Allen County has $150,000 budgeted this year and again in 2018 to help new and existing businesses succeed. When 2018 dawns, this year’s allotment will remain unspent.
Five members of an economic development committee given responsibility to decide whether to stoke economic development with loans or grants from those county funds Thursday evening denied two requests.
The community group that wants to buy Stub’s Market in Moran and make it the centerpiece of a food cooperative, sought a grant of $100,000.
“No,” said committee members, on a 3-2 vote. Steve Strickler and Darrell Monfort were absent. Terry Sparks and Dick Works favored the grant; Craig Abbott, Jerry Whitworth and Dave Regehr didn’t.
Grant money would have been used to buy new equipment.
The second request, from Loren and Regina Lance on behalf of their general store in Mildred, was rejected without comment, other than “it is a private business.” The vote was 5-0.
The Lances sought $20,000 for a new cooler.
When construction of the EDP Renewals wind farm begins, the Mildred Store is likely to be swamped, the only outlet within the area that offers a variety of food, including sandwiches for which the store has a widespread reputation.
The committee does not have power to decide grants or loans, only to make recommendations to county commissioners, as planning commissioners do with zoning; i.e., the wind farm and Monarch Cement’s quarry north of Humboldt.
Commissioners have not been known to override recommendations of such subordinate bodies.
MARY ANN BULLER, a Moran resident, gave an impassioned plea for the food cooperative to move ahead.
Buller said for a small town, such as Moran, to have “a decent chance of survival it needs a post office, library, school and grocery.” Moran has all four, although Stub’s Market has been on the block for several years and went through a failed sale in 2015.
She also pointed out the large number of older residents, including many who live near the store in senior housing and depend on Stub’s for their daily food. Most lack transportation to go elsewhere.
Buller also pointed out the store in Moran has clientele from western Bronson and southern Anderson counties, and elsewhere in eastern Allen.
Larry Manes, a vocal proponent, said “waning sales are an indication of the store’s terrible shape. We’ve been told by people they won’t buy frozen food there because of freezer burn,” an indication of less than adequate storage of such perishables.
“It looks like a rat trap,” he added, and that the group hopes to overcome cosmetic and other failings with new equipment and upgrades — with grant money from the county.
David and Shirlene Mahurin own the Moran store, and another in Erie, where they live. The asking price is $138,000 for store and fixtures, $60,000 for merchandise.
To date 90 people has given $100 each, an investment it’s called but with no prospectus guaranteeing a return. A handful of others have given much more than $100. “We have $53,000 in donations, and a $60,000 grant from the Sunflower Foundation,” Manes said.
A $250,000 loan from the Kansas Health Foundation — with interest of 5 to 6 percent for 15 years — puts capitalization at about $400,000, said Ben Alexander, a grant writer for Thrive Allen County.
To make a go of it, Manes said, $500,000 is needed for the transaction with the Mahurins, purchase of equipment and additional inventory, wages for a full-time manager and part-time help and working capital.
The $100,000 grant from the county would have fulfilled projected financial needs.
After the vote, Manes, Alexander and Buller shuffled from the courthouse conference room.
The Lances did not attend the session. Committee members were given an application outlining their request.
THE NEXT committee meeting is be Feb. 7. On the agenda then will be requests from Bolling Meats and the technology center near LaHarpe that provides classes for area students.
The Moran proponents could apply again, perhaps for a lesser amount, said County Counselor Alan Weber. Having all seven members on hand also might make a difference, in view of the 3-2 rejection for the fledgling food cooperative.
County commissioners set precedent for aiding private for-profit enterprises when they awarded G&W Foods $180,000 in early April to help with construction of its store.
And it’s likely commissioners will give more than $330,000 to Humboldt to extend utilities for a private enterprise.
PHOTO: Above from left, Loren and Regena Lance and their crew at the Mildred Store and at right, Larry Manes, shown during a tour of Stub’s Market in Moran in October, were rebuffed Thursday in their efforts to receive county grant funding to help their respective ventures. REGISTER FILE PHOTOS
