8 minute read
Still De Soto
The EDC continues to attract businesses to the heartland.
Article by Alaina Belisle
Photos courtesy Economic Development Council
Within the last year, 30-plus companies have expressed interest in putting down roots in De Soto. In April, 40 representatives from JETRO (Japan External Trade Organization), a government-affiliated organization that cultivates investment and trade opportunities, visited De Soto to tour both Astra Enterprise Park and Flint Commerce Center. Many of those visiting represent clients with active projects in need of a U.S. site. And that’s not all.
In March, German company H&T Recharge announced it would colocate with Panasonic in De Soto, bringing an investment of $110 million and 180 jobs, in addition to Panasonic’s $4 bilion and 4,000-job injection. H&T Recharge has a long-term agreement with Panasonic to supply lithium-ion battery cans to the EV battery company. Both companies plan to have their lights on by spring of 2025.
Although most large-scale projects of interest remain confidential, the city of De Soto has seen serious interest from 39 job-driving megaprojects, including requests for information from:
• 23 manufacturing facilities
• 8 data centers
• 5 distribution centers
• 3 research and development facilities
Local businesses have also declared for De Soto:
• KC-based Burnt End BBQ will open a new De Soto location later this year.
• KC-based Savion LLC has secured a 2,800-acre lease at Astra Enterprise Park for its solar facility and is awaiting permitting approvals. It hopes to be operational by 2028.
• Force of Nature Brewery is set to open its doors in August 2024.
“There’s a heightened interest in developing in De Soto now,” says Sherelle Witt, chair of the De Soto Chamber of Commerce board of directors. “As always, the focus will be on smart growth with an eye toward what’s in the community’s best interest.”
The Industries
De Soto is primed to take on cross-industry businesses and is particularly well-outfitted for industries like semiconductor manufacturing, advanced plastics, food processing, and distribution. The city has honed in on these industries—and similarly been targeted by interested businesses—for its transportation convenience.
The Kansas City metro, and by extension, De Soto, is a major national roadway center, with several key highways passing through KC: I-70, I-35, U.S. 69, I-470, U.S. 71, and I-435, to name just a few. Kansas City is also the No. 2 rail hub in the country (Chicago is in the No. 1 spot). In addition, Kansas City is the only major city with cross-country rail service that cuts from Canada to Mexico.
De Soto’s central location also makes it an attractive siteshopping area: The city is equidistant from both coasts, both reachable in one to two days. Being part of the significant Kansas City metro area doesn’t hurt either. Panasonic and other future employers will be able to pull from a robust, skilled, and educated workforce pool. So, while De Soto is tailor-made for things like distribution and advanced manufacturing, there is also mutual interest from other tech companies, such as Panasonic, as well as solar facilities and data centers.
The Process
Since landing Panasonic, De Soto has received inquiries from other businesses shopping for their next groundbreaking. These requests for information, or RFIs, typically reach the state level or regional organizations like the Kansas City Area Development Council (KCADC). Based on a business’ criteria (how much electricity do they need? water capacity? rail access?), consultants, like site selectors, put together lists of their most attractive sites—such as De Soto—which are eventually narrowed to three to five communities.
Once RFIs are received, local EDCs have a handful of days to gather information and coordinate with the target site and governing utilities. In the later rounds, interested companies will make in-person site visits, and, eventually, in the case of Panasonic, select De Soto as their community. The process is often slow and painstaking, with life cycles of 18 to 24 months.
Rick McDowell is a consultant who coordinates RFIs on behalf of the De Soto Economic Development Council and has spent his career working with area EDCs. He says, “We’ve seen around 20 RFIs in just the last four months, which is huge—other places might see maybe a dozen in a year. That just speaks to the viability of the prospects here in De Soto. Interest has continually ramped up over the course of the last year.”
The changes on our horizon are truly life changing. It’s essential to me that, as these evolutions happen, they lead to meaningful, quality-of life improvements for our residents, without sacrificing the charm, friendliness, and livability that we love about De Soto.
-Mike Brungardt, city administrator
Kansas City has already carved a niche for itself in the engineering, architecture, and construction services. The Engineering industry has grown by 24% in the last 10 years, compared to 9% nationally. The Kansas City area generally competes for development projects with other heavy hitters like Denver, Nashville, Dallas, and Oklahoma City.
The Growth Factor
The advent of Panasonic is bringing lasting and measurable infrastructure and community benefits, as De Soto expands utilities and capacity to support the battery plant and other incoming businesses. While De Soto itself will invest an initial $2 million for road improvements, over the next 20 years the city will see a staggering $400 million return on this investment. Infrastructure improvements are fronted almost entirely by Panasonic, contributing $166 million, and the Kansas Department of Transportation and Johnson County, who together will fund $80 million. These investments will include:
• $54.5 million in water treatment improvements
• $43.4 million in sewer treatment improvements
• $40 million in sewer expansion
• $84 million on road construction
• $19 million for a new fire truck and station
Within the past year alone, De Soto’s sales tax collections have increased by $1.3 million, representing a 74% increase from the previous year—a direct correlation to the number of workers at the Panasonic building site, which this spring tipped the scales at more than 2,000 workers. Other 20-year community benefits include:
• $77 million in franchise fees, which is a rental fee paid to a city or county by utilities for use of public space
• $14 million toward local schools
• $35 million toward state schools
The franchise fees from Panasonic alone top out to an annual $3.68 million, providing a consistent financial stream for the city.
Mike Brungardt has been with the city for almost 25 years, first as De Soto’s city engineer, and then as city administrator, a position he’s held since 2016. Brungardt has witnessed De Soto’s growth, saying, “The changes on our horizon are truly life-changing. It’s essential to me that, as these evolutions happen, they lead to meaningful, quality-of-life improvements for our residents, without sacrificing the charm, friendliness, and livability that we love about De Soto.” Brungardt noted public engagement has been an anchor throughout this wave of expansion.
The Impact
For De Soto, the bottom line translates into more resources and more amenities. Andy Heitmann, EDC chair, says, “A strong EDC is like having a great mechanic. We can provide the tools, the services, the fix-its, and connections to make our De Soto vehicle run more smoothly. We have terrific talent here in De Soto, and we’re very excited to connect our community, present and future, with any resources and opportunities to help them grow with the city. Ultimately, we’re brokering for De Soto’s best interests.”
Still Home
In spite of all the change, De Soto officials have every determination to keep the city just that: De Soto. The growth surrounding Panasonic is an opportunity for De Soto residents in terms of job openings and salary hikes—but the businesses that come with Panasonic will also mean increased investment returns on housing ownership, more food and entertainment opportunities, and an all-around rehab on city infrastructure, meaning well-maintained roads and parks, reliable internet and water, and power that stays on. De Soto mayor Rick Walker says, “We’ve heard our city’s concerns about wanting to keep our sense of community and small-town charm, and we want that too. We also know that this feeling is rooted in our community and our people, and it’s here to stay.”
A De Soto Mainstay: Huhtamaki
Even before the flurry of businesses expressing interest in De Soto, the city has long been home to major international players like Merck Animal Health, Engineered Air, and Rehrig Pacific. Among these is Huhtamaki, a food packaging supplier and maker of Chinet, with its North American headquarters based in De Soto. Huhtamaki is the second biggest employer in De Soto (De Soto’s school system is first), and it has been a steadying force in the De Soto economy. This year, Huhtamaki is being recognized for its community involvement.
The paper product manufacturer was recognized by the De Soto Chamber of Commerce at its 2024 annual dinner, when Huhtamaki was honored as business of the year. Michael Hodges, Huhtamaki’s vice president of communications and sustainability, was the keynote speaker at the EDC’s inaugural Solution Series Breakfast in February, where he discussed the importance of sustainable business practices. To learn more about joining the EDC or to attend future EDC events, email the organization at chambermembership@desotoks.org, or keep an eye on the EDC’s event calendar at desotoksedc.org
