RDA president discusses new challenges and opportunities for city
By The Emporia Gazette (Contact)
Wednesday, February 27, 2008
Editor’s Note: Kent Heermann has been president of the Regional Development Association of East Central Kansas for 14 years. The agency handles economic-development and industrial recruiting responsibilities for Emporia and has recently been given retail-recruiting responsibilities as well.
Q In your time as RDA president, how many new companies have you brought to Emporia per year? Do you believe that number is adequate? If not, what more should be done?
A In the last 14 years, six new companies have located in Emporia -- Lenze, which closed in 2007, Menu Foods Midwest Corporation, which expanded three times, Camoplast (Caterpillar, Inc.), Norfolk Iron & Metal, which expanded in 2007, Renewable Energy Group and Hill’s Pet Nutrition Inc. Quite a bit of our growth has occurred with existing companies, such as Detroit Diesel Remanufacturing, Hopkins, Dolly Madison, EVCO, Birch, Kansa Technology, Advance Mold and Tool, Glendo, Fanestil, and Westar Energy. We need to continue to be ready for development.
Q At one time your job was specifically geared towards the recruitment of industry to Emporia, but recently the role of retail recruiter was added. Do you believe that this added responsibility dilutes the time you have available for industrial recruitment activities?
A The primary responsibility of the RDA is the retention, expansion and recruitment for industrial development. In the past our office would assist inquiries on commercial development, which included retail. Emporia has requested the RDA take a proactive role in retail recruitment. The RDA budget was modestly increased to fund the additional retail duties.
Q Concerning your affiliation with the Buxton study: I have heard that Buxton will not run new numbers for the City of Emporia that reflect the loss of the slaughter operation at Tyson and its potential impacts on population, density and income. Considering the fact that we already have demographic information for the city of Emporia, how can we justify a $70,000 expenditure on a report that we now know contains incorrect information that potential retail recruits will certainly know is false when comparing their newer data to ours?
A The Buxton Study is based on actual data collected. Retailers will use the Buxton data and make appropriate adjustments based upon their assumptions of recent events in Emporia . The data utilized by Buxton on the impact of the Tyson downsizing will be available in a year or so. The Buxton group is nationally accepted with a high level of credibility. This $70,000 investment could save Emporia hundreds of thousands or millions of dollars in the determination of whether Tax Increment Financing should be utilized for a project. Also, it will give us a high level of confidence on the specific retail establishments that may be successful in the Emporia market area.
Q What kind of higher-paying jobs do you think we can attract? Something better than hourly floor staff at Home Depot?
A In 2007 Emporia recruited Hill’s Pet Nutrition and Renewable Energy Group. The average salary of these jobs is in the low $40,000. Manufacturing jobs generally pay more than the service sector retail jobs.
Q I know of several companies looking for places to manufacture their goods. One is a fiberglass company making products for wind turbines. They are looking at Wichita because of the rails and highways. We have both. I have yet to see Emporia promote this. How come? Also companies along the gulf coast that unload the ship containers are looking for more central locations to move their product. Here in Emporia you can be East coast, West coast, Gulf coast or northern USA within 18 hours. I would think you should be looking at this also. These companies have hundreds of employees. I would think Emporia would get off their backsides and go for some of these companies before we turn into a welfare town.
A Last year there were many wind energy manufacturing companies considering the plains states. Some were looking for existing 300,000 sq. ft. buildings with high ceilings or 100 acre tracts with rail access; we don’t have either right now. Intermodal warehouse distribution opportunities are being constructed in Gardner, Kansas by BNSF. In the future we may see some opportunities from the BNSF intermodal facility.
Q According to the Buxton study, what retail businesses would be a fit for Emporia? Also, do you feel you have enough staff and resources to properly recruit industrial and retail businesses?
A The results of the Buxton Study will be available in early March. The answer to your second question is the RDA has two full time staff and we are spread thin. The staffing levels and overall budget may need to be reexamined based on the anticipated return on investment of quality jobs, capital investment and diversification of the economy in the industrial and retail/commercial sectors.
Q With the Tyson downsizing will you spend more time on industrial recruitment, and will that hamper our retail recruitment?
A With the prospect of a recession, the number of existing business expansions and new business recruitment leads are beginning to soften in both the industrial and retail sectors.
Q For our community to be competitive in industry recruitment in the future, what does our community need to do or have?
A Emporia is quite competitive when it makes sense for a business to locate here. One of our strengths is the City Sales Tax for industrial development. It provides us with a competitive edge that many regional communities do not have. We have the resources to close deals.
Q I understand that population density can affect our ability to recruit businesses. Is our population based on city limits or regional boundaries? What's being done to put it in the best light?
A The population of the city of Emporia is 26,760, Lyon County is 35,935, and the micropolitan area is 38,965. We generally give all the demographic data to a prospect and let them make their determination for the community and their business.
Q Great job you and the RDA have done attracting manufacturing jobs to Emporia. Are you working on white collar jobs with companies that would want to build a large office building? Perhaps an insurance company or something on that order that would have 50,000 to 75,000 dollar jobs.
A Typically, Emporia does not compete as well on these “white collar” office type jobs. These companies generally look at larger markets such as the Kansas City metropolitan area. Those business generally want to lease a class A office space on a 5 to 7 year lease. And they generally want a larger labor base than 20,000 workers to draw from when attempting to hire several hundred workers. We have had some inquires for a 200 to 250 person back office customer service center. But their wage range is generally in the $20,000 to $25,000 range.