A classic admonition: “You’re not going to play in the street just because your friend Bobby does.”
Who wouldn’t agree that’s the proper parental response? However, in the world of economic development, doing what others do regardless the cost has become the standard.
That came home to roost at Tuesday’s Allen County Commission meeting.
A little background for those who missed it: On Monday, the Register reported G&W Foods was having difficulty squaring what it had budgeted for a new grocery in Iola, by a difference of about $500,000. That may be chicken feed in D.C., but not to a small-town grocer who operates on a close margin.
G&W is cutting some costs and looking at whether it will erect a building with all the bells and whistles — i.e., a brick facade — as it originally planned.
The overrun apparently is from G&W not being accustomed to building new stores, rather taking ones that need remodeling and refitting before opening. New construction is costly, particularly in rural areas where competition isn’t nearly as fierce as in metropolitan areas.
When Monday’s Register hit the street, phones started buzzing in the hands of commissioners Jerry Daniels, Tom Williams and Jim Talkington. Daniels allowed he had never gotten so many calls about a county issue, far more than when Monarch Cement sought, and won, a zoning variance so it could quarry dirt north of Humboldt and haul it through town.
Conversations with Daniels and Williams left little doubt that callers wanted assurance the store would be built. Talkington said his calls ran about 50-50 for the county giving G&W a financial hand up, perhaps because he is known for being tight-fisted with tax money, not that Daniels and Williams aren’t cognizant of fiscal restraint.
Tuesday several people came to encourage commissioners to find a way to help G&W.
Williams and Talkington were a little reluctant at the start; Daniels, who has championed the store from day one, was mostly silent.
Citizen after citizen asked commissioners to rally to G&W’s side. After 25 minutes of deliberations in executive session, including those from Iola Industries, it was announced financial assistance would be negotiated.
Another shoe that should fall is for Iola to climb aboard.
Allen County will recoup whatever it may offer through sales tax revenue and eventually property taxes. Iola stands to gain not only through those fiscal arenas but also a good chunk of revenue each month in sales of utilities. A grocery has freezers and other things that keep electric meters whirling.
HERE’S THE rationale for whatever is done.
Our neighbor to the south, Chanute, provided incentives in the millions to attract Orizon Aerostructures and nearly $200,000 to ensure a travel center, including an upscale motel, was built at the south edge of town.
Other cities and counties do the same, on the proven theory that dollars beget dollars.
G&W will benefit from Iola’s Neighborhood Revitalization Program, which will delay payment of practically all property taxes for six years and then phase in the taxes until 100 percent are paid after 10 years.
Meanwhile, if Chanute, and everyone else is going to play in the street, we have to as well.
— Bob Johnson
