Business Prospects
Initial business contacts since February 20, 2001 – Sabetha, 4; Wetmore, 1; Hiawatha 3; Bern, 1; Baileyville, 1;

Existing business contacts since February 20, 2001 – Horton 2; Seneca 4; out of area, 3; Sabetha, 12; Everest 1; Bern, 1; Goff, 2; Corning, 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 USDA Community and Business Programs division. Their loan guarantee 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. 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 Seneca City Council voted to submit a CDBG grant application for sewer replacement in the southeast portion of the city. RDA prepared the application, which is due April 6^th. The CDBG request is $334,500 including a city match of $167,600. Administration is budgeted for $14,000.

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 protests were received. Phases I & II began in 1999. Koch will soon be applying for abatement on the Phase III expansion.

The Everest Housing Authority received word from KDOC&H that the application for a $60,000 State Housing Trust Fund grant was successful. We are awaiting word on Housing Tax Credits. 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.

RDA submitted a proposal to Nemaha County Rural Water District #1 for administration services on a KANSTEP grant that the district will receive. KANSTEP (Kansas Small Towns Environmental Program) is a subset of the CDBG program in which applicants can request up to $400,000 for sewer and water products. In a KANSTEP project, KDOC&H pays for all engineering and materials costs for the project while the locality provides reduced costs with a match of volunteer labor, lower supply costs, and/or donated materials. I visited with RWD #1 on April 5 about administering the project. RDA has not received word on whether we were awarded the contract.

RDA submitted a grant to the U.S. Fire Administration, a division of the Federal Emergency Management Agency (FEMA), on behalf of Nemaha County Rural Fire District No. 4. The district hopes to obtain some new equipment to update its forces. Applications are due on May 2^nd.

Miscellaneous
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.

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.

I will be attending a microenterprise conference in Oakland, CA 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 and is being offered to those economic development officials of those counties who have been awarded Microloan grants from the state.

I attended the Kansas Center for Community Economic Development (KCCED) conference in Manhattan on April 18-19. Ernesto Sirolli, the keynote speaker, spoke of entrepreneurship facilitation by offering one-on-one coaching and information services. Sirolli, founder of the Sirolli Institute, believes that economic development strategies that use policies such as industrial parks and tax abatements are outdated. He believes that communities see little reward from investing money in recruiting outside firms. He believes the expenditures can be used more efficiently by investing in local economic development officials to help local small and emerging businesses in any way possible so that more local businesses can be started. Sirolli outlined many steps that can be taken by an ED person to help a business succeed.

I spoke at a public forum in Tonganoxie on a proposed casino development in the area. The Delaware Tribe is currently looking at two sites in Leavenworth County for a new casino. I spoke on the effects that the casinos in Brown County have had on indicators such as annual wages, per capital income, unemployment, and crime.

Respectfully submitted,

Scott M. Huizenga
Executive Director