Menu
Keystone occupancy still high, despite 21CSI woes
McCOOK, Nebraska -- Moving trucks that were spotted loading equipment at the Keystone Business Center in McCook, last week raised questions about the stability of their anchor tenant, 21st Century Systems Inc.
Executive Director of the McCook Economic Development Corporation, Rex Nelson, confirmed that 21st CSI had reduced the number of employees and that their programming functions were not taking place in McCook.
"The dynamics of their market have changed," said Nelson, who added that although the company was downsizing its local work force, they did still have a call-center contract with Plains Equipment Group that Nelson believes has high growth potential.
21st CSI was approved for a Community Development Block Grant in excess of $500,000 in 2010. The company planned to lease the fourth floor of the building and the grant was to be used to defray start-up costs of a data center in the basement. The grant required $700,000 in matching funds from 21st CSI and lenders, with the overall project estimated to cost $1.2 million.
Nelson told the McCook City Council in March 2010, that 21st CSI would be required to pay back $250,000 of the grant. The other $250,000 would be forgiven if 21 new jobs were created within three years, while retaining the seven positions they already had.
The company was fully moved into the fourth floor of the Keystone in August 2010, not making it to its one year anniversary before downsizing occurred.
Not only has the basement project been discontinued, but the Plains Equipment Group call center will not require use of the entire fourth floor. It is leasing 4,500 square feet and the call center would initially use closer to 1,500 square feet, with potential for growth.
"The change makes it difficult for us; it's a changing economy and we have to be flexible and innovative to keep the facility occupied and continue to create business opportunities," said Nelson.
Nelson is optimistic for the future of the Keystone Business Center, despite the bleak times for what was hoped to be an anchor tenant for the newly renovated building.
"We are roughly at 75 percent occupancy and would like to be at 85 percent at this point, but we are working with a few clients who could be possible tenants," said Nelson. Nelson also said that he was pleased with the number of weddings, receptions and meetings in the dining room and lobby areas of the Keystone.
"The majority of our work continues to be in support of all those businesses who are not tenants in the facility, for that the business center has been a huge asset and has allowed us to provide a higher level of service and work more closely with other providers, such as the chamber, MPCC, Nebraska Business Development Center, REAP and others," Nelson said.
David Andersen, CEO for 21st CSI based out of their Omaha office, would not comment regarding the situation when contacted by the Gazette Monday morning.
The Keystone has availability for start up and expanding businesses, both furnished and unfurnished, and in either shared or private office spaces. Interested parties should contact Nelson at (308) 345-1200.