City tax break likely for expanding facility

A property tax break for American Eagle is set to move forward.

City commissioners Wednesday night agreed to enter into a contract with American Eagle Outfitters for a property tax exemption.

The company requested a 10-year, 100-percent tax abatement for two additions to its facilities at Davis Avenue.

According to the application, American Eagle plans to expand its Ottawa I Facility, 1529 Davis Ave., by about 100,000 square feet, adding warehouse and distribution space and to purchase more machinery and equipment.

Ottawa II Facility, 1301 Davis Ave., is expected to see the addition of about 178,000 square feet for more warehouse and distribution space, as well as machinery and equipment.

American Eagle has 663 employees and is looking to add up to 70 new employees by 2011, according to the application. The projected investment in land, improvements, new construction and equipment total nearly $94 million.

“It’s a great project. We’re looking forward to their expansion,” Mayor Gene Ramsey said.

In other matters, commissioners:

• Approved a conditional use permit to allow a day-care center, 424 S. Poplar St., for the East Central Kansas Economic Opportunity Corp.

The next city commission meeting is a study session set for 4 p.m. Monday at City Hall, 101 S. Hickory St. The next regular meeting is scheduled for 9:30 a.m. July 16.

City Hall will be closed Friday for Independence Day.

Herald staff writer Jodie Garcia can be e-mailed at jgarcia@ottawaherald.com.