Business Prospects
Initial new business contacts since February 20, 2001: Hiawatha, 5; Sabetha, 5

Existing business contact count since February 20, 2001: Everest, 1; Corning, 1; Seneca, 2; Horton, 1; Sabetha, 1; Out of the area, 1

Randy Snider, Rural Development Specialist for USDA Rural Development, is asking assistance from RDA to organize a lenders forum in this area. Snider works with the Community and Business Programs division for USDA. These programs have a reputation for having a slow response rate, requiring higher credit ratios relative to Small Business Administration (SBA) programs, and having too much paperwork. Randy wishes to address these concerns to local lenders as well as explain the programs to lenders who may not be familiar with the USDA programs. RDA will assist with arranging this forum. The forum is tentatively scheduled for May 8^th at Morrill State Bank in Sabetha. RDA has received interest from most financial institutions in the area.

Local Government Relations
The City of Seneca submitted a grant application for a sewer replacement to the Community Development Block Grant (CDBG) program. RDA prepared the application, which was due April 6th. The total project is estimated at approximately $335,000.

The Nemaha County Commission approved submitting a grant to the CDBG program on behalf of Nemaha County Rural Fire District #1 (Goff). The application, for three new fire/rescue vehicles, was due March 15, 2001. RDA rewrote the grant for the district after KDOC&H rejected the previous application in September.

The City Council of Seneca voted unanimously on March 7 to grant a tax abatement to Koch & Co. on Phases I & II of their expansion. The vote was recorded after a public hearing in which no comment was received. Phases I & II began in 1999. Koch will soon be applying for tax abatement on the Phase III expansion.

Nemaha County Rural Water District #1 is in the process of receiving a Kansas Small Towns Environmental Program (KANSTEP) grant through the Kansas Department of Commerce and Housing (KDOC&H) for the replacement of a water line. A part of the CDBG program, KANSTEP is specifically geared toward smaller areas that want to replace water and sewer lines. The applicant agrees to supply all of the labor from volunteers, and the grant pays for materials, engineering, and administration. RWD #1 contacted RDA and others about forwarding a bid for administration of the project. The total project will cost around $360,000. RDA submitted a proposal for administration services. I visited with RWD #1 on April 5. RWD #1 expects to announce the award in about three weeks.

The Everest Housing Authority received an award letter from KDOC&H that the application for a $60,000 State Housing Trust Fund grant was successful. We are awaiting word on a Housing Tax Credits application for about $600,000. We submitted an application for $60,000 to the Federal Home Loan Bank (FHLB) Affordable Housing Program (AHP) on due April 1. If this grant is awarded, Everest can secure permanent financing and begin the project.

The Bern Rural Fire District is applying for firefighting equipment funds through the US Fire Administration, which is a division of the Federal Emergency Management Agency. RDA will prepare the application for the district.

Connie Steinlage is resigning her position as Office Manager as of February 28, 2001.

Richard Pearse, Treasurer for RDA, submitted his resignation to RDA effective February 22, 2001. Dick accepted employment outside of the area.

I spoke at the Hiawatha Kiwanis club on March 16. There was great interest in RDA programs and services. We received a few potential clients.

Chris Clark, City Administrator for the City of Tonganoxie, asked me to speak about the effect of casinos in Brown and Nemaha County. The Delaware Tribe is seeking permission to build a casino near Tonganoxie. Clark asked me to speak at a public forum on April 17.

I met with members of the Hiawatha Community Hospital Foundation on March 23. The foundation is applying for community service tax credits through KDOC&H in order to fund a proposed expansion to provide orthopedic services at the hospital. I provided grant advice to the some members and John Moore, hospital administrator.

I attended the Sabetha Industrial Development Corporation’s (SIDC) annual meeting on March 27.

On April 3, I attended the groundbreaking ceremony for the Midwest Ag Services, LLC feed mill project. RDA was recognized for our efforts in obtaining the tax abatement from the local governments as well as quelling much skepticism from the public about the project and the abatement.

I will be attending a microenterprise conference in Oakland, CA on May 15-19. The Kansas Center for Rural Initiatives is providing airfare and lodging through a grant from the Economic Development Administration. The conference will focus on microenterprise financing and consulting. KCRI is offering financing economic development officials of those counties who have been awarded Microloan grants from the state.

Respectfully submitted,

Scott M. Huizenga
Executive Director