Olathe has approved $257 million in incentives to support Walmart’s beef processing plant near the U.S. Highway 169 and 167th Street.
The Olathe City Council voted unanimously to issue the bonds, which come with a 10-year, 50% property tax abatement for the facility — meaning it will pay half of the normal property taxes for 10 years.
Prior to the vote, Olathe Mayor John Bacon said he had toured the facility several times and called it “amazing.”
City council first approved an intent to issue the bonds in March of 2023 — making last week’s vote the final step. The 320,000-square-foot facility employs more than 600 people.
A first of its kind
How the plant operates is a first of its kind for Walmart. The facility takes large cuts of beef from a slaughterhouse in North Platte, Nebraska. It then processes them into “case-ready cuts,” packages and ships them across the Midwest.
Walmart originally announced its intent to create an end-to-end beef supply chain in 2019.
This process is part of a greater trend in the beef industry — to replicate what grocery store butchers do, but on a larger scale. Walmart also owns a minority share of the Nebraska slaughterhouse.
The plant celebrated a grand opening in July
At the facility’s grand opening in July, John Laney, Walmart’s executive vice president of food, said the new plant will help create a more “resilient” and “transparent” supply chain, giving customers greater insight into where their food comes from.
“We’re proud to say that we’re a part of the community here,” he said at the time. “This facility helps us deliver traceability, high-quality products and more strength in our supply chain.”
At that same event, Kansas Gov. Laura Kelly emphasized the economic benefits of the facility.
“We couldn’t be more excited about what this means for Olathe and the greater Kansas City area,” she said in July.
Olathe Mayor John Bacon also spoke at the opening.
“Walmart has been an important community partner here in Olathe for many, many years,“ he said. “To have them further invest in our city and create significant jobs is just outstanding.”
