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 Ash
Grove officials stated that they were either going to build the plant in Chanute
or in an undisclosed site in the Kansas City area. If Ash Grove did not chose to
expand in Chanute, it was believed that they would close this plant.
Ash Grove had been part of the Chanute community for 90 years and was a solid
and stable employer with about 150 employees in Chanute and a payroll of around
$6 million annually. To say that the community was concerned about losing the
business would be an understatement.
City staff pulled together a taskforce of local citizens from different areas
within the community, which included a City Commissioner, City staff, bankers,
Chamber officials, an attorney, a NCCC staff member, a representative of the
South Kansas Oklahoma Railroad and others.
The taskforce assessed the project and explored the ways to assist in the
expansion and entice Ash Grove to chose Chanute over the other undisclosed site.
The team looked into the following areas: financing, property tax exemption,
transportation, utilities, and workforce.
All of the work accumulated with an event or rally in the downtown area
coordinated, financed and runs by the City of Chanute that focused on
demonstrating the community’s desire to see Ash Grove expand in Chanute.
In the end Ash Grove decided to expand to Chanute. They were offered use of
Industrial Revenue Bond issuance, received a 100%, ten-year property tax
exemption (they agreed to pay a payment-in-lieu of taxes over the exemption
period) and receive a negotiated rate for electricity, based on their electric
load structure and use patterns.
Tioga Suites
 In
2001, The Tioga closed its doors. For ten years, this historic building was the
home for an independent living home for elderly people. Many people, including
City staff were concerned about this situation. It was disturbing enough to have
the residents of The Tioga relocating (many to other communities), but it also
meant the loss of jobs for the employees of the business. In addition, a vacant
building of its size is difficult to sale and vacant building deteriorates at an
accelerated rate and this building is at the heart of downtown Chanute.
Many different individuals and group looked at the building for a wide variety
of uses and the building almost sold twice in the summer of 2004. In the fall of
2004, Todd Johnson purchased the building to operate a business under the name
of Tioga Suites. Tioga Suites originally planned to offer private residence
ownership living opportunities in The Tioga’s 50+ rooms. However, soon it was
discovered that this was not a viable option and they began offering apartment
living. Furthermore, Mr. Johnson is in the process of opening a new restaurant
and micro-brewery, The Safari Grill in The Tioga.
Significant renovation has already been done throughout the building and more
renovation is planned. In addition, improvements have been made to the
building’s exterior and façade and more is planned for the future.
The City assisted the project through a low interest loan through our Revolving
Loan Fund program for $200,000 for renovations and repairs to the building. The
City has also added parking in the downtown to assist this project and other
growth in the downtown area.
Pop-Up Industries
Bernard Dick is the owner of Econo Machine, Inc., a local steel fabrication
business. Due to a new product innovation, Econo Machine added a new subsidiary
business under the same ownership called Pop-Up Industries.
Pop-Up Industries is a manufacturer of truck coupler products. They sell their
products nationally and internationally through distributors and dealers. In
addition, a customer can purchase products direct from Pop-Up, which is shipped
from Chanute. They have been in operation for more than four years, shipping
their first product in 1999 in the Econo Machine Building, 220 West 14th St.
By 2004, Pop-Up Industries had outgrown their current location. Mr. Dick was
interested in constructing a new building in Safari Industrial Park. The City of
Chanute assisted in the expansion through the gift of four acres of City-owned
property in Safari Industrial Park, waiving of utility tap fees and a property
tax exemption on the new 17,500 square foot facility as well as on new machinery
and equipment as part of the expansion.
This is an optimal site for Pop-Up since it is close to a three-acre site that
they plan to purchase from another local manufacturer, Young’s Welding. It is
also very close to Young’s Welding of which Pop-Up Industries is a customer.
This site will allow Pop-Up ample opportunity for growth in the future.
B&B Theatres
B&B Theatres has operated a movie theater in downtown Chanute for decades. B&B
Theaters is a family owned and operated company. They own and operate 161
theater screens in Kansas, Missouri, and Oklahoma, specializing in medium sized
cities such as Chanute. The company was originally headquartered in Iola,
Kansas, about 18 miles North of Chanute. They have been in the movie business
since 1924. They are now based out of Liberty, Missouri.
Discussions between B&B Theatres, United Missouri Bank, Community National Bank
and the City of Chanute have been taking place over the last few years. These
discussions have focused on the use of tax increment financing (TIF) to assist
in a project, which includes the construction of a new multiplex theater and
creation of parking improvements in Chanute’s downtown area.
B&B Theatres will construct a new four-screen movie facility on the Northeast
corner of Main Street and Evergreen Street in downtown Chanute, Kansas at a cost
expected to be about $1.2 million. B&B is planning to work with the City of
Chanute for appropriate and esthetic improvements to the exterior of the
building to blend with the characteristic of the downtown area.
The City of Chanute will construct a new public parking lot across from B&B’s
new theater on the Southeast corner of Main Street and Evergreen Street. The
City will acquire and demolish B&B’s existing movie theater complex and
construct a new public parking facility in its place. In addition, other
buildings on this block have been acquired and demolished as part of this
project and public parking constructed in its place, in order to enhance this
phase of the project by increasing parking capacity.
With TIF, funds are available from the proceeds of bonds to be issued by the
City and secured through the incremental increase in property taxes within the
redevelopment district as a result of the new construction or rehabilitation. In
addition to new property taxes, the City will use new sales taxes generated
within the redevelopment district to pay the bonds or finance the project costs.
Costs are not paid from general tax receipts. The City will also be involved in
some of the incidental aspects of this project, such as curb and gutter work,
curb cuts and other physical improvements, primarily in-kind services. No TIF
funds will be used for private development purposes.
ICAN Network
A PROJECT TO SUPPORT EDUCATIONAL NEEDS IN CHANUTE
 During
the course of studies conducted on behalf of the City, it was discovered that
there is the potential for substantial federal reimbursement funds, upwards of
70%, if the City were to become the Internet Service Provider for the Chanute
School District USD 413. Interconnectivity among the school buildings, Neosho
County Community College, Chanute Public Library, and the City government
offices had been sought for years. The once informal group is now called the
ICAN Group. The City Commission approved the expansion of the City’s
communications network to interconnect the ICAN Group through the City’s network
and authorized the City to provide Internet Access to these entities.
This approximate $155,000 infrastructure investment in the community is expected
to be repaid by the members of the ICAN Group in fees for services over a 8-10
year period. Additionally, it has been estimated that the ICAN Group can save as
much as $150,000 in capital investments in the first full year of network
operation and potentially $100,000 each year thereafter. The schools, community
college, and public library have been long-standing proponents of the network
build out because of their ability to share expensive computer hardware and
software. The performance benefits for the students in Chanute are dramatic.
Because of the community network, a statewide Kan-Ed educational network
interface can be developed, further expanding the educational opportunities for
students in Chanute.
Housing Rehabilitation and Demolition Grant
The City of Chanute has been awarded a Housing Rehabilitation and Demolition
Grant as part of the Kansas Department of Commerce’s Community Development Block
Grant (CDBG) program. CDBG funds are originated through the federal government
through the Department of Housing and Urban Development (HUD). The Kansas
Department of Commerce administers the CDBG program for HUD.
CDBG funds are designated for assistance to achieve two defined national
objectives—benefit to low-to-moderate income families/persons or creation of
jobs for low-to-moderate income persons. Many guidelines and regulations are
associated with the award of these grants.
Over the last three years, grant funds have rehabilitated thirteen houses and
seven structures have been demolished. This effort has made a marked difference
in the targeted area, which extends from 7th to 14th Streets and is about three
streets wide. The target area has about 100 housing units. The area was a
recipient of a CDBG grant for a street and stormwater drainage project in 1996.
A grant to build new homes for low-to-moderate income individuals and families
is in the application process for this area.
Osa Martin Heights sub-division
The City of Chanute owns 50 acres of land in the west part of town. This land
was part of a business relocation deal over ten years ago. Part of the land was
sold to a developer in 1998. The developer constructed an elderly and low income
housing at the site, utilizing housing tax credits.
The City in an attempt to encourage new single-family housing starts, has taken
a positive and pro-active step. The City has hired an engineering firm to work
with City Staff to proceed through the platting process on this piece of
property.
To further encourage the desirability of the parcels of property the City is
considering constructing the streets for the sub-division and installing the
utility infrastructure required at a subsidized rate and offering a rebate on
property taxes for persons constructing new homes in this area.
As the plat stands now, there are 89 lots of various size. Lots are generally
about twice the size of normal lots throughout town. The “typical” lot is about
100 feet by 150 feet.
At the current rate of housing starts within the City, it will take ten to
twelve years to fill this sub-division. If this is a successful venture, it may
fill in about five years. |
