![[McCook Daily Gazette]](http://www.mccookgazette.com/images/nameplate-small.png){kind=small}
RSS
Print
Email link
Respond to editor
Read comments (9)McCook business owner Don Klein peppered Rex Nelson, director of the McCook Economic Development Corp. and supporter of renovating the Keystone Hotel into a business center, with a variety of questions.
(Advertisement)
|
Don Klein, McCook business owner and citizen, questioned whether restoring the Keystone into a business center was a feasible project and using sales tax revenue to fund it.
"I haven't seen all the figures but there are a lot of concerns for taxpayers in McCook and Northwest Kansas to finance this project," he said
Although he admitted he has never been an advocate for sales tax, he "was not opposed" to it at the last special election, providing it would be used for economic development. "But I didn't realize we'd go into the real estate business with it," he added.
Klein asked Nelson if the building had any "iron-clad" leases for the finished project and Nelson replied he did. At a prior council meeting, Nelson said that the military software company, 21st Century Systems, now at McCook Community College, has agreed to sign on as a tenant and expand is operations at the Keystone. Klein then asked for how long the lease was for and Nelson answered for five years.
Klein pointed out that most leases for strip malls, department stores and the like were usually for 10 years and asked why this lease was shorter.
Nelson answered that in the software technology business, 10 years is a long time.
"It's iffy, then?" Klein asked. "There is a risk, sure," Nelson conceded.
Klein then said that it was a risk for taxpayers of McCook to commit sales tax dollars to this project, only to have it "go south."
"It's a reasonable risk," Nelson agreed, but also an opportunity to create new jobs. Currently, 21st Century employs ten people, he said, and would add 20 more when it moved into the Keystone.
Klein asked that out of the 24,000 square feet that would be renovated, how much 21st Century would occupy. Nelson replied about 6,000 feet.
"Six thousand feet, out of 24,000 feet, that's about 25 percent," Klein figured. "That's 25 percent of the project covered by this lease."
City Manager Kurt Fritsch clarified that costs for the project would be funded by a federal grant and sales tax proceeds. The lease would make up about 5 to 6 percent of that, he said.
The federal grant, at $1.5 million, does not have to be paid back, Nelson explained but Klein responded, "Someone's got to pay for it," meaning tax payers.
Klein also questioned if the amount spent on the project would be justified and Nelson told him that the county has projected the completed building to be worth $2 million.
Nelson continued that renovating the Keystone into a Business Center would create jobs, increase the tax base and stimulate the downtown area. The Keystone would be multi-use, he added, with an entrepreneurial center and new jobs created when 21st Centuries expanded into the building.
"What percent of people in town work in technology?" Klein then asked.
Not many, Nelson answered, but that the community would benefit from young families moving back into town and buying houses and using services.
Klein did not appear entirely satisfied and said he is still concerned with the viability of the project and using tax payer money, by the way of sales tax revenue, to fund it.
Note: The nature of the Internet makes it impractical for our staff to review every comment. If you feel that a comment is offensive, please 
Here, here. We need to invest for the future & the youth! If you always make decisions like you have always made decisions, you will always receive the same outcome!!
Just wondering if any of the posters actually knew people who worked for the company. Its not an internet company nor a military based company. They make software for who ever hires them, yes sometimes it is the military. They have offices around the US and hire kids from area colleges straight out of graduation. It is easier to get them to work if the town is closer to where they are from, and is cheaper to live when coming out of college loans. Hence why McCook was chosen for a office. As a young person who moved here, I can tell you I felt a strong non friendly push since I was not native. If the town is trying to get rid of their youths and not wanting to get more people to move back then keep doing what your doing and dont bring in projects that will hire companys that will have work for the youth.
norm; Haven't seen the plans. I just know what the structure is and what is in it that will need attention.
edbru, have you seen the building plans? From the sounds of it, you haven't.
This tax money needs to be used in McCook, I agree, but the way things are going to be done with it or proposed to use it, need some attention.
The Keystone will cost much more than they are looking at. The elevator system is non-functional with would require a complete change. That should cost around $900K to $1.5mil. How will they heat that building?? Another boiler for steam heat?? The one that is there is rusted and very old. Today's standards will condem the boiler. A new one that is large enough will be close to $1 million. That includes ALL the piping to move steam around the building. If that isn't used and replaced with forced air heat or electric heat, that will cost the same. All new wiring will be needed and also to update the wiring in that building to be up to today's code. The wiring in that place is from the 40's era. Some of it has been changed, but if this is going to be a complete renovation, all will be replaced or it will be in violation of state code. The whole building will need a face-lift from inside to the outside.
Sure, the city council will get the funds for this by their TIF and bonds that they issue. This is becoming a dead horse. The only thing that should have been dicussed is the demolition of this building or an outside source to purchase and renovate it. Not the city of McCook. I don't care how much the city council polishes it, it will still be the same. And the citizens of McCook will end up paying for it with more taxes again. I feel the city council wanted and pushed the extra tax money for a hidden idea. Not to benefit the citizens by making the community better, but by using it for their benefit and mis-leading the citizens for what it was to be used for.
We, the people, need to focus our attention on this item that the city council is dicussing. I urge everyone that is able, to go to the meetings and voice your opinion about this. It should be stopped and scrutinized completely by all before they continue on. There's a rat in the woodpile and the citizens need to find it.
This project isn't based entirely on "technology" businesses or jobs. Believing that a business has to be one to be in the Keystone building is a bit simplistic. And the Internet reference was just the tip of the iceberg as far as technology goes, but IS a technology field.
I would agree with norm in that the federal grant money would be used elsewhere if not McCook, so why not McCook. With only 1 iron clad lease I would be very reluctant to move forward with this project. This would create 20 jobs? For how long? At what annual income? Are the skills gained in this job usefull in the community if 21st Century pulls out or will the people in these jobs relocate to work in the same field. Technology and the internet have nothing to do with one another. The internet is set up so that is can be used by a child, technology is the code that makes it possible as well as automated processes. This is a field that does exist in McCook, but not heavily utilized. If the entire 24000 sq ft were leased in advance, maybe it would be viable. The way it is now, I doubt it.
I understand what Mr. Klein means with his comment about taxpayers having to pay for the Federal grant, but if the money isn't used in McCook, it will be used somewhere else. The taxpayers are still paying it regardless, so why not have it help McCook instead of somewhere else?
Also, his comment about people "working in technology" is ludicrous. There is a little thing called the Internet, maybe he hasn't heard of it. I'd bet a majority of McCook "works" with it in some fashion.
After what was said at the council meeting, there should be RED FLAGS going up everywhere!!
Only 25% of the space to be occupied?? Look at this situation. The software company (military) probably has more capital than the entire city of McCook and would be able to get out of the lease contract anytime they want to. Sure, they would pay a penalty for early termination, but that is chicken feed to them. A reasonable risk is what gets everone into trouble. Having an "iffy" posibility for things is not what the taxpayers want to hear or raising taxes either. That is where this is headed. Mr. Klein has a very good point. With only one "iron clad" renter, if they really commit to it, the outcome is very dim.
People need to take heed on this. I for one agree with Mr. Klein on the outcome of the renovation of the Keystone.
Is this going to go south like the old East Ward school?? You people on the city should watch closely to what is going to happen. Sure, it is good to look toward the future and making things better for McCook and it's citizens, but this looks like a dead horse in the making.