Garmin asks Olathe to approve $44 million project cost increase for headquarters expansion

Over the next decade, Garmin expects to add 900 new jobs after the second phase of its Johnson County headquarters expansion is completed.

The tech company was founded in 1989 in Lenexa and specializes in GPS technology. The latest expansion includes repurposing a 580,580 square foot warehouse into office space at the northwest corner of 151st Street and Ridgeview Road in Olathe. It is projected to be completed in early 2023.

According to documents submitted to the city, the average starting salary for the jobs at the expanded location is $94,238, creating about $692 million in total new wages over 10 years.

Olathe Chamber of Commerce CEO Tim McKee said Garmin could expand anywhere and they are proud the company chose Olathe.

“These are the type of jobs that every community covets,” McKee said in a statement.

The company is requesting that Olathe increase the project cost by $44 million in industrial revenue bonds to a total cost of $146 million instead of the initial $102 million. The jump in cost was attributed to additional office space for the avionics division, added technology labs, enhanced ventilation systems and increased construction costs due to supply chain and labor shortages, according to city documents presented in a report at the July 19 city council meeting.

Garmin is also requesting that the project get a 10-year, 75% property tax abatement for office uses in conjunction with the industrial revenue bonds.

A public hearing for the project is scheduled for the August 2 at the Olathe City Council meeting.

Phase one of the expansion was completed in 2018 and features a 720,000 square foot manufacturing and distribution center.

Last year, the company also purchased 193 acres of land near the northwest corner of 151st Street, Interstate 35 and Highway 169, near its Olathe headquarters.

This story was originally published July 20, 2022 at 2:35 PM.