2019 • Quarter three REGION
Salina Seizes an Opportunity Manhattan’s Industrious Neighbor is Just Getting Started FINANCE
Leaders Say Sales Tax Increase Necessary to Fuel Growth REGION
Anchoring Aggieville: How Pitt State Brought an Innovation District to Life REGION
Green Valley’s Identity Crisis
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A Note From the Publisher
Editor-In-Chief Josh Brewer Managing Editor Ashley Phillips Photo Director Josh Hicks Art Director Jordan Seirer Graphic Designer Ashley Flowers Contributing Writers Josh Brewer Greg Doering Ashley Phillips Daniel Phillips Megan Saunders Brandon Savage Lucas Shivers Sarah Siders Sheridan Wimmer Contributing Photographers Doug Barrett Mike Henry Josh Hicks Blade Mages David Mayes Killian Millner Publisher Blade Mages For subscriptions, advertising information or a current media kit, please contact: editor@mhk.business MHK Business News 103 N. 3rd Street Manhattan, KS 66502 (785) 320-6621
MHK Business News is published quarterly (February, May, August, November) by 502 Media Group, LLC., 103 N. 3rd Street, Manhattan, KS 66502. MHK Business News considers its sources reliable and verifies as much data as possible, although reporting inaccuracies can occur; consequently, readers using this information do so at their own risk. Although persons and companies mentioned herein are believed to be reputable, neither 502 Media Group, LLC, nor any of its employees or agents accept any responsibility whatsoever for their activities. MHK Business News is printed in the USA and all rights are reserved. © 2019 by 502 Media Group, LLC. No part of this magazine may be reproduced or transmitted in any form or by any means without written permission of the publisher. Views and opinions expressed by contributing writers do not necessarily reflect the views and opinions of the publisher.
This summer, we had an intern at our agency named Anna. She was a rock star. Bright and energetic, she tackled tasks with gusto. Fresh out of Kansas State with a degree in communications, she took an internship with our team as an account coordinator. Within our agency, the role of account coordinator is a great opportunity. An entry-level position, people in this role get a holistic look at the operations of the agency and the servicing of our client engagements. Historically, the role has offered a promising trajectory; account coordinators typically move into project or account manager roles within 12 to 24 months. Not long into Anna’s internship, our team realized that Anna was a great fit. We wanted, shoot, we needed to keep Anna. Her work product was excellent. She was a great cultural fit. So, we offered a salary that’s competitive with similar positions in large metro markets. In addition to a competitive base, we offered a relocation package, employer-sponsored healthcare and retirement plans, and three-weeks paid-time-off. Like us, Anna saw the great fit and the value in the offer, but she left town, degree in tow. She looked to Omaha or Kansas City, despite having no concrete job offers. “My decision came down to the attractiveness of a larger city. I feel like I have outgrown Manhattan, and it is time for me to move on to my next phase in life,” she explained. The problem wasn’t that my agency couldn’t keep her. The problem was that my city couldn’t keep her. I’m wondering what Anna meant by “the attractiveness of a larger city,” and what I can do, what we can do as business leaders, to make Manhattan more attractive to a workforce, like my employees, who can go anywhere. What must we do to attract a workforce from larger Midwestern cities like Omaha and Kansas City? What can we do to better retain our graduates? I’m also wondering how many intelligent, qualified and excited graduates, like Anna, left our community this past year? How many more will leave next year? These are the Gen Zs, millennials and military families that our future depends on. And we’re losing them to more “attractive” places. The ability to attract and retain employees is a driving challenge for our local economy. We need to build a city that’s attractive to the Annas of today, and more importantly, the Annas of tomorrow. That should be central to our business community’s discussions, our investments, and our city policies. Without people, everything we’ve built comes apart. Issue 3 explores the ways our city and others, such as Salina and Pittsburg, Kan., are confronting the attractiveness challenge. We all face budgetary concerns, aging public infrastructure, inadequate housing stock, and the ongoing challenge of talent attraction, but Manhattan’s business community can solve these challenges with partnership and innovation. We have the opportunity to be more than a dot on the map. We have the opportunity to be attractive. Everything we’ve built depends on it.
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All about you.
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In This Issue 26
Salina Seizes an Opportunity Manhattan’s Industrious Neighbor is Just Getting Started
22 Leaders Say Sales Tax Increase Necessary to Fuel Growth Faced with sluggish economic growth, a sales tax increase could be the shot of adrenaline that Manhattan’s economy needs to attract future talent.
44 Anchoring Aggieville Aggieville’s continued redevelopment is going to require multiple funding mechanisms through partnerships with the City, university, and private investors that have yet to be realized. How can we learn from comparable districts like Block22 to build the Aggieville we’ve envisioned?
Don’t Miss
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Between Farm and Fork
Nourish Manhattan
Green Valley’s Identity Crisis
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MINORITY-OWNED BUSINESS SPOTLIGHT
A Jamaican Gem Island culture meets Kansas charm in The Little Grill’s food, music and one love. Article by Megan Sanders Photography by Mike Henry
It’s nearly impossible to accidentally end up at The Little Grill. In fact, you could be forgiven for thinking the legendary Jamaican spot was only a myth as you wind your way through back roads. Located off Dyer Road directly east of Tuttle Creek’s River Pond, getting there requires either driving across the dam or the Big Blue River. From the outside, the yellow building is fairly nondescript, which makes sense, as it used to be a bait shop, apart from a tall, fake palm tree with the words “Little Grill” emblazoned at its top. However, your first hint that this lakeside joint is something special will most likely be the packed parking lot. If you’re there on a weekend, cars line both sides of the driveway and snake around to the back of the building. You’ll know for sure you’re in the right spot when you walk in the door. If your mouth doesn’t water when the smell of jerk seasoning and seafood hits your nose, you should check your pulse. Your ears will be equally delighted when they hear pleasant Jamaican and American melodies coming from a man playing the guitar in the restaurant’s corner. That man is most likely Kenrick Waite; owner, chef and occasional entertainer at The Little Grill. Kenrick and his wife, Cathy Waite, have owned
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the restaurant for nearly 18 years after meeting in Cancun, Mexico, more than two decades ago. Cathy, a Manhattan native, was vacationing there when she took notice of one of the resort’s entertainers. Kenrick was equally smitten. They kept in touch, and she soon visited him in his Jamaican hometown. The rest is history. “We decided we wanted to be together, no matter where we were,” says Cathy. “I had girls in high school, so it didn’t make sense to uproot them and move to Mexico or Jamaica, so we decided to come back to Kansas.” Kenrick has been in the food and beverage industry for nearly all of his life, cutting his teeth working alongside the owners of Sandals Resorts International, which is headquartered in Montego Bay, Jamaica. He credits them for the theory portion of his hospitality-industry education. “They sent me to seminars and classes — it was a great experience,” Kenrick says. “I also had the opportunity to work in cruise ship kitchens for several years, so I got to experience lots of places. Then, every time the ship would dry dock in Jamaica, I’d go work at Sandals until it was time to go again.” Music has always been an important hobby to Kenrick, and it led him to his stint as an entertainer in Cancun before meeting Cathy and moving to Kansas. “Kansas is a cool place,” he says. “It reminds me of my village in Jamaica where everyone says ‘hi’ when they see you. If I could live any place, it would be Kansas, Cancun or St. James, Jamaica.” The couple shared a dream of someday opening a restaurant of their own. Cathy had run the local hospital’s gift shop for 20 years, so she felt comfortable operating the management side. Little did they know that an opportunity would arise within a couple years of their move. What had originally been McCoy’s had become Rocky Ford Tavern and then The Tavern, run by the couple’s friend, Tooty McCoy. “It was a small bar, about half the size it is now, with about six tables and chairs and a pool table,” says Cathy. “She asked us if we wanted to take it over, so we rented the building and turned it into The Little Grill.”
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The couple now own the building and actually live in the apartment above the restaurant, allowing them constant access to the business that’s such a huge part of their lives. The Little Grill’s walls are emerald green and covered with eclectic décor including guitars, framed photos of Jamaican entertainers, floral curtains and phrases like “Don’t worry, be happy.” A fan favorite is the giant wooden fish with dreadlocks carrying small Jamaican and American flags in its mouth. The Little Grill has grown a lot in its 18 years in both size and reputation. Cautious of becoming “too” big, Kenrick and Cathy initially added on a substantial expansion for additional seating, and in recent years, an indoor/outdoor covered seating area for large parties or small events. Of course, being “little” is part of the restaurant’s roots. Kenrick and Cathy named the restaurant as such because it literally had a small grill, a gentle nod to patrons that they may wait a bit for their food, but it would be worth it. “In the beginning, we worked full-time jobs and ran the restaurant at night,” says Cathy. “Kenrick cooked and sang, and I waited tables and bartended. We figured even if we got just a few people, it was our passion and what we wanted to do, so it was worth it if we only made a little money.”
“I cook with the flavor of Jamaica, but with American food. We call it ‘Jamerican.’” But it did far better than that and just kept growing, often requiring a short wait before being seated on busy weekends. Kenrick says the reason for The Little Grill’s success is two-fold — delicious, consistent food and a large side of empathy. First, the food. Of course, The Little Grill serves Jamaican food, but Kenrick says he cooks for the market in which he lives. 6
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“I can’t cook the traditional Jamaican food I grew up on; there isn’t the palate here for it,” he says. “I cook with the flavor of Jamaica, but with American food. We call it ‘Jamerican.’” His goal is flavor; both with seasoning (plenty of salt, pepper and garlic, Kenrick says) and freshness. Very few items in the restaurant are delivered by truck. Instead, Kenrick shops for produce himself at local grocery stores, picking each piece by hand. The Little Grill’s most popular dishes include jerk chicken and jerk pork chops (a style of Jamaican cooking using a hot spice mixture), but the restaurant is also famous for its ribs, jerk buffalo burgers and other daily specials. “Everything I cook here, I eat,” he says. “If I come into the kitchen and see gumbo that has been there for two days and I just don’t like it, I dump it. Our food is always fresh and cooked to order with a simple, yet beautiful presentation. I focus on consistency — if you order the chicken today, you can come back tomorrow and get the same chicken.” That emphasis on consistency also bleeds over to the other reason the Waites have been so successful — empathy. Both Cathy and Kenrick say they pride themselves on creating a welcoming atmosphere for people from all backgrounds, regardless of race, religion or political beliefs. Kenrick is quick to note the Jamaican cultural importance of “one love” and brotherhood. A large piece of that is remembering we’re all humans going through some type of struggle. “My mom used to say, ‘put yourself in the other person’s shoes before you make a decision,’” says Kenrick. “I didn’t learn until much later that she meant ‘empathy.’ It doesn’t matter if you’re a Republican or a Democrat — we want this to be a place where everyone can relax, have a cold drink and enjoy themselves.” Kenrick tends to glide over it, but there’s no denying that he is a major part of that enjoyment. He’s a humble
celebrity walking amongst the tables, checking on his customers’ experience and food. He stops frequently to shake hands, smile at babies and thank patrons, often calling them “brother” or “sister.” On many nights, he quietly assumes a position on a stool in a corner of the restaurant with his guitar and a microphone. The atmosphere in the already relaxed room seems to audibly shift toward Kenrick as he sings classics like, “Can’t Help Falling in Love,” “One Love” and other songs from both countries he holds dear. “The music is the icing on the cake,” says Kenrick. “Lots of places have music, but for me it’s something to keep the people’s attention while they wait.” When Kenrick isn’t performing, local talent often takes the stage in a variety of musical genres. These days, the crowd tends to be age 30 and up, but Cathy says they still cook plenty of jerk chicken and pork chops for college students and the younger crowd, especially for dates and visiting parents. The Little Grill is the kind of place that keeps drawing you back. Joel Campbell, former Manhattan resident and Kansas State University graduate, currently lives in Topeka but says he often finds reasons to return and enjoy a meal at The Little Grill.
“If you go there on purpose, you get a chill atmosphere, music and great food. If you just happen to stumble upon it, well, lucky you.” “I love the ‘off the beaten path’ feel of the place,” says Campbell. “The crowd is diverse, and the overall atmosphere is unmatched. Plus, it’s always such a treat when Kenrick plays. If you go there on purpose, you get a chill atmosphere, music and great food. If you just happen to stumble upon it, well, lucky you.” While there are those who occasionally stumble upon the restaurant from the lake or neighboring communities, Cathy says the Little Grill has become a destination for many. “We get local folks and people who drive hundreds of miles just to eat here,” she says. “It’s crazy to imagine how small this place used to be.” It may be hard to imagine, but it’s no secret that Kenrick and Cathy’s dedication to an incredible customer experience is what brought them here. One thing that remains a secret, though, is Kenrick’s recipe for The Little Grill’s incredible, perfectly balanced rum punch that is worth the trip in itself. “I don’t like to tell,” he says with a small smile. “It’s a Jamaican secret.” Megan Saunders recently moved to Riley, Kansas, but still calls Manhattan home. Along with her husband, she lives with her 4-year-old and 6-month old human babies, two dog babies and a really old cat. She loves K-State, freelancing, all the food and most of the beer.
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Article by Brandon Savage Photos by David Mayes
SPOTLIGHT
Between Farm and Fork: The Global Influence of AIB International From its Manhattan, Kansas headquarters, AIB International plays a pivotal role in building a safe global food system.
At the crest of North Manhattan Avenue, with the Derby Food Center and Kansas State dorms in the rearview mirror, an east-bound turn onto Bakers Way takes you to a small business campus with several older buildings, most with flat roofs, brown metal trim, and profiles from the 1970s. A black and white sign with red highlights bears the company’s logo, AIB International. The word “International” is in small print, almost unreadable from the main road, understating the influence and geographic reach of this little-known “company on the hill.” “Most people in Manhattan have no idea what we do.” says Katie Mayes, the Vice President of Marketing and 8
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Product Development at AIB International. “Or, they just call us ‘the baking school’ on the hill. It’s Bakers Way, right? But, if you’re eating or drinking something from any of the world’s largest beverage or food companies, there is a good chance that AIB International played an indirect role in ensuring that what you have consumed is safe and high-quality.” In 1938, immediately before World War II, the Federal Food, Drug, and Cosmetic Act granted authority to the Food & Drug Administration (FDA) to oversee the safety of food produced by commercial suppliers. This act created standards. The standards resulted in mandatory training.
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AIB INTERNATIONAL PRESIDENT & CEO ANDRE BIANE TOURS THE “FOOD FIRST” EXHIBIT AT THE FLINT HILLS DISCOVERY CENTER
The training required inspections to ensure the standards were being followed. AIB became a niche expert in helping define and create standards within the industry, offering training and inspections to the world’s largest and most profitable food and beverage manufacturers. Although originally founded in Minneapolis, Minn., AIB moved and was based in Chicago for many decades until the late 70s. At that time, the headquarters was moved to Manhattan in order to be closer to Kansas State University’s Department of Grain Science and Industry. The company originated in the baking industry as an educational organization, training commercial bakers in a very narrow and specialized field. Over the course of time, their customer base grew amorphously but consistently. The “International” in AIB International is certainly no pretentious attempt. They currently conduct business in over 120 countries across the globe. With regional headquarters in the UK (Surrey), Mexico (Guadalajara), and China (Shanghai) and over 250 employees, they are arguably the most geographically-diverse and widespread employer in the Flint Hills area. “Our clientele is so diverse around the world, we must go to them,” President and CEO Andre Biane says. “From a talent standpoint, we compete against anybody and everybody in the food industry. 70% of our talent is already operating outside of Manhattan, so we are, by default, a virtual company. For us to undertake what we need to in 10
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the next 100 years, that talent, leadership, and specialization may not come from the United States, let alone Kansas. How we can construct ourselves and operate in a virtual environment is a key attracting point to find solid talent for our needs going forward.” Biane discusses how, in the years prior to their centennial, AIB took the opportunity to ask their customers, “What does AIB mean in our marketplace and industry? How can we position ourselves to be easier/simpler to work with in the future?” The answers they received served as a catalyst as they began a multi-year transformation from a quasi-educational/academic organization and reorganized into a focused business entity with four distinct service lines: training, inspections and consulting, research and product development, and certification.
Modern Training Opportunities Over the last century, AIB’s training has continued to evolve. It includes face-to-face, hands-on training that is part of their clients’ new-hire curriculum. A testament to their virtual nature, it also includes e-learning modules for companies to incorporate into their digital on-boarding training, including gamification. As an extension of their legacy baking expertise, some training requires seasoned experts to be on-site exercising and training on the sensory aspects of the industry: Seeing, feeling, touching, tasting, smelling.
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A trend that started twenty years ago and that has continued to accelerate is how clients expect training to be done close to their location or on-site. Many processes and technology are proprietary, limiting training in a public/ group setting. This has resulted in more personalized and customized training on-premises with individual clients. The Food Safety Modernization Act (FSMA) passed in 2011 required company executives to understand, and be liable for, onerous regulations regarding how foods are grown, harvested and processed. AIB’s portfolio includes executive-level training that is used by many of the largest and most well-known brands in the industry. “This is probably one of the greatest feedback points we received from our industry. Our customers see us as partners and a trusted entity that can be consultative in how to deal with new regulation changes—how to implement them, train their employees, and grow in the future to get ahead of the regulation curve,” says Biane. “We won’t just tell them what they want to hear. We provide inspections based on the globally-recognized standards, and we can train companies to build the necessary processes and procedures to achieve these levels of quality and consistency.” By constantly remaining educated on various global food and beverage regulations and in many cases (due to their expertise) providing input to creating the standards, AIB is uniquely positioned to help consult newly-formed companies and existing companies how to remain compliant with complicated and ever-changing requirements.
Research and Product Development The original draw to Manhattan and Kansas State still remains strong as AIB continues to leverage research to help tie regulatory issues and baking processes together. One of their current research projects is in conjunction with the American Baking Association (ABA), Kansas State University and University of Georgia researchers to create what are known as “Baking Process Kill Step Calculators”. These calculators can be used by industry companies to be able to calculate the proper time and temperature of certain baking processes to ensure that pathogens such as Salmonella have been properly killed. These freely-available calculators assist companies with complying with the FMSA regulation and help them avoid conducting their own costly research. AIB’s Research and Product Development web page includes procedures and calculators for a handful of products including roundtop cake muffins, crispy cookies, cheesecake, tortillas, buns, breads and doughnuts. Biane views Manhattan’s addition of the National Bio and Agro-defense Facility (NBAF) as a huge strategic win for the region that will continue to attract more biotech and pharma companies to the area. “This will be the only place in the Americas where you will have biosafety Level 2, 3, and 4 labs all in the same place. Companies will be able to conduct heavy-duty research all in a single location.” AIB’s product development services focus primarily on labeling, and provide the transactional means of creating any type of ingredient or nutritional “fact panel” for 12
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products ranging from water to complex multi-component foods. Their expertise on regulations allow them to help companies interpret regulation and establish what type of product claims they can place on their packaging or in their advertising. Can they claim their product is organic? Allergy-free? Their broad international footprint also allows them to assist companies exporting or importing into a wide-variety of companies. If they can’t answer the question using their own in-house expertise, they can connect companies to the right resources within their broader client/partner network.
Between Farm and Fork The Global Food Safety Initiative (GFSI) is a private organization that maintains a scheme to benchmark food safety standards for manufacturers. AIB operates a wholly-owned subsidiary that is a licensed and accredited certification body that specializes in helping food and beverage manufacturers become certified in manufacturing, packaging, storing and distributing their products according to the GFSI standards. By focusing on their century-long expertise in the industry, their well-respected brand, quick response time, and their “human” touch, AIB has expanded their customer base throughout the world. “Have you heard of the phrase farm to fork? We touch everything after the farm, and before the fork. We have expertise in everything that happens in the supply chain process,” says Mayes. “We may have a relatively small company compared to others in our industry, but we take pride in the fact that we have a relatively big impact on the industry.” And it’s clear that their impact continues to grow. The small “baking company on a hill” may not get a lot of attention by the locals, but their reputation globally is well-respected and well-known. Where will their success take them over the next century? Brandon W. Savage provides fractional COO and management strategy consulting to companies throughout the Flint Hills area. He is also an instructor of strategy, ethics and operations at the K-State College of Business Administration and received his MBA from the Wharton School of the University of Pennsylvania. He and his wife, Cheryl, live in Manhattan with their eight children. Find him at www.thecxpro.com
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Article by Sheridan Wimmer Photography by David Mayes
REGION
Growing Entrepreneurs from the Vine
Highland Community College in Wamego takes students in its wine program from pupil to practice with a new incubator opportunity.
Growing up on a wheat farm in Ellis, Kan., Scott Kohl didn’t expect to be where he is today. From his education in math, to becoming the director of Highland Community College’s Wamego campus, he didn’t know his days on the farm would translate into a different kind of growth – growth of students and an industry. “When I was the director of campus, some winery owners came to us and said, ‘No one in Kansas is teaching viticulture [the cultivation and harvest of grapes] or enology [the study of wine and winemaking] courses,’ so we put together a class to see what would happen,” Kohl says, who now serves as the director of viticulture and enology at the college. The first class about viticulture was offered on Thursday nights for three hours. And people showed up. 14
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“People were driving from Hays, Wichita, Kansas City each week,” Kohl says. “When I realized how far people were willing to go for this, I thought maybe there’s a thing here.” Not only does Highland Community College’s Wamego campus offer opportunities to grow knowledge and an industry through viticulture and enology classes, they’re also providing a new take on a business incubator that will offer six wineries in one location.
A Serendipitous Balance With the popularity of the initial class, Highland Community College was looking to add another viticulture or enology course. Right about that time, the Viticulture
Enology Science and Technology Alliance (VESTA), a National Science Foundation funded partnership between Missouri State University and colleges, universities, vineyards and wineries across America, received new grant dollars to increase its footprint. “It was serendipity; a happy accident,” Kohl says. “VESTA has partnerships in Oklahoma, Iowa and Illinois, but they came to us at the right time to offer our students online classes, to create the program on the ground here in Wamego and to plant our first vineyard.” Since 2010, the viticulture and enology programs have seen 137 students, who are usually non-traditional. The college has two instructors who teach classes on campus, and they supplement with classes offered online through VESTA. “Some students come in thinking of this as a retirement plan,” Candice Fitch-Deitz, who manages the 44 vineyard varieties and teaches viticulture courses, says. “But I remind them this is a different career path. Vines take a lot of work year-round.” “The average age of our students is 45,” Kohl says. “These folks already have an education and are looking for that second career. Their grandparents were farmers and they have ties to the land and want to get back to their roots.” Students can get a viticulture certificate, a viticulture associate in science degree or an associate degree in enology. Non-degree seeking students are also encouraged to learn about the industry through Highland Community College’s courses.
A 4, 5, 6-pack of Wineries As the program grew, so did the ideas. Kohl and the teaching staff, including Fitch-Deitz and Matthew Kahl, who teaches the enology courses, wanted to offer more practical knowledge to the wine industry in Kansas. They knew the struggles entrepreneurs faced when applying their coursework to the real world. “Starting a new vineyard or winery, or both, is a huge undertaking,” Kohl says. “Basically, you have to write a $500,000 check just to get started for a small winery for the property, a building and the equipment. Most people don’t have that much money lying around.” That’s when the concept of helping students become entrepreneurs was conceived and 456 Wineries, a winery incubator, popped the proverbial cork. “456 is the phone prefix in Wamego,” Kohl says. “But we also hope there’ll be four or five or six other wineries in the incubator.” The building, within walking distance of the college, was purchased in 2016. Much of the equipment was purchased through United States Department of Agriculture (USDA) grants, and because of the fortunate growth of the viticulture and enology program, funding was partially provided by the college itself through a bank loan. Kohl also worked with the Kansas Department of Agriculture and VESTA for additional grant funding. “The hope is we’ll get the incubator filled, which will generate revenue for the degree program by way of selling wine in the tasting room, then we’ll use that to pay off any
loans the college has,” Kohl says. “Eventually, the loan will be paid and the revenue from the incubator will be used to pay employees and keep the program going.” Funding wasn’t the only obstacle Kohl and his team faced when establishing the incubator. The concern of multiple wineries under one roof became a regulatory question, but Kohl was appreciative of Kansas breweries, which had already taken care of the hurdle. “Luckily, because of the popularity in cider, which is a wine-making process, breweries took care of the licensing issue,” Kohl says. “Breweries making both beer and cider had to receive additional licenses to make and sell wine.”
Business in a Bottle “This incubator is like a traditional business incubator, except instead of rooms with desks, we’ll have rooms with wine tanks,” Kohl says. It features a tasting room with six spaces for separate wineries within the incubator. One is for Highland Vineyards and Wineries, LLC – a split from the college that will employ Highland Community College teachers to run operations but keep the college’s namesake – and five additional spaces for winemaking hopefuls. The tasting room will be open to the public to taste and buy wines. The production room features five 10-by-22-foot caged areas for the wine-making process and one larger area for the LLC. Kohl says the incubator will select applicants based on the strength of their business plan. Clients of the incubator don’t have to be students or former students of Highland’s degree program, although they should have education and knowledge of wine making. The requirements to utilize the incubator include a federal winery license from the Alcohol and Tobacco Tax and Trade Bureau and a Kansas farm winery license from the Kansas Department of Revenue’s Alcoholic Beverage Control; clients also must be Kansas residents. “We’ll take a look at potential clients’ business plans,” Kohl says. “They will need to know their marketing plan, what kind of wine they want to make, what their education is. We look at who has the best chance to make it as entrepreneurs.
“It’s a breath of fresh air when someone starts a new business. We want to set people up to be successful with the classes and the incubator.” “Entrepreneurship is what drives the economy,” Kohl says. “It’s a breath of fresh air when someone starts a new business. We want to set people up to be successful with the classes and the incubator.” Enology Instructor Matt Kahl came to Wamego from working in several large-scale wineries because of the incubator. mhk business news
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“Other than being able to teach and make wine, the incubator is what drew me here,” he says. “There’s something like ours in Washington and Oregon, but there’s not many other opportunities like this. I think the incubator is a huge opportunity, not just for the industry, but also the area in general, economically speaking.”
Full-bodied Industry The wine industry in Kansas is growing. According to AmericanWineryGuide.com, there are 39 wineries in Kansas that stretch from Cimarron to Galena, north to McLouth and south to Fort Scott. Kohl and his team, as well as the students in the program, have taken advantage of the growth and developed relationships with wineries in Kansas. “Over the years, we’ve been to just about every winery in the state,” Kohl says. “A big part of learning is looking at how other wineries are doing it — what works, what doesn’t work — so we can bring that back to our students and the incubator.” “Not only is it positive for learning experiences, creating relationships within the wine industry can help you manage your vines in the event of a pest issue,” Fitch-Deitz says. “For instance, if one vineyard to the east starts seeing problems with Japanese beetles, they can let vineyards to the west of them know since the beetles usually move east to west.” Learning how the industry works is a major component to the success of any entrepreneur, and for wine makers, they need to know what their clients want. “Before our students get started on a business, I encourage them to talk to other vineyard owners and winery owners across the region,” Fitch-Deitz says. “Not just locally, but also across state and bordering states. If you put in vines, you need to know where your product is going. You’re putting in three to four years before you see any return on investment because of the growing requirements of vines, so it’s important to know what your buyers want.”
Creating this opportunity for wine makers creates new entrepreneurs, which in turn, improves the local economy and the wine-making industry. With six potential wineries in one location, the hope is that people will be drawn to the area to make a day or a weekend of it. Kohl likened wineries to a car dealership. He says not many people will drive 100 miles for one car dealership, but if there are several, they’re more inclined to make the trip. The same goes for wineries – get six in one place and there’s more incentive to visit.
“Being able to go to one building and taste up to six different wineries’ products and being able to purchase the product is a great way to get people to visit Wamego.” “You’re bringing people in,” Kahl says. “Being able to go to one building and taste up to six different wineries’ products and being able to purchase the product is a great way to get people to visit Wamego.” The incubator creates opportunities where entrepreneurs may have trouble finding ways to start. For the team at Highland Community College, they are excited about the adventure in helping pave the way for more vineyards and wineries in Kansas. “We’re trying to make an impact not only on our community, but also in communities across the state,” Fitch-Deitz says. Sheridan Wimmer is the assistant director of communications at Kansas Farm Bureau. Serving the farmer and rancher members of the organization is Sheridan’s jam (or jelly, no discrimination). Away from work, she loves spoiling her dog, Brizzie, and admittedly enjoys a good Netflix binge.
To learn more about the viticulture and enology program, visit HIGHLANDCC.EDU/PAGES/GRAPES
Westlo
For more information on the incubator or to visit the tasting room, visit 456WINERIES.COM
WE’VE COME A LONG WAY SINCE 1969. BUT SOME THINGS HAVEN’T CHANGED. LIKE VALUES. It’s still about helping a neighbor. Believing in someone with big dreams. Being there for the people we care about, And making sure they have whatever they need to build a better tomorrow.
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FOR MANY WHO DON’T QUALIFY FOR SNAP BENEFITS, THE FLINT HILLS BREADBASKET IS A LAST LINE OF DEFENSE AGAINST GOING HUNGRY
Article by Sarah Siders Photos by David Mayes
EDUCATION
Nourish Manhattan A movement grows to address Riley County’s broken local food system.
On a cool Sunday afternoon in June, a woman leans into her chair along the back of the broad, white porch of her daughter’s rental house. We’ll call her Barbara Fletcher due to the nature of this article. Her hands fold across the lap of her blue, floral dress. She recently returned from work and appears tired but relaxed, her bare feet crossed in front of her. Several chairs circle communally in the left corner of the porch, facing one another with a wooden table and ash tray in the middle. A pleasant chime dangles from the porch ceiling, now and then tinkling gently in the breeze. The summer sun sprinkles beneath the cottonwood and oak trees lining the downtown street. After raising her children into adulthood, Fletcher is in her mid-50s, working a few hours a week at a downtown restaurant to help with family household expenses, but fights a chronic illness she cannot treat without health insurance. Despite nearing the age of retirement, Fletcher is nowhere near that freedom. “On paper, I’m homeless,” she says into the distance without flinching. “This is my daughter’s house. I’ve been here a few months since I got 18
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evicted from my apartment. With my medical condition, I couldn’t work enough to pay rent.” For the last several years since returning to the area to be closer to family, Fletcher says she has been visiting Flint Hills Breadbasket a few times a month for her personal groceries. Without the Breadbasket, she would not have food at all, she says. “I don’t qualify for SNAP because I have to prove I am homeless or claim the income of the entire household where I stay now, even though they aren’t all my immediate family.” Fletcher’s story is not unique but rather illustrates the dire picture of Riley County’s struggle with food insecurity, defined by the USDA as the percentage of people whose “consistent access to adequate food is limited by lack of money or other resources during the year.” In 2014, the food insecurity rate for Riley County was 18.5%, higher than the national average of 15.4%. That’s nearly one in every five people without consistent access to food. The federally-funded Supplemental Nutrition Assistance Program, or SNAP, provides disbursements to approximately 3,000 families each month in Riley County, the highest amount in comparison with eight other counties in a central Kansas region. The financial and social impact of food insecurity is vast, extending beyond the pain of empty refrigerators and stomachs of our community’s residents. Over time, not having consistent access to nutritious foods results in a multitude of health crises, including increased likelihood of diabetes and other chronic health issues,
according to the The Journal of Nutrition. It is likely, not coincidental, that in our county with higher than average food insecurity, the rate of uncompensated medical care provided by Via Christi Hospital in Manhattan increases each year, according to Via Christi’s President, Bob Copple, at a recent forum on the state of Riley County’s healthcare system. For Fletcher, who is uninsured, this has proven true. Without the ability to access medical care and verify her chronic illness, she visits the ER every few weeks to obtain medications to treat pain and allow her to work. She knows she will not be able to pay the medical bills she accrues, however, Fletcher’s lack of insurance makes her one of the many patients Via Christi will treat this year without compensation.
A Broken Food System Despite the pervasive need for food access in our community, a strange paradox exists at the opposite end of the food system: excess wasted food. Despite the efforts of restaurants and nonprofits to recover or reuse food, Riley County wastes approximately 21,756,380 pounds of food annually, or 60,018 pounds daily, based on the national average reported in a 2011-2015 American Community Survey. The annual cost of wasted food in our community is approximately $27,833,162, again based on the national average. On a smaller scale, a family of four may waste between $1,350 to $2,275 of food annually. The solution appears simple at first glance: collect the extra food people do not use and give it to people who need it. But the key to solving hunger and reducing the amount and cost of wasted food is complicated by a multi-faceted food system. According to the Cornell Cooperative Extension, a food system is “the path that food travels from field to fork. It includes the growing, harvesting, processing, packaging, transporting, marketing, consuming, and disposing of food. A food system operates within and is influenced by social, economic, and natural environments. Each step is also dependent on human resources.”
“We have plenty of food to feed our people here,” says Vickie James, coordinator of the newly appointed Food and Farm Council, a joint city-county effort to address food insecurity in the county. “But it’s complicated because of finances, knowledge, values, and skill sets.” Although the Riley County food system reliably feeds thousands of people in the community, one in five people still struggle with hunger consistently as wasted food occurs at many places along the food system. The Food and Farm Council hopes to address these disparities between wasted food and food-insecure families in the area, with a goal “to advocate for and sustain an accessible, healthy and local food system” with a vision of “a local food system that supports healthy living in our community.” When the Council formed in mid-2018, James, a registered dietitian, accepted the opportunity to lead the group. “It’s important to realize the group is the Food and Farm Council of Riley County and Manhattan, Kansas. It is a dual appointment for county and city commissioners. That in itself is innovative because it is not just governmental or grassroots. It’s both working together. The food problem crosses the boundaries of city and county.” James shares one morning over coffee, her eyes behind black, wire-rimmed glasses speaking sincerely. “The goal of the Council is to bring people together for improving communication, collaboration, education and advocacy throughout all the food system sectors. We want to help fill those gaps by working together, involving our entire community in bettering where we live.” After Vickie and her husband retired to Manhattan, she felt her experience with food systems in communities around the country and her love of Manhattan created an intersection of knowledge and passion that make her the right person for the role. “My background has been community and systems change around the food system. I have worked across Kansas and nationally in facilitation and coordination and served as a resource to help people help themselves.” Understanding the many stages of the food system, as well as its current process and condition locally, is critical for the Food and Farm Council’s success in reducing wasted food and in meeting the community’s food insecurity needs. Forming partnerships with businesses and organizations all along the food system improves the ability of the city and county to close gaps, meet needs and reduce waste. “We identified approximately 75 potential partners, but there could be more, and no one is excluded intentionally. We want to know who are the stakeholders in this community food system, and we are doing face-toface, 60-minute interviews to find out who is doing what work.” A group comprised completely of volunteers, the Food and Farm Council currently meets monthly to share the results of the partner conversations they’ve had during the last month. A sustainable effort in reducing the statistics of wasted food and hunger require patience and a long-term approach, James says. “It’s complex. “If it wasn’t, we would already be doing it. So we want to be talking about this with people who are already doing the work.” mhk business news
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Fletcher’s Poverty Paradox Born in Junction City and raised in Manhattan, Fletcher says she didn’t always experience poverty in her childhood. “When I was younger, we were a middle class family. My dad worked hard and put us in Seven Dolors. My sister went to Lucky High.” Fletcher’s struggle with poverty began later in childhood, a shift from a stable home life with her needs provided. “It wasn’t until my parents divorced that we struggled,” she recalls. “I remember the government cheese, a big block like Velveeta.” She held her hands out about 12 inches apart, measuring the size from memory. “I remember the generic black and white can of pressed meat, usually beef or chicken. A lot of us that grew up on the block, around the corner from the Douglas Center. There were a lot of us that had hardships.” Finding herself homeless and without medical care later in life, Fletcher encounters a strange algorithm of barricades. In order to continue receiving food assistance from the Breadbasket, she uses her last address, but not the address of the house where she stays now. “My daughter makes too much income to qualify for the Breadbasket, but she’s got medical bills too. If I say I stay here now, I will lose my benefits. But if I don’t have them, no one in this house will eat.” While the food Fletcher brings home from the Breadbasket is the only food the family eats each week, she insists they are well provided-for. “The Breadbasket is well-stocked. I can get everything I need. I’m very grateful for the assistance the Breadbasket has given me over the years.”
Hunger and Waste Linked to Lack of Education On a warm summer morning, a handful of black and white Jersey cows splash gently through a rain-filled pasture on A&H Farm, just south of Manhattan. The strawberry patch next to the pasture has been mostly picked through by early season berry hunters. “The strawberries were huge this year,” brags Food and Farm Council member, Andrea DeJesus, who co-owns the farm with her husband, Hugo. At the front of the farm, a large pen corrals a variety of eager animals, including two donkeys, a squirming family of pigs and a handful of goats whose bleating sounds alarmingly like crying children. At the counter inside the farm store, DeJesus talks while collecting stalks of purple asparagus into bunches, securing them with a rubber band in preparation for the Salina Farmer’s Market later that day. A member of the Food and Farm Council, DeJesus is thinking about long-term solutions to the county’s issue of food waste and food insecurity from a farmer’s perspective. In her view, providing the average consumer with knowledge about how to eat and prepare produce is where she wants to start. “Education is very important. Because people think a tomato that has a crack in it is not good to use. Consumers expect perfect produce, and they don’t want it if it’s not perfect. They need to know, ‘I can buy stuff that is cracked, bruised, stuff that needs to be used today or tomorrow.’” 20
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Erin Bishop, director of Cats’ Cupboard, K-State’s on-campus food pantry, agrees that education is a key intersection of reducing waste and hunger. “People need education that ugly produce is still good. Also, people don’t understand ‘best by’ and ‘purchase by’ dates. Many of our students think food is expired and isn’t good anymore, and we try to provide education on that, letting people know food is good after those dates. In the last two years since it’s opening, Cats’ Cupboard has served 940 individuals with over 6,000 visits. Bishop adds that the role of Cat’s Cupboard goes beyond merely distributing nonperishable food items to K-State students but also assisting students in making the most of their nutrition. “We are working with Justin Hall to set up teaching and education related to food preparation.” She notes that a customized approach based on the demographic is needed, rather than an assumption of skills or lack thereof. “I think we do students a disservice when we assume they don’t know how to cut an onion. My students can learn how to do anything on YouTube.” In her interactions with patrons of a local food pantry, Fletcher believes more hands-on education around preparing, storing and cooking food would help people struggling with food insecurity make their food stretch further, whether they visit a food pantry or not. “I know how to cook,” she announces confidently. “My dad was a cook. My mama was a cook. So I know how to cook. Some weeks, I find a brisket or a filet, and we eat that for dinner. Or I see asparagus, and I think, ‘I’ve been looking for that.’ But a lot of people don’t know how to cook these things, and the food gets left there.” Fletcher acknowledges a bigger need for mentorship and education beyond food itself, suggesting many people in poverty are like her, struggling but hungry for the education that will allow them to leave behind a life of merely surviving. “If you want to feed the hungry, don’t give them a plate. Give them a fishing rod,” she advises. “People at times need charity, but it doesn’t mean they are born to be charity cases.”
Food Recovery Offers Community Specific Solutions Every Tuesday night for the last two years, K-State student, Carolyn Osbern, parks her car in the lot of the Vanier Football Complex parking lot and walks toward the loading dock. Osbern is a member of K-State’s chapter of the Food Recovery Network, a small but committed group of students doing the work of food recovery. K-12 Food Rescue describes food recovery as “the practice of gleaning edible food that would otherwise go to waste from places such as restaurants, grocery stores, produce markets, or dining facilities and distributing it to local emergency food programs.” For these students, their contribution in reducing wasted food is transporting catered food from the Performance Table, a regular student athlete event, to a local church where it will be served during a weekly meal. On Tuesdays, Osbern drives the remaining food to St. Thomas Moore; on Thursdays, the food will arrive at First United Methodist Church downtown.
MARIBETH KIEFFER, THE EXECUTIVE DIRECTOR OF THE FLINT HILLS BREADBASKET, PROVIDES NUTRITIONAL SUPPORT TO MANY IN MANHATTAN, BUT FOOD INSECURITY CONTINUES.
Food recovery, an ancient practice with a new name, is a crucial piece of reducing hunger and waste in any community. James emphasizes the need for intentional food recovery at every stage of the food system. “At the production or farm level, if strawberries don’t get picked when they need to get picked, and the producers are working with someone who is doing recovery, they can call and have them come glean. This has so many benefits as it supports the producers, gets food in the hands of those who need it, and increases consumption of fruits and vegetables.” James also wants to promote food recovery at the household level, where people waste more food than they realize but have more control over its use. “For a family, recovery and rescue happens in that household. On a bigger scale with caterers and restaurants, food could get packaged and reused. But if a household buys too much and cannot use it, it goes in the trash.” She adds, “We are educating consumers to make better decisions in their shopping, in their storage at home so it stays fresh, and in simple recipe preparation. We want to give people food skills and confidence, developing their taste for things beyond their usual palette.” “I spend time talking with other communities similar to ours, but the solution has to be customized,” James says. “Communities that think sustainably create long-term solutions. Having the support of city and county decision makers can lead to, hopefully, a more efficient path for good, healthy change for our food system. It is our way of life, our daily choices, making the healthy choice the easy choice, making access to local, safe, affordable food the norm. We can’t do that all by ourselves. It’s a long-term effort for a healthier community.”
“Everyone is saying, ‘How can I get involved?’ James believes each person has a unique contribution to make in the restoration of the local food system, and she wants anyone who is interested to get involved. “I think the time is right and ripe for this. Everyone is saying, “How can I get involved?” Fletcher’s desire to mentor and teach others about food preparation and storage, for exam-
ple, reflects the concern many Manhattan residents share about how to engage in the food system in a meaningful way. Yet many are unsure where to begin. James suggests several ways to get involved, but recommends people start with a conversation. “People can help transport to recover food. We need people to launch a simple website to list regular community meals and how to make donations and develop a food recovery connection hub.” She adds, “We need significant dollars to get this off the ground. We will need to end up with an endowed fund that will allow us to sustain the work. But anyone is welcome to sit down and have coffee with me and talk about how to plug in.” James shares that this summer, the Food and Farm Council will be engaging residents and partners in the food system through community forums in order to develop Community Action Teams (CATs), able to build plans and take action to address specific food system gaps identified by community members and partners. CAT groups will be led by individual Food and Farm Council members, James says. “We will create partner contracts in which people can donate time, money and other resources to the goals of the groups. For now, people can give us their contact information as a civic organization, business or individual, then we can categorize people who want to do this or that, align that with our resources and needs and mobilize people.” James’ hope for the future is big, and she does not want to leave anyone out. “Hopefully this mushrooms,” she says of the Food and Farm Council’s forums and partnership conversations. “We want to capacity-build the community. We want to look at the culture of the community to customize what we need to do for ourselves, what a healthy Riley County and Manhattan looks like. But it has to be a systematic approach.”
“I want to prepare a meal for my family. I think about it all day,” she smiles. “All of that is nourishment to me.” When Barbara Fletcher cooks dinner for her family, she’s reminded of the years when mealtimes were a celebration rather than a struggle. “I want to prepare a meal for my family. I think about it all day,” she smiles. “All of that is nourishment to me. That’s what my mama did. When you wake up, you’re smelling the meat, but you know that’s not breakfast. That’s dinner, and you’re okay eating an apple and a piece of toast for breakfast. When you come back in for lunch, you’re smelling the greens, and when you get in from playing for the day, you smell the cornbread, and you know it’s time for dinner. We all washed our hands and the neighbors were over and we ate together.” She leans back into her chair again, enjoying the memory. “That’s nourishment.” Sarah Siders is a freelance writer, author and coach who specializes in leadership and healthy relationships. mhk business news
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Article by Greg Doering Photography by Killian Millner
FINANCE
Leaders Say Sales Tax Increase Necessary to Fuel Growth Faced with sluggish economic growth, a sales tax increase could be the shot of adrenaline that Manhattan’s economy needs to attract future talent.
In a few years, a young professional in Manhattan might leave an office off Kimball Avenue, make the short drive to Aggieville, park in a garage and hop on an elevator to a sixth-floor apartment with a sweeping view of City Park. Manhattan Deputy City Manager Jason Hilgers believes Aggieville is on the cusp of a growth explosion. The business district sandwiched between Kansas State University’s campus and City Park can’t grow out, so it must grow up. Developers are waiting on the City to make the first move – nearly $30 million in infrastructure improvements that will transform Aggieville from a collection of shops and bars catering to college students to a broad-based entertainment destination with urban living units. “We’ve seen it happen in other college communities where they’ve come in and just went vertical with some really high-end products,” Hilgers says. “People really like being there. Proximity to the university. Proximity to City Park. There’s a lot of great amenities that already exist that could augment that investment.” 22
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Trent Armbrust, the Manhattan Area Chamber of Commerce’s director of economic development, says there’s plenty of evidence backing Hilgers’ vision. “We’re already seeing the response, and we haven’t even turned one shovel yet,” Armbrust says. “I have no doubt Aggieville is going to take off when the public investment in infrastructure is there. We’re already talking with people from outside and inside Manhattan who want to invest more in Aggieville because of the commitment by the City.” But Aggieville is just one part of a multi-point plan Hilgers believes can jumpstart an economy that’s been in the doldrums lately. There’s raising the levee that protects downtown Manhattan from flooding, a rehabilitation of the Manhattan Regional Airport runway, a joint maintenance facility for the City’s public works department, a community recreation center and finishing off an array of infrastructure improvements at the northeast corner of K-State’s campus. Most will use a mix of federal, state and city dollars. Manhattan City Commissioners unanimously
voted in June to ask voters to approve a new, permanent sales tax. It will be the fifth appeal to voters to raise their own taxes in as many years. The tax is designed to help pay for large infrastructure projects, like Aggieville improvements without requiring the City to raise property taxes. But it’s not a straight trade off. Voters can approve the sales tax increase and likely will still see their property taxes go up to pay for a variety of city spending, like pay raises for city employees. For Hilgers, the tradeoff is a shot in the arm for economic development efforts in the city. “I think Bluemont Avenue and Laramie Street have tremendous potential. I think they’re multi-level, first level office/retail and then into the residential side,” Hilgers says. “It’s just going to become more attractive to more populations than just students.” In the end, the question to raise the sales tax boils down to one question for voters: where do you want the city to be in 20 years? “We can’t just stop and say we’re not spending any more money,” Commissioner Linda Morse says. “We have to make our community presentable and make it better so others will come here and want to continue to come here for ball tournaments and K-State and the conferences.”
Who Should Pay for City Projects? To achieve that vision, the City wants voters to approve the 0.3 percent sales tax hike, putting the base tax in Manhattan at 9.25 percent. Manhattan currently ranks 19th among the 25 first-class cities, and it will move into the top 10 if voters approve the increase in November. The new tax will generate an estimated $3.3 million per year. Once the tax is in place, the City plans to use the money to service bonds that will fund the projects. Hilgers’ projections show the City will owe a little over $90 million once interest payments are included. One goal is to lessen the burden on homeowners by offering a funding source other than property taxes. Another alluring aspect of using a sales tax is that people who live outside Manhattan will pay for the projects. The City measures its “pull factor” by dividing the per capita sales tax of a city by the statewide per capita sales tax. Values above 1 mean the City collects more money per capita than the state average. Manhattan’s pull factor is 1.33, which means more than $270 million of the $1.1 billion in annual retail sales comes from nonresidents. “This ballot question gives the community, the business community as well, an opportunity to examine what we want for the future of Manhattan,” Armbrust says. “To have that dialogue about that critical infrastructure and how we’re going to pay for it.” City Commissioner Usha Reddi also made it clear when approving the ballot measure that approving the sales tax doesn’t equate an end to property tax hikes. “I think we need to be clear what it is they’re voting on,” Reddi says of residents. “I don’t want it to be misinterpreted that somehow we won’t have any mill levy increase because we’re approving this. These are two different
things… It’s not going to reduce their property taxes, that’s totally different from what we’re talking about.” While having outsiders pay for a portion of Manhattan’s projects is appealing, raising the sales tax also carries some risks as well, according to Brett Wilkinson, chair of the accounting department in K-State’s College of Business Administration. One of those risks is that a sales tax is easy to increase.
“If it’s a critical expenditure, such as raising the levee to protect the city from flooding, that’s one thing, but if the answer is to just keep raising the sales tax, then that becomes problematic.” “As tax policy analysts have warned for years, it’s pretty easy to just keep ramping up the rate as you need more revenue,” Wilkinson says. “That’s a little bit concerning. We can always find more things to spend on. If it’s a critical expenditure, such as raising the levee to protect the city from flooding, that’s one thing, but if the answer is to just keep raising the sales tax, then that becomes problematic.”
Investments to Attract Talent All told, the six projects represent an investment of roughly $150 million in Manhattan’s infrastructure or quality of life initiatives. In Aggieville, the plan is to build a parking garage, improve the roads, utilities, streetscapes and boost public Wi-Fi. The top estimate for all the work is about $30 million, including about a third of that amount going to the parking garage. The City has created special taxing district that will use rising property values to offset some of the cost, but it will still need to raise about $20 million to fund all the improvements. The North Campus Corridor is nearly halfway through its 13 phases project that will expand and modernize the pedestrian and vehicle infrastructure along Kimball Avenue from North Manhattan and College avenues, paving the way for the National Bio- and Agro-Defense Facility, a federal laboratory that will research diseases affecting livestock. The improvement also will support up to 1,800 high-paying jobs in the corridor once complete. The City’s already committed to $13 million of the $43 million project. The state, a joint city-university fund and K-State Athletics all have committed cash to the project, but Manhattan still needs to generate about $10 million to make all the improvements in the plan. Manhattan Regional Airport will receive approximately $30 million in upgrades to its runway. The federal government will pay for 90 percent of the work, the City just needs to come up with an estimated $3.5 million. The feds will also pay for a significant portion of the $28 mhk business news
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million cost to raise the levee between 1 and 3.3 feet. The earthen barrier starts at the intersection of Casement Road and Hayes Drive, follows the Big Blue River south to its confluence with the Kansas River then heads west to 15th Street. It protects more than $1 billion in property in eastern and downtown Manhattan. Also on the list is a $5 million Southeast Neighborhood Recreation Center (SENRC) at Douglass Park and a joint maintenance facility that would consolidate work currently done at four separate sites across the city. A study by BBN Architects Inc. found “significant shortcomings” at all four of the facilities. The joint facility is planned to go near the City’s wastewater treatment facility and would cost approximately $12 million. The City has identified funding mechanisms for the bulk of the total, but still needs approximately $1 million. While the SENRC and maintenance facility aren’t traditional economic development, Armbrust defended the projects as part of the big picture in community building. “From where I sit, this is about building a community that attracts talent, and then that talent will attract more business,” he says. “You look at the joint maintenance facility and the needs of the city to maintain a community that we all want to live in. The SENRC is a public amenity that improves the quality of life of the people who live here. All of this starts to weave together into how we are building a community that attracts talent.”
Raising Rates Respond to Flat Receipts Manhattan voters have a history of increasing their own taxes, and have rejected only one ballot proposal since the turn of the century – a quarter cent hike plan in 2007 that would have offset $40 million in debt for an indoor recreation and aquatic center, a soccer complex and other quality of life enhancements throughout the city. The measure failed by more than a 2-1 margin. A year later, voters overwhelmingly approved nearly $100 million for improvements and USD 383 schools. Last November, the school board received approval to spend another $130 million to fix up its facilities. 24
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The City’s current proposal appears to be on the same successful path. Preliminary data from the 2019 Community Survey shows 55 percent of residents support raising the city’s sales tax to fund major projects and reduce reliance on property taxes. Manhattan attorney Joe Knopp was the only member of the public to voice an opinion at the commission June 4 meeting where the ballot question was approved. He seemed resigned to the fact that the new tax would take effect. “The people are going to vote for this,” Knopp told commissioners. “You’re going to threaten to raise their property taxes and not tell them we’re going to raise your property taxes no matter what because our past trends tell us we’re going to continue to do that.” Shoppers currently pay at least the base rate of 8.95 cents on every dollar spent in Manhattan. Special taxing districts like the shopping centers in the Downtown Redevelopment area are at 9.45. The highest sales tax is at Manhattan Town Center because of a Community Improvement District the mall will use to fund improvements to the facility. If the 0.3 percentage point increase passes, sales tax at the mall would hit 10 percent. Most of the sales tax money, 6.5 cents on every dollar, goes to the state. The county takes a half cent, and it gets another half for roads and bridges. The City gets a portion of that for property tax relief and economic development. It’s slated to expire in 2022. The eco-devo portion of that tax has been accruing because of a dearth of traditional development deals in the city. There’s been just three in the last seven years: Ultra ICE, the KSU Foundation and the now defunct Tallgrass Brewing. The fund has about $4 million in cash on hand. It’s projected to reach $7 million by 2022. The City gets 1.45 cents of every dollar, though only 1 cent goes to fund the City’s general operations. The remainder is dedicated to street improvements and quality of life upgrades like parks, trails and recreation centers at the middle schools. But those taxes are only on the books for 10 years. The current proposal could run in perpetuity, unless a future commission decides to rescind the increase.
“There is no sunset,” Wilkinson says. “I recognize they’re talking about a 30-year period. That’s obviously a factor, but when you make a permanent increase that’s a little more aggressive than if you have a temporary increase, especially considering that sales taxes are quite regressive and have a bigger impact on lower and moderate income earners.” Manhattan doubled its general sales tax levy to 1 percent in 1981, and since 2013, the receipts from the tax essentially quit growing. Revenues have increased an average of less than 1 percent over the last five years. That coincides with Census estimates released in May that Manhattan’s population peaked at 56,597 in 2012 and fell to just under 55,000 in 2018. Throughout the same period, Manhattan’s primary economic drivers Fort Riley and K-State were flat or slightly lower, including an enrollment decline of about 2,000 over the last three years.
Priming the Pump “We have to become more attractive, because clearly where we’re at today isn’t attracting the people we need from a workforce standpoint and a new industry standpoint,” Hilgers says. “Clearly we need to reinvest in our community if we expect to be attractive to those outside our community. These projects make us more attractive. They make us safer. They make us a place where you’re going to want to come and invest your money.” Armbrust believes the projects will serve as the catalyst for Manhattan’s next round of growth. He’s especially excited about the potential to leverage the public spending into private-sector jobs. There’s also the possibility the City’s estimates are too conservative. Hilgers estimates the $50 million shortfall is actually about $90 million once interest payments are accounted for. But he also used a 4 percent interest rate when the City is now routinely able to borrow at less than 3 percent. “I don’t see an excess being a problem at all,” Armbrust says. “It gives us an opportunity to manage our future taxes and debt knowing we have an income stream on which we can base decisions that are best for the community at that period of time.” Voters will have the final say on if Manhattan’s taxes go up when they hit the voting booths this fall. The Chamber is weighing the pros and cons, and it will likely weigh in on the topic before November. As for the City, Hilgers and other administrators will start educating the public on how it all will work. “Here’s the vision. Here are the improvements. Here’s the debt schedule. This is the amount of revenue we need,” he says. “We can wait. This can not pass. But I think the momentum in the community, if we don’t do these things, are setting ourselves back.” Greg Doering is a writer/photographer at Kansas Farm Bureau. He resides in Manhattan with his wife, Amy.
Top 15 Tax Rates in 1st Class Kansas Cities 1. Junction City, 9.75 2. Shawnee, 9.6
3. Coffeyville, 9.5
4. Leavenworth, 9.5 5. Olathe, 9.475
6. Fort Scott, 9.4 7. Lenexa, 9.35 8. Liberal, 9.25
9. Parsons, 9.25
10. Pittsburg, 9.25 11. Topeka, 9.15
12. Kansas City, 9.125
13. Overland Park, 9.1 14. Leawood, 9.1
15. Hutchinson, 9.1
Projects Cost/Funding Gap Aggieville $30 million/$20 million
Levee $28 million/$10 million
Runway $30 million/$3.5million
JMF $12 million/$1 million
NCC $43 million/$11.5 million
SENRC $5 million/$5 million
Sales Tax Breakdown 1.45% City
1.0 general, 0.2 street improvements, 0.25 quality of life/rec centers
1% County
½ general, ½ roads & bridges + city property tax/eco-devo
6.5% State Total: 8.95% mhk business news
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SALINA
SEIZES AN OPPORTUNITY Manhattan’s Industrious Neighbor is Just Getting Started Article by Josh Brewer
Reporting by Lucas Shivers
Photography by Josh Hicks
There’s a cacophony on Santa Fe in downtown Salina. The entire southbound lane of this historic downtown artery lays bare in the summer heat as dozers and backhoes and heavy trucks assemble a new, pedestrian friendly design for Salina’s residents and visitors. Nearby, a lift whines as it raises sheet metal workers into the air. The percussive rattle of their impact drivers bounces from the side of the new Alley Entertainment Center. Below, deep concrete boxes have been installed in the sidewalks for trees and other streetscaping yet to be delivered. Until the greenery arrives, newly installed electric and irrigation lines dangle in the air. Colorful and shapely sculptures are spaced along the street’s edges near pocket parks, new streetlights and benches and small businesses that persist through the construction. Adjacent to one pocket park, plaster has been scraped from the side of an old coin shop in a shape suggestive of a door or a window to serve those who will enjoy the space. Nearby, the first bit of work has begun to transform an old Lee Jeans factory to modern loft apartments and artist spaces. Established businesses, such as Sunflower Bank, have joined in the remodeling fever, and new boutiques, a salon and a downtown gym buzz with life. The street is a maze of fencing and traffic cones and orange netting and reflective vests. Heading south, sounds of hammers and power saws pour from a new Homewood Suites. The exterior is still unfinished, covered only in house wrap, but above its fifth story, a line of decorative brackets and corbels announce the structure and its vision for downtown as Salina’s hotel of choice. Over the rumbling of diesel engines, the scream of saws, the clanging of metal, and the shouts between workers in Spanish and English, you hear determination and resolve in downtown Salina, and it’s louder than everything else. Of the progress he’s seen thus far, Guy Walker, vice president of real estate for Blue Beacon and an investor in the Salina 2020 initiative, says, “I’m thrilled to see the organic ways that things are happening to bring more energy downtown. The intent [of Salina 2020] is working, and everyone is firing on all cylinders.”
CONSTRUCTION WILL SOON TRANSFORM THE HISTORIC LEE JEANS FACTORY DOWNTOWN SALINA INTO LOFT APARTMENTS & ARTIST SPACES
Catalyst Project Salina 2020 is on track to secure over $160 million in investment, with $105 million from private sources, but a decade ago, the initiative seemed out of reach until work began on an unlikely catalyst project: the Fieldhouse recreation facility. “These new [downtown] developments all started with the Fieldhouse,” Walker says. “Folks started to raise funds for the public-private partnership to leverage more opportunities downtown. We were so happy to see the broad base of support with the contributors not knowing at the time if anything would happen.” For Penny Bettles, the managing director of Downtown Salina, Inc., identifying a group of local investors who could see opportunity in downtown from the start was vital. “We’re very fortunate to have folks who could send their money anywhere but we’re keeping our community’s money local. Downtown has got so much universal support.” Building upon the long-term staples of the Salina Regional Medical Center, the historic Stiefel Theatre for the Performing Arts, the nearby Tony’s Pizza Events Center, and other downtown benchmarks, conversations about the Fieldhouse began in Salina in 2010, around the same time that Manhattan identified the need for a larger indoor recreation facility. Bettles recalls the time period with a smile. “[The Fieldhouse] was a pipe dream back then, but a 28
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group of individuals started to fundraise and visit other big recreational centers in the area. They created a proposal to move the idea forward rather quickly. The City Commission agreed, and the private sector threw in more than $4.5 million to be matched by the City.” Later, in 2015, the City Commission took the first step toward leveraging investment in the district by approving that sales tax revenue and property tax revenue be used for STAR [State Tax Revenue] bond and tax-increment financing (TIF) districts. In 2017, the $12 million, 68,500 square foot indoor sports facility opened in downtown Salina, attracting a variety of athletic events, such as league play, tournaments, team practices, camps and clinics in multiple sports to downtown Salina. With full tournament schedules and a packed facility most weekends, surrounding businesses saw an immediate uptick in families looking for shopping, dining and lodging in the immediate downtown area. Salina 2020 investors and the City of Salina, Salina Downtown, Inc. and other private developers realized that they’d need to move quickly if they were to capitalize on this opportunity to restore Salina’s downtown economy.
Leaders Coordinated Business Incentives Realizing that improvements and relocations for businesses coming downtown would require robust financing,
PUBLIC ART INSTALLATIONS THROUGHOUT SALINA’S DOWNTOWN HAVE CREATED A QUALITY SENSE OF PLACE
developers decided to learn more about the relationship between STAR bonds, TIF districts and CID financing from other regional projects. “At some point early on, we started talking about STAR bonds to incentivize the projects, and it became clear we’d need a single voice for Salina 2020 to support the City’s application to invest in projects,” Walker says. “We came and met with folks in Manhattan to learn about the STAR bonds used for the Flint Hills Discovery Center and Blue Earth Plaza areas.” While researching STAR bonds around the region, the group also got to work on a Community Improvement District (CID) for the downtown area. While both STAR bonds and CIDs are funded by sales tax revenue, CIDs can provide financing for improvements via bond issuance or by project reimbursement. To complement the STAR bond financing, Salina’s CID was structured to reimburse projects on a pay-as-you-go basis. Originally conceived as three districts with add-on sales taxes of 1 or 2 percent depending on the district, developers decided on a 1 percent add-on sales tax across a single district to support downtown improvements after considering how to best optimize the incentive mix. CID funds can incentivize a range of construction and improvement projects, such as sidewalks, sewer systems, and sculptures, and services, such as security, cleaning, and education and marketing. While diverse, all CID funded
projects aim to improve the quality of place in the CID district so that the economic development project can achieve its stated objectives for retail, dining, and investment in the downtown area. “The Downtown CID district helps with maintenance and keeps the area looking good for years to come,” Bettles says. “The increased 1 percent sales tax, beginning this year, will make downtown feel secure and clean.” The Downtown CID is estimated to bring in over $7 million over its two decade lifespan with the majority of the funding dedicated to maintenance and security, new tenants of previously vacant space, with some funding for infrastructure necessary to build The Alley Entertainment Complex, an entertainment business featuring bowling, arcades, laser tag and a sports bar and grill, and the Homewood Suites, which will feature a Starbucks and YaYa’s Euro Bistro. As the city and state worked to structure the CID and STAR bond incentives, the downtown area benefited from the federal 2017 Tax Cuts and Job Act, which established Opportunity Zones in economically distressed census tracts. Thanks to this program, private capital gains could be invested in census tracts, like the one containing Salina’s downtown, to postpone or decrease capital gains taxes. In addition to being labeled an Opportunity Zone, the City of Salina’s designation of a downtown TIF district mhk business news
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allowed increases in property and sales tax revenue from downtown development to be used on a pay-as-you-go basis to reimburse the developer for redevelopment project costs. The amount of TIF funds going to reimbursement is determined by the difference in tax revenue received in the district before redevelopment and the amount of tax revenue received in the current year. The distinction between a TIF district and a CID is that the TIF takes property taxes into account and does not represent a tax add-on like the CID. For Bettles, the complexity of the funding mechanism can distract from the goal: “Knowing where to find the incentives from state, federal and local governments, with lots of private funding, helps business leaders fill some empty storefronts and secure diverse spaces to keep an even playing field for mom and pops to run a nice eclectic business.” In 2018, the state approved Salina’s $22.4 million STAR bond application based on the project’s potential to transform the downtown area into 30
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a regional and state destination with a unique entertainment and tourism offering. Salina organized their bond as a senior bond and a subordinate bond, which Blue Beacon will purchase. These bonds have already funded work on The Alley Entertainment Complex, an Old Chicago and the Homewood Suites. Additional funding agreements are expected to fund renovation of the historic Stiefel Theatre, the construction of a classic car museum, and the opening of Barolo Grill. Finally, STAR bond financing will support vibrant downtown programming and maintenance. Given the significant challenge in downtown revitalization, a short timeline for execution and the need to coordinate a broad set of stakeholders, Salina’s success depended on its broad community leadership. “This momentum comes from the City Commission and the city planners and engineers to keep everyone at the table together from the get-go,” Bettles says. “Before, downtown was an exclusive 8 to 5 business focus and a ghost town after hours. Now, we’re having a cultural
shift with evening and weekend activities as well as lots of entertainment with nightlife as a designation.” The community’s orientation for action, born in part from its industrial economic history and commitment to shared success has maintained engagement throughout the difficult process. “We’ve had a lot of challenges since construction initially started,” Bettles says. “Closing businesses while renovating or having traffic flows blocked for any length of time is so tough. Yet, we handle every situation as it comes and lean on good people around us. We are willing to work through problems and fix any problems quickly with our team of allies.” Josh Brewer is the agency marketing director at 502. Lucas Shivers works with USD 383 focusing on curriculum, professional learning, instructional coaching and project management. He once cooked and served bison meat at the Salina Rescue.
Why Indoor Recreation? The Strategic Facility Improvement Plan from Manhattan Parks and Rec community survey showed the following needs:
No. 1
78%
Indoor recreation was the top priority identified in the Facility Feasibility Study for the “creation of indoor space geographically located to meet unmet needs in the community.”
of households indicate space for indoor sports practices and training are not being met at all or space is providing below 50% of their needs.
87%
91%
of survey respondents preferred the City to develop and operate an indoor sports and recreation facility to meet the unmet needs of the community.
of households with children younger than 10 prefer the City develop and operate an indoor facility.
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ANCHORING AGGIEVILLE:
How Pittsburg State University Brought an Innovation District to Life Aggieville’s continued redevelopment is going to require multiple funding mechanisms through partnerships with the City, university, and private investors that have yet to be realized. How can we learn from comparable districts like Block22 to build the Aggieville we’ve envisioned? Article by Ashley Phillips
Reporting by Lucas Shivers
According to the Brookings Institution, an “innovation district” is a dense enclave merging research-oriented anchor institutions, high-growth firms, heavy arts influence and creative start-ups in well-designed, amenity-rich residential and commercial environments. The most common type of innovation district is the anchor plus model, where mixed-use development is centered around major anchor institutions, such as research universities, in downtown or midtown areas of a city. The Brookings Institution discusses three main components necessary in developing an “innovation ecosystem” for districts: people, firms and place. As Manhattan’s innovation district, Aggieville possesses these three components naturally. “In exploring the eat-play-sleep priorities, Aggieville checks a lot of the boxes,” says Tracy Anderson, founding partner of Anderson Knight Architects.” The proximity to K-State, Manhattan Christian College, City Park and downtown are so beneficial.” Additionally, Ryan Bramhall, current Aggieville Business Association president and owner of Tubby’s Sports Bar, says, “Although some people think Aggieville is nothing but bars, we have 96 businesses with only 15 bars, and actual bars without a kitchen is even less. We already have a lot of mixed-use.” As a tax increment financing (TIF) district, Aggieville’s future depends heavily on the increase of property values within
Photography by David Mayes
the district so that the additional property tax revenue can be collected. Since TIF funding is projected to only account for $15.2 to $20.5 million out of the $23.3 to $30 million it will take to fund all the proposed improvements, it’s clear that in order for Aggieville to become the attractive mixed-use district we’ve envisioned, it’s going to require multiple funding mechanisms through partnerships with the City, university, and private investors that have yet to be realized. It’s been reported that private developers require additional parking structures before investing in the district, which is why the first approved Aggieville improvement is the City of Manhattan’s $15.5 million project for a parking garage at the intersection of Laramie and North Manhattan south of Rally House. Streetscape improvements are also included in the project budget. However, the key element in an innovation ecosystem that is arguably missing in Aggieville is the “synergistic relationship” between the people, firms, and place, namely Kansas State University and private investors. Even with private developers appeased by the addition of parking, Aggieville will remain an anchor plus-based innovation district without its anchor. To build a stronger Aggieville, business leaders must identify key indicators of innovation and learn from other regions and districts with strong city, university, and private investor relationships.
THE BLOCK22 DOWNTOWN DEVELOPMENT IS THE RESULT OF PARTNERSHIPS BETWEEN PITT STATE, THE CITY OF PITTSBURG, AND PRIVATE INVESTORS
CO-WORKING & BUSINESS INCUBATION SPACES INSIDE THE FOUNDRY ARE CENTRAL TO BLOCK22’S VISION
Block22 Transforms Pittsburg For inspiration we only need to look to the town of Pittsburg, Kan. where Block22, a new entrepreneurial epicenter is transforming four historic downtown buildings into areas with apartment living for students, co-working and business incubation makerspaces inside a start-up called The Foundry, along with multiple new dining, mingling and entertainment options. This mixed-use, living-learning community is how many envision a future Aggieville to be, and it recently was selected as one of the top university-led projects in the nation by the University Economic Development Association. Fueled by Pittsburg State University’s expansion into the city core in the fall of 2018, Block22 resulted from public-private partnerships between Pittsburg State University, the City of Pittsburg, and the Vecino Group, a housing specialist based in Springfield, MO. “In fall 2015, the City had an idea to pitch to us at the university with a possibility of student housing moving downtown,” says Shawn Naccarato, Pittsburg State University’s chief strategy officer. “The buildings on 4th and Broadway were the first four original commercial spots in Pittsburg’s founding from 1870s known as the Commerce, Baxter, National Bank and Opera House Hotel buildings. Yet, they were empty, nearly ready to tear one down and in decline for generations. Now, this area is back as a collision 34
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of art, industry, commerce and talent, just like the start of these buildings nearly 150 years ago.” After several studies and planning phases, Block22 blended funds to create a living-learning development complete with nearly 100 units of student housing and more than 16,000 square feet of innovation space to explore new ventures and community entrepreneurs. The City of Pittsburg committed $1.5 million from their Revolving Loan Fund, the university raised $1 million, and Vecino secured $10 million in tax credits. The remaining $5.4 million loan assumed by Vecino will be paid through a long-term lease agreement with the university. “It’s what we call ‘strategic serendipity,’ to work towards moving forward together and being in the right place at the right time,” Naccarato says. “We were looking for ways for others to come home as leaders who want to return and have spaces new folks could enjoy. Rather than getting derailed or side-tracked, the university became the anchor tenants to cash flow the initial projects and tax credits. So much has come in such a short time. We injected life and planted a flag back downtown as a space for starting the next best companies in the Midwest.”
An Opportunity to Create a New Manhattan Block22 demonstrates that innovation districts flourish when all three types of assets (people, firms, and place) are
combined with a supportive, risk-taking culture. As the heartbeat of Manhattan, Aggieville has the opportunity to become a leading-edge district like Block22 because it, theoretically, already possesses many assets like unified groups of people, diverse businesses, and a desirable location. Ryan Bramhall acknowledges how unified groups can help push projects forward. “We’re raising our voice of strength for Aggieville with a more united front than any time previously,” says Bramhall. “Everyone’s on the same page. We’ve done a lot to make sure everyone knows what is happening and ready for next steps.” The next steps include moving forward with design contracts to prepare the streetscape, transportation patterns and parking options with potential public-private partnerships. “The pain point has been parking and finding successful ways to tie Aggieville to the greater community with walking, biking, delivery and personal vehicles with multiple ways to get the community in and out of the area,” says Trent Armbrust, director of economic development at the Manhattan Area Chamber of Commerce. Connecting Aggieville to other areas is important especially when Manhattan is in the process of re-creating cornerstones of the community. Each area, from East Poyntz to Downtown, North Campus Corridor to Grand Mere, is distinct and part of Manhattan’s pathway forward. “We need a total plan with all of the components as a complete system,” Armbrust says. “No part should be singled
out. We must look at a full system, collective fashion, but Aggieville is a key to it all.” Tracy Anderson agrees, “Aggieville provides Manhattan an initial opportunity to create a new identity for itself. Manhattan needs to stand on its own two legs. We want to create a renewed place to make Manhattan cool and attract people by getting people to say, ‘Manhattan is awesome. Here’s a place I can live, work, have fun and get what I need.’”
Innovation Takes Risk The creation of Manhattan’s new identity and Aggieville’s redevelopment will require significant risk-taking in terms of both ideas and shared financial responsibility among multiple entities. “We’re seeking bold moves to help support risks,” Anderson says. “I worry that we’re sometimes so risk averse that Manhattan may fall off the edge.” While stakeholders and policymakers hold strong to the long-term vision that entrepreneurism and creativity become a stronger cornerstone of Aggieville’s identity, what’s next for the innovation district? Beyond the new hotel and garage, additional catalyst projects and revenue streams must be actualized to even allow Aggieville the chance to become an economic driver for the entire region. “Catalyst projects give energy. New businesses seek a quality environment for their talent. They want to be in mhk business news
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a place where their talent wants to be,” Armbrust says. “Aggieville is perfectly positioned with characteristics with geographically defined area next to anchor institutions,” Armbrust says. “We have all of the pieces, and now we need to transform Aggieville to take advantage beyond being just ‘mutually beneficial.’ The potential is all there to realize the benefits.” Armbrust continues, “This is different than anything else we’ve done. If Manhattan wants to attract the talent to bring in business, we need to transform our thinking to consider our next development. We’re seeking to implement what we know will work from others to press forward to build a district for tomorrow.”
“We built a strong relationship to formulate how our city and university could work together like tempered steel...”
Block22 is the exact type of “district for tomorrow” we must learn from. Shawn Naccarato says, “Projects like these are all about motivation and energy. One guiding philosophy for us has been that zip codes can’t determine destiny. There’re locals right now where we are who need a space and culture of innovation to do big things right here. The commitment from the community and university creates a shared destiny. It’s about a true embrace of creative 36
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disruption. We want to be in a posture to not accept the tragedy of rural America, but reverse the trends and bring in new markets.” The success of Block22 shows that a partnership, not just in theory but in practice, between the city and the university is central to driving innovation. “We built a strong relationship to formulate how our city and university could work together like tempered steel,” Naccarato says. “Over the years, we worked as a marriage with the city and university to be the best college town of our size. We seek to offer truly transformative experiences for the community to explore ways to prime big moves of intentional economic growth.” In order for Aggieville to become an innovation ecosystem where creativity, professional work, retail, living and entertainment collide, the district needs strong relationships with the very organizations seeking to benefit from it. Perhaps the “build it, and they will come” philosophy surrounding Aggieville is intended for its absentee anchor, and this is all a part of the plan. Ashley Phillips is an account strategist at 502 - A Strategic Marketing Agency and the managing editor of MHK Business News - The Magazine. Lucas Shivers works with USD 383 focusing on curriculum, professional learning, instructional coaching and project management.
What is Innovation? Innovation is when new or improved ideas, products, services, technologies or processes create more market demand or cutting-edge solutions to economic, social and environmental challenges. As there are many types of innovations including market, social, civic and place innovations. This article focuses on innovations derived from a subset of industries benefiting from co-location and proximity where firms and workers interact and collaborate.
Twelve Principles Guiding Innovation Districts
1 2 3 4 5 6
7 8 9
10 11 12
The clustering of innovative sectors and research strengths is the backbone of innovation districts. For innovation districts, convergence—the melding of disparate sectors and disciplines—is king. Districts are supercharged by a diversity of institutions, companies and start-ups. Connectivity and proximity are the underpinnings of strong district ecosystems. Innovation districts need a range of strategies—large and small moves, long-term and immediate.
Programming is paramount.
Social interactions between workers—essential to collaboration, learning and inspiration—occur in concentrated “hot spots.”
Make innovation visible and public.
Embed the values of diversity and inclusion in all visions, goals and strategies.
Get ahead of affordability issues.
Innovative finance is fundamental to catalyzing growth.
Long-term success demands a collaborative approach to governance.
From: www.brookings.edu/innovation-districts/
Types of innovations Design
Highly creative fields such as industrial design, graphic arts, media, architecture, and a growing hybrid of industries that merge tech with creative and applied design fields
Technology
The burgeoning “app economy” and tech startup community
Manufacturing
Highly specialized, small batch manufacturing in advanced manufacturing industries, advanced textile production, and small artisan-oriented manufacturing
Science
High-value, research-oriented sectors such as applied sciences—from life and material sciences to energy technology to nano-technology Other industries organically locating in these areas and are benefiting from interaction and collaboration. Each city should look for other industries during their own analysis—cities could be ahead of the research.
Assets within a district Economic
Economic assets are the firms, institutions and organizations that drive, cultivate or support an innovation-rich environment.
Physical
Physical assets are the public and privately owned spaces—buildings, public spaces, streets, and other infrastructure—designed and organized to stimulate new and higher levels of connectivity, collaboration and innovation.
Networks
Networking assets are the relationships between actors—individuals, firms, and institutions—that have the potential to generate, sharpen and accelerate the advancement of ideas.
SPONSORED CONTENT
This is possible. Imagine the Aggieville of tomorrow. It’s possible. We must only create it. Aggieville is an amazing, high-energy community asset thanks to many people who have worked tirelessly to get us to this point. But we can’t stop now. We must imagine how Aggieville could serve as a model for mixed-use entertainment districts going forward. It isn’t going to be easy, but it is necessary and it is possible. Imagine a flexible space where, on a pleasant day, people might meet up for a coffee date before work, and where an
employee from a nearby coworking space might wander, tablet in hand, for an outdoor hot desk served by districtwide WiFi, and where a local musician might play to a crowd of fans who have purchased food and drinks from nearby businesses. Imagine a space to host a traveling art show one week, a dance party one evening and a poetry slam another. There’s no limit to the creativity that this space will host, if we would only create it. This destination district needs spatial definition. In tomorrow’s Aggieville, a large canopy might provide shade on a hot summer day, and shelter from the rain or snow. String lighting will tie the entire district together, providing wonder on summer nights. For holidays, the lights turn red and green, or red, white and blue or orange and yellow for the annual Aggieville Trick or Treat. On either side of
the canopy, you’ll find rooftop bars full of visitors watching the energy below, rooftop dining catering to a more foodie crowd and a couple rooftop apartments that are always in high demand. Density has energized this district. On Moro Street, they’ve traded parking for people. Most businesses can’t imagine operating without the patrons who meander from shop to shop between the planters and under the cooling canopy of trees. There’s drop-offs on either side of the district where patrons exit public transportation and ride share vehicles. Out-oftown guests simply park in a parking garage nearby and bicyclists hang their bikes near the drop-off. Nobody seems to mind, nor are they in a hurry to leave, because Aggieville is a place where you can eat, sleep, play, work and live.
Content Sponsored & Concept Art Created By
Article by Sarah Siders Photography by Mike Henry
REGION
Green Valley’s Identity Crisis
Green Valley residents are facing a major decision for the future of their neighborhood. Incorporation, annexation, or continuation as a special district? Residents hope to preserve their quiet, affordable quality of life through it all.
It’s only 80 degrees, but on this summery Saturday morning, it feels more like 90 degrees as Dusty Thomas pulls weeds from the front yard rock bed with his two sons. Despite being sheltered from the sun by a green, pop-up tent, the children are less than enthusiastic about the work. “This is my mother-in-law’s home,” Dusty motions back toward the house, a tidy, new duplex with tasteful landscaping in Elbo Creek, one of the many newer developments off Green Valley Road. “I actually live a couple 40
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minutes away in Wildcat Woods. We bought the house about seven years ago.” Thomas explains the decision to move to the Green Valley area from Kansas City with his young family. “The rat race in Kansas City was so crazy. It takes 45 minutes to get anywhere. Everyone recognizes Manhattan as a great place to raise a family. There’s a great business community here.” Thomas adjusts his fisherman’s hat to block the sun. “Once we started looking for a house, we found the west side of town was more expensive for less value. We wanted to be in the Manhattan school district, but if we went too far west in Manhattan, we were in the Riley County school district.” The desire for an affordable home within the $200 thousand range that was also within the Manhattan school district proved a challenge within city limits, which led the couple to the developments in Green Valley. And the area is only growing. “We bought our house for $250 thousand seven years ago, but they are adding dozens of new homes in our neighborhood, some of which are going for $320 thousand.” He reached down and yanked a sprawling weed up by the roots, tossing it into a bucket. “We have two new neighbors who just moved in across the street from us from the west side of Manhattan. This area is being recognized as a great place to live.” Thomas and his family represent a growing group of young professionals coming to Manhattan to raise families, looking for the intersection of a slower pace of life, with quality, affordable housing in a good school
district. The Manhattan Urban Area Comprehensive Plan (MUACP), approved in 2015 by the City of Manhattan, as well as Riley and Pottawatomie counties, envisioned Green Valley as an area for residential growth for Manhattan. One of the key objectives of the MUACP Growth Plan states, “The Manhattan Urban Area will have a compact development pattern that encourages growth to locate within the Urban Service Area Boundary and Blue Township Urban Growth Area…” The Green Valley area zoned as residential is in south Blue Township and north of Highway 24. After an extension of services agreements with Pottawatomie County allowing water and sewer access to the Green Valley area, developments grew from only 500 homes in 2006 to 1,500 by 2018, with a current total population of over 4,000. “It’s a very unique situation, unlike any other in the state,” says Stephan Metzger, assistant planner for Pottawatomie County. “Approximately 4,000 people are on city sewer and water in an unincorporated part of the county.” He adds, emphasizing the anomaly of the situation. “It’s basically the city of Wamego outside of a city of any kind. Most people are very surprised to find out just how many people live there.” Manhattan City Manager Ron Fehr explains the history of the region’s growth. “In 2006, Manhattan made an agreement with Pottawatomie County to bring their sewer to our plant in exchange for a fee. This allowed the residential areas to take off. Without the availability of sewer
treatment, the developments would not have been able to grow, and we made that decision knowing that area would be able to expand,” Fehr says, pointing to a large map of the Manhattan area along the wall of a city hall conference room. “Water became an issue about five or six years later. The Pottawatomie County Rural Water District is not designed to handle commercial or urban residential density of development. So we invested in a major water line and ran a 15-inch water line out to a pump station. The Rural Water District provides Green Valley residents with water purchased from Manhattan for a 125% fee.” In addition to the appeal of finding an affordable, move-in-ready home in a good school district, the lower property taxes of unincorporated Pottawatomie County are a major draw for families like Tony and Shanae Hentzen, who recently relocated from Kansas City to Manhattan. Like Thomas, they said they wanted the quality of life Manhattan offers, along with a slower pace. They originally rented in Northview before beginning their home search and landed in Green Valley one year ago because of home values and lower taxes. “You can spend the same amount in Manhattan, but you can only get an older home. Out here the property taxes and specials are lower,” says Tony Hentzen from his Elbo Creek driveway. His wife, Shanae, nods emphatically. “I love it out here. We are far enough from the city but five minutes from everything we need.” Shanae, who works in Junction City, adds, “Since moving from Northview, the commute is about the same.” mhk business news
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Shanae points to homes along their street, confirming that many other families like them have made similar decisions to make Green Valley home. “There are lots of young families with kids around here.” She laughs, “The next-door neighbor kid and our daughter are friends, and he’s been over twice today asking to play. We also have a buy-nothing Facebook group just for Blue Township. It makes it feel like a small community.” Based on the vision of the Manhattan Urban Area Comprehensive Plan, the residential developments in Green Valley are a strategic move, meeting important housing needs for the region. Last year, Manhattan ranked #2 out of 100 cities for Livability, based on scores rating housing costs and availability, employment and the local economy, health care and education options. Yet the conundrum for Manhattan is that the neighborhoods outside the city limits in Green Valley appear most appealing in offering local residents and newcomers the “quality of life” dream Manhattan sells: quality, affordable housing near good schools, a more restful pace than a big city, and a five minute drive from anywhere.
Growing Pains Yet with all its benefits for Green Valley residents, the area’s growth presents unique challenges for a currently unincorporated region of Pottawatomie County. As the neighborhoods expand and more people choose Green 42
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Valley as their home, needs of expansion of services, such as water or a local fire department, lead to questions of governance and identity. As residents of the county, families who move to Green Valley give up aspects of city life many take for granted, such as the sense of identifying with a particular community.
“When you introduce yourself, where do you say you live?’ The answer I got back was, ‘We don’t know. We are in the middle.” With 50% of Green Valley residents working in Manhattan, the places people work, play and spend their money affects their sense of identity in addition to their place of residence. Although Green Valley residents have a Manhattan address and send their children to USD 383 schools, Metzger articulates the challenge of how Green Valley residents identify themselves. “We have a steering committee [for planning], and I asked them, ‘When you introduce yourself, where do you say you live?’ The answer I got back was, ‘We don’t know. We are in the middle.’ Some said they lived in Manhattan while others say, ‘I live in Blue Township.’ I get questions every week from people who say, “I live in Manhattan, but I live in Pottawatomie County.”
He notes that although the area is part of Blue Township, the choice to name and outline Green Valley was intentional, designed to give residents a sense of place. “We call this the ‘Green Valley Plan’ to help create some sense of identity for those folks who live out there. The steering committee felt it would be good to help them have an identity. Sixty percent of our survey respondents have lived in Green Valley for less than five years.” He adds that the original Timber Creek neighborhoods do have a sense of place, however, that’s because it’s the only neighborhood that’s been in the area from the 1970s. “People who lived in Timber Creek for 30 years have a very different answer. They identify with their neighborhood because they were the only neighborhood out there for 30 years. That sense of identity extends out there among other neighborhoods. But some of the other neighborhoods have a lesser connection.”
“...now the county needs to take a step back and let citizens take the lead. If the citizens wanted to incorporate, the county approves or denies that incorporation, so it’s important that the county not get involved.” Yet perhaps the greatest challenge to the combined realization of the MUACP vision and the quality of life Green Valley residents seek is the question of governance for the rapidly expanding area. In February, Pottawatomie County held a community meeting for residents to share options for the way forward, which included incorporation as their own town, annexation by the City of Manhattan, or maintaining as a special district. Metzger says the county cannot take any action to change governance structures of the region but is trying to inform residents of what their options are. “The county has tried to remain
neutral because the county can’t initiate incorporation, the township doing more, or annexation [by Manhattan]. So our role has been to wait and see.” He adds, “We tried to get the ball rolling discussing options, but now the county needs to take a step back and let citizens take the lead. If the citizens wanted to incorporate, the county approves or denies that incorporation, so it’s important that the county not get involved. We are here to provide information if people ask for it, then let them make the best decision for their neighborhood and themselves. However, if Thomas or the Hentzen’s are indicators of the common sentiment of Green Valley, residents like things just as they are. “I would love to live in Manhattan, but I would have to see the taxes,” Thomas says. “Pottawatomie County gives you so much more freedom. You don’t have as many resources, but most of us aren’t screaming for inclusion [in the city], aside from a few active people who would benefit from one decision or another.” Of the potential governance choices, Tony Hentzen echoes the sentiment simply. “I would like to do the cheapest option.” As the area grows, however, the choice to ‘do nothing and remain the same’ is less and less viable as Manhattan is unlikely to benefit from increasing infrastructure access to neighborhoods outside of their tax base. Fehr adds the decision to annex Green Valley is not a foregone conclusion of the City of Manhattan anyway, as it may not be in the best interest of the city. In May, the Manhattan City Commission approved a study that will outline in detail the true costs and benefits of expansion of all city services to the Green Valley area. The results will be available in November. Fehr says, “From there, we will proceed to phase two, depending if the City Commission wants to move forward with further analysis or create a statutory services plan.” The other significant option requiring action from Green Valley residents would be the choice to become their own city via incorporation. Fehr outlines this process. “Incorporation is initiated by a group of citizens who can petition the county to allow for incorporation. There would be provisions regarding the close proximity of Green Valley to Manhattan that would require a unanimous decision by the county commission to approve that request.” Fehr adds, “It’s complicated. It has a lot of implications. Those annexation laws have been amended a lot of times.” Metzger laughs, reiterating Fehr’s experience in communicating governance options. “I try to never underestimate how complex this is.” For Green Valley residents like Thomas, however, the hope is to keep decisions as simple as possible, maintaining the quality of life that drew them to Green Valley in the first place. He says that although he has not gotten involved in annexation or incorporation talks, any decision that significantly alters the lower cost of living, access to good schools, and the ability to make his housing dollar stretch, would force him to advocate for himself and his neighbors. “Those of us out here just don’t want to have our cost of living impacted for no additional value.” Sarah Siders is a freelance writer, author and coach who specializes in leadership and healthy relationships. mhk business news
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BY 2023 THE NORTH CAMPUS CORRIDOR WILL CONNECT UNIVERSITY RESEARCH & DEVELOPMENT WITH ROBUST INFRASTRUCTURE
Article by Sarah Siders Renderings Provided by Confluence
FINANCE
Manhattan’s City-University Fund: An Innovative Approach to Funding Town-Gown Projects
A quarter century after annexing Kansas State University, the City of Manhattan and Kansas State University look to fund innovation along the North Campus Corridor.
Driving south on Manhattan Avenue, a “Welcome to Kansas State University” sign will someday greet residents and visitors as a massive limestone bridge canopies Kimball Avenue. On either side of the roadway, young oak trees will provide shade from the spring sun to walkers, joggers and bikers on 12-foot, multi-use paths. As the road curves along the NBAF entrance, a grassy, landscaped median will form in the center of the street. Traffic will pause and move through the streetlights at the Denison and Kimball intersection, adorned with red buds in full bloom. At the northwest corner of the intersection, a corporate campus will stretch north behind a limestone entrance sign. Students and city residents will take a mid-morning stroll along the sidewalk in front of the campus recreation and sports complex, lined on both sides with oak trees and landscaped with native grasses and purple Russian sage. Grey and purple buses will pull up in front of the Bill Snyder Family Stadium, doors opening to release riders and welcome new ones. While most of the drive through the new North Cam44
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pus Corridor will feel familiar, the upgrades to the landscaping, roads and other infrastructure will give the sense that the people of Manhattan are proud of their city. This is the imagined view from the plans for the development of the North Campus Corridor, an infrastructure project currently in progress and expected to be completed in 2023. According to the City of Manhattan’s website, “the North Campus Corridor is an area bounded on the south by Claflin Road, on the west by College Avenue, on the north by K-State property north of Kimball Avenue, and on the east by North Manhattan Avenue.” As essential elements of K-State’s 2025 Strategic Plan and Region Reimagined, the strategic plan for Manhattan and the region, the expansion of the North Campus Corridor holds the ability to build on the city’s unique relationship with the university and invite partnership with outside research and development companies. The project will be funded through a variety of sources, one of which is City-University Fund money distributed over a 20-year period.
Smart Solutions Create Additional Momentum In 1994, a creative solution to several challenges facing Manhattan at the time surfaced during conversations between then-City Manager Gary Grier and former K-State President Jon Wefald. City Manager Ron Fehr recalls how, over a two-year period, the idea of the annexation of K-State by the City of Manhattan took shape as a mutually beneficial option for both parties. The significant financial benefits of this arrangement emerged. First, the on-campus sales tax would return to the city rather than going to the state. Second, by annexing the university, the student population would become part of Manhattan, placing the city in a population category above 50,000 and qualifying it for federal grant dollars not previously accessible. “As I talk with other cities, I’ve learned that this is a unique approach for a relationship between a city and university,” says City Manager Ron Fehr. “Some cities provide mill levy support for a university, but this [annexation] was fairly unusual.” The annexation agreement was completed in 1996. Immediately, the City-University Fund was created to manage and distribute the money returning to the city from the on-campus sales tax and utility franchise fees. City-University funds were designated for projects mutually benefiting the city and university. The fund has grown over time, ranging from approximately $750,000 to $850,000 today. The creative nature of the fund continues to create opportunities for Manhattan not seen in other cities with universities. The City-University Fund Committee, a group of citizens and university students and faculty, review proposals made through the university and make recommendations for how and where to spend funds. The committee forwards recommendations to the City Commission on whether to proceed with, modify or deny proposals, and ultimately, the City Commission determines where the City-University Fund dollars go. Fehr articulates the decision-making criteria that guides committee members and the City Commission in determining the use of the money. “Approved projects will typically require no more than three years of funding, can clearly outline benefits to both city and university, and prioritize safety and economic development.”
Maintaining the Innovative Nature of the CityUniversity Fund For the first 20 years of the City-University Fund, money spent addressed issues of safety, transportation and beautification, improving university crosswalks with signals to enhance pedestrian safety, as well as bicycle lane improvements throughout the city. In addition, Memorial Stadium received fresh turf, and due to the mutual benefit requirement, opened the old stadium to city use. The Kansas State Gardens and Butterfly Conservatory received money for restoration, and both Kansas State and Manhattan Public Library were awarded funding to support their respective projects. Overall, however, a primary focus
of the fund in its 23-year existence addressed improving the bikeability and walkability of the city, especially near the campus, with approximately one-third of fund expenses going to bicycle and pedestrian infrastructure in the first 20 years. As the fund has grown and achieved important community improvement goals on campus and in the city, new opportunities to promote economic development have surfaced. However, the intentionally generic approval criteria the City-University Fund uses to determine relevance from submitted proposals proves challenging, as most requests can easily make a case for how they are mutually beneficial to the city and university. While the majority of City-University Fund projects have received broad support, recent decisions to fund the Special Assessment Report in Colbert Hills or the 20-year commitment to the North Campus Corridor improvements withstood controversy about adherence to the fund’s intent. Former City-University Fund Committee member, Jeff Koenig, shares that although there is some concern about how the money is used, he believes the fund has been effective in serving its designed purpose over the years. “The majority of the projects done had mutual approval and mutual benefit to the city and university. The negative feedback about some of the City-University Fund projects is like Google reviews; there is always one negative review that gets all the attention.” One of the projects that received less than unanimous support in the recent past was the assignment of $120,000 over a four-year period to Colbert Hills to assist with a Special Assessment Report for their golf course access roadway, a request that ends with the final disbursement in 2019. Colbert Hills’ argument that they were no longer the sole beneficiaries of the road impressed the City Commission and received approval, but the request was not recommended by the City-University Fund Committee, who believed the money was not intended for this type of project. Fehr explains how the Colbert Hills decision met City-University Fund criteria. “Colbert Hills Golf Course is a teaching golf course and folks who pursue a degree in golf course management use the course for research and classroom provisions, and it is home to the golf team at K-State.” He adds, “It’s unusual that a golf course would have the responsibility to fund their access roads, despite the residential subdivisions coming in later, who did not have to fund the roads.” The Colbert Hills expenditure appears small, however, compared with the annual commitment of $500,000 allotted for the next 20 years for the North Campus Corridor, comprising approximately two-thirds of the current fund total. The dedication of significant City-University funds in advance confirms the city’s commitment to economic growth and catching up on road infrastructure that has not been improved in 50 years, since the Bill Snyder Family Stadium was originally constructed in 1969. Since then, the North Campus Corridor expanded to include the athletic complex of the Recreation Center, Bramlage Coliseum and other athletic spaces, as well as the pending completion of NBAF. Koenig believes the North Campus Corridor inframhk business news
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structure improvements are exactly what is needed to focus on the goal of economic development in the city. If you can’t get people through your community to their jobs, that negatively affects the business community.” Assistant City Manager Dennis Marstall, a Manhattan native who recently returned to the area, agrees the investment in transportation infrastructure is also an investment in economic development. He articulates that the development of the North Campus Corridor fits into the long-term plan for the sustainability of Manhattan. “The North Campus Corridor is a catalyst to open our city for more research and economic development. It’s road heavy to help get traffic in and out of NBAF, out of Kimball and College, and improves the infrastructure of roads and related amenities. It allows us to accomplish transportation goals and economic development goals. It’s a whole business district that can be created there for more jobs and a stronger tax base.” He adds, “I am one of the leading advocates for seeing what we can do to keep graduates and young professionals here. North Campus Corridor is putting our money where our mouth is. It’s the doorstep to the campus, and it’s benefiting the city.”
Planning Projects for Workforce and Lifestyle Needs The City-University Fund investment in the North Campus Corridor appears to make progress by not only creating room for additional businesses to call Manhattan home but also in enhancing “quality of place” to attract the future workforce of the city, primarily through improving walking and biking infrastructure and public transit access. Understanding the habits and values of Millennials and Generation Z indicate these investments 46
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will pay off. As Millennials age and start families, they want to bring the best parts of city life into the suburbs with them. Lynn Richards, president and CEO of the Congress for the New Urbanism, says, “What Millennials want are places that have a vibrancy, where you...can shop, go out to bars, walk and bike.” And Millennials will pay more for these amenities. In fact, according to a 2016 study by Headwaters Economics, reports homes near walkable, and often bikeable, trails enjoy premium increases between 5 to 10 percent. As for Generation Z, according to a recent report in the Wall Street Journal, the share of 16-year-olds getting their driver’s licenses has dropped by nearly half since 1980. With Millennials gravitating towards walkability and Generation Z less interested in getting their license, the planned development of a multi-use path for walking and biking, along with the expansion of public transit along the North Campus Corridor appear to align with the quality of place younger generations are seeking. K-State Professor of Anthropology Ryan Klataske grew up in the area and recently returned to Manhattan with his young family. Like many Millennials, his family chose to live close to downtown because of the character of the neighborhood, the closeness to the city’s center, and the ability to walk or bike easily. Klataske feels the continued investments in these spaces will attract more young people to the area. “Investing in walkability, character, and both aesthetically and environmentally pleasant spaces in which young professionals and families and children can live, play, eat, socialize and linger together will certainly help Manhattan offer the healthy, happy lifestyle that many of us desire and know is possible.” Sarah Siders is a freelance writer, author and coach who specializes in leadership and healthy relationships.
BUSINESS SPOTLIGHT
MANHATTAN PRIMARY CARE After navigating medical school and the military together, Drs. Harrison and Platz reflect on their over two decades-long friendship and journey to opening Manhattan Primary Care. Article by Daniel Phillips The year is 2013, and the crimson light of a setting sun pours through the windows facing Poyntz Avenue bathing the interior of Harry’s Restaurant in the dreamlike ether of the magic hour. Maybe it’s this picturesque atmosphere or maybe it’s the wine bottle, sitting empty on the table that sways the heart and mind of the long-trepidatious Dr. Kyle Platz. Sensing the momentary lowering of Dr. Platz’s defenses, Dr. Bradley Harrison poses the question he has floated in the middle of their friendship for nearly two decades now, “Do you want to start our own family medicine practice?” Weary from searching for reasons not to take the leap for so long, Dr. Platz gives in, and trepidation turns to excitement as a life event almost 20 years in the making begins to unfold.
A Friendship Evolves Drs. Harrison and Platz met each other at Central Methodist University in 1998 while attending undergraduate school. Dr. Harrison, a seasoned junior on his third or fourth major, had started college with the intent of becoming a high school football coach. But after discovering that coaching wasn’t the correct path for him, and having witnessed his mother’s fulfilling career as a nurse, he decided to pursue medical care just before meeting Dr. Platz. Meanwhile, Dr. Platz, a freshman, knew from a very young age that he wanted to be a doctor and was well on his way to achieving his goals. The differences in their college experience eventually worked out well for their shared 48
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Photography by Mike Henry career trajectory as they graduated simultaneously, “It took me five years to graduate. It only took Kyle three. He was on an accelerated track,” Dr. Harrison says with a smile. After their initial meeting, while they were both starting their pre-med track, they had virtually all of their classes together. This was the beginning of what makes them great partners for private practice because after studying the same materials from the same professors together, they developed an innate ability to understand each other’s trains of thought. Their academic partnership brought them great success, and before long, it was time to start figuring out where they wanted to attend medical school. They both decided to apply for military medical school scholarships, a program where a branch of the military pays for your tuition, fees, and living needs in exchange for seven years of service as a military doctor upon graduation. “It’s basically an ROTC program for medical school,” Dr. Platz muses. This method of paying for medical school also had the added benefit of allowing both men to serve their country, something that is visibly important to both, even to this day as attested to by the multiple flags, certificates, and patriotic paraphernalia adorning the walls of their business. After a formidable application and waiting period, they received the news that they had both been selected to receive one of the limited number of these scholarships offered in Missouri. “Of the six total available to all three service branches in the state, we had two at the same tiny school,” Dr. Harrison mentions with a sense of well-deserved pride.
Medical school was the first of only two stretches of time in their long friendship where they were separated. Even though they chose to go to different schools, they remained relatively geographically close — Dr. Platz attended Kansas City University of Medicine and Biosciences while Dr. Harrison attended University of Missouri-Columbia School of Medicine — and continued to communicate. While they were attending separate schools, they both decided to do their rotations at Fort Gordon, Georgia. They completed three years of residency there as well, where they finished as Chief Residents with their desks in the same room. “Our first year as residents, the room with our desks was like a cell. The second year, we called our room ‘the fishbowl’ because it had two windows,” Dr. Harrison adds jovially, “And I started joking, even in residency, that we should start our own practice together.” “And I said, ‘You’re crazy, it’ll never happen,’” Dr. Platz recalls with a chuckle. After completing residency, they both entered into the next era of geographic separation when they left for yearlong deployments to different areas. Dr. Harrison spent his year in Iraq while Dr. Platz went to Afghanistan. And again, even though they were separated, they stayed in touch. “The time difference was less between us than it was 50
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to back home, so getting a hold of him was usually easier than reaching my wife in the states,” Dr. Platz remembers grinning. While these experiences definitely helped shape their personal views of medicine, they both handled this volatile time with humility, “I was the farthest forward [deployed] physician in the country at that time, but I didn’t have it as bad as some people, like the P.A.s and medics,” Dr. Harrison says. After their relative deployments, both men found their way to working in the clinic on Fort Riley where they continued working together through the end of their military commitments. When their contracts expired, the two pursued different paths. Dr. Platz worked as a contractor on Fort Riley, while Dr. Harrison accepted a position at a private practice in Manhattan. They kept in constant contact, which offered Dr. Harrison plenty of opportunities to nudge Dr. Platz in the direction of the dream he had jokingly mentioned over ten years prior. And finally, a year later in 2013, that fateful dinner at Harry’s catalyzed the idea that would become Manhattan Primary Care, and the real work began. “Neither of us had taken a single business class in our lives,” Dr. Harrison mentions chagrined. Although they both had the option to get an MBA simultaneously in medical school, neither had chosen that path since they
weren’t sure that this eventuality would actually occur. “I think the first bank I went to I was wearing shorts and a T-shirt, I had an old copy of my resume folded up in my pocket,” Dr. Harrison recalls. “They would ask me what our business plan was, and I had no idea what a business plan was, I just knew that there hadn’t been a new clinic in Manhattan in nearly a decade, and we needed more.” It was a steep learning curve, but with the help of a handful of local doctors, some of whom were also veterans, they were eventually able to navigate the swirling maelstrom of small business loan acquisition. Of course, after securing the loan, they both had to actually learn how to run a business as well as practice medicine. “I thought we were just going to have patients, they would just show up. But it turns out being a business owner is exponentially harder than being a doctor,” Dr. Platz admits. “In the military, for example, if there was a payroll problem, I would just send the person to the payroll office. Well, now, Bradley is in charge of payroll.” With these new responsibilities as business owners, they had to find innovative solutions to problems. “Bradley was helping with construction, and I went to Fort Riley and took pictures of the rooms I worked in just to know what we had to order. We got gauze, we got tongue depressors, we got cotton balls,” Dr. Platz says while miming opening drawers, “So our rooms probably look exactly like those on Fort Riley.” Gently shaking his head, he continues, “I think every physician, ourselves included, just took for granted that all that had already been done.” Even after all the work the two put in, it was still slow going in the beginning. “I remember checking our deposit system every day for weeks, saying ‘Where’s the money? It’s not working,’” Dr. Harrison discloses, the long-passed stress still evident in his voice. “But then, one day, I saw a deposit from Blue Cross Blue Shield for $92.00. That was our first payment. I just said ‘Oh my God, it is working!’ and we went to Little Apple Brewing Company for a beer.”
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Since that first $92 payout, Manhattan Primary Care has absolutely flourished, opening up their practice to new, different patients constantly. And at its heart are two men who have been working together and trusting each other since they met in 1998 at Central Methodist University. “We know each other. I can say ‘Bradley, I don’t like how you’re doing something,’ and he tells me, ‘Don’t do it like that.’ It’s pretty militaristic or cut-and-dry, we don’t mince words. We know each other and there is a lot of respect there. I’ve even named both of his dogs, albeit usually accidentally,” Dr. Platz laughs.
“I said this our first year of residency, you and I make a great team, we should really do this. And now, five-and-a-half years into the business we’re still going strong.” Dr. Harrison retorts, “I know, I said this our first year of residency, you and I make a great team, we should really do this. And now, five-and-a-half years into the business we’re still going strong, and we recently signed another fiveyear lease.” And thus begins the next chapter in the lives of these two long-time friends, after decades of learning, working, and overcoming challenges together, the future of Manhattan Primary Care looks extremely bright. Lt. Dan Phillips was born in Oregon and now lives in Manhattan, KS, with his wife, Ashley, and their five kids — a dog, cat, snake, and two rats. After a six-year stint in the Air Force, Dan attended Kansas State University, during which time he fell in love with the Manhattan area and decided to stay. When not writing, he works as a part-time pilot for the Kansas Air National Guard.
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