Loading...
EDO Board Packet_November 2021 120 W. Ash | Salina, KS 67402-0586 | 785.404.3131 | www.salinaedo.org BOARD OF DIRECTORS MEETING AGENDA SALINA AREA CHAMBER OF COMMERCE – VISIT SALINA ANNEX NOVEMBER 18, 2021 AT 9:30 AM 1. CALL TO ORDER AND ROLL CALL @ 9:00 AM (1.1) Confirmation of Meeting Notice/ Visitor Introductions (1.2) Public Comments 2. APPROVAL OF MINUTES 3. APPROVAL OF FINANCIAL STATEMENT & ACCOUNTS PAYABLE (3.1) October Financial Reports (3.2) Draft Budget 2022 4. MONTHLY SPOTLIGHT – “THE RIVER PROJECT” Martha Tasker and Jane Anderson 5. DIRECTOR’S REPORT (5.1) Housing Update – SPARK Committee Meeting (5.2) Project Score Card / Project Evaluation Form (5.3) 2022 Entrepreneurial Week / Business Plan Competition Feb 14-19 (5.3) Director’s Evaluation (5.4) Prospect Updates – See Attached Chart 6. ADJOURNMENT CITY OF SALINA, KANSAS REGULAR MEETING OF THE SALINA COMMUNITY ECONOMIC DEVELOPMENT ORGANIZATION, INC. October 21, 2021 9:00 a.m. Via in person and Zoom Link CALL TO ORDER AND ROLL CALL The Regular Meeting of the Salina Community Economic Development Organization, Inc. was called to order at 9:32 AM by Lloyd Davidson, Board President. (1.1) Confirmation of Meeting Notice Robinson confirmed that the meeting notice was made public via email, news release, and social media. Those present and comprising a quorum: In person: Zoom (Z): Max Wellbrock-Talley Cheryl Murray Pete Brungardt Lloyd Davidson John Gunn Frank Hampton Jim Maes Paula Fried Also present: Mitch Robinson, Salina Community Economic Development Organization Executive Director Robin VanAtta, Salina Community Economic Dev. Organization Administrative Assistant Mike Schrage, City Manager, City of Salina Tim Rogers, Executive Director, Salina Airport Authority (Z) Cody Heiman, Vice President/Loan Officer, First Bank Kansas Melissa Bixby, Commercial and Mortgage Lender, Central National Bank Rodger Sparks, County Commissioner, Saline County Mike Hoppock, City Commissioner, City of Salina Absent: Brian Richardson (1.2) Public Comment No Public Comment APPROVAL OF MINUTES Moved by Gunn, seconded by Hampton to approve the September 16, 2021 minutes. Aye: (8). Nay: (0). Motion carried. APPROVAL OF FINANCIAL STATEMENT AND ACCOUNTS PAYABLE (3.1) September Financial Reports Moved by Brungardt, seconded by Fried, to approve the September 2021 financial statements. Aye: (8). Nay: (0). Motion carried. (3.2) Draft Budget 2022 Davidson will assist with placing carryover funds into the budget. No action needed. DIRECTOR’S REPORT (4.1) Housing Update – Lt. Governor Toland visited Salina in September. He flew a firm to 3 communities in Kansas. Schrage felt Salina was very well received. Drever Development Firm – site visit on 10/27/2021 and will be in discussion with more local people. Participated in the City of Salina Study Session on 10/4/2021 to present an overview of the Ambassador Hotel project conversion. Expressed interest in building 2–3-bedroom units in close proximity to the main building. Ryan Addition received RHID approval for single family duplexes and single homes. Tax increment financial over 25 years; no specials. Affordable housing pricing and 3-year time commitment (w/ some wiggle room with logistics issues) including possible penalties. Building permit fees waived. Magnolia Pointe – property was original tagged for retail development during the deed process when Menards was built. Menards HQ denied via the deed restriction. The developers are truly committed to this development in Salina. (4.2) Prospect Updates – See Attached Chart Project 21-15 – Wichita area developer; looking for 40-80 acres at the Salina Airport Industrial Center; warehousing buildings or possible manufacturing Project 19-15 – pulled DRT proposal from the City; looking at existing building in Salina due to timing and construction costs. Project GP Expansion – Great Plains is looking to expand at their North Street facility. They are currently landlocked but are looking at 2 sets of parcels north of the railroad tracks. See proposal from TranSystems (Mike Hentschke). One possibility to access this land on the other side of the rail is to build a rail overpass. Mike at TranSystems submitted a proposal to provide professional consulting and conceptual planning to aid the City of Salina and Great Plains to consider when discussing this possible expansion. The EDO has been asked to fund this study at $9,000. Moved by Hampton, seconded by Brungardt, to approve the consulting fee for the TransSystems Corporation. Aye: (8). Nay: (0). Motion carried. EXECUTIVE SESSION No executive session needed ADJOURNMENT Moved by Gunn, seconded by Maes, to adjourn the meeting at 9:55 AM. Aye: (8). Nay: (0). Motion carried. _____________________________________ Lloyd Davidson, Board President ATTEST: ___________________________________________ Cheryl Murray, Board Secretary Oct 31, 21 ASSETSCurrent Assets Checking/SavingsFirst Bank Kansas-Sweep Acct 189,644.22 First Bank Kansas 69,161.71 Total Checking/Savings 258,805.93 Other Current Assets Prepaid Health Insurance 2,203.25 Total Other Current Assets 2,203.25 Total Current Assets 261,009.18 Fixed AssetsFurniture and EquipmentAccumulated Depreciation - F&E -6,204.50Furniture and Equipment - Other 6,145.49 Total Furniture and Equipment -59.01 Total Fixed Assets -59.01 TOTAL ASSETS 260,950.17 LIABILITIES & EQUITYLiabilitiesCurrent LiabilitiesAccounts PayableAccounts Payable -1,944.23 Total Accounts Payable -1,944.23 Credit CardsVISA - First Bank Kansas 1,237.89 Total Credit Cards 1,237.89 Other Current Liabilities Payroll LiabilitiesFICA Taxes 470.54Medicare Taxes 709.70Federal W/H Taxes 4,147.76State W/H Taxes 330.45 State Unemployment Taxes -728.00 Total Payroll Liabilities 4,930.45 Total Other Current Liabilities 4,930.45 Total Current Liabilities 4,224.11 Total Liabilities 4,224.11 EquityNet Assets w/ Donor Restriction 20,000.00Retained Earnings 211,717.02 Net Income 25,009.04 Total Equity 256,726.06 TOTAL LIABILITIES & EQUITY 260,950.17 11:36 AM Salina Community Economic Development Organization, Inc. 11/16/21 Statement of Financial Position Accrual Basis As of October 31, 2021 No Assurance is provided on these financial statements Page 1 Salina Community Economic Development Organization, Inc. Statement of Activities w/Prev Year Budget Comparison January through October 2021 Actual Actual Actual Actual Budget YTD Oct 2021 Oct 2020 Jan - Oct 21 Jan - Oct 20 Jan - Oct 21 Ordinary Income/Expense Income Start up Salina Income - - - Marketing Events Sponsorships - - - - Member Contributions 72,750.00 72,625.00 291,000.00 265,500.00 291,000.00 Investments-Interest 44.01 73.14 547.07 1,220.79 1,166.67 Pass Through Income - - - Miscellaneous Revenue - 33.05 - Grants - - - - Total Income 72,794.01 72,698.14 291,580.12 266,720.79 292,166.67 Gross Profit 72,794.01 72,698.14 291,580.12 266,720.79 292,166.67 Expense Business Expenses Pass Through Payments - - Memberships - - 495.00 1,250.00 Marketing Events 5,000.00 - 5,000.00 585.00 8,000.00 Miscellaneous Expense 30.00 20.00 235.97 223.09 416.67 Business Registration Fees - - 40.00 40.00 833.33 Total Business Expenses 5,030.00 20.00 5,275.97 1,343.09 10,500.00 Contract Services Accounting Fees 341.90 206.97 9,983.39 10,381.12 10,000.00 Outside Contract Services - - 25,850.00 710.00 833.33 Contract Services - Other - - - - - Total Contract Services 341.90 206.97 35,833.39 11,091.12 10,833.33 Operations StartUp Salina Expenses - 35.00 3.18 378.10 - Donations (Outgoing Board Recognition)- 50.00 - - Dues & Subscriptions 195.00 192.00 1,513.88 5,387.00 3,583.33 Training Fees - - 695.28 - Advertising/Promotion - 795.00 19,299.51 7,861.71 8,333.33 Repairs & Maintenance - - 128.97 326.25 333.33 Books, Subscriptions, Reference 1.00 335.80 3,183.70 3,803.55 2,500.00 Postage, Mailing Service - - - 58.80 141.67 Printing and Copying 7.02 - 60.58 71.40 416.67 Supplies 83.58 - 1,335.99 1,346.25 1,666.67 Telephone, Telecommunications 309.82 295.87 2,819.79 2,173.40 2,166.67 Total Operations 596.42 1,653.67 28,395.60 22,101.74 19,141.67 Other Types of Expenses Taxes & Licenses - - - - 33.33 Depreciation 45.43 125.26 1,013.11 1,252.60 1,320.83 Other Costs 7.25 3.34 71.74 63.16 Insurance - Liability, D and O - - 5,437.00 4,863.65 4,166.67 Total Other Types of Expenses 52.68 128.60 6,521.85 6,179.41 5,520.83 Payroll Expenses Retirement Contribution - - 8,289.51 - 9,212.50 Director Relocation Expense - - - - - Employee Health Ins 2,140.21 419.19 6,114.96 4,121.24 4,583.33 Director Health & Life Ins 3,463.91 672.40 10,539.95 9,072.86 8,750.00 Car Allowance 250.00 500.00 5,000.00 4,750.00 5,000.00 October 2021 No assurance is provided on these financial statements Salina Community Economic Development Organization, Inc. Statement of Activities w/Prev Year Budget Comparison January through October 2021 Actual Actual Actual Actual Budget YTD Oct 2021 Oct 2020 Jan - Oct 21 Jan - Oct 20 Jan - Oct 21 Payroll Taxes 918.35 - 11,203.18 - 12,291.67 Wages & Salaries 13,207.43 19,656.27 144,352.50 144,092.92 150,000.00 Total Payroll Expenses 19,979.90 21,247.86 185,500.10 162,037.02 189,837.50 Travel and Meetings Meals 189.41 - 881.67 514.13 1,666.67 Conference, Convention, Meeting - - 903.64 1,410.40 833.33 Travel 1,181.17 - 3,258.86 1,317.67 5,000.00 Travel and Meetings - Other - - - - 416.67 Total Travel and Meetings 1,370.58 - 5,044.17 3,242.20 7,916.67 Total Expense 27,371.48 23,257.10 266,571.08 205,994.58 243,750.00 Net Ordinary Income 45,422.53 49,441.04 25,009.04 60,726.21 48,416.67 Net Income 45,422.53 49,441.04 25,009.04 60,726.21 48,416.67 October 2021 No assurance is provided on these financial statements 2022 Budget 2022 Budget 2021 YTD 2020 Actual 2019 Actual 2018 Actual Ordinary Income/Expense Income Marketing Events Sponsorships 0.00 0.00 0.00 3,571.43 11,814.29 Pass Through Income 0.00 0.00 0.00 0.00 5,000.00 Start Up Salina Income 4,000.00 0.00 0.00 0.00 4,500.00 Investments Interest-Savings, Short-term CD 1,500.00 503.06 1,377.26 719.89 0.00 Total Investments 1,500.00 503.06 1,377.26 719.89 0.00 Member Contributions 360,000.00 291,000.00 265,500.00 290,000.00 320,000.00 City of Salina - $275,000 Saline County - $35,000 SAA - $50,000 Other Types of Income 33.05 Grants 0.00 0.00 30,000.00 0.00 0.00 Miscellaneous Revenue 0.00 0.00 0.00 35.40 0.00 Total Other Types of Income 0.00 33.05 30,000.00 35.40 0.00 Total Income 365,500.00 291,536.11 296,877.26 294,326.72 341,314.29 Gross Profit 365,500.00 291,536.11 296,877.26 294,326.72 341,314.29 Expense Business Expenses Pass Through Payments 0.00 0.00 0.00 0.00 5,000.00 Memberships 2,500.00 0.00 950.00 7,410.00 2,845.00 Marketing Events 10,000.00 5,000.00 585.00 12,776.96 40,428.80 TEAM Kansas - $5,000/yr Miscellaneous Expense 500.00 205.97 263.09 458.58 0.00 Strategic Planning 0.00 0.00 0.00 0.00 15,000.00 Business Registration Fees 40.00 40.00 40.00 2,484.00 1,010.00 Total Business Expenses 13,040.00 5,245.97 1,838.09 23,129.54 64,283.80 Contract Services Accounting Fees 12,000.00 9,641.49 11,670.13 12,280.00 12,200.00 SS&C - $3,500 Woods & Durham - $7,000 Outside Contract Services 2,550.00 25,850.00 710.00 2,921.83 1,000.00 IRB Cost Analysis -$850 per Contract Services - Other 0.00 0.00 0.00 0.00 21,750.00 Total Contract Services 14,550.00 35,491.49 12,380.13 15,201.83 34,950.00 Facilities and Equipment Computer Replacement 1,500.00 Office Equipment 850.00 Total Facilities and Equipment 2,350.00 Operations StartUp Salina Expenses 4,000.00 3.18 384.10 1,788.18 3,779.21 Donations - Outgoing Board Award 150.00 50.00 Page 1 of 4 No assurance is provided on these financial statements 2022 Budget 2022 Budget 2021 YTD 2020 Actual 2019 Actual 2018 Actual Dues & Subscriptions 3,000.00 1,318.88 5,387.00 4,231.50 688.60 Rotary Dues - $780/yr IEDC Membership - $149/yr SEDC Membership - $250/yr KEDA Membership - $300/yr Training Fees 1,000.00 0.00 695.28 0.00 1,100.00 Repairs & Maintenance 500.00 128.97 326.25 0.00 428.22 Advertising/Promotion 56,000.00 19,299.51 9,926.71 19,412.05 18,428.96 Promotional Items - $1000 Print Marketing - $25,000 Other Marketing - $5000 Welcome/Promo - $200 Website Maintenance - $1000 Website Hosting - $625/yr Books, Subscriptions, Reference 4,000.00 3,182.70 3,868.55 477.79 2,395.04 JobsEQ - $3200 (1/2 sub) Canva - $125/yr KC Biz Journal - $80 ICT Biz Journal - $80 Office 354 Renewal - $350 Postage, Mailing Service 210.00 0.00 59.85 238.00 83.00 Printing and Copying 1,500.00 53.56 71.40 475.06 639.62 Supplies 3,200.00 1,252.41 2,181.50 2,675.39 2,437.30 Telephone, Telecommunications 3,000.00 2,509.97 2,436.43 2,151.33 2,482.20 Cell Phone Allowance ExD - $480 Cell Phone Allowance AdA - $480 Zoom Subscription - $225 Cox Telephone - $800 Internet @ Chamber - $600 Total Operations 76,560.00 27,799.18 25,337.07 31,449.30 32,462.15 Other Types of Expenses Taxes and Licenses 0.00 0.00 0.00 40.00 40.00 Depreciation 1,000.00 967.68 1,503.12 1,567.54 1,503.29 Insurance - Liability, D and O 6,000.00 5,437.00 4,863.65 4,484.00 4,446.50 Other Costs 250.00 64.49 171.73 219.26 0.00 Total Other Types of Expenses 7,250.00 6,469.17 6,538.50 6,310.80 5,989.79 Payroll Expenses Retirement Contributions 12,000.00 8,289.51 22,064.82 0.00 0.00 Director Relocation Expense 0.00 0.00 0.00 763.19 0.00 Employee Health Ins 7,000.00 3,974.75 4,959.62 5,579.40 5,291.72 Director Health & Life Ins 12,000.00 7,076.04 11,099.60 10,702.84 8,603.60 Car Allowance 6,000.00 4,750.00 5,750.00 6,000.00 6,000.00 Payroll Taxes 14,750.00 10,284.83 14,658.25 13,665.58 13,459.14 Wages & Salaries 180,000.00 131,145.07 176,801.28 165,241.00 175,975.25 Page 2 of 4 No assurance is provided on these financial statements 2022 Budget Total Payroll Expenses 231,750.00 165,520.20 235,333.57 201,952.01 209,329.71 2022 Budget 2021 YTD 2020 Actual 2019 Actual 2018 Actual Travel and Meetings Meals 5,000.00 692.26 610.48 2,798.17 4,591.88 Conference, Convention, Meeting 2,500.00 903.64 1,410.40 300.00 1,707.72 Travel 11,500.00 2,077.69 1,317.67 9,763.45 11,984.59 Travel and Meetings - Other 1,000.00 0.00 0.00 480.00 0.00 Total Travel and Meetings 20,000.00 3,673.59 3,338.55 13,341.62 18,284.19 Total Expense 365,500.00 244,199.60 284,765.91 291,385.10 365,299.64 Net Ordinary Income 0.00 47,336.51 12,111.35 2,941.62 -23,985.35 Net Income 0.00 47,336.51 12,111.35 2,941.62 -23,985.35 Page 3 of 4 No assurance is provided on these financial statements NOVEMBER 2021 REPORT MARKETING / PROMOTION We continue to work with Paula Fried and Michael Freeland making final design concerning annual report of the SCEDO. Gathering final quotes from area businesses and community leaders. STRATEGIC PLANNING Will be presenting the strategic plan to the Airport Board at their January meeting. Janet Ady has provided a 5-page executive summary. I will focus on aviation and warehousing in the presentation to the airport board. WORKFORCE TALENT / HOUSING Along with Eric Brown, Lauren Driscoll, Hanna Stambaugh, Jacob Wood the Salina/ Saline County delegation attended the SPARK Committee meeting in Kansas City and spoke before the Lt Governor, Speaker of the House and President of the Senate concerning the community’s interest in funding from the federal government assistance. The community received positive comments from the committee members about our unified efforts. The Ambassador Hotel Project continues to move ahead with the conversion of hotel rooms to single unit apartments. The company owner met with local landowner concerning their possible joint in building quality apartments on the landowner’s ground. The developers of the Magnolia Pointe project are now looking for other land options in addition to efforts still attempting to get approval from Menards. While in Kansas City toured a new development of the F&C project. Very attractive complex in downtown. Much of the amenities would be like what they would build here in Salina if a deal can be completed. ETREPRENEURSHIP / SMALL BUSINESS DEVELOPMENT The November 3rd Startup Salina had entrepreneur Gus Applequist come and speak about his businesses. The December 1st program will be Renee Duxler from the Chamber, speaking about the Project Open loan program starting at 7:30 am. We are putting together a local group to help develop and promote the business plan competition for the first quarter of 2022. A tentative date is February 14- 19. This is national entrepreneurship week PROSPECT MANAGEMENT The Salina City Commission approved of IRBs for Schwan’s $600 million project. Spent time working between the company and WSU’s CEDBR in developing the economic impact study for the project. At previous meeting, the bonds were approved for Great Plains expansion plans. Assisted the Salina Airport Authority on working to promote an 80-acre site within the airport industrial park as a location for a warehouse complex. SITES / BUILDINGS / TOOLS: Continue to monitor sites and available buildings within the community. MONTHLY WEB/SOCIAL MEDIA STATISTICS Website – (reported October 2021) 252 users 250 New Users 278 Sessions 1.57 Pgs/Session 1.07 Avg Session 437 Pageviews Website –10/18/2021 – 11/15/2021 198 users 191 New Users 208 Sessions 1.37 Pgs/Session 1.05 Avg Session 285 Pageviews Facebook – (reported October 2021) 48 Page Views 374 Post Reach 24 Post Engagements 683 Page Likes Facebook – 10/19/2021 –11/15/2021 34 Page Views 657 Post Reach 105 Post Engagements 692 Page Likes Start Up Salina Facebook Group 8/15/2021 – 299 members (+7) 9/13/2021 – 299 members (--) 10/18/2021 – 299 members (--) 11/16/2021 – 305 members (+6) 120 W. Ash | Salina, KS 67402-0586 | 785.404.3131 | www.salinaedo.org PROJECT RISE SCORECARD LOCAL INCENTIVE ASSISTANCE PROGRAM Industrial Revenue Bonds TERM / % 10 Years - 100 % Abatement Property Taxes OTHER 100% Sales Tax Exemption on Const. Materials CITY STREET $$ $900,000 City Match for KDOT total grant of $3M SEDIP $$ $650,000 City Match for EDA total grant of $3.8M CITY IMPACT Public Benefits $29,215,640 Costs $23,393,485 BEN-COST RATIO 1.25 City of Salina; 1.17 Saline Co; 305 1.44 COMPANY SFC Global Supply INVESTMENT $600 Million Multi Phase Project EMPLOYMENT 1101 Retained Existing Positions 42 jobs in Year 1 - $65,210 wage, OT, bonus 183 jobs in Year 3 - $65,210 wage, OT, bonus BUILDING 400,000 SF Production Facility estimated at $325 million ACRES NEEDED N/A EQUIPMENT 2 Production Lines estimated at $275 million CONSTRUCTION WORKERS Up to 400 construction workers at peak CONSTRUCTION WAGES Estimated wages of $131 million EARNINGS MULT Earnings construction multiplier of 1.6458 Prospect Table Code #Project Name Client Source Project Status Contact Date Milestone / Decision Date Project Objective Business Description Jobs (New)Average Salary Investment Niche Acreage Required Square Footage 19-15 Project Toys Direct Contact Halted 10/10/2019 Met with County Commission Buidling on South 9th Street Retail and service location for farm equipment, ATVs, and watercraft 5 $20/hr $2.0 m Ag & Recreation Own Site Now Looking at Harley/Honda Building 21-7 Project Heavy SAA Direct Contact Active 4/15/2021 2022 MRO/Fabrication Need Building ? Above Co Avg Wage ? ? North End of Airport 500,000 to 1 M SF 21-8 Project Jane KDOC Active 6/7/2021 Submitted 6/14/2021 Aviation Manufacturing Build Aircraft 906 Above County Avg Wage ? ? 40-160 acres at Airport Build 500,000 SF 21-9 Project Ecosphere KDOC Eliminated 7/7/2021 Submitted 7/14/2021 Auto Battery Mfg Find A Site Over 1100 by Year 5 ?$2.5 B by Year 5 ? 40-75 1-1.6 M SF 21-10 Project Storage Direct Contact Active 7/29/2021 8/23/2021 Visited August 23rd Engery Storage 3-4 years for approval 0 0 $330M Energy 20-40 acres under option Ouside Storage 21-11 IN Apartment Developers Direct Contact/DOC Active 8/3/2021 Toured KC Development Apartment Approximately 200-220 units 3-Feb ? est $25M Housing 10 acres 200-220 units 21-12 Project Birdcage KDOC Active 8/31/2021 11/1/2021 Shovel-ready site for Manufacturing / Warehousing / Distribution Industrial Site for 425,000 SF manufacturing and 300,000 SF warehouse with future expansion possibilities 700-900 over 3-5 years Wages competitive to the region selected. $300 Million ?100 to 150 acres 425,000 SF manufacturing and 300,000 SF warehouse 21-13 Project Ocean KDOC Active 9/29/2021 Submitted 10/6/21 Finalist Selected 11/2021 Considering both greenfield sites and existing buildings. New U.S. large-scale plant manufacturing project. 4,000 FTEs within 2 years $23/hr ? (NAIC 335 - Electrical Equipment, Appliance, Component Mft) 350+ acres 3,000,000 SF 21-14 Project Singularity KDOC Active 9/30/2021 Submitted 10/6/2021 In operation in 2022 Establish new production facility and U.S. Headquarters Precision machining company and Tier 2 supplier to the semiconductor industry 175 jobs over 6 years ? $40 M MFTing 20 acres (The plot needs to accommodate building for employee childcare, parking spaces, turcking/loading area, and soloar panels 40,000-80,000 SF 21-15 Project MVP SAA Direct Contact Active 10/12/2021 Contract Being Drafted New property for future warehousing Build 100,000 sf warehouses x 8 limited ? approx $30-40 M Warehousing 80 acres @ SAA 800,000 total sq 21-16 Project Bison KDOC New 11/16/2021 Decision date note specified. Project would be a 5-year build out New manufacturing facility Building turf maintenance equipment for US sales; powder painting involved 555 employees, with possible growth up to 740 employees by 2030 Expected wates 15% about prevailing rate in the area for similar jobs. Benefit package also includes health care. $100 Million Manufacturing 60-150 acres submit Sager- Miller 200,000 SF with a later expansion to 500,000 SF This information is strictly CONFIDENTIAL. Discussion of this information outside of this meeting could jepardize the progess of these pending projects. ACTIVE INACTIVE NEW ELIMINATED SUCCESS DELAYED NOVEMBER 2021 Prospect Table 11/17/2021 **for informational use only** How will Kansas spend $1.6B in COVID aid? Charities, sheriffs, theaters make their pitch BY JONATHAN SHORMAN UPDATED NOVEMBER 15, 2021 3:01 PM Jefferson County Sheriff Jeff Herring speaks to the SPARK task force on Monday. The task force will develop a plan to spend approximately $1.6 billion in federal COVID-19 aid provided to Kansas. Help for the homeless. Grants for movie theaters. Hydroelectricity. As Kansas prepares to allocate $1.6 billion in federal COVID-19 aid, business groups, non-profit organizations and civic advocates from across the state are pushing a sweeping range of proposals for spending it. They are all angling for a piece of the one-time funding that could prove transformational for a host of programs and initiatives. The money holds the potential to ultimately touch residents in all corners of the state through dollars for affordable housing, business start-ups, new and improved public buildings, better access to higher education and faster broadband internet. How this funding is spent largely rests with a panel of state, civic and business leaders who have been touring the state, listening to local CEOs, non-profit executives and residents make their case for their particular project. Known as SPARK (Strengthening People and Revitalizing Kansas), the committee will produce recommendations that will go to the State Finance Council, a body made up of Gov. Laura Kelly and legislative leaders, for final approval. **for informational use only** On Monday, SPARK arrived at Kansas City Kansas Community College to hear proposals from the region. The college’s president, Greg Mosier, made his own pitch, asking for $30 million to help build a $70 million health and wellness center in Kansas City, Kansas, aimed at eliminating socioeconomic disparities between eastern and western Wyandotte County. “We really have the tale of two cities, or you can say counties, in Wyandotte County,” Mosier said, describing a prosperous western half and an eastern half that has “really gone into great despair over the last 30 years.” Kansas’ state government is receiving $1.6 billion under the American Rescue Plan Act, which Congress passed and President Joe Biden signed into law in March. In total, the law is expected to provide Kansas with $4.9 billion, with $1.2 billion going toward education, nearly $1 billion to local governments and the rest split among social services, housing and health care. WaterOne, the Johnson County public water utility, wants $12 million to replace two aging transmission mains. Darci Meese, WaterOne’s manager of legal services and government relations, acknowledged the project isn’t glamorous but is nevertheless important. The utility is also considering a one megawatt hydropower plant on the Kansas River, a roughly $8 million project. Another nearby facility owned by the utility could run “pretty much completely off the grid most of the time” using the plant’s power, Meese said. Dred Scott, representing an alliance of Boys & Girls Clubs in Kansas, didn’t name a specific dollar amount publicly, but asked SPARK to help with staff wages and training workers in providing trauma-informed care. He noted that Boys & Girls Clubs were one of the few groups serving children in person during the height of the pandemic, even when schools were closed or remote. Kansas House Speaker Ron Ryckman, left, and Lt. Gov. David Toland as the SPARK task force meeting got underway on Monday. SPARK will recommend how Kansas spends $1.6 billion in federal COVID-19 aid. Jonathan Shorman THE KANSAS CITY STAR **for informational use only** Kimberly Weaver, a Wyandotte County resident, said housing should be the number one priority for the federal funds. She noted the county doesn’t have a homeless shelter and voiced fears that an increasing number of people will end up homeless in the weeks and months ahead amid rising housing costs and the end of eviction moratoriums. “Our focus needs to be on ensuring that people don’t lose their homes in the first place. Rent, utility and property tax assistance need to be more widely available,” Weaver said. Bobbie Bagby Ford, an executive at B&B Theatres, a family-owned movie theater chain with locations in Kansas and 12 other states, asked for a grant program for theaters in Kansas that could provide support until 2024. By then, she said, analysts anticipate the industry will be back to full health. The family-owned company is operating at about 70% of its 2019 revenue, Bagby Ford said, calling the situation devastating. She warned that movie theaters are expensive to build and maintain and smaller communities have only a small chance of getting a new theater if the current one closes, she said. “B&B Theatres operates in many smaller communities across Kansas and in many instances, it is the only form of out-of-home entertainment. It’s an opportunity to see the rest of the world,” Bagby Ford said. “And we’ve been disproportionately hurt.” SPARK didn’t act after hearing public comments Monday. Lt. Gov. David Toland, who chairs SPARK, said he expects decisions will be made before the end of the year on “immediate needs” with other requests going through a more complete process. The entire $1.6 billion will be approved in three chunks, with up to $500 million spoken for by the end of 2021 and the full amount allocated by late summer 2022. Toland didn’t have an estimate of the total value of the funding requests made so far, but said the overall figure “far exceeds” the aid available. That will likely mean potentially excruciating decisions by the committee — and later, the State Finance Council — over what gets funded and what doesn’t. Toland, a Democrat, named growing the tax base and providing long-term benefits as elements in how he will judge proposed projects. By way of example, the 44-year-old said a swimming pool he went to growing up was a Depression-era Works Progress Administration project. “We have an opportunity here to make investments that can pay dividends for the state and its people for the next three or four generations,” Toland said. Senate President Ty Masterson, an Andover Republican and a SPARK member, indicated he would emphasize how the funds are one-time money. He called for infrastructure-based projects, such as improvements to facilities. “We can’t set Kansas up to fail when the federal money runs out,” Masterson said. **for informational use only** Jefferson County Sheriff Jeff Herring, who is asking for help paying for a $3 million project to add quarantine and mental health beds at his county jail, nodded to difficult choices facing SPARK as he made his presentation. “You folks have a tough job ahead of you,” Herring said. This story was originally published November 15, 2021 2:54 PM. JONATHAN SHORMAN 816-234-4274 Jonathan Shorman is The Kansas City Star’s lead political reporter, covering Kansas and Missouri politics and government. He previously covered the Kansas Statehouse for The Star and Wichita Eagle. He holds a journalism degree from The University of Kansas. STRATEGY MATTERS 608.663.9218 │www.AdyAdvantage.com Salina Community EDO (KS) Target Industry Update and Business Case Development Executive Summary Report – October 22, 2021 STRATEGY MATTERS Provided to: D. Mitch Robinson Executive Director Salina Community EDO 120 West Ash Street Salina, KS 67401 785.404.3131 mrobinson@salinaedo.org 3 STRATEGY MATTERS 608.663.9218 │www.AdyAdvantage.com Executive Summary STRATEGY MATTERS 4608.663.9218 │www.AdyAdvantage.com Executive Summary The objective of this project is to refine existing target industries (pictured to the right) to identify opportunities to drive future industry growth and diversification in Salina and the region. This will include looking at the impacts of Covid on Salina’s main industries, as well as new industry sub-sector opportunities that may arise from the pandemic. OBJECTIVE & KEY THEMES During the virtual on-site analysis, Ady Advantage conducted a variety interviews, roundtables, surveys, and stakeholder sessions to gain direct input. Key themes were identified through all these means of input, aggregated together and analyzed. Questions aimed to understand the area’s competitiveness related to operating conditions and operating costs along with key opportunities around talent, partnerships,growth, etc. The questions also aimed to understand barriers to growth and other challenges employers and talent may experience. The following themes emerged: 1.The Salina region has a robust product pipeline, with a large number of sites and buildings available for businesses looking to relocate or expand. This is especially true as it relates to sites that are suitable for industrial development. Sites are generally quite shovel-ready, with flat terrain and utilities and infrastructure already in place or close by. There are many sites located near the Airport,making it ideal for the aerospace industry and other industries that benefit from proximity this asset. STRATEGY MATTERS 5608.663.9218 │www.AdyAdvantage.com Executive Summary 2.Stakeholders expressed a mixed view for the growth potential of the three target industry clusters, expressing a very positive outlook for the aerospace cluster, a somewhat neutral to positive outlook for the agribusiness and supply chain cluster, and a somewhat pessimistic to neutral view for the distribution cluster. A.Regarding the aerospace sector, stakeholders noted all the positive developments regarding recent project interest and wins and the new aerospace-related businesses choosing to locate in the Salina area. There is a strong aerospace talent pipeline from the education institutions in the region. Additionally, the Salina Regional Airport is an immense asset which features some of the longest runways in the country. Overall, aerospace was viewed as having the strongest growth potential. B.Regarding the agribusiness and supply chain sector, stakeholders noted that while they had viewed less notable activity in this cluster in the immediate Salina area, they understood it to be a critical industry for the broader region and the state of Kansas. Data from the market assessment shows that agribusiness continues to maintain a strong concentration for the greater Salina region, and growth is projected. C.Regarding the distribution sector, stakeholders noted that intuitively distribution makes a great deal of sense for Salina. The region has strong transportation assets, most notably road and interstate infrastructure, but also rail and the airport. However, stakeholders noted how much of the activity in the distribution industry seems to gravitate to the bigger metro areas like Kansas City and Wichita. Stakeholders questioned the viability of the distribution industry in the Salina area as industry trends change and evolve. Data from the market assessment shows that growth is projected for the transportation and warehousing. 3.Employers in the Salina region continue to experience workforce challenges.Until recent years, Salina had experienced relatively steady population and labor force growth which helped to alleviate the workforce shortages experienced by employers. The COVID-19 pandemic has exacerbated the workforce challenges as employees are routinely forced to quarantine due to exposure incidents or become sick themselves. This is especially challenging for production-related occupations that make up a significant portion of the backbone of the Salina region economy, and who do not have the ability to work from home as other occupations and industries may be able to. 4.The downtown of Salina is an immense asset to the community and features many amenities that contribute to the quality of life. Such amenities include the community theatre, the theatre for performing arts, the art center, and the bowling alley arcade, just to name a few. The downtown has experienced significant construction and renovations in recent years, showing a willingness from the community to re-invest in itself. KEY THEMES STRATEGY MATTERS 6608.663.9218 │www.AdyAdvantage.com Executive Summary 5.As noted in the previous key theme, the Salina region offers an exceptional quality of life. However, this quality of life is little known outside of the Salina region. There is a growing recognition that historically Salina has done a poor job of messaging and communicating and telling its story to the outside world. In response to this, Salina launched the Imagine Salina campaign earlier this year. While it was unfortunate that this timing coincided with the onset of the COVID-19 pandemic which has stalled its progress, the Imagine Salina campaign is a great start towards addressing this challenge. It provides a strong foundation that can be built upon towards telling a positive narrative of the Salina region and ultimately talent attraction. 6.Housing is a challenge in the Salina region that is currently constraining full growth and development potential. There is increasing scarcity in available housing that is suitable and affordable for the low-skilled and semi-skilled workers, as well as entry level salaried professionals. As with most communities across the country, developers are primarily interested in the development of high-end housing projects, and not the entry to middle-tier level housing that is needed. The scarcity of housing that is suitable and affordable for workforce is a deterrent to the Salina region’s ability to capitalize on attracting and retaining talent, including the growing segment of remote workers. 7.The availability and affordability of childcare in the Salina region is a significant challenge. While COVID-19 has exacerbated the childcare challenges in the region, these challenges pre-dated the pandemic and will continue post-pandemic if left unaddressed. This issue is contributing to the talent retention and workforce challenges experienced by employers in the region. There is a growing recognition from employers and stakeholders in the region that the scarcity of childcare is an economic constraint for the region, and that employers may have to play a more proactive role in addressing the childcare issue if they wish to alleviate their workforce challenges. KEY THEMES STRATEGY MATTERS 7608.663.9218 │www.AdyAdvantage.com Executive Summary 8.There seems to be a relatively fair amount of alignment between stakeholders and partners in the Salina region. There is a sense that in the not-so-distant past there had been some degree of misalignment and strife between economic development partners, and although this is not necessarily forgotten there is greater consensus that today the City, County, Salina Community EDC, and other economic development partners work fairly well together. In particular, the three higher education institutions are well aligned and have little overlapping programming that could cause competition. 9.Kansas Wesleyan University, Salina Area Technical College, and Kansas State University Polytechnic Campus are major talent pipeline assets to the Salina region. Not all communities the size of Salina have access to both a 2-year college and a 4-year university right within their own backyard. Additionally, the Polytechnic campus provides specialized vocational training that aligns with the aerospace target industry. Employers noted their appreciation for the work these education institutions do and the programming and training they provide to their businesses. The three aforementioned institutions do an exceptional job collaborating, and there is little overlapping programming or competition amongst them. 10.There is a perception among many stakeholders that historically, Salina's employers were collectively paying wages that were somewhat uncompetitive, which likely had a detrimental effect on the Salina region’s ability to attract and retain talent. This perception is supported by data from the market assessment of this report, which shows that in general Saline County wages are lower than the greater region and considerably lower than the state or national averages. Many speculated that the reason Salina has won some recent projects and new employers is that the lower wages in the region provided these businesses the confidence in the knowledge that they could locatein the region and pay wages that were higher than the region but still competitive relative to the national average. This would translate to their ability to attract and retain top tier talent in the region. It should be noted that wages in the region have started to increase over the past couple of years, likely due to the low nationwide unemployment rates. Wage increases will likely continue to accelerate as new competition and pressure for workforce is driven by these new employers locating in Salina. KEY THEMES STRATEGY MATTERS 8608.663.9218 │www.AdyAdvantage.com Ady Advantage conducted thorough research on the existing target industries and all potential subsectors. Ady Advantage prioritized these sub- sectors based on the key screening criteria from the previous section. These key screening criteria include the following: •Projected growth in the greater region over the next 5-year period •Projected growth in the US over the next 5-year period •Life cycle stage •Concentration •Technology Change •Capital Intensity •Revenue Volatility •2020 Driver Direction •Regulation and Policy Level & Trend •Industry Assistance Level & Trend The weighting of the key screening criteria above in the sub-sector prioritization process is different for each target industry, dependent on the input from Salina Community EDO leadership as to what it considers the most important factors to consider. Those key screening criteria deemed higher in importance for a particular target industry correspondingly received a higher weighting in the sub-sector prioritization process. An additional layer of qualitative analysis was applied in the prioritization process, based on our industry experience and expertise. This qualitative analysis can be found in the summaries for each target industry accompanying the ranking of the sub-sectors. It is also reflected in the priority tier level assigned to each sub-sector, where Ady Advantage further categorized the sub-sectors into Tier A and Tier B based on our assessment of priority based on these qualitative factors and inputs. It is important to note that all sub-sectors shown here are stars and opportunities for the Salina region, and even those sub-sectors assigned as Tier B still show competitive potential. As a result of this analysis, we recommend the industries and sub-sectors as prioritization targets for the Salina region on the following pages. Regional and refined target industry positioning and business case development can be found in the later in the report. Executive Summary TARGET INDUSTRY REFINEMENT STRATEGY MATTERS 9608.663.9218 │www.AdyAdvantage.com In Ady Advantage’s assessment, Agribusiness and Supply Chain is an industry that offers opportunity for the Salina region. As noted earlier in the report, while there is less activity in this cluster in the immediate Salina area, it is a critical industry at a regional and state level and there are synergies that can be created with the broader region and state economies and supply chains. Additionally, the target industry analysis data shows that the agribusiness industry continues to maintain a strong concentration and growth in the greater Salina region. Sub-sector prioritization below focuses on the animal and crop production and processing operations, and business recruitment efforts should focus on trying to build out the full value stream for the agribusiness cluster. This includes both the production of the raw materials already produced in the region, as well as increasing value-add processes to those raw materials and producing end consumer products. Executive Summary AGRIBUSINESS AND SUPPLY CHAIN PRIORITIZATION Target Industry Sub-Sector Sub-Sector Prioritization Score Assigned Priority Tier Animal (except Poultry) Slaughtering (NAICS 311611)32 Tier A Crop Production (NAICS 111000)30 Tier A Other Animal Food Manufacturing (NAICS 311119)29 Tier A Livestock Merchant Wholesalers (NAICS 424520)29 Tier B Flour Milling (NAICS 311211)27 Tier A Grain and Field Bean Merchant Wholesalers (NAICS 424510)27 Tier B Crop Harvesting, Primarily by Machine (NAICS 115113)26 Tier A Farm Labor Contractors and Crew Leaders (NAICS 115115)26 Tier B Soil Preparation, Planting, and Cultivating (NAICS 115112)25 Tier A Support Activities for Animal Production (NAICS 115210)21 Tier A STRATEGY MATTERS 10608.663.9218 │www.AdyAdvantage.com In Ady Advantage’s assessment, Aerospace is an industry with significant opportunity for the Salina region, but also with an uncertain national outlook at the current moment. As noted earlier in the report, Salina has had recent project activity and wins within the aerospace industry, and thus a proven record of recent success. However, commercial activity in this industry nationally has taken a massive hit from COVID-19, and even under the best of projections is not anticipated to fully rebound for at least a few years. Freight and defense should be the higher priorities for the Salina region, at least in the short-term. There may be opportunities for Salina to leverage the educational assets in the region to position itself as a technology and innovation hub for the aerospace industry, particularly around automated planes, software development and analytics. Sub- sectors below marked as a higher priority can support both the defense industry, as well as other manufacturing opportunities in the Salina region. Those sub-sectors marked as a lower priority tier are predominantly commodity-based products and/or are sub-sectors less closely related with the aerospace industry; however, they can still support aerospace and should continue to be considered from that perspective. Executive Summary AEROSPACE PRIORITIZATION Target Industry Sub-Sector Sub-Sector Prioritization Score Assigned Priority Tier Fabricated Pipe and Pipe Fitting Manufacturing (NAICS 332996)32 Tier A All Other Miscellaneous Fabricated Metal Product Manufacturing (NAICS 332999)32 Tier A Other Airport Operations (NAICS 488119)32 Tier A Bolt, Nut, Screw, Rivet, and Washer Manufacturing (NAICS 332722)31 Tier B Aircraft Manufacturing (NAICS 336411)31 Tier A Aircraft Engine and Engine Parts Manufacturing (NAICS 336412)31 Tier A All Other Plastics Product Manufacturing (NAICS 326199)30 Tier B Ornamental and Architectural Metal Work Manufacturing (NAICS 332323)29 Tier B Other Industrial Machinery Manufacturing (NAICS 333249)29 Tier A Storage Battery Manufacturing (NAICS 335911)29 Tier B Fabricated Structural Metal Manufacturing (NAICS 332312)28 Tier A Construction Machinery Manufacturing (NAICS 333120)28 Tier B Other Support Activities for Air Transportation (NAICS 488190)27 Tier A Machine Shops (NAICS 332710)26 Tier B Industrial Valve Manufacturing (NAICS 332911)26 Tier B Rolling Mill and Other Metalworking Machinery Manufacturing (NAICS 333519)25 Tier B Conveyor and Conveying Equipment Manufacturing (NAICS 333922)25 Tier B STRATEGY MATTERS 11608.663.9218 │www.AdyAdvantage.com In Ady Advantage’s assessment, distribution is an industry that offers opportunity for the Salina region, particularly as it relates to supporting the supply chain of other recommended target industries. As noted earlier in the report, the region has strong transportation assets, including road, interstate, rail, and the airport. It is true that on a macro level the distribution industry has traditionally gravitated towards the larger metro areas, but the target industry analysis data shows that select sub-sectors of the distribution industry have shown growth in the region and can support the supply chain of other industry clusters at a regional level. We can also see increasing pressures for same-day delivery, which is driving the emergence of more physical locations, including in smaller markets like that of Salina. This opens up further opportunities in this industry in the long-term. Focus should be on further cultivating clusters in these areas and leveraging downstream opportunities, and sub-sectors have been prioritized below accordingly. Additional sub-sectors have been added below to further build out the distribution cluster and support other target industry clusters, please see the footnote for additional detail regarding this. Executive Summary DISTRIBUTION PRIORITIZATION Target Industry Sub-Sector Sub-Sector Prioritization Score Assigned Priority Tier Local Messengers and Local Delivery (NAICS 492210)25 Tier B Other Support Activities for Air Transportation (NAICS 488190)23 Tier A General Warehousing and Storage (NAICS 493110)23 Tier A Farm Product Warehousing and Storage (NAICS 493130)21 Tier A General Freight Trucking, Long-Distance, Truckload (NAICS 484121)20 Tier A Rail Transportation (NAICS 482110)* Tier B General Freight Trucking, Local (NAICS 484110)* Tier B General Freight Trucking, Long-Distance, Less Than Truckload (NAICS 484122)* Tier B Specialized Freight (except Used Goods) Trucking, Local (NAICS 484220)* Tier B Specialized Freight (except Used Goods) Trucking, Long-Distance (NAICS 484230)* Tier B *Select sub-sectors that were not stars or opportunities have been added to the prioritization recommendations above. These sub-sectors were included to build out the distribution cluster further, and while they currently have projected negative growth ahead they support other industry clusters and associated opportunities. Accordingly, they are assigned as a Tier B priority rather than a Tier A. STRATEGY MATTERS Thank You! 608.663.9218 │www.AdyAdvantage.com