On The Beat business blog coming soon

Submitted by Adrianne DeWeese on March 18, 2009 - 11:20am

Hello again everyone,
Thanks for reading the blogs last week about the Independence Regional Medical Center Tax Increment Financing Plan Advisory Committee and its meeting about $12 million available for the revitalization of the two former Independence hospitals. Please note that the issue isn't final yet because the Independence City Council has the final vote.
Several Examiner reporters and editors will start their own personal blogs within the next several days. Mine will primarily focus on business-related topics since that is my primary beat. However, I also cover the Grain Valley and Oak Grove boards of aldermen and the Independence Planning Commission, so I'll blog about those as needed, too. The purpose of a blog, in my opinion as a reporter, is not to replace traditional reporting and in-depth news stories. Instead, blogs compliment the print edition with frequent updates. Blogs also are a great way for you, the readers, to interact with reporters and editors, provide story ideas and ask questions. Occasionally, I might blog about a particular human-interest feature that I wrote and include unprinted quotes and information and talk about how I approached particular stories.
I'll admit that I wasn't a big fan of blogging several years ago when it became very popular. I'm embracing the concept now, though, and I'm happy to give it a try. Keep your eyes peeled in the upcoming days!
Adrianne DeWeese, reporter
The Examiner
 

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Comments

Thanks to all three of you for your questions and comments. Elisa, when you asked about why there hasn't been any forums to take questions about the proposed business incubator, I'm afraid that there has been. Within the past two weeks, there have been two separate IRMC TIF meetings. City Council meetings also are forums for residents to express their views. There might not have been a specific business incubator forum, but there have been opportunities to ask questions and express personal views.
I wrote three stories last week about the IRMC TIF process. While I am not writing any follow-up articles this week, I plan to next week. Again, I appreciate everyone's questions and comments. Please note that there are regularly scheduled public meetings to express your views (which you have every right to as taxpayers).

Submitted by Adrianne DeWeese on March 18, 2009 - 2:24pm.

You are the greatest. Thank You for your stories and your Bloggs. Have you ever gone to a council meeting. We do not get to ask questions. We can go and express our personal views if you get on the agenda. It is not a very pleasant place to express our personal views. I could go to Pikes Peak and share my personal views and walk away feeling the same. This is not funny it's sad. You have done a good job for us, but we need answers. We know "they" all read these Bloggs. If they care about this TIFF money come on out and Blog. You could write all civil's questions out with the answers. How hard would that be? I am not talking to the Examiner, they know who they are. If you can't come out with answers maybe you need to just go away. If you can do what you say you can do we want to help. The ball is in your court. Who will uncover answers for us?

Submitted by ELISA on March 18, 2009 - 3:41pm.

Hello, Thanks for the info. If we have a strong feeling about it we need to voice it now. The business incubator at the Old Regional Medical could create 1,400 jobs in the next 10 years. We need more info on this. We could use more jobs, but show us the facts on this. I would like someone asking more questions about this. They could be blogging about this. Why have they not had an open form meeting on this so we could understand it more. I would love to see this happen, but why have we not been told more about it? I could be wrong maybe they have done alot and I am not aware of it. What makes them think this could create 1,400 jobs? They need to show the facts so we can show them the money. Not one person in this city would be against the creation of 1,400 jobs. Please give us more facts. I would love to see this happen. Our people need more jobs.

Submitted by ELISA on March 18, 2009 - 12:18pm.

Elisa, you are asking exactly the same question I have posed to my councilperson. There is more. How did they arrive at the demolition cost without a demolition plan(s)? Exactly what role will Metropolitan Community College play in this endeavor? How much experience does CEAH have in the operation of an entrepreneurial incubator? What is the source of their funding? Is it to operate as a profit or non-profit? What is the timing between the start of operation of the incubator and the remodeling of Truman Forest? Is Truman Forest to be a part of the incubator, or is it a stand alone office building operated as a separate for profit endeavor?
I'll be watching the telecast to see how many questions are posed to the applicant, and what will be the final vote, for or against approval of the application.

Submitted by civil on March 18, 2009 - 1:24pm.

I want to interject into the conversation today regarding the proposed redeveloment of Independence Regional.  I represent the Independence Council for Economic Development (ICED) and we are the local economic development agency here in Independence.  We have been in operation since 1983 and operate as a not-for-profit as part of a  public/private partnership. 
Many good questions have been asked in regard to IRMC and the proposed incubator.  I'll be glad to answer many that have been presented and others as they come up.  There is no desire to withold any information but being able to disseminate information is very difficult in a city the size of Independence.  The Examiner does a wonderful job presenting information but newspaper articles only allow for a certain level of detail. 
Let me answer a few of the questions posed:

  • The incubator itself will not be operated by CEAH.  Specifically, David Edwards who is a partner in CEAH, has been involved as the developer of this project.  A corporation has been formed under the umbrella of ICED and will be the forming agency for the incubator.  The incubator corporation is a not-for-profit and will ultimately operate under its own board, by-laws, and staff once the incubator is formalized.  The building in which the incubator will be located will be owned by the Independence School District.
  • The business plan for the incubator is under development.  It is hard to formulate a final plan without knowing the exact resources of funds to support the incubator.  There are a number of programs ranging from federal funds through the Economic Development Administration to state funds which are available through the incubator tax credit program offered by the State.  Applications are being made to all of these programs and the impact of those will be factored into the final business plan.  It is a very fluid document at this point and has been in the works for over a year. 
  • The TIF funds available through the Centerpoint TIF are not a blank check.  There are performance requirements in place in order for funds to be expended and the funds will not be up front, they will be distributed over an 18 year period.  Any failure to meet the performance standards, as will be outlined in the final agreement with the City, can result in forfeiture of future funds from the TIF proceeds.
  • My organization conducted the economic impact analysis as we do with many local economic development projects that request public assistance.  Copies of the summary report and calculations are both available to anyone who requests them.  Much of the analysis and estimated absorption rates are based on the performance of already existing incubators in other parts of the country. 
  • At this time, the initial phase 1 of the development plan will focus on the south tower and diagnostic portions of the former hospital (see site plan).  The older middle section will be demolished and the Truman Forest Medical building will be mothballed until there is a demand for that space.  As the incubator is temporary space for the initial years of a company's operation, we believe the Truman Forest building can be the "2nd home" as we strive to keep these newly incubated jobs in Independence.  We already marketing the Truman Forest building to potential projects which need this type of space and have several inquiries including one project which would create 600 to 1,000 new jobs and utlize most of the building.  This building will be held privately and there are no plans to use public funds to redevelop this property. 
  • The incubator is very much considered a "mixed-use" facility and will utilize the existing assets of the building to provide space for a variety of potential users.  The surgical suites will be converted to wet labs for bio-tech companies, the kitchen facilities will become a series of individual kitchens for persons wanting to start their own business (catering, bottling, etc), and the former hospital rooms will be converted for general office use.  The Independence School District will also use a portion of the remaining space for programs of the district. 
  • Because of the diversity of the facility, we have been working with several partners with expertise in the specific areas the incubator will focus on.  We have had extensive conversation with Metropolitan Community College about the services and programs they can offer our incubator clients.  The Kansas City Area Life Sciences Instituate will head up the efforts on the bio-tech incubator, and First Step Fund will lead the kitchen incubator.  ICED will also be be involved as we provide support services for the businesses including assistance with marketing, product development, and financial incentives which may be available to them. 
  • A public meeting to discuss this project with residents and other interested parties has not been held outside of the two TIF Advisory Committee hearings.  At this point, we've been able to adequately respond to all questions through phone calls, e-mails and personal visits for persons who stop in our office at the Independence Chamber of Commerce. 

This project offers a very unique opportunity for Independence.  We must be focused on those opportunities that result in job creation and increasing the economic activity within our City.  We already have preliminary committments for the initial tenants as reported in the Examiner.  The opportunities are before us but it will be up to our community to decide if we all want to grab a rope and pull together to make this project work. 
I hope this helps answer some of the initial questions which have been posed within this blog discussion.  I am always glad to provide any information that I have available to anyone who requests it.  It is as simple as asking the question.  Please feel free to contact me at tlesnak@independencemo.biz or by phone at 816-252-5777.  

Submitted by iced on March 18, 2009 - 3:15pm.

iced Thank You for this Info.

Submitted by ELISA on March 18, 2009 - 3:51pm.

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Thanks for your response..
As U see there are quite a few of us interested..
Where are the incubators that are working located?
 How long have they been working?
And what kind of results can U point to ?
I Got an SBA loan once a Looong time ago and it took me over a year to get the paper work right; then when I did, there was NO $$$$ to be loaned…
After I gave up and went on to other things, about a year down the line, I got a letter one day that my SBA $$$$$ was ready…
By that time the building I wanted was gone…
So in these economic times we are in how can U project any kind of time line???

Submitted by mminnoe on March 18, 2009 - 3:45pm.

We've worked very closely with the National Business Incubator Association and they have assisted us with providing data on various incubators such as what is being proposed for Independence.  We do have a unique model here as many incubators are one dimensional (focusing on one specific area) while our incubator offers greater diversity with multiple disciplines within the facility which can insulate against a downturn in any one particular business sector.  The fact is that 44% of all small businesses don't make it to their 4th anniversary (source: Small Business Administration) yet 87% of graduated incubated businesses are still in business in year 5.  A good example of companies which are success stories of incubators can be found on the NBIA web site.
One of the closest examples of a successful incubator operation is the Enterprise Center of Johnson County which was opened in 1995 and located in Lenexa, Kansas.  They hired an excellent Executive Director and have built a program from scratch which has included the formation of an angel investor group to address one of the biggest issues of a start up business...access to capital.  From that initial angel invesor group, we now have our own local group in Eastern Jackson County called the Show Me Angels which was created late last year and they will be an active part of our incubator program and will likely spawn numerous new companies from all across the country which are looking for angel capital.  One of the purposes of the Show Me Angels and primary focus of their investors is to provide start up capital for companies who invest in EJC and that means putting down roots.  We will be able to offer these companies the only full service incubator in the EJC region.   
We've heard loud and clear the challenges of getting access to capital, especially for new businesses.  We've worked in partnership with the City and M&I Bank to develop a micro-loan program for small businesses which provides up to $50,000 with a decision within 48 hours.  Our organization also has a partnership with Heartland Business Capital which specializes in the origination and preparation of SBA loan applications.  Too many small businesses and start-ups don't realize there is assistance out there and struggle when they try to navigate through the programs and paperwork alone.  That is why economic development organizations such as ICED exist and we provide all of our services free of charge.  The biggest challenge is making sure people know we are here and make them aware of the assistance we can provide.
There is no doubt that forecasting in this economic environment is extremely difficult.  I heard Bill Clinton speak last week and he said that he is often asked when the economic crisis will be over.  In jest, he said October 13th at 2:30 p.m.  The fact is we don't know when the economy will improve, but if history is our guide, we know that it will improve at some point and time.  So the question comes down to whether or not we want to stay ahead or behind the curve.  Some things we can control (incubator) and some things we can't (Wall Street).  One thing I can guarantee is that new private sector jobs will be created the very first day the incubator is open for business and there is no argument that those new jobs, no matter what the number, will be good for Independence.
I welcome anyone interested to take a look at our web site at www.independencemo.biz and learn more about what we do.  You'll find a number of interesting articles and reports in our news and publications section.  We also have a new blog which is specific to economic development in Independence. 

Submitted by iced on March 18, 2009 - 6:31pm.

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WOW …WOOOOW ??????
That is a $7 answer to a $.25 cent question…
I mean that is Politco speak at its best…
 
The question was; U stated that there were many of these types Incubators up and working around the country???
I ask U where are they?
How long have they been working?
And what results in the way of Jobs can U claim?
PRETTY EASY QUESTIONS???
Well I got a full page of “Gobbel-de-gook”, that as I read it says, there is one in Johnson Cty called Angles? And, That most small business Don’t make it 5 years? And the rest of his answer was filler???? So he lied when he said there are many of these In-KEY-baters working all over?  I think they want to In-key-bate our $10 mil bucks… In-key-bate it right into there 401 K’s
Any one else get any thing I missed???
DON’T WE HAVE ENOUGH DOUBLE TALKERS LIKE THIS DUDE????
I WOULDN’T GIVE HIM ANY OF MY MONEY OR YOURS?
 

Submitted by mminnoe on March 19, 2009 - 12:07pm.

There are over 1,100 incubators all across the United States that are in operation today.  Are they successful? They are all open, operating and working to create jobs within their community.  Smells like success to me.  I gave you an example of one in our backyard in order to keep the post as brief as possible. 
You obviously have access to a computer and the internet.  Do your own research and report back what you have learned about incubators before you spout off about lies and double talk.  You complain that "government" doesn't provide enough information and that everything is being done "in a back room" and then accuse me of a "$7 answer" because I was thorough in my response?  Make up your mind what you really want.   It is okay to agree to disagree but don't feel like you have to resort to twisting words in order to justify your point.
I have done everything to reply to the questions being posed about this project and will continue to do so.
I've not been an active blogger on this site but you are rather notorious based on past posts.  It seems the phrase "You can't be for anything if you are against everything" seems to be a quote that fits you well.

Submitted by iced on March 19, 2009 - 12:43pm.

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In Ur first Informational Blog…
Just to help us all understand what we are gonna get for our $10 mil…
U stated simply that there are many of these ink-q-baters up and runnin all over…
That is what U said…
I simple ask U where?
Again U appear not to have an idea where??
So U have to attact me???
I’m not the guy try to get $10 mil in tax payer $, I’m the TAX payer???
So the answer, U can’t find any up and running that are doin any thing, but it’s easier to attack me???
That about it???

Submitted by mminnoe on March 19, 2009 - 1:11pm.

This is what we need to get out. Thanks this is great info.

Submitted by ELISA on March 19, 2009 - 4:35am.

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Civil I think if U will send this Blog via email to Will and Lucy they will take these great questions to the Council for U.  I’ll do it if U don’t want to but they are great points and U should forward them.. good job on the right questions…

Submitted by mminnoe on March 18, 2009 - 2:00pm.

Civil why do you think it is so hard to find answers around here? It's like we need special tools to pull out answers. How can we move forward without answers. I just do not understand. Thank You for explaining TFF to us last week it was very helpful.

Submitted by ELISA on March 18, 2009 - 1:51pm.

MMinnoe: I sent these questions to Swoffer last week He has said he will ask questions at the council meeting. Perhaps you can forward them to Young.
Elisa: I don't know why getting things aired out is so like pulling chicken teeth. There is a perception among some of us that the council carries on its business behind closed doors. By the time some of us find out anything it has been voted on and passed, usually 7-0. If Tom had published the information he just put up on the blog weeks ago we all might have had a better taste for the IRC thing. It still leaves some problems, but it is all much clearer. Somehow, there needs to be more public information about a lot of things. There are still questions, like if ICED is to run the incubator, why is CEAH being the spearhead, the visible entity, especially if they are to have no involvement. Makes it sounds as if there is a dead fish around here someplace, even though there may not be. I believe the operative word is transparency. There is a large lack of it around here. A new question. I thought the $12M was to be used only for demolition. If that is so, why is it being doled out over an 18 year time frame? Demolition, and its associated costs should occur within the first year. Perhaps there is a reasonable answer, but none has been offered. We the people are expected to just say o.k. with no explanation. Finally, these incubators are risky, with a large possibility of failure. What happens if this one doesn't succeed and is no longer functioning in 18 years?

Submitted by civil on March 18, 2009 - 3:44pm.

I should clarify that Mr. Edwards (again a principal of CEAH but represented as Edwards Management Group for the redevelopment) will have involvement with the project by assisting with facility management as well the necessary role of leasing agent.  Just as we need expertise to support the incubator clients, we (ICED) and the Independence School District (as the owner of the south tower) need expertise and representation for the real estate transactions that will be taking place as spaces within the building are filled.  Mr. Edwards started as the developer of this project but it has been his passion for the incubator and doing something great in Western Independence that has kept him involved and helping to push this project forward.
As for the $12M which was set aside, the purpose for the funds were for redevelopment.  Worst case scenario would be the redevelopment of each site with all buildings removed and the site left in "greenfield" condition.  Fortunately, we have two viable projects that takes the existing assets of both of the properties and gives them new life instead of a field of grass to mow.

Submitted by iced on March 18, 2009 - 7:07pm.

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What I’ve been told so far they have an Idea?
A location
And they want us to put up the $$$$$$$$$$$$$$$
No track record, no bus plan, just an idea…
They take our $10 mil and do nothing we owe even more, & our debt goes up…
 

Submitted by mminnoe on March 18, 2009 - 12:29pm.

This is one time I hope you are so wrong, but you make a great case to be against it. We need facts and figures. They need to show us their homework. We need jobs and $$$. They want our TIFF $$$. We need answers.

Submitted by ELISA on March 18, 2009 - 1:58pm.

GREAT SOUNDS LIKE A LOT OF FUN FOR US
And more work and a pain in the Bu$$ for U...So want to think U up front for doin it...
I think most of the Bloggers and readers will appreciate it...
So far I think Ur doin a good job, by the way....
Do U have any feelings how the vote will go?
Couple of Council I have talked with are for MCI but I think th emajority are for the old IRC???
Only thing I fear with both they will get the TIF and will not be able to get the rest of the money an the land will sit?
I know the $12 mil is the cost of tear down and clean up but if they get the $ and go fishing what can we do???

Submitted by mminnoe on March 18, 2009 - 11:48am.

Ur server is acting up a little this am

Submitted by mminnoe on March 18, 2009 - 11:50am.