Velociti, a global provider of technology deployment services, is moving its headquarters and 60 employees from Kansas City, Kan., to Riverside with the help of a Missouri incentive package valued at $1.55 million.
The firm is leaving its 1146 Booth St. quarters and plans to occupy new space in the Horizons Industrial Park by early next year, the Missouri Department of Economic Development said. Velociti plans to add 25 to 40 additional jobs in Riverside over the next two years.
The move is being helped by $1.5 million from Missouri’s Quality Jobs program, which allows companies to keep their employee state income tax for a fixed period, and $49,500 in recruitment assistance.
“We’ve spent the past year looking at potential spaces on both sides of the state line,” Michael Kahn, Velociti’s CEO, said in a statement. “While we found excellent facilities throughout the metropolitan area, we believe the newly constructed Horizons Industrial Park will best accommodate our rapidly expanding call center and state-of-the-art staging and configuration facility.”
Kahn said Velociti would occupy about 33,000 square feet in a 175,000-square-foot building now under construction at the 260-acre industrial park at Interstate 635 and Missouri 9.
The firm will continue to operate a repair facility for heating, ventilation and air conditioning units used on train locomotives in Kansas City, Kan. Kahn described Velociti as a component company of Central States Thermal King.
State development officials said the firm had nearly 200 employees total, and clients in the Fortune 500.
Velociti is the fourth company to move across the state line in the area in the past two weeks with state incentives. The practice of offering tax breaks to move companies within the metro has been criticized for undermining the tax base while doing nothing to increase the overall economic health of the area.
Last week, Murphy-Hoffman, a regional truck dealership, said it was moving 100 jobs from Kansas City to Leawood. Two weeks ago, Larson Binkley, an engineering firm, moved 40 jobs from Overland Park to Kansas City and Hantover Inc., a distributor for the food processing and general manufacturing industries, said it was moving 91 jobs from Kansas City to Overland Park.
Article By: Kansas City Business Journal – by Kevin Collison, Staff Writer
Date: Friday, October 5, 2012