ll look at what is common practice for these types of agreements, and look to see what can be negotiatedfor terms that would probably not be a full 10-year tax abatement.” Beatty added they’ll find a happy medium or something more agreeable to the Commission. She indicated the City might lean toward a five-year property tax abatement, and perhaps not a full 100-percent abatement.

No deal has been finalized at this point.

The City has also received a proposal from Manhattan based Florence Manufacturing to expand their operations into the Jupiter Building, in addition to their Manhattan site.