Business Prospects
Initial contacts since 8/28/01: Sabetha, 2; Horton, 2; Seneca, 3; Oneida, 1; Bern, 1; Powhattan, 1

Existing prospect contacts since 8/28/01: Sabetha, 3; Corning, 1; Horton, 2; Seneca, 2

I met with the Hiawatha Community Hospital administrator, John Moore, to discuss the Kansas Department of Aging’s Partnership Loan Program. The hospital is seeking funding to construct and equip a new orthopedic wing for a surgeon who will locate in the area next fall. RDA helped prepare a successful application to the program on behalf of the Everest Housing Authority. The program provides low-interest financing to housing and health care projects that benefit senior citizens.

The State Board of Tax Appeals (BOTA) issued a ruling regarding the Koch & Co. tax exemption application. The initial ruling exempted all personal property but not real estate, as the resolution adopted by the city did not mention real estate. This was explained simply as an oversight by the city. The Seneca City Council adopted an amended ordinance that exempts all property and real estate. On September 19, BOTA ruled that all personal property and real estate on the Koch & Company Phase I expansion project shall be exempted from property tax.

RDA conducted a brief grant search on behalf of Fort Markley in Seneca to potentially fund a historical renovation of an old home near the site. The home needs to be moved from the property. Mary Jane Markley hopes that the building can be renovated for possible habitation.

On December 8, 2001 the Sycamore Springs Foundation purchase the historic Sycamore Springs resort for $220,000. RDA has been working with members of the foundation for over a year. The foundation’s goal is to have the resort open by spring 2002 so that the public can once again take advantage of the facility for entertainment and social gathering purposes. Ultimately, the foundation plans to renovate the property into a first-class vacation spot.

Local Government Relations
I have attended meetings with the Kansas Department of Health and Environment (KDHE) and spoken with USDA Rural Development officials about water line funding for the City of Corning. The city wrapped up a low-to-moderate income (LMI) survey that determined that the city would qualify for CDBG. I attended a Kansas Interagency Council (KIAC) meeting with officials from the City of Corning and John Ladson from Bartlett and West Engineers. The city is planning to apply for either a CDBG water and sewer grant or a KANSTEP grant to replace its water distribution system.

I attended a council meeting for the City of Morrill on September 17. The city is interested in obtaining funding for a new fire hall as well as an update of the city’s electrical distribution system. I explained RDA’s services as well as possible grants that could be applicable to each project. The city seems to be interested and will soon begin performing a low-to-moderate income (LMI) survey to determine whether the city and the fire department territory are eligible for CDBG funding.

RDA was contacted by the City of Bern. Bern is hoping to upgrade its sewer system with grant funding. The Kansas Department of Health and Environment (KDHE) has warned the city that its Biochemical Oxygen Demand (BOD) levels exceed KDHE limits. I explained how Bern could perform an LMI survey to see if the city qualifies for CDBG funding. I also briefly explained USDA and KDHE funding programs.

RDA recommended that the city apply for a new sewer lagoon through the CDBG’s economic development category. Bern could qualify for this category because C.J. Foods, Inc. of Pawnee City, NE plans to expand at the facility formerly occupied by Doanes Pet Care. A new lagoon system is vital to handle the waste that the company will produce. RDA prepared the application. KDOC&H was scheduled to announce the awards on December 14.

RDA prepared a CDBG economic development application on behalf of the City of Seneca to finance an expansion by Koch & Co. The company plans to move its doors division to the northwest part of Seneca, next to Fort Markley. If approved, the CDBG grant will fund approximately $500,000 of business financing for Koch & Co. at an interest rate of two percent. In addition, the City of Seneca can receive approximately half of its cost to extend utilities to the location. Grant awards will be announced on December 14.

RDA completed the Everest Housing Authority’s final financial projections for its senior housing project. The Kansas Equity Fund agreed to syndicate the tax credits for the project. The authority has hired Phillips and Associates of Manhattan to complete a market study. If the completed market study shows a positive outlook for the project, the housing authority can then procure contractors for the project.

On November 15, the Seneca and Sabetha Chambers of Commerce invited Nemaha County hotel/motel owners and county and city officials to a meeting to discuss the possibility of implementing a countywide lodging tax of two percent. The City of Sabetha passed its own levy on November 26. Therefore, Nemaha County cannot pass any additional lodging tax that would affect Sabetha. Lodging tax funds must be used to promote tourism in the area in which it is levied.

I attended a meeting with citizens from the City of Goff and Marilyn Graham from the Kansas Department of Commerce and Housing. Marilyn was explaining the KANSTEP program to the audience. The KANSTEP program is under the CDBG program and provides funding to projects such community buildings, fire halls, and sewer and water lines. Under the program, communities provide volunteer labor while the KANSTEP program buys engineering/architectural services and supplies and equipment for a project. The "sweat equity" program is rapidly gaining popularity in the state. Goff residents hope to build a community center with a kitchen using their own labor and KANSTEP funds.

The City of Seneca recently learned that its application for planning assistance under the Community Capacity Building grant program was not awarded for funding. KDOC&H officials gave priority to those projects that stressed community planning, rather than special district projects. The City of Seneca sought funds to hire a community planner to plan for its Markley Property as well as to update its comprehensive plan. The city must now decide how to proceed with the development of the Markley Property.

Miscellaneous
The Northeast Kansas Coalition for Economic Development (NEKCRED) is interested in applying for the Enterprise Facilitation program. Atchison County, Brown County, Doniphan County, the City of Hiawatha, the City of Horton, the City of Sabetha, and the City of Seneca have agreed to participate in NEKCRED’s efforts. RDA is a member of NEKCRED. Each of these jurisdictions has dedicated funds to the project. The grant applications are due December 19. Awards will be announced by the end of the year.

I attended the October and December meetings of the Horton Industrial Development Corporation (HIDC). I explained the Enterprise Facilitation program and the Kansas Main Street program. HIDC has expressed interest in the Main Street program and has asked RDA to arrange a meeting with KDOC&H and HIDC to learn more about the program.

I attended the Hiawatha Foundation for Economic Development’s annual meeting on October 18.

RDA was a co-sponsor of NEKCRED’s legislative forum held on November 27 at the Country Cabin in Hiawatha. The event was held for local officials to speak with their state representatives and to hear NEKCRED’s 2002 legislative agenda. Rep. Bruce Larkin (D – Baileyville), Sen. Ed Pugh (R-Wathena), and Rep. Gerald Henry (D-Atchison) attended the event. Speaker of the House Kent Glasscock also made a special appearance.

Respectfully submitted,

Scott M. Huizenga
Executive Director