By a vote of 3-2 Salina City Commissioners Monday denied a request to issue IRBs for a sales tax exemption on construction materials for a planned project by the Kansas Municipal Energy Agency (KMEA) organization.
The company had recently been denied a sales tax abatement by the Kansas Department of Revenue for the construction of a new building campus.
The KMEA is a membership‑driven, quasi‑municipal corporation representing 88 municipalities across Kansas. It provides its member communities with a range of services related to electricity and natural gas supply, including power‑purchase agreements, construction of equipment and infrastructure, engineering support, and assistance with workforce and labor needs. The organization maintains offices in both Overland Park and Salina.
The organization is working on a project in Salina which consists of 5 acres within a 15‑acre tract the company purchased from the Salina Economic Development Corporation on Progress Drive. The remaining 10 acres will be held for future development by the company.
KMEA purchased the former Mid‑States operation in Salina several years ago. That business, originally established in 1952, now operates at 618 N. Santa Fe Street. The proposed project involves constructing three new buildings:
- An office and line shop of approximately 8,500 square feet
- A fabrication shop of approximately 4,850 square feet
- A 4,500‑square‑foot warehouse
These facilities will be built on roughly 10 acres of the 15‑acre tract, with the remaining acreage reserved for future expansion. The estimated construction cost is $6.3 million, contributing to a total project investment of $8.5 million.
The organization employs 20 now, and plans on adding about 10 within the next 5 years.
