At their regular meeting Friday, members of the Regional Development Association of East Central Kansas heard presentations in relation to the Emporia Plaza development project being proposed by D.J. Christie, Inc. to bring Lowe’s to Emporia.
The presentations were to discuss third-party studies that are required by the city’s TIF/TDD policy. Both studies were financed by the development firm.
The first was a presentation on the market analysis conducted by Developmental Strategies, Inc. The study looked at residential buying power in both a primary and a secondary market area, and determined that 20 percent of the income earned in the area is spent elsewhere — a leakage of $115.7 million annually.
The market analysis also estimated the “market shift” that would be required for the project to succeed — the shift in sales within the market from other similar businesses in Emporia. A Lowe’s store alone would need an 11 percent shift from other home improvement-oriented businesses. The plaza project as a whole, including restaurants and other retailers on the site, would need a market shift of 4 percent.
Overall, the study determined that there is a lot of money leaving the area, and the project is a viable way to capture much of that revenue and to attract more from outlying areas.
Next was a presentation on the financial feasibility study of the TIF/TDD district conducted by Piper Jaffray. The study looked at the reimbursement costs to D.J. Christie for infrastructure improvements, including land acquisition and site preparation, that the developer will pay for to see the project completed.
According to Chase Simmons, Christie’s legal representative, the fact that the developer is willing to assume that kind of risk says a lot about the project.
“We’ve been working on this project for a long time, and we believe it will be a successful project,” Simmons said. “There’s a lot more risk in the world right now, and the important thing for the city is that there’s no risk off them. There’s a risk for the developer, and that’s what the developer does for a living. They’re set up to manage those risks.”
RDA Chairman Jeff Longbine addressed what he sees as the most important aspects of the plan.
“Number one is the quality of life issue that a development like this may bring to Emporia, and the amenities that some in the community are looking for that this will bring,” he said. “The second is to reverse the trend of the pull factor ... hopefully, we can see that number start coming up because I do believe people will come to Emporia to shop at a development like this, and while they’re here, they will visit other retailers in town. The other thing is, this is going to be a tremendous tax base increase someday.”
The RDA voted unanimously to recommend that the city commission and the planning commission move forward with the project.
In other business, RDA members discussed their views of how the year has gone for the organization and for the city.
“... I think the take-away for me in the last year is that once again, Emporia has shown its resilience,” said member Don Hill. “It’s shown its interest and desire to stay focused on the positive, it’s been solving problems and looking ahead.”
The RDA then held its annual reorganizational meeting to elect new officers. The board unanimously voted to continue with the officers it has now, with Jeff Longbine as chairman, Steve Sauder as vice-chairman, Matt Zimmerman as treasurer and Jeanine McKenna as secretary.
madpoet (anonymous) says...
I think it's interesting that a commissioner who voted for the Lowe's project (Longbine) is the RDA chair. So of course he could talk it up and get it passed by them. Am I correct that Lowe's would take at least 11% of business from places like Sutherlands and Mark II? That is a lot of money in today's economy. So why do we keep being assured it won't have a negative impact on local competitors? Stores that have paid their own way and keep the money in the local economy not ship it off to out of state to corporate offices. If Lowe's wants a store here, let them cough up the money up front to develop the site like everyone else did. To condemn a perfectly fine piece of land just to appease a company makes me sick. It sets a horrible precedent which I can bet will come back to haunt us later. I won't be shopping there if it gets built. I bet I'm not the only one who will boycott it either.
December 20, 2008 at 11:40 a.m. ( permalink | suggest removal )
momus (anonymous) says...
So when do we get to see what Developmental Strategies Inc. considers a primary and secondary market? Me thinks something stinks...
December 20, 2008 at 7:15 p.m. ( permalink | suggest removal )
momus (anonymous) says...
And, just in case you missed what another user linked earlier, here is a fantastic local example of TIF messing up the tax base. Enjoy: http://www.kansascity.com/340/story/9...
December 20, 2008 at 7:20 p.m. ( permalink | suggest removal )
trainrech (anonymous) says...
If I recall correctly:
Primary Market is 30 minute drive
December 22, 2008 at 7:01 a.m. ( permalink | suggest removal )
methusla (anonymous) says...
madpoet, momus- I agree with you completely. And here is another thought for the people of Emporia, if you go to the link posted by momus, it seems that K.C., because of a TIF/TDD distric, K.C. is having to cut spending on essential infrastructure, public services because of the tax money grab by developers, which means eventually K.C. property owners are going to pay higher property taxes and possibly sales taxes in order to pay for essential infrastructure public services, and whos to say this same thing won't happen here in Emporia. Do any property owners want to see the possibilty of higher property taxes, etc. in our future ! There are absolutely no guarantees, as far as I know , and if there are guarantees, I certainly hope they are in a signed legally binding document.
I would also like to know why the Emporia, RDA, is not looking and trying this hard to get more industrial or manufacturing companys to look at Emporia. To me that would working and looking toward the future of Emporia and its younger, upcoming generation !
Does anyone know why the bio-diesel plant was scraped and if the Hills pet food plant is still a viable project.
I believe the correct and fair way to approve or deny a Lowes or anything that is going to affect the lives and pocket books Emporias citizens is to let the citizens of Emporia vote on it as to whether the citizens want it or not.
December 22, 2008 at 8:08 a.m. ( permalink | suggest removal )
momus (anonymous) says...
Yes, that is the traditional definition of a secondary market, but you also have to keep in mind that secondary markets interact with other markets AND they may not be using the traditional definition of a secondary market (it has happened before). For example, let’s say that it takes 55 minutes to drive from Emporia to Topeka. How far past the 30 minute drive time do we extend our secondary market when the over 30 minute zone actually places the consumer closer to a larger market? The same goes for Wichita or Manhattan or Salina or KC Metro. We are surrounded by areas that have much larger populations, and thus, can offer more choices (more consumers available = more retailers looking to capitalize on the consumer population). If we are simply looking at drive times for primary and secondary markets, and adding what I can only assume (without raw data being offered) is a grossly overestimated market, we are overestimating our market capacity and underestimating the effect of new retail development.
Now I write this with the complete understanding that no data, logic or empirical evidence will change the minds of leaders determined to make a 25,000 person town into their version of Johnson County. After talking to leadership, they are convinced that retail brings industry, and when confronted with evidence to the contrary it becomes a "quality of life" issue (which is conveniently immeasurable). I would simply ask our leaders not to allow their obvious resentment for living in our smaller town to result in an economic calamity, when data and local examples clearly show what will happen to our tax base as this effort is jammed through.
December 22, 2008 at 8:21 a.m. ( permalink | suggest removal )
trainrech (anonymous) says...
"Does anyone know why the bio-diesel plant was scraped"
Mothballed is probably a more appropriate term, but this happening all over the Midwest. A combination of high bean prices and issues with financing (from what we've heard) are the reasons the plant construction has been suspended. The Gazette has had a couple of update articles a few months ago.
"and if the Hills pet food plant is still a viable project"
Still progressing from what I've seen - the building is finally coming out of the ground.
December 22, 2008 at 8:50 a.m. ( permalink | suggest removal )
create (anonymous) says...
Longbine says, "I do believe people will come to Emporia to shop at a development like this, and while they’re here, they will visit other retailers in town."
Horsefeathers! This "if-you-build-it-they-will-come" strategy doesn't fly well. Everyone I've talked to over the months say that if they do go to Lowe's, they make a day of it and shop at other places and stop for lunch or dinner too. Those I've spoken to include folks from Chase county, Burlington, and Olpe. What's more, they all say they still plan to go out of town to shop because they are drawn to places like Kohl's or Olive Gardens or Red Lobster.
December 22, 2008 at 9:52 a.m. ( permalink | suggest removal )
methusla (anonymous) says...
I don't know where the RDA got the idea of if you build more retail businesses the manufacturing and industrial jobs will come. If you don't have a jobs base and the disposable wages that come with jobs, how in the world are you going to sustain more retail businesses, that would be like building a house first and then trying to build the foundation ! What I am saying is you must have a jobs base, with disposable income first and then when the retail businesses see the growth in disposable income they will come, not the other way around.
And if those who are infatuated with wanting to be like Johnson County or any of the other densly populated areas of Kansas, etc., they need to remember it takes a growth in jobs and the disposable income that comes from jobs for an area to grow and prosper and Lowes and more restaurants, etc. is not going to create the type of job base Emporia needs. Also people are not going to travel from Wichita, Topeka, Manhattan, etc. to shop at a Lowes in Emporia, when they already have a Lowes or Home Depot, etc.
I have what I believe is a relivant question. What happens, hypothetically speaking, if after Lowes is established in Emporia and there is not enough business to warrant Lowes and the other businesses that will supposedly come to continue operation and they decide to close and abandon Emporia, who will be left holding the bag so to speak ?
December 22, 2008 at 11:16 a.m. ( permalink | suggest removal )
admireed (anonymous) says...
meth...YOU will be holding the bag. This whole Lowe's idea and at that location is a HUGE mistake.
Please come to Emporia but pay your own way like Bluestem, Dillons, Dryer's, Waters and many other retailers have done.
December 22, 2008 at 3:57 p.m. ( permalink | suggest removal )