Chanute City Commissioners voted to approve a sales tax question that will appear on the November 4 election ballot that would determine if the City of Chanute continues an agreement with Chanute Regional Development Authority and if CRDA will be funded by the city.
CRDA is 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.
According to City Manager Todd Newman, due to the $3 million cost for the HVAC replacement at The Depot building, there are no more 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.
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. According to Newman, the only other way to raise funds to continue CRDA programs would be to raise utility rates.
City commissioners voted to extend the current agreement with CRDA by 90 days. City Attorney David Brake said there was ample time to get the question on the ballot. Official language will be approved by CRDA and the Neosho County Election Board.
The ballot question as proposed by commissioners is as follows: “Shall the City of Chanute, Kansas, be authorized to collect a city-wide retailers’ sales tax in the amount of one quarter of one percent (0.25%) within the City of Chanute, Kansas to fund a five- year agreement with the Chanute Regional Development Authority for economic recruitment programming and other economic and community development activities?”
The collection of the sales tax will begin on April 1, 2026, and will remain in effect for five years if approved by citizens.
In other business, 112 W. Main was sold for $5,000, and after extensive renovations will become 12 units of housing and six storefronts.
“We’ve had it long enough,” Vice Mayor Tim Fairchild said.
Commissioner Kevin Berthot said selling the building for a low price was the only way the City would recuperate a fraction of what they have invested in the building.
Commissioners also voted to replace a street sweeper for $340,000 with a five-year cap lease, and a guaranteed buyback of $132,000 in 2030. The current sweeper will be traded in. The total cost after the trade-in value, and a maintenance agreement is $325,000. Funds will be taken from the special highway fund.
In other business, special events were granted road closures or extended park hours, and five residences were declared in violation of the municipal code.
The Chanute City Commission will have a budget work session on Monday, June 30 at 5:30 p.m. in the Alliance Room. The next regular commission meeting will be held on July 14, at 6:30 p.m. in the Commission Room of the Memorial Building.
