Business Prospects
New business contacts since 6/11/01: Sabetha, 5; Wetmore, 1; Goff, 1; Seneca, 2; Oneida, 1; Horton, 1; Morrill, 1; Powhattan, 1;

Existing business contacts since 6/11/01: Sabetha, 4; Seneca, 1; Baileyville, 1; Morrill, 1; Corning, 1; Out of area, 3

The State Board of Tax Appeals (BOTA) reported that it has received the tax abatement application for Koch & Co. However, there were some items that BOTA needs clarified. RDA made the necessary changes and submitted them to BOTA.

Later, 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 of Seneca 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.

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 an orthopedic surgeon who will locate in the area next fall. RDA previously 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.

I have contacted various agencies on behalf of Rick Albaugh, a new Seneca resident who hopes to establish a psychotherapy practice in Seneca. In the process I have made contacts with various agencies including KANZA Mental Health, Nemaha County Training Center (NCTC), the Apostolic Christian Home in Sabetha, and Brown County Disability Services.

Local Government Relations
RDA is currently working with the Kickapoo Tribe of Kansas on variety of projects including the possible establishment of an ethanol plant in Northeast Kansas. John Thomas, Vice-Chairman of the tribe, has expressed interest in pursuing federal funds as an American Indian economic development project. The tribe would then partner with northeast Kansas producers to establish the plant. RDA hopes to assist the Kickapoo with other federal grant applications that are available to American Indians.

The City of Seneca was notified that its application for sewer replacement to the Community Development Block Grant program was not awarded. RDA later learned that the application missed the funding cutoff by one point. Though not funded, the application scored higher than was initially anticipated.

On Tuesday, June 26, the Kansas Department of Commerce and Housing (KDOC&H) informed Everest Housing Authority and RDA that the housing project has been allocated $660,960 in tax credits.

The Everest Housing Authority also was awarded a $60,000 grant from the Federal Home Loan Bank (FHLB) of Topeka. The housing authority then applied to the Kansas Department of Aging’s Partnership Loan Program for the debt-financing portion of the project. The proposal calls for a loan of $160,000 for a term of thirty years at an interest rate of five percent. The Kansas Department on Aging later approved the application. The application developed by RDA was considered a pilot project as one of the first applications for the new program. If all the financing is finalized promptly, construction may begin before the year is over.

I spoke on July 12th to the Horton Industrial Development Committee about possible building renovation grants. Storms had caused a partial collapse of an old downtown building. The group prefers to restore the building rather than tear it down if possible.

I attended a public meeting in Reserve on July 16 concerning a potential sewer installation project. There was some opposition to such a project at the meeting. John Ladson from Bartlett and West Engineers was there to answer technical questions. The city has not made a decision. If the city moved forward with the project, RDA would assist in obtaining CDBG funds and USDA Rural Development funds.

I met with Harland Schuster, fire chief for the Morrill Fire Department regarding grant opportunities for constructing/repairing a fire station. We are looking into grants and loans from CDBG, USDA, and FEMA.

I attended the July meeting of the Corning City Council. The council is interested in RDA assisting with procuring funds for a new water line system. I have attended meetings with the Kansas Department of Health and Environment (KDHE) and spoken with USDA Rural Development officials about water line funding. Currently, the city is wrapping up a low-to-moderate income (LMI) survey to determine whether the city will qualify for CDBG. It appears that the city will qualify.

I met with the Nemaha County Fire District No. 2 (Corning area) regarding funding opportunities. I described the CDBG program, USDA Rural Development grants and loans, and the United States Fire Assistance program through the Federal Emergency Management Agency (FEMA).

The City of Seneca authorized RDA to prepare a grant application to the Kansas Department of Commerce and Housing (KDOC&H) for its Community Capacity Building Grant program. The program is available to local governments, non-profit organizations, and special districts to help pay for planning activities associated with expansion or major changes in a community. The City of Seneca is applying to seek financial assistance in hiring a land planner for its west end development, commonly known as the Markley Property. At its August 15^th meeting, the city council declared that the hiring of a planner would be contingent upon the receipt of this grant. Later, RDA learned that Seneca could receive additional funding if Seneca updated its city comprehensive plan along with the preparation of the land use plan. KDOC&H gave strong indications that the grant application could rank higher if the city chose this option rather than simply amend the existing plan to include plans for the west end development. At the September 5^th City Council meeting, the council voted to include plans to update its comprehensive plan with the application for the land use planning grant

RDA is completing final preparations to convene the solid waste committees in each county. We are currently attempting to fill the remaining positions on the committee. We hope to have the committees filled before convening a late October public meeting to fulfill the requirements of Brown and Nemaha County’s Solid Waste Plan. The plan requires a five-year review by the committee. The review must be completed before the end of the year.

I attended a council meeting of 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.

Miscellaneous
I attended a Kansas Native American Tourism meeting at Harrah’s Prairie Band Casino in Mayetta. The group, composed of various Native American and economic development agencies, is partnering with an Oklahoma group to increase the tourism in Native American lands in the two states. The group has hired a Dr. Richard Seely, a Washington D.C-based consultant who is seeking federal grant funds to establish the project.

I attended the Enterprise Facilitation workshop in Topeka that was sponsored by KDOC&H. Enterprise Facilitation, a concept developed by Dr. Ernesto Sirolli, involves forming a local development organization with a facilitator that can help local entities develop new businesses. Sirolli believes that entrepreneurs start businesses by forming partnerships with people who possess varying skills. Sirolli says there are three components to a successful business: product, marketing, and financial management. Most entrepreneurs are "product people" but do not have a "passion" for the other two components. Some are capable of performing two of the three components. However, he believes no one has an equal "passion" for all three parts. This is why sole proprietorships most often fail. KDOC&H is sponsoring three "pilot" programs in the State of Kansas to implement Sirolli’s techniques on a regional level. The Northeast Kansas Coalition for Economic Development (NEKCRED) is interested in applying for the program. RDA is a member of NEKCRED.

Respectfully submitted,

Scott M. Huizenga
Executive Director