About five years after buying its facilities in Lenexa, power generator manufacturer Himoinsa Power Systems plans to put those buildings on the market and move its operations to Olathe.
Himoinsa, a Spanish company that also goes by HiPower Systems, plans to move its 36 employees in Lenexa to a new industrial building in south Olathe where it has room to grow by another 75 employees in the next five years.
Lone Elm 515 LLC, an affiliate of development firm VanTrust Real Estate, received approval to construct a $24.5 million 515,000-square-foot distribution warehouse facility last year at the northeast corner of 167th Street and Lone Elm Road. Himoinsa would purchase the building and occupy the majority of it if the deal goes through, according to Rich Muller, executive vice president at VanTrust.
Samuel Silva, chief operating officer for Himoinsa, said the company’s overall first year investment in the Olathe site will be nearly $40 million.
The company is working with Kansas on applying state-level incentives, including Promoting Employment Across Kansas, which allowed companies to keep employee withholding taxes, and employee training programs.
The Olathe building has a 10-year, 50 percent property tax abatement, which the Olathe City Council approved last year.
Himoinsa picked Olathe because of access to Interstate 70 and Interstate 35, current employee commutes, and “the city’s pro-activeness in working with us when we first approached them,” Silva said in an e-mail.