PARK AEROSPACE CORP 10-K

ITEM 2. PROPERTIES.   Set forth below are the locations of the significant properties owned and leased by the Company, the business use of the properties and the size of each such property. The Newton, Kansas property is used principally as a manufacturing facility. The lease for our Newton, Kansas location is a ground lease.   Location   Owned or Leased   Use   Size (Square Footage)               Westbury, NY   Leased   Administrative Offices    2,000 Newton, KS   Leased   Advanced Composite Materials, Parts and Assemblies    183,500   The Company believes its facilities and equipment to be in good condition and reasonably suited and adequate for its current needs. The Company’s manufacturing facilities have the capacity to substantially increase their production levels.   During the 2022 fiscal year, the Company completed the closure of its dormant Park Aerospace Technologies Asia PTE, LTD facility located in Singapore.   In December 2018, the Company entered into a Development Agreement with the City of Newton, Kansas and the Board of County Commissioners of Harvey County, Kansas. Pursuant to this agreement, the Company agreed to construct and operate a redundant manufacturing facility of approximately 90,000 square feet for the design, development and manufacture of advanced composite materials and parts, structures and assemblies for aerospace. The Company further agreed to equip the facility through the purchase of machinery, equipment and furnishings and to create additional new full-time employment of specified levels during a five-year period. In exchange for these agreements, the City and the County agreed to lease to the Company three acres of land at the Newton, Kansas Airport, in addition to the eight acres previously leased to the Company by the City and County. The City and County further agreed to provide financial and other assistance toward the construction of the additional facility as set forth in the Development Agreement. The Company estimates the total cost of the additional facility to be approximately $19.5 million. The expansion construction is complete and is undergoing customer qualifications, which are expected to be completed in the second half of the calendar year 2022. As of February 27, 2022, the Company had $635,000 in equipment purchase obligations and $18.7 million of construction-in-progress related to the additional facility.   17