Business Prospects
The cost-benefit analysis for the Koch & Co. tax abatement is complete. Earlier, figures supplied by the Seneca City Clerk had indicated that the City of Seneca was losing money on the power it supplied to Koch & Co. After further review, we determined that Seneca does indeed profit from utility purchases made by Koch & Co. With the new information, we were able to complete the analysis. The information along with the application has been forwarded to the City of Seneca for review. A decision on the application is expected soon.

I completed the initial cost-benefit analysis for the new feed mill construction by Midwest Ag Services, LLC in rural Nemaha County. With this information, the organization and the county will have an idea of how each will benefit from a tax abatement to the company once the structure is completed. The Nemaha County Board of Commissioners unanimously agreed to submit a letter of intent to Midwest Ag Services, LLC regarding a tax exemption. The letter, drafted by RDA, explains that Nemaha County intends to grant a tax exemption for 10 years to Midwest, assuming the current details of the feed mill do not significantly change. The letter does not bind the county to any agreement but does state its intentions. Midwest will be required to pay an application fee and a payment in lieu of taxes equal to the amount of ad valorem taxes paid on the land during the final year before the improvements are made. Tax exemptions often coincide with the release of Industrial Revenue Bonds (IRB’s). Nemaha County recently approved the release of IRB’s on behalf of Midwest.

RDA met with new businesspersons from Sabetha and Hiawatha. We provided state and federal tax and permit information. We also offered to help with business plans and projections that will be needed to obtain financing.

Two Sabetha companies inquired about the Enterprise Zone and other local and regional incentives for their expansions. RDA helped them to apply for the incentives through the Kansas Department of Commerce and Housing (KDOC&H).

The Eastern Kansas Economic Development Group (EKEDG), a Certified Development Company (CDC) wishes to offer the Small Business Administration (SBA) 504 loans program in Brown County. The 504 program offers loan guarantees and direct loans for fixed asset purchases such as buildings and equipment. Currently, EKEDG serves Nemaha County while Mo-Kan Development, Inc., another CDC, was designated as the provider for Brown County. Recent changes to rules that regulate the Small Business Administration (SBA) allow the overlapping of CDC’s in concurrent locations. EKEDG has already worked some projects in Brown County and they wish to expand their services to include 504 loans. This service should increase the availability of Brown County businesses to CDC services as the area will now have two CDC’s serving the area. I drafted a letter of support to SBA for EKEDG’s effort on behalf of RDA.

I met with the Horton Chamber of Commerce and the Horton Industrial Development Committee (HIDC) to discuss RDA services and potential partnerships and ideas. The HIDC expressed particular interest in the CDBG Microloan program and RDA’s available land and building listings.

I spoke with Martin Mishler, an attorney from Sabetha, regarding a long running tax abatement application from Triple C Manufacturing. After originally applying for the abatement in 1997, the State Board of Tax Appeals issued its final ruling in October. The tax abatement was approved and Triple C will receive a tax rebate for 10 years beginning in 1997.

Local Government Relations
I received a message from Susan Higley, mayor of Muscotah. She inquired about assistance for small city electric, water, and street programs. I referred her to the Atchison County Chamber of Commerce as well as Kansas Department of Commerce and Housing and USDA Rural Development. If requested, RDA can offer technical assistance on a fee basis.

The Nemaha County Commission appointed Scott Huizenga, Executive Director of RDA, to represent Brown and Nemaha Counties as a member of the Eastern Kansas Economic Development Group (EKEDG) subject to the approval of Brown County.

Scott traveled to Topeka with Shannon Scott, Secretary/Treasurer of the Everest Housing Authority. There we met with Fred Bentley of the Kansas Department of Commerce and Housing (KDOC&H) to discuss Housing Tax Credits, the State Housing Trust Fund, and Interim Development Loans to finance the proposed multi-unit senior housing complex in Everest. We also met with Chris Imming from the Federal Home Loan Bank of Topeka. An FHLB Loan will be necessary to provide the gap financing for the project. Union State Bank of Everest is a member of the FHLB.

I met with the Robinson City Council. After explaining our services, Robinson inquired about the ability of RDA to administer a Community Development Block Grant (CDBG) that the community received years ago for housing rehabilitation. The grant has been closed out and there is currently no administrator other than the city clerk for loan funds that have been repaid. I informed the council that because I am certified as a CDBG administrator, that is a service that RDA can provide. I met with the city clerk of Robinson. I will review all of the details concerning the grant application and administration. I will then recommend a course of action to the Robinson City Council to restart the rehabilitation loan fund.

I met with the Seneca Land Use Planning Task Force regarding two pieces of land within the city. The task force is charged with recommending uses for the land presently occupied by the golf course and an additional 114 acres in the northern portion of the city. The group is seeking a "facilitator" to guide them through the planning process. I will attend the meetings on a regular basis as a consultant on technical matters such as land use ordinances, financing options, research assistance, etc.

Richard McClanathan, Hiawatha City Administrator, asked if RDA could perform an income survey for a possible CDBG grant application. The survey would initially be sent through the mail. Eventually, some door-to-door surveying may be required. Hiawatha is still deciding about the feasibility of such a study relating to the project(s) that they may pursue. RDA will provide an estimate to perform the survey should Hiawatha move forward with the project(s).

I attended a city meeting in Hamlin on Tuesday, September 12. Galen Lay of Bartlett and West Engineering had performed a feasibility study concerning a sewer system installation in Hamlin. Based on current projections, it appears that the project is feasible but "borderline." Lay again encouraged the city to ensure that a great majority of households are in favor of the project so that future payments will be ensured from all citizens. The most recent count showed only 2 or 3 households opposed to the project while 22-25 households were willing to sign statement proclaiming their moral and financial support to the project.

I met Glen Rodden, the new City Administrator for the City of Seneca. After discussing RDA service and programs, Rodden agreed to discuss the Koch & Co. tax abatement with the council and bring the issue to resolution soon.

Miscellaneous
I spoke at the Brown County Genealogical Society meeting on Thursday, September 21, 2000. I am currently researching potential grants that the Society could use for future projects.

I attended a micro-enterprise workshop sponsored by KDOC&H in Hutchinson. There was information on basic Microloan lending and some information on the CDBG Microloan program specifically related to the State of Kansas.

I was named Secretary of the Northeast Kansas Resource Coalition (NEKRC), a group of non-profit/social service agencies that serve the area.

I attended the "Managing the Workforce Challenge" seminar that was sponsored by the Northeast Kansas Coalition for Regional Economic Development (NEKCRED). RDA is a member of NEKCRED.

The RDA child care committee met for the first time on October 10. This committee to determine how RDA can assist or organize an effort to expand childcare availability in Brown and Nemaha Counties. The RDA Board of Directors listed childcare as a top priority for the next few years. We will begin the process by coordinating our efforts with the Northeast Kansas Community Action Program (NEKCAP) to the maximum extent possible.

I attended the Hiawatha Foundation for Economic Development (HFED) annual meeting on Thursday, October 19.

The RDA annual meeting will take place on Thursday, November 2.

Respectfully submitted,

Scott M. Huizenga
Executive Director