Online Chat - Kent Heermann
September 2, 2008
Kent Heermann, president of the Regional Development Association, will answer your quesitons about Emporia's economic development efforts.
Moderator: Today's guest is Kent Heermann, president of the Regional Development Association of East Central Kansas. The RDA recently became involved in retail as well as industrial development. A proposal to develop a tract at 24th Avenue and Industrial Road for a retail center anchored by a Lowe's home improvement store has become something of an issue both in the neighborhood and around town. Let's start with a question about the project and retail development.
moderator: Along with industrial development you also do retail development tell us about how the Lowe's project is going?
Kent Heermann: D.J. Christie has begun the application process for Tax Increment Financing (TIF) and Transportation Development District (TDD) and Planned Unit Development (PUD) with zoning changes. There will be a public meeting at the Planning Commission’s regular meetings in September, October, November and December. The City Commission will hold public hearing(s) and at their regular September, October, November, December and January meetings. If the process proceeds without any of the Planning Commission or City Commission tabling the issue(s); and assuming the various boards approve the requests, then the project may able to proceed by early January.
moderator: If Lowe's comes to town do you think it will bring more retail business to our community?
Kent Heermann: Pittsburg , Hays and Manhattan , in the early 2000’s all experienced growth with “big box” developments. I have observed other businesses located adjacent to those developments. I believe other retail businesses will locate in Emporia as a result of the proposed Lowe’s development.
moderator: When you work on retail projects does that take away from recruiting industrial projects to town? Could you use extra staff to help in your recruiting efforts?
Kent Heermann: The RDA has finite resources to utilize in our efforts of economic development, industrial development and commercial development – marketing and administration are a small part of those resources. We need to develop capacity. Our last three industrial development projects required sites of 40 to 80 acre sites with rail access. Those projects were Norfolk Iron & Metal, REG and Hill’s Pet Nutrition. In 2007 we used over 131 acres of industrial land. We do not have any rail spur sites in our inventory. We need to be ready for the wave of development.
moderator: What is the latest news with Hills and REG?
Kent Heermann: Hill’s continues to proceed forward with the construction of their plant. I had the opportunity to look at the building plans, and it will be an impressive facility when completed. The construction of the footings and foundations will start soon, and later this fall you will begin to see the structure rise from the ground. The REG project is on hold for now. The Renewable Energy Group is committed to the Emporia project. The delay has been a blessing in disguise, originally their plan was to construct the plant to utilize soy oil only, now with volatility of soy oil market, the Emporia plant will be a multiple feed stock plant; soy oil, choice white grease and algae. On August 19, 2008, REG announced commercialization technology for algae-based bio diesel. Go to their website www.regfuel.com for the complete media release.
hickory: Does Lowe's even know about all the land out by the new turnpike interchange? That would be a great place for a big box store. Great visibility and easy to get to. Why do the developers want to stir up trouble with all the residents north of 24th, when they don't have to?
Kent Heermann: I don't know what Emporia properties Lowe's considered in their site selection. D.J. Christie indicated to us that the 24th & Industrial road site is adjacent to the "retail corridor" on north Industrial. Another developer, who had an option on a 30 acre site, indicated to me that Lowe's first choice was the 24th & Industrial location.l
rox_alan: With the economy bad all around and businesses laying off what will you do to entice new businesses in Emporia? Yes it would be nice for Lowes to come in but what to say about our other home improvement stores it could close them down. How would you be able to keep all them happy. We need other stores to come to Emporia if you want us to Shop Emporia first but we don't have the variety of stores and from my understanding we aren't a good demographic area to handle stores like Red Lobster, Olive Garden and Targets... So now what?
Kent Heermann: When the economy slows, the number of potential projects reduces significantly. In economic slow times we continue to develop new leads, but we also prepare for new development. Emporia isn’t the first community that a Lowe’s Home Improvement Canter may locate. I spoke with the economic development director in Hays, Kansas, where a Home Depot located several years ago. He mentioned that a wholesale plumbing supply business and a lumber yard/home improvement retailer were concerned about the Home Depot locating in their community. Since the Home Depot opened, their sales have continued to increase. The community has performance-based incentives which are used as “tie breakers” not “deal makers”. With all of our recent success, we have committed a substantial portion of the industrial sales tax revenue into 2014. Our ability to compete, as in past years, is limited.
prairiecta: If the Lowes project is approved, what about the street design problem of 24th Street-specifically the S-curve at Prairie Street. Intended for residential traffic it cannot possibly hold up to additional truck and trailer traffic. The S-Curve at 24th and Prairie will remain a two lane street from the end of the development at Apple Drive. Four lanes will be built from Industrial east to Apple Drive-not further. Besides a traffic nightmare, what about water drainage? Isn’t that going to cause problems down in at the bottom of the S-curve?
prairiecta: Regarding the issue of water drainage; who will want to buy a house anywhere east of the project?? All the builder’s good intentions will mean nothing when property devaluation and land erosion set in. How is it that Emporia folks lack any real life experience and wisdom regarding water management when compared to city folks and engineers? Go look out and look at the property! We can’t all be county bumpkins can we? The idea is fine, it the location.
Kent Heermann: The City of Emporia has a storm water ordinance that requires developments of this type and size to develop a storm water management and detention system. The City Engineer will review the plan for its compliance with the ordinance and the developer must construct the storm water detention before the certificate of occupancy is issued. Refer to www.emporia.ws and then go to business, then engineering, then to storm water ordinance.
Moderator: Unfortunately, that's all the time we have today. We received many more questions that Mr. Heermann had time to address. Our apologies to those who submitted questions that did not get in. Thanks to our guest. A transcript of today's chat will be printed in The Gazette.