The Rural Development Association of Northeast Kansas (RDA) and the State of Kansas are constantly working to maintain a pro-business atmosphere in our region. There is much to offer in the way of tax incentives, credits, exemptions, and low-interest loans available to fit the needs of your particular business. RDA acts as the local agent to process all incentive requests for local businesses.

RDA would like to remind existing and potential new business owners that business expansion and job creation incentives are available through Brown and Nemaha Counties with the Kansas Enterprise Zone Act. At the state level, the Kansas Department of Commerce & Housing (KDOC&H) offers sales tax exemptions on machinery and equipment purchases along with job creation tax credits and investment tax credits. Any credits or tax exemptions are based on the type of business involved and the number of new jobs created. The Brown County and Nemaha County incentives include installing a 30-foot roadway drainage tube and rock up to the right-of-way of the business property owner. The purpose of state and local incentives is to help defray some of the up-front expenses for new business startups or expansions. Application for any incentive needs to be made before construction begins and the business must meet the Job Creation requirement as specified by the Kansas Enterprise Zone Act.

The Cities of Hiawatha, Horton, Sabetha, and Seneca each have resolutions offering incentives for qualified new business within their city limits. These incentives include (1) a liaison office for up to six months; and (2) all weather surfacing for a roadway entrance not to exceed 30 feet by 100 feet in width or a maximum of $3,000.

Some of the other programs that RDA assists with are: the Nemaha County Microloan; Tax Exemptions/Abatements; the Brown County Neighborhood Revitalization Zone; the High Performance Incentive Program (HPIP); the Job Expansion and Investment Tax Credit program; the Kansas Economic Opportunity Initiative Fund (KEIOF); the Kansas Existing Industry Expansion Program (KEIEP); Kansas Industrial Training (KIT); and Kansas Industrial Retraining (KIR).

For information on business incentives or business startups contact RDA at P.O. Box 207, 205 South 8^th Street, Sabetha, Kansas, 66534. Information on the Enterprise Zone and other programs can also be accessed via RDA’s updated website at www.rdanek.com. RDANEK is the non-profit economic development group that serves Brown and Nemaha Counties. The phone number is 785-284-3099; fax is 785-284-3117, and e-mail at info@rdanek.com.

Kansas Department of Commerce and Housing Announces Enterprise Facilitation Awards

On Wednesday, January 16th, the Kansas Department of Commerce and Housing (KDOCH) announced the the first three demonstration projects that will participate in the innovative Enterprise Facilitation Initiative. The regions, which include the Quad County Enterprise Community in Southeastern Kansas, the Four County Sunflower Region in South Central Kansas, and the Western Kansas Enterprise Facilitation Community Consortium, will be the first to implement the new techniques, developed by Ernesto Sirolli of the Sirolli Institute.

The Northeast Kansas Coalition for Regional Economic Development (NEKCRED), of which RDA is a member, applied to be a pilot project. NEKCRED's sponsoring entities included Jackson County, Atchison County, Doniphan County, the City of Sabetha, the City of Seneca, the City of Hiawatha, and the City of Horton. Many private businesses also contributed to NEKCRED's efforts. NEKCRED's application finished fourth out of nine total applications.

Although not currently funded, NEKCRED's application may still have some life. In Governor Bill Graves' State of the State address, the governor proposed an additional allocation of $1 million to the Enterprise Facilitation program in Kansas. Should funding be approved for the program, NEKCRED is "next in line" to receive funding to begin an Enterprise Facilitation program in northeast Kansas. Currently, RDA and NEKCRED are rallying support from community and business leaders as well as legislators in order to win approval to for the funding.

What is Enterprise Facilitation?

Enterprise Facilitation is a concept developed by Dr. Ernesto Sirolli of the Sirolli Institute, which is based in St. Paul, Minnesota. Sirolli is a business and economic development consultant that has traveled the world, from Australia, to Africa, to South Dakota and Oregon, and has helped local officials to shape struggling local economies into prosperous self-sufficient “enterprise communities.” Sirolli believes that it is vitally important for a community to develop from within, using its own resources and nurturing individuals who have a “passion” for a particular business concept.

The Trinity of Business

Sirolli believes that three components, referred to as the "Trinity of Business," must be present in order for a business to be successful. Each business must have an individual or group who has a passion for:

1. The development and production of a product or service;

2. The marketing of the product or service; and

3. The financial management of the product or service.

Without these three components in place, Sirolli believes a business is doomed to failure. It is important that the person(s) who fill each of the three roles have a “passion” for his/her respective role. A mere competency for marketing or financial management does not suffice. A person must love to crunch numbers or meet people or develop product lines, as the role dictates. Sirolli has found that most people have a passion for one, maybe two, of these three roles. However, it is impossible for one person to have an equal passion for all three of these roles.

Sirolli’s ideas have some statistical merit. According to the Small Business Administration (SBA), approximately 80 percent of small businesses fail within two years. Additionally, 80 percent of the remaining 20 percent fail within five years. In other words, only four percent of small businesses are successful after five full years of operation!

“Bottom-Up Approach”

Traditional economic development approaches have revolved around a “Top-Down Approach,” that is, developing the necessary infrastructures and tax incentives for local communities and organizations to recruit large businesses into an area. These efforts are very important. They have proven to be successful and should not be abandoned. However, the traditional efforts largely exclude local budding entrepreneurs that can significantly contribute to local economies. Enterprise Facilitation emphasizes a “Bottom-Up Approach” that stresses building an economy from within. Local persons have investments in an area that reach beyond pure economics. “Home grown” entrepreneurs invest in schools, charities, and community organizations because they consider the area their “home.” An economy is likely to be far more stable if it is primarily fueled by those that have vested interests in the community’s growth and development.

Enterprise Facilitation in Kansas

Through recently established programs, the Kansas Department of Commerce and Housing (KDOCH) was able to begin three pilot programs in Kansas using Dr. Sirolli as a consultant. In his State of the State address, Governor Graves called for an additional $1 million to fund additional projects. The Northeast Kansas Coalition for Regional Economic Development (NEKCRED) supports this initiative and urges the Legislature to pass this initiative. During times of economic hardship, it is even more imperative for us to invest in our economies. Only by broadening our tax base can we hope to escape dramatic budget cuts and tax increases.

For more information, please feel free to contact your local NEKCRED member or you may visit www.sirolli.com on the Internet.

Nemaha County Awards Two New Microloans

On January 14, 2002, the Nemaha County Commission awarded two business loans from its Microloan fund in order to expand business and job opportunities for Nemaha County.

The first loan of $15,000 was awarded to Harold and Mary Brokamp of Corning. The Brokamps have owned and operated the Corning General Store since 1992. The General Store is completing the construction of a brand new building, which will be located near the junction of State Highways 9 and 63. The move is anticipated to greatly increase the store's customer base. In addition, the Brokamps are expanding their inventory by adding lines of pizza and broasted chicken for travelers and residents of Corning to enjoy. The Buffet Pizza line has already opened with great success. Also in the new General Store the Brokamps plan to increase hardware and food inventories and will eventually open a nightly "sit-down" restaurant in addition to the lunch-time meals that the store currently provides. The Brokamps used private financing for the bulk of their project while the Microloan will be used for inventory purchases in the new store.

The commission also awarded $10,000 to William Larson, II of Sabetha. Larson will soon open Pure Water of Northeast Kansas. Pure Water will showcase a new line of residential and commercial water purification equipment. Pure Water, Inc. is headquartered in Lincoln, NE. Larson will base his operations in Sabetha and plans to serve an approximately 30-mile radius around Sabetha. The business, which will open in mid-to-late February, will be located at 1012 Main Street in Sabetha, formerly the Food Station. Pure Water received all of its financing through the Microloan Program. The funds will be used to purchase start-up inventory for the business.

The Microloan is funded through a Community Development Block Grant (CDBG) from the Kansas Department of Commerce and Housing. For more information about the program, contact the Rural Development Association of Northeast Kansas (RDA) at (785) 284-3099 or microloan@rdanek.com.

Two Nemaha County Communities Receive Economic Development Grants

Released: Wednesday, December 26, 2001

Lt. Governor/Commerce & Housing Secretary Gary Sherrer today announced the award of $2 million in Economic Development funds to the communities of Bern, Russell, and Seneca. Funded through the U.S. Small Cities Community Development Block Grant (CDBG) program, grants are administered by the Kansas Department of Commerce & Housing (KDOC&H). The three projects will create a total 66 jobs.

Economic Development grants are given to cities or counties that, in turn, loan the funds to private businesses that create or retain permanent jobs. Funding is also available for infrastructure improvements that directly create or retain permanent jobs.

The City of Bern will receive $750,000 of CDBG funds on behalf of C. J. Foods, Inc., a manufacturer of specialty animal foods and treats. This award will include funding for the purchase and installation of equipment at the pet food plant, as well as the construction of an industrial pre-treatment facility. The CDBG funds will be matched with $6 million of private and local financing. The project will create 26 jobs.

The City of Seneca will receive $500,000 of CDBG funds on behalf of Koch & Company, a manufacturer of doors and cabinets. The CDBG loan and grant will fund infrastructure and building construction for the expansion of the door division. The CDBG funding will be matched with $447,500 of bank financing and $67,400 of local funds. The project will create 18 jobs.

“It is important in difficult economic times that we partner with businesses to make significant investments in jobs and facilities for these communities,” said Lt. Governor/KDOC&H Secretary Gary Sherrer.

The Kansas Department of Commerce & Housing is the state’s lead economic development organization, responsible for ensuring economic opportunities for all Kansans.

Horton, Kansas Main Street Community Meeting

Residents, business owners, chamber members, city officials and HIDC members are invited to an informational meeting to be held February 21, 2002 at 7:00 P.M. in the Horton City Hall second floor court room to discuss The Kansas Main Street Program. This Kansas Department of Commerce & Housing (KDOC&H) program aids Kansas cities with populations under 50,000 to preserve and revitalize downtown areas. Jeanne Stinson from KDOC&H will be present to explain the Kansas Main Street Program and to answer questions.

The Kansas Main Street Program uses a common-sense approach to revitalize a community’s central business district by capitalizing on the downtown’s history and by identifying community resources. This KDOC&H self-help program provides technical assistance, local program evaluation, design assistance, business enhancement strategies, incentive dollars, management training, consultation visits and on-going training in the National Main Street Center four-point approach which encompasses the following:

Organization: Getting everyone working toward the same goal.

Promotion: Selling the image and promise of Main Street to all prospects.

Design: Enhancing the visual quality of downtown through attention to all elements of the physical environment.

Economic Restructuring: Strengthening the existing economic assets of the business district while diversifying its economic base by helping existing businesses expand and recruiting new ones to respond to today’s market.

While the KDOC&H provides assistance, the responsibility and credit for success rests with the community leaders who offer time, expertise, and enthusiasm to revitalizing downtown.

To be considered for participation in the program, Communities must demonstrate the following:

· Broad-based public and private sector support

· Need for, and commitment to, a long-term sustained downtown revitalization effort using the Main Street four point approach

· Sufficient building and business on which to build a marketable image

· A well-defined core commercial district

· Leadership from committed volunteers, including a substantial number of downtown business and property owners and managers.

· Demonstrated ability to succeed based on past community efforts

· Willingness to provide financial support for the local program

In addition to the emergence of a beautiful and vibrant downtown, successful Main Street communities are eligible for the Incentives Without Walls program. Incentives Without Walls provides grants to local Main Street programs which in turn can provide low-interest loans to downtown businesses that wish to improve their businesses through activities such as building renovation/beautification, expanding inventories, and purchasing equipment.

RDA Annual Meeting Report

The Rural Development Association of Northeast Kansas (RDA) met at Bob's Sirloin Room in Seneca, Kansas for their annual meeting and election of officers for the coming year. Mr. Dean Rial, President, presided over the evening and introduced Scott Huizenga, Executive Director and Kansas Secretary of State, Ron Thornburgh, guest speaker for the evening. Invited guests were County Commissioners, County Clerks, Mayors and City Administrators as well as local media.

Mr. Thornburgh talked about participation at the community level to revitalize our rural communities by making them more conducive to business and individuals alike. He pointed out that unless there are jobs, retail businesses, affordable housing, and opportunities available, our rural communities will continue to lose population. Only by volunteerism and leadership at the grassroots level to encourage and support economic growth and development can communities hope to weather the current economic conditions in a positive way.

Scott Huizenga reported on the accomplishments of the past year and prospects for the coming year. During the past year RDA has assisted with grants for Brown and Nemaha County including: Everest Low-income Housing Grant of approximately $800,000; Goff Fire Equipment Grants $368,000; Nemaha County Revolving MicroLoan program, $100,000 with $15,000 disbursed; a Land Use Task Force Gant for $25,000 pending final approval as well as making contact over 80 businesses or potential businesses. Scott also filled the group in on proposed projects for the coming year and looks forward to an even more exciting and productive year in the field of rural development.

After dinner, Mr. Thornburgh's address and Scott Huizenga's report, the Board of Directors of RDA convened for a short business meeting which included the nomination of Jeff Kramer, Fairview to the Board of Directors and the election of officers for the coming year as follows:

            Dean Rial, President
            Ken Herbster, Vice President
            Lucille Kibler, Secretary
            Doug Allen, Treasurer

There being no further business, the meeting was adjourned.

Nemaha County Doles Out First Microloan

On Monday, August 13, the Nemaha County Commission approved the first loan from its Nemaha County Microloan Fund. Shawn and Brandi Hamner of Sabetha were the recipients. On the recommendation of the microloan committee, the commission agreed to loan $15,000 to the Hamners so that they can purchase Videos To Go, a video rental operation in Sabetha. The Hamners plan to relocate to downtown Sabetha. The Hamners also received a loan in the amount of $30,000 from Morrill State Bank and Trust in Sabetha to complete the business purchase. The Hamners agreed to create at least two new jobs in Sabetha within two years as a condition to receiving the loan.

The Nemaha County Microloan was established with a Community Development Block Grant (CDBG) from the Kansas Department of Commerce and Housing in December 2000. The goal of the program is to facilitate access to capital and business planning for those persons who ordinarily may not have ready access to capital through traditional financing mechanisms. Businesses must be located in Nemaha County. For more information about the Microloan program, contact the Rural Development Association of Northeast Kansas (RDA) at (785) 284-3099.

Click here to view the press release for the Nemaha County Microloan.

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