Dear editor,
The below email was sent to the Iola city council, city administration, and director of economic development. We have got to start taking care of each other and building the future together. When taxpayer money is used to put existing businesses out of business, there is a real problem with our local leadership.
First and foremost, I want to thank each of you for your service and leadership in Iola. I know that you are very passionate for Iola and I also know that the service you’re doing for Iola can be very demanding and also difficult at times. Your hard work is noticed and appreciated.
There has been talk for several months now that Iola is in need of a new motel. I have no idea where it originated or what data there is to support it, but I have done some research myself and do not feel like we should be too aggressive with this. I am all for competition but also understand that fair competition only happens with a level playing field. When incentives are given for new development it can become a major financial burden to the businesses already in town by creating an unfair advantage. We currently have three motels in town and from what I’ve gathered it is certain that a new motel will put at least one of our current motels out of business:
The Regency (formerly Crossroads) was built in Iola in 1964 by the Boyer family. It had a lot of good years but I am told that lack of demand and poor management caught up with it. In 2014 it was purchased by the Patel family who have lived in Iola for 11 years now. They completely remodeled the motel in hopes that it would bring this Iola landmark back to life. According to a family friend of mine who is currently searching for a motel for his daughter’s wedding this summer, the regency is now a very nice motel. Matter of fact, it’s the one they chose to lodge the wedding party. Although the remodel was finished over a year ago, the occupancy over the last year was at approximately 10 percent. This is a local family, neighbor, and friend to many of us that has made a major investment in making Iola better, but is barely hanging on.
Americas Best Value Inn was purchased by the Patel family in 2005. Over the last 12 months the motel has averaged a 40 percent occupancy rate. The motel business is a 24/7 business and again this is a very challenging occupancy rate.
The Super 8 was built in 2005 and my dad was a partner in this project. At that time there was only one motel on U.S. 169 from Paola to Coffeyville (125-mile stretch). This created a need and therefore an opportunity was seized. No public funds were used as additional incentive and no tax abatements were given or required for it to be a success. This was a healthy free-market strategy and a win for everyone as the motel averaged 75 percent-plus in its early years. Today, there is also a motel in Garnett and soon to be in Chanute on U.S. 169, and our area is likely down hundreds of jobs since 2005. This is significant because in the motel business, 75 percent of your business is from travelers with your town as the destination. Super 8’s occupancy rate over the last year has averaged approximately 50 percent. Again, this motel is nowhere near full occupancy and has a very small margin of profitability.
If Iola is in “need” of an additional motel the current motels would be prospering or a new motel development would pencil out on its own. Please be cautious in subsidizing this effort as you would literally be picking and choosing who will succeed and who will fail, which is not a good position for a governing body to be. Yes, it may help us get a new motel, but ultimately the indirect result would mean the closing of an existing local business. This philosophy would also send a message to taxpayers that their businesses and hard work are second, which discourages their innovative thought and partnership for the future. I know many of you are involved in local businesses and hopefully you can understand this without your business being the one in jeopardy.
Please give our existing businesses and tax paying citizens a fair shot in Iola, by keeping the playing field level. After all don’t they deserve it? Iola is a great community made up of great people. Our future can be brighter than our past, but we have to travel there together.
Again, thank you for your time and public service.
Ryan Sparks,
Iola, Kan.
