Director’s Report to the County Commissioners
Nemaha County

January – February 2002

Business Prospects

Initial contacts since 12/7/01: Sabetha, 1; Seneca, 2; Bern, 1; Horton, 1; Outside, 1

Existing prospect contacts since 12/7/01: Seneca, 4; Sabetha, 7; Corning, 1; Everest, 1; Horton, 4; Powhattan, 1; Hiawatha, 1; Outside, 2

Local Government Relations

The City of Seneca’s CDBG application on behalf of Koch & Co., Inc. was approved for $500,000.  Of that total, $432,500 will be available to Koch & Co. in the form of a low-interest loan. The city will receive a grant of $26,250 for infrastructure improvements for the expansion site, which is directly west of Fort Markley in Seneca. RDA received the administration bid on the grant, which is worth a maximum of $15,000.  RDA drafted the approved application, which ranked first among the four economic development applications submitted for the December round.  The project is expected to create from 50 – 100 jobs in the next two years. 

The City of Bern’s CDBG application on behalf of C.J. Foods, Inc. of Pawnee City was approved for $750,000.  The application, drafted by RDA awards $267,000 in grant funds to the city for a new sewer lagoon cell to facilitate the business expansion.  In addition, C.J. Foods will receive low-interest business financing of almost $470,000.   The project is expected to create approximately jobs in the next two years.

The City of Goff is continuing with plans to build a community center with lunch services using the KANSTEP program.  KANSTEP provides CDBG funds to communities who donate volunteer labor to construct public facilities such as sewer/water replacements, community buildings, and fire halls.

The City of Corning is continuing its plans to replace its water system throughout the town.  We have been in contact with officials from the Kansas Department of Commerce and Housing (KDOCH), USDA Rural Development, and the Kansas Department of Health and Environment (KDHE).  Currently, the city plans to use a combination of USDA grant/loan funds and either the traditional CDBG program or the self-help KANSTEP program.  As proposed, the total cost of the project with contract labor is approximately $889,000.  RDA has been helping the city with its income survey and has been contacting government officials on behalf of the city.

The City of Seneca is applying for the March 2002 round of the CDBG program for a large-scale sewer system renovation.  The city hopes to receive funding from CDBG and KDHE to build two new lagoon cells, replace a main line in the southeast portion of the city, and build a new line in the northwest portion of the city to encompass an area that is currently outside city limits.  Last year, the city’s application (prepared by RDA) to replace the southeast line missed the funding cutoff by one point.  RDA has been procured to write the grant and administer the project, if approved.

The Morrill Fire Department is in the process of the performing an income survey to determine its eligibility for either the CDBG program or the KANSTEP program.  The department wishes to construct a new fire hall.  RDA has been giving instructions on how to perform the survey.

Nemaha County Fire District No. 2 (Wetmore area) has contacted RDA about constructing an expansion to its fire hall.  RDA has given instruction on how to perform an income survey for the CDBG and KANSTEP.  I also explained to the department grants and loans from FEMA and USDA Rural Development.

With all of its funding approved, the Everest Housing Authority hopes finalize contracts soon and break ground by the beginning of May 2002.  Phillips and Associates of Manhattan completed a market study of the proposed project.  The study found that Everest and the immediate surrounding area had the capacity to support approximately seven of the twelve total units to be built in the complex.  The market in the remainder of Brown County and beyond could easily fill five more units.

I arranged for officials from the KDOCH to speak in Horton on February 21 about the Main Street Program.  Main Street is a technical assistance program offered by KDOCH to help struggling downtowns to revitalize their community.  It is based on the National Main Street program.  KDOCH only awards one or two communities per year.  Officials for the Horton Industrial Development Corporation (HIDC) are interested in the program and plan to attend the application workshop on March 14.

The Sabetha Fire Department contacted RDA about possibly completing a U.S. Fire Assistance (USFA) grant on behalf of the department.  USFA is authorized through the Federal Emergency Management Administration (FEMA).  Applications are due April 1, 2002.

Miscellaneous

The Northeast Kansas Coalition for Regional Economic Development (NEKCRED)’s application to KDOCH for an Enterprise Facilitation pilot program was not approved for funding.  Three projects were approved while NEKCRED’s application finished fourth by margin of two points.  Gov. Graves proposed budget calls for $1 million of state funds allocated to the Enterprise Facilitation program.  If any funding is approved, NEKCRED stands “next in line” to receive funding.

Respectfully submitted,

Scott M. Huizenga
Executive Director