KINGMAN - When 2007 rolls in, Kingman will see a new corporate manufacturing company break ground on 30 acres of property in the Airport Industrial Park that it bought Monday at a public auction for more than $2.6 million.
Kingman area residents will also see a few more jobs. The purchasing company, Cantex, Inc., expects to employ between 50 and 80 people initially and 120 people estimated at full production, according to a memo from Bob Riley to the mayor and Kingman City Council.
A leading PVC product manufacturer, Cantex plans to break ground after the first of the year on a 300,000-square-foot facility for manufacturing and distributing its products to the southwest region.
The new facility will be its ninth manufacturing plant in the U.S., according to the company's Web site.
Cantex was the only bidder at the auction. The notice of sale included 12 conditions for application to purchase the acreage, including the full payment in cash or equivalent liquid asset within seven days of the auction and the construction of a 250,000-square-foot building to be used for manufacturing and plastic extrusions, according to documents provided to the Council.
Answering residents' questions about the sale, Riley, director of economic development for the Airport Authority, said all the required procedures were followed in preparation for the auction Monday night.
This includes the Arizona Revised Statute that requires city-owned property worth more than $500,000 to go to a public election.
This election took place 16 years ago, Riley said, in March of 1990.
The Airport Authority will pay for some construction on the land, mainly infrastructure improvements such as water mains, fire hydrants along the street and the extension of the railroad lead track.
The net proceeds of the sale are expected to be $2.1 million, "which will be reinvested into Airport capital, operating and maintenance costs in 2007," he said.
Because the city does not collect property tax, one resident's proposal to lease instead of sell the land wouldn't matter.
"The Airport Authority, being a management agency for the city, is trying to diversify the community," Riley said.
One in 12 Kingman-area residents work with various businesses and industries at the airport, and with the reinvestment of money collected from property sales at the airport, the city sees an increase in jobs, diversity of industries and increased productivity of the Kingman Airport, Riley said.