Goodyear and Ryder awarded cash incentives. What will those investments mean for Topeka?

Local elected officials voted Wednesday to use revenue from a countywide, half-cent sales tax to award cash incentives totaling as much as $585,000 to the Goodyear Tire & Rubber Co. and $373,000 to Ryder System Inc. to expand operations in Topeka.

Goodyear, which has maintained a plant here since 1945, plans to make a five-year capital investment of $125 million and create up to 40 new full-time jobs at that plant at 2000 N.W. US-24 highway.

Ryder plans to make a $2.5 million capital investment and create as many as 55 new full-time jobs in Topeka.

The incentives are performance-based. They were approved late Wednesday by Topeka and Shawnee County elected officials serving on the board of directors of the Joint Economic Development Organization.

"It’s exciting to see these economic wins unfold before our eyes," said JEDO board member and Topeka Mayor Mike Padilla.

JEDO contracts with a private organization, Go Topeka, to administer the economic development program financed by the sales tax revenue.

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How much economic impact will the Goodyear project bring?

Goodyear is one of the world’s largest tire companies, employing about 72,000 people and manufacturing its products at 57 facilities in 23 countries, said India Yarborough, communications director for the Greater Topeka Partnership.

The company’s Topeka plant employs about 1,400 people and focuses on producing tires for commercial and off-highway vehicles.

The Goodyear project, referred to before Wednesday as "Project Boomerang," is expected to result in an economic impact locally of $480 million over 10 years, Yarborough said.

'“It’s great to see a company like Goodyear further their investment in the Topeka area,” Padilla said. “The growth of our existing employers is a key driver of local job creation."

Shawnee County Commissioner and JEDO board chairman Aaron Mays said it felt good to be able to invest in a local employer like Goodyear.

“This company has a long history in our community and continues to impact and help grow the Topeka/Shawnee County economy," he said. "I look forward to seeing Goodyear create more well-paying jobs in the area, as they advance their local operations and serve this community for years to come.”

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Goodyear is deeply grateful for the ongoing partnership and support of JEDO and the greater Topeka community, said Tim Davis, the company's Topeka manufacturing director.

“Our Topeka facility is integral to our operations, and this investment will help position Goodyear to continue to meet the evolving needs of our customers," he said.

Companies like Goodyear have contributed to the strong, diverse local economy Topekans see today, said Molly Howey, president of Go Topeka.

“The estimated economic impact resulting from their investment is a testament to their willingness to partner with Topeka/Shawnee County, and to the strategic support JEDO incentives provide," she said.

How much economic impact will the Ryder project bring?

Ryder maintains a Topeka truck rental location at 631 S.W. 1st Ave.

That company, a leader in supply chain, dedicated transportation and fleet management solutions, will build out and manage warehouse operations and provide transportation services on behalf of one of its supply-chain solutions customers here, Yarborough said.

The Ryder project, referred to before Wednesday as "Project Three," is expected to result in an estimated economic impact locally of $500 million over 10 years, which is "huge," Padilla said.

Mays said he was proud to see the JEDO board make another worthwhile investment in a company doing great work in the Topeka area.

"There’s no doubt Ryder’s expansion will positively impact this community and the region, as they create dozens of new jobs and even more opportunities for success," he said.

“We sincerely appreciate the support of Go Topeka and JEDO as we expand our operations and bring more quality jobs to the area,” said Norm Brouillette, senior vice president of supply chain solutions for Ryder. “Topeka has a highly skilled workforce, and that’s critical to a company that prides itself on its people — and has for nearly 90 years now.

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Howey said it was great to see a company like Ryder expand its reach in Topeka and Shawnee County.

“The potential economic impact stemming from their investment is going to be felt throughout our community, further solidifying the strength of our local economy and the businesses operating here,” she said.

Sales tax finances incentives

The incentives approved Wednesday are to be financed using some of the $5 million in revenue from a countywide, half-cent sales tax, which is earmarked annually to be used for economic development.

Revenue from the tax is used for purposes that include attracting new companies to Shawnee County and incentivizing companies already located here to stay and expand.

Decisions regarding economic development funding from the tax are made by the seven voting members of the JEDO board. They are the three Shawnee County commissioners, Topeka's mayor and three members of the Topeka City Council.

The economic development program is designed to create jobs, raise average wage levels and add tax base to the community.

Tim Hrenchir can be reached at threnchir@gannett.com or 785-213-5934.

This article originally appeared on Topeka Capital-Journal: Goodyear, Ryder receive incentives to expand their Topeka operations