The Regional Development Association (RDA) approved an incentive compliance agreement at their Friday morning meeting for the relocation of Fanestil Meats out of a flood plain.
While the agreement was approved by the RDA on Friday, it still has to go to the Emporia City Commission for approval. Steve Sauder, RDA chairman, said Friday that the plan is a recommendation to the city commission.
Sauder said a meeting was held with Fanestil’s banker, who outlined what Fanestil needs to secure the bank financing in order to get them moved. The move is necessary due to a FEMA grant that was issued to the business to move them out of the flood plain. Fanestil only has a week to file for an extension. The requirements of the grant are that an extension be filed or the plant be torn down and turned into green space in August of this year. If it doesn’t happen, Fanestil has to pay back the money granted to them by FEMA.
The agreement includes three terms:
tax abatement for 10 years;
city to purchase the land for Fanestil;
and city to bring sewer and water to the site.
“All this is really critical right now,” Sauder said. “Fanestil’s has until one week from today in order to file for an extension with FEMA.”
Sauder said the 20-acre tract that Fanestil is looking at is located on West Highway 50 just west of Waechter Hay and Grain. He said there is a process to obtaining the land, including annexation.
For a tax abatement, the job threshold is 48 jobs, which means Fanestil must retain 48 jobs at the plant or they lose their tax abatement, Sauder said.
“They currently have about 70 people working out there,” Sauder said.
Fanestil owner Dan Smoots said the plan to relocate is in the details now.
“I am convinced FEMA wants us out of this flood plain,” Smoots said. “Everything’s in place. We have a building design, designed by John Mallon, we have commitments with the bank, commitments with the city. ... It looks like it’s all systems go. A lot of people have had a lot of positive input on this and we’re excited to get started.”
The city commission will take up the RDA’s recommendations during their meeting next week, Sauder said.
goodoleboy (anonymous) says...
All this for 48 jobs? What a waste of federal and local money. If these were middle class/higher paying wages I might see some semblance of common sense in this.
Other thing is, why the rush now? How many months have they had to get this figured out and now they get in a hurry?
The whole thing stinks of incompetence, I hope the city commission shoots them down.
May 28, 2011 at 8:33 a.m. ( permalink | suggest removal )
Steve_Corbin (anonymous) says...
Well goodoleboy,
This may be the new way to get things done. Remembered everyone pissed and moaned about losing Fanestil and it's jobs, (and 48 jobs are 48 jobs),
Maybe this was planned out long ago? Probably not though. It does SMACK of LACK of planning. Wait until the deadline is looming and rush, rush, rush. It is also evident that Lebo couldn't or wouldn't work with the company.
I do hope Fanestil stays in the Emporia area, even if this deal doesn't work out. Maybe they will just have to pay the money back to FEMA and stay where they are?
Another point is that dollar amounts for the land and running sewer and water out there have NOT been estimated or released.
May 28, 2011 at 10:29 a.m. ( permalink | suggest removal )
Steve_Corbin (anonymous) says...
Something like "putting all you eggs in one basket", or "counting your chickens before they hatch" comes to mind.
May 28, 2011 at 10:31 a.m. ( permalink | suggest removal )
methusla (anonymous) says...
Seems to me, I read that the county was holding $ 600,000 of the FEMA money that was granted to Fanestil ! Why ?
Can' t the entire Fema grant money be used to buy land, pay for water and sewer lines and build a new Fanestil building ?
And thereby wouldn' t that illeminate the need for Fanestil be given a 10 year tax abatement .
I don' t really know. I only know that things are sure done in a peculiar / suspect way around this area !
I think I hear the sound of a syphon being started, in order to syphon off some of the FEMA grant money for other purposes, other than what it is supposed to be used for. Kinda like the syphon sound of the grant money that was used for an outdoor playground carpet at EHS, by the school board . In order to get a 6+ million dollar addition to EMS, instead of using every penney of that grant money to bring particular school building up to energy specs.
May 28, 2011 at 11:17 a.m. ( permalink | suggest removal )
KellyL (anonymous) says...
I really hope Fanestils stays in Emporia. Not even just the jobs, which this town does not need to lose, but the goodwill they spread in this community. My agency and other receive wonderful donations from Fanestils that help to keep our low income families with food.
May 28, 2011 at 12:24 p.m. ( permalink | suggest removal )
goodoleboy (anonymous) says...
It's not the company I take issue with. It is the manner in which this debacle has been handled. When one takes into account how much money is being spent in federal and local dollars to keep these jobs here the end is not justified by the means.
Frivolous spending to guarantee 48 lower wage jobs is not good sound logic. Why not just cancel the deal and leave Fanestils where they are with the 70 jobs they have now?
This is a prime example of where people are all for spending cuts and less government, and less taxes until it is they who have to sacrifice.
This is a mistake, and the rush to finalize everything at the last minute will only make it a more costly one.
May 28, 2011 at 3:24 p.m. ( permalink | suggest removal )
reddog (K. B. Thomas Jr.) says...
Small business is where the jobs of tomorrow will come. Look at Hopkins MFG, Thomas Transfer and all the other home grown businesses. Someday Fanestil may employee 500 or more. Emporia bankers thought Braum Ice Creme was a pie in the sky and look what they did.
May 28, 2011 at 11:28 p.m. ( permalink | suggest removal )
reddog (K. B. Thomas Jr.) says...
http://www.sba.gov/advocacy/7495/8420
May 28, 2011 at 11:35 p.m. ( permalink | suggest removal )
reddog (K. B. Thomas Jr.) says...
http://www.lewrockwell.com/slavo/slav...
May 28, 2011 at 11:44 p.m. ( permalink | suggest removal )
reddog (K. B. Thomas Jr.) says...
http://www.youtube.com/watch?v=u0MpJx...
May 29, 2011 at 12:11 a.m. ( permalink | suggest removal )
Steve_Corbin (anonymous) says...
Pretty much will have to agree with goodoleboy.
And I sure don't envy what the commissioners will have to decide.
Do they spend a million or more of taxpayer dollars to follow the recommendations and keep the plant here? Even with less jobs and an average lower wage?
If the don't give the incentives, will the plant stay where it is at and the money be refunded to FEMA?
You must remember that the RDA tried working with Fanestil earlier and offered what they could according to their standards of what a business needed to get incentives. A deal was not reached and Fanestil looked elsewhere. The public was livid that the RDA and city didn't do more to keep a local business here.
Now, that the RDA has "relaxed" the standards for incentives, will the city commission and the public accept it? What a pickle !
I would imagine that the commissioners could really use the public input on this issue and urge all of you to let them know what your thoughts are.
May 29, 2011 at 7:34 a.m. ( permalink | suggest removal )
Steve_Corbin (anonymous) says...
I really enjoyed reddogs 1st post on here and his own words on what he thought, -----------. Then he follows up with 3 spam links.
Come on K. B. Your words, please. Most of us don't care what Gerald and the rest of your heroes think. If we did, their links would already be on our favorites list. A link posted every once in a while to back up YOUR point of view is fine. But come on !
May 29, 2011 at 7:46 a.m. ( permalink | suggest removal )
create (anonymous) says...
Is this a case of Fanestil's wanting their cake and eating it too? They didn't get what they wanted from Emporia originally and went to Lebo. Lebo didn't deliver either. Now we're back to square one with time running out.
I must agree with goodoleboy too. This seems a like a huge waste of federal and local funds to save a small number of jobs which are low income at best. This sounds cold-hearted, yes, but practical.
Let's look at this another way. Will this be the last and final straw for them if they stay where they are? Will they ever again be able to apply for FEMA funds? I'm guessing no, but I'm not sure.
Will a bank never again loan them money because they are on a flood plain? Does this mean they will never again be able to grow or buy new equipment? Are we pronouncing a death sentence on growth here?
Has any of our congressional reps chimed in on this? Can they help in any way?
Yes, this is a pickle, but only if you think in terms of wanting to save a handful of jobs at the expense of a boatload of funds and rushing to do it at the last minute.
If I had to vote, I'd have to say it sounds like they need to stay where they are. It's a damn shame too in view of the poor planning and stupid reasoning for spending so much on entrance rocks while these people hang in the balance.
May 29, 2011 at 8:02 a.m. ( permalink | suggest removal )
goodoleboy (anonymous) says...
Amazing how KB rails against government and spending, until it comes to subsidizing local business. Makes me wonder, should every small biz be entitled to such handouts? Were the businesses he mentioned above? Hypocrisy is abound folks.
May 29, 2011 at 10:10 a.m. ( permalink | suggest removal )
booker5m (anonymous) says...
Be nice it they stay. Its a darn if you do and darn if you dont. But watching this unfold and the way the city has done things is it reall any wonder why we cant get good jobs here?
Seems like all the city can do is go to Vegas and look for fast food jobs!
May 29, 2011 at 10:26 a.m. ( permalink | suggest removal )
create (anonymous) says...
Excellent point, goodoleboy. This may set a precedent for other businesses, then what? We can't afford the "then what."
May 29, 2011 at 12:05 p.m. ( permalink | suggest removal )
ClassicNotOld (anonymous) says...
Just out of curiosity ... wondering who owns the land they're wanting to buy? Something smells interesting here.
May 29, 2011 at 6:40 p.m. ( permalink | suggest removal )
hogan77 (anonymous) says...
I have to agree with Steve here...
"I really enjoyed reddogs 1st post on here and his own words on what he thought, -----------. Then he follows up with 3 spam links.
Come on K. B. Your words, please. Most of us don't care what Gerald and the rest of your heroes think. If we did, their links would already be on our favorites list. A link posted every once in a while to back up YOUR point of view is fine. But come on !"
I sure would like to see Fanestil stay in Emporia. There has been suck a loss of employment over the past few years- with Tyson especially- Emporia can't take another hit like this. Like Steve said, 48 jobs is 48 jobs.
May 30, 2011 at 1:24 a.m. ( permalink | suggest removal )
methusla (anonymous) says...
Just a little info about Fanestil Packing Co. .
Fanestil Packing Co. was established in its present location, in Emporia, Ks. in 1942 .
Fanestil Meats has been making the Best Tasting Smokehouse
Meats Since 1942. Once you try our products you will agree
they are absolutely great or we will give you your money back.
http://www.fanestils.com/fanestils/we...
And
About Fanestil S&S Quality Meats LLC
Is this your company? Claim This Profile Fanestil S&S Quality Meats LLC in Emporia, KS is a private company categorized under Meat Processing. Our records show it was established in 2005 and incorporated in Kansas. Current estimates show this company has an annual revenue of $20 to 50 million and employs a staff of approximately 50 to 99. Companies like Fanestil S&S Quality Meats LLC usually offer: Game Meat Processors, Usda Meat Processors, Quality Meat Packers, Meat Processors and Country Meat Packers .
http://www.manta.com/c/mmc724m/fanest...
Note : The 2005 date listed in the above article was when the Smoot's bought, took over the business from the previous owner/owners .
I believe that the more informed people are the better the decision making may be .
I also believe that, before anyone or any company recieves any tax breaks or public / taxpayer funded assistance, the company needs to make all of its financial records/dealings available to the public/taxpayers and their representatives. Also, the owners of land to be purchased with public / taxpayer funding should be known by the public. To dispell any possible conflict of interest questions that may arise from any such land purchanse. This should be done before any public / taxpayer funds should be given / granted to any organization, individual, whether it be private, business or corporate.
The era of blindly giving public / taxpayer funds / funding needs to be brought to an end and the sooner the better.
Again, the more information one has before making a decision, the better that decision can be, for all.
Yes, I would like to see Fanestil stay in Emporia / Lyon County . but at what cost to the public / taxpayers ?
I would still like to get an answer to my question, as to why the County is holding $600,000 of the $1.6 FEMA grant given to Fanestil and the Smoots ?
May 30, 2011 at 8:46 a.m. ( permalink | suggest removal )
truelovecharlie (anonymous) says...
It is customary for the county to hold enough funds to ensure the land is turned into green space once the grounds are evacuated. Not unlike, should a tornado strike the city/county would withhold a certain amount of insurance payment to the landowner to ensure property is cleaned up according to codes.
May 30, 2011 at 10:34 a.m. ( permalink | suggest removal )
reddog (K. B. Thomas Jr.) says...
I tip my hat to Fanestil to expand in this economy.
http://www.youtube.com/watch?v=IBzp0E...
May 30, 2011 at 10:38 a.m. ( permalink | suggest removal )
reddog (K. B. Thomas Jr.) says...
It looks like Emporia will be able to bring home the bacan, but what about the U.S.? I have some deep concerns about the secret government. The big question is, will God continue to bless America?
http://www.youtube.com/watch?v=_sstDw...
May 30, 2011 at 10:52 a.m. ( permalink | suggest removal )
reddog (K. B. Thomas Jr.) says...
This is a more in depth study of the secret government. As a Vietnam veteran, I say the ony thing new is the history we don't know. Maybe we need to review George Washington's final address to the nation.
http://video.google.com/videoplay?doc...
May 30, 2011 at 11:25 a.m. ( permalink | suggest removal )
methusla (anonymous) says...
truelovecharlid,
Please list a site, either a County or FEMA site where it states it is customary for the County, State, City or Federal government, that states they have the right or authority to withhold funds from any sort of govt. grant of any kind and that such funds withheld may be used for clean up, construction / creation of a " green space " or anything other than for " emergency managament, reconstruction, relocation or otherwise ! "
That would be kinda like saying, " Entrance Rocks " are part of a Citys infrastructure . Or saying that Federal Energy Conservation grant money will be used to improve energy efficency of public scool buildings and then buying an outdoor playground carpet !
I can't help but say, in light of past local governmental/leadership dealings, that this whole thing just doesn' t seem " Kosher " to me.
I think, it took so long for all parties to agree on this whole thing, was the fact that it took time for some one to figure out how to make a lot of money at taxpayers expense .
JMO
May 30, 2011 at 2:04 p.m. ( permalink | suggest removal )
methusla (anonymous) says...
truelovecharlid,
Please list a site, either a County or FEMA site where it states it is customary for the County, State, City or Federal government, that states they have the right or authority to withhold funds from any sort of govt. grant of any kind and that such funds withheld may be used for clean up, construction / creation of a " green space " or anything other than for " emergency managament, reconstruction, relocation or otherwise ! "
That would be kinda like saying, " Entrance Rocks " are part of a Citys infrastructure . Or saying that Federal Energy Conservation grant money will be used to improve energy efficency of public scool buildings and then buying an outdoor playground carpet !
I can't help but say, in light of past local governmental/leadership dealings, that this whole thing just doesn' t seem " Kosher " to me.
I think, it took so long for all parties to agree on this whole thing, was the fact that it took time for some one to figure out how to make a lot of money at taxpayers expense .
And believe me when it comes to Federal Grant monies or tax abatements, etc., of late the taxpayers have been the ones left holding the empty " money bag ", so to speak !
JMO
May 30, 2011 at 2:05 p.m. ( permalink | suggest removal )
Steve_Corbin (anonymous) says...
Methusla, Let me try to explain this, ( I think I might be right).
FEMA has been awarding grants to homeowners and businesses to relocate out of flood zones that flood. It actually saves government money on flood insurance payments.
The local governmental body where the land is has to be the one applying for and administrating the grant if it is awarded.
This was a federal grant to Lyon county. The county applied for the grant on Fanestil's behalf.
As such the county is in charge of enforcing the
requirements of the grant. If an extension of time is not granted to Fanestil, and Fanestil does not pay back the rest of the grant to the feds, the county is required to go ahead and tear down the plant and convert it to green space,( which means vacant land). If the county had not held this money back and things don't work out, the county would be the responsible party to pay for demolition. Meaning our local tax dollars spent on a failed idea.
If this thing falls apart, and Fanestil and the county pay back the grant money, then they would probably be able to apply again at a later date, and the plant would still be sitting where it has been.
I am glad the county held the money back, and given the current situation, you should be too.
May 30, 2011 at 4:02 p.m. ( permalink | suggest removal )
Steve_Corbin (anonymous) says...
For the government info try this link;
http://www.docstoc.com/docs/45564672/...
May 30, 2011 at 4:14 p.m. ( permalink | suggest removal )
Steve_Corbin (anonymous) says...
I don't know if the county actually physically holds the grant money or not , but if they do, that should mean there is 600 k laying around somewhere drawing interest for us.
May 30, 2011 at 4:23 p.m. ( permalink | suggest removal )
create (anonymous) says...
Thanks for the info, Steve. I wish the county were more forthcoming with information on this. Instead, they sit on all of it and we have to rely on our own research. They owe us an explanation.
May 30, 2011 at 5 p.m. ( permalink | suggest removal )
reddog (K. B. Thomas Jr.) says...
The site they really wanted was the Thomas Tract but, the dust off the Dog Food plant south of the property was not good enough for quality control of their product according to their experts. This is a great opportunity for Emporia and with Tyson laying of 90 people, we need to keep all the bacon we can.
May 30, 2011 at 7:01 p.m. ( permalink | suggest removal )
reddog (K. B. Thomas Jr.) says...
Tyson is the quiet company. They just gave 225,000 pounds of meat to the Reading Relief Cause.
May 30, 2011 at 7:04 p.m. ( permalink | suggest removal )
Steve_Corbin (anonymous) says...
create,
I think the gazette ran the story on this, about a year ago.
Reddog, Not sure about 225,000 pounds of meat, but I do know Tyson had a crew there cooking meat all week long and they are cooking again tomorrow. Didn't hear much about it in the media.
May 30, 2011 at 7:14 p.m. ( permalink | suggest removal )
methusla (anonymous) says...
Thanks for the site, Steve, that explains a lot and puts a different light on things, somewhat.
May 30, 2011 at 9:36 p.m. ( permalink | suggest removal )
reddog (K. B. Thomas Jr.) says...
Have you heard of the Fema Camps?
http://video.google.com/videoplay?doc...
May 30, 2011 at 11:07 p.m. ( permalink | suggest removal )
Steve_Corbin (anonymous) says...
Hey reddog,
What do you hear about the Kellogg Lofts project?
Seems to have stopped.
May 31, 2011 at 5:34 a.m. ( permalink | suggest removal )
reddog (K. B. Thomas Jr.) says...
Watch out for the trigger points.
http://lewrockwell.com/north/north985...
May 31, 2011 at 7:32 a.m. ( permalink | suggest removal )
methusla (anonymous) says...
This is a little off topic, but is still a sobering thought about the future .
Food prices set to double by 2030, aid group says
925 million people go hungry every day, according to Oxfam report
http://www.msnbc.msn.com/id/43221576/...
May 31, 2011 at 9:50 a.m. ( permalink | suggest removal )
owenrhys (anonymous) says...
Have they resolved the wastewater issues?
That seems to have been what killed their deal with Lebo ... that, and Fanestil not giving the city's engineers the info they needed just to study the issue.
May 31, 2011 at 2:09 p.m. ( permalink | suggest removal )
Steve_Corbin (anonymous) says...
Heard that Steve Sauder was going to talk about this today @ 10:06 on Kvoe 1400 a,m,
Maybe some of all of our questions will be answered.
The commission will probably go into executive session to discuss this today at their meeting.
Hope for the best !
June 1, 2011 at 9:53 a.m. ( permalink | suggest removal )
create (anonymous) says...
Well Steve, what did he say? I didn't listen.
June 1, 2011 at 4:42 p.m. ( permalink | suggest removal )
scarlett01_98 (anonymous) says...
hi create!
well steve? lol
i was asleep at 10 am.
June 1, 2011 at 4:57 p.m. ( permalink | suggest removal )
Steve_Corbin (anonymous) says...
Good morning,
I thought Mr. Sauder did a great job of explaining the grant process and why the county was in charge of the grant. he also explained how this was a recommendation to the city only, and how it fell to the commissioners to make the decision. No dollar amounts were discussed yet and that is my concern now.
I had received a e-mail from a commissioner mentioning that Fanetil had signed a contract with a Canadian co. to supply a new line of products and he mentioned that also. So it is good news for Fanestil and maybe we should consider the incentive package? Depends a lot on the money. Like reddog, I remember the misstep with Braums Ice Cream company, and they were more or less told them to hit the road. And look how big they are now.
He also mentioned the tax abatement and how the old plant was not paying that much now, and a new plant would pay more taxes after the 10 years than the old one is now.
I think with the federal budget the way it is, this may be a moot point. The FEMA money may not be available anymore.
I guess that I am at the "SHOW ME THE MONEY" point. How much?
June 2, 2011 at 6:13 a.m. ( permalink | suggest removal )
Steve_Corbin (anonymous) says...
Also mentioned was that the 48 jobs was the lowest number of employees to be eligible for the tax abatements.
June 2, 2011 at 6:15 a.m. ( permalink | suggest removal )
Steve_Corbin (anonymous) says...
The current tax on the old building is a little over $15,000.00 per year.
June 2, 2011 at 7:05 a.m. ( permalink | suggest removal )
create (anonymous) says...
Thanks for being a good reporter, Steve.
I am always amazed how people clamor for less taxes and less government yet always ready to accept help from FEMA and other entities. JMO
June 2, 2011 at 8:05 a.m. ( permalink | suggest removal )
Steve_Corbin (anonymous) says...
Yes, I am one that is all for less government and less taxes. And I am not completely convinced this thing is a good idea.
In the ideal world, Fema and the federal government would not pay flood insurance claims to people who build in flood plains or along beachfront property. Private companies do not underwrite these types of risks, why should our government? But this is not really an "ideal world" is it?
As a downtown building owner, I am eligible for all kinds of grants, tax credits, etc. So far I have not taken advantage of them, the main reason being the paperwork involved, another reason is my belief of limited government.
How many of us have taken advantage of the Homestead tax exemption or the newer tax credits for energy efficient windows and renovation? Cash for clunkers? Electric car tax credits, (which really helped golf cart sales)? Free summer lunches for all under 18 at Emporia schools? Unemployment Insurance? Medicaid, medicare, social security? Funding for the arts?
Where do we stop?
What a conundrum?
June 2, 2011 at 8:54 a.m. ( permalink | suggest removal )
create (anonymous) says...
Yup, that's a great list of opportunities there brought to you by your friendly, neighborhood government agencies. I'm glad you brought them up. I've taken advantage of a few of those myself, but then again, I'm something of a liberal.
When private companies refuse to underwrite risks, that's where the fed has to come in. That is what prompted a lot of those agencies to be created in the first place.
A heartwarming message from my quilting sisters in Wichita announces that they have a number of quilts they are getting ready for Reading. Conservative or Liberal, quilters know how to give. They do it constantly. I wish more people were like that.
Where private insurance ends, government help begins. Where government help ends, private individuals take over. No conundrum there, it simply works that way. It has to or we'd have all been dead in the doldrums a long time ago.
June 3, 2011 at 8:06 a.m. ( permalink | suggest removal )