WICHITA, KS — Despite turning down a request for industrial revenue bonds (IRBs) last month for Fitness 2000, the Wichita, KS city council voted that it would uphold its earlier agreement to extend similar IRB financing to Genesis Health Clubs, which has four clubs in Wichita.
In July, Genesis was given a letter of intent for $11.8 million in IRBs and property and sales tax exemption of $1.9 million for the construction of a new health club. In December after a new city manager who opposed IRBs for nonmanufacturing companies was in place, the city council rejected a request by Mohsen Etezazi of Fitness 2000 for $5 million in IRB financing for a new club. Because of the rejection of the Fitness 2000 proposal and a new economic development policy approved by the city council, some had thought that Genesis' letter of intent from the council would be pulled.