During Monday’s Chanute City Commission meeting, commissioners heard an annual report from the Chanute Regional Development Authority. The organization’s mission is to create a diversified and vibrant economy, according to Shelli Sheerer, a CRDA board member.
Sheerer described CRDA as a pass-through organization that recruits businesses to come to Chanute and seeks grant opportunities for local businesses and homeowners. CRDA was previously allocated a portion of a quarter-cent sales tax funding for their operations. The City Commission can determine the allocation of tax monies received from this quarter-cent sales tax between repair and maintenance of city-owned buildings and that which goes towards economic development activities through CRDA.
According to City Manager Todd Newman, due to the $3 million cost for the HVAC replacement at The Depot building, there are no funds available from this tax to fund the CRDA. CRDA also receives 5% of the real estate taxes for properties in the Neighborhood Revitalization Program.
In the annual report, Sheerer highlighted CRDA’s accomplishments in the realms of housing, neighborhood revitalization, and business recruitment. In 2020, CRDA was awarded $300,000 from the Kansas Housing Resources Corporation, which rehabilitated seven rental properties and constructed two rental duplexes, and three single-family homes. In 2023, an additional $200,000 was awarded, which funded 14 new single-family homes.
CRDA initiated the program in 2013 and has created a total capital investment of over $41 million according to Sheerer. In the past two years, CRDA has assisted with 23 residential properties, and three commercial properties, with capital investments of over 6.4 million dollars.
In business and job growth, Sheerer noted the successful recruitment of Orizon Aerostructures, which created over 450 jobs, with $70 million in capital investment. CRDA was also responsible for recruiting Domino’s, Bealls, Holiday Inn Express, Loves Travel Stop, Arby’s, Tractor Supply, Dollar Tree, and Scooter’s Coffee.
Sheerer said further business recruitment is limited due to the lack of sales tax funding, as are downtown revitalization efforts. Since its inception, CRDA has awarded 30 downtown revitalization grants
See COMMISSION, continued on page 10 to small businesses, which were used to beautify buildings, repair roofs, complete tuckpointing to prevent flooding, and paint new murals. $140,000 has been awarded in grants, and Sheerer said that downtown revitalization efforts have had a capital investment of over $500,000.
CRDA plans to pursue housing grants to improve existing homes and is in the process of applying for more Patterson Family Foundation Grant funds to help homeowners repair their homes. In the past CRDA received $250,000 from the Paterson Family Foundation, which provided 50 repair grants to homeowners.
During discussion, Vice Mayor Tim Fairchild said it would be reasonable to put the question to the community on funding CRDA in the form of a sales tax.
The current sales tax rate in Chanute is 9.5 %, in line with other cities in the region. City Attorney David Brake said that there was room for an additional sales tax of a quarter or a half-cent. According to Newman, the only other way to raise funds to continue CRDA programs would be to raise utility rates.
In other business, commissioners voted to close the parking lot north of the Main Street Pavillion for Classic Car Cruise Night on Tuesday, June 17. The event begins at 5 p.m., in conjunction with the Main Street Farmers Market. Commissioners also approved closing the southern parking spaces for future farmers market events.
The tourism committee submitted a request for up to $10,000 in Transient guest tax funds to fund a new tourism grant program, which would allow applicants to receive up to $1,000 to assist with costs associated with booking entertainment. This measure was approved, with three grants also being approved. According to Chanute Area Chamber of Commerce Director Amy Jensen, grants will be awarded to Chanute Mexican Fiesta, Main Street Chanute, and The Hangout. Jensen said these grants are important to help bring in entertainment, which can help bring overnight stays in Chanute.
Commissioners also voted to approve a deed execution to Hi-Lo Industries after they finished paying their industrial revenue bonds last year.
Commissioners approved a rezoning measure; rezoning land behind Walmart from commercial to residential and revised an ordinance to support the rural housing incentive district established there.
The next Chanute City Commission meeting will be a special budget work session on Monday, June 16, at 5:30 p.m. in the Alliance Room on the third floor of the Memorial building. The next regular commission meeting will be held on Monday, June 23, at 6:30 p.m. at the Memorial Building.
