Alliance backs $500,000 for STAR bond infrastructure

The Thomas County Economic Development Alliance recommended that the City of Colby direct $500,000 from its economic development sales tax fund toward city-owned infrastructure for the proposed Colby STAR bond development.

The Alliance unanimously approved the recommendation during its Sept. 16 meeting. The Colby City Council has final authority over the expenditure.

Board members specified that the money would pay for city infrastructure rather than go directly to the project’s private developers. Possible uses include electrical equipment, water and sewer connections and improvements to a city lift station.

Vice Chairman Mike Woofter left the meeting during the discussion because of his involvement with Colby Investment Group and the STAR bond project.

Project representatives said the state has authorized up to $40.9 million in STAR bonds, while the planned arena is expected to cost approximately $60 million. Rising interest costs and reserve requirements could require a total bond issue of $48 million to $50 million to provide the full construction proceeds.

Developers are exploring a private placement of the bonds with banks and other investors, including potential buyers in northwest Kansas.

Plans call for two indoor arenas with seating for more than 3,500 people, 520 indoor stalls, covered and outdoor arenas, 160 recreational-vehicle hookups and parking for hundreds of vehicles and trailers.

A revenue study estimated the development could generate $111.6 million in pledged tax revenue during the bonds’ 20-year term. Representatives said an earlier study projected the arena could attract an additional 150,000 visitors annually.

The city’s development agreement requires construction to be completed within 30 months after the bonds are issued. The Alliance’s recommendation would become void if the STAR bond project does not proceed.

Alliance accepts marketing grant

The Alliance also authorized Director Vernon Hurd to accept a $25,000 Team Kansas Community Marketing and Attraction Grant.

The money may be used for advertising, public art, wayfinding signs and other community improvements. Hurd proposed offering local grants for murals and similar projects in Colby and smaller Thomas County communities.

Hurd also reported that work continues on the Alliance’s $200,000 American Rescue Plan Act initiative. Consultants have interviewed community members and are conducting market research, with a report expected by early October.

Workforce program expanded

Maria Dahlquist of the Innovation Center discussed Connect NWK, a redesigned regional job board, and the County Level Incentive Program.

The incentive program offers up to $10,000 to qualifying people who move to participating northwest Kansas counties. It has been expanded to include recent graduates who return to or establish themselves in the region.

The Alliance approved adding the graduate provision to Thomas County’s program.

Dahlquist said the program has helped fill 244 jobs and brought approximately 550 adults to northwest Kansas, not including their children.

Housing and business concerns

Hurd said higher borrowing costs are making it more difficult for prospective owners to purchase existing businesses. Commercial interest rates are approximately 7% to 9%, while some Network Kansas programs offer rates of 4% or 6%.

Mortgage rates are also discouraging families from moving into larger homes, Hurd said.

He has been speaking with Excel Development about a countywide Moderate Income Housing application involving possible projects in Colby and near Oakley. Discussions have also included smaller, lower-maintenance homes for older adults, which could make larger houses available to families.

The Alliance’s next meeting is scheduled for 8 a.m. Oct. 21.