Emporia City Commissioners are considering lending approval to a major project for one local business that could serve as a win-win for the community.
As KVOE has reported recently, Dynamic Discs is planning to purchase and relocate its distribution services to the Detroit Reman facility at 840 Overlander once local operations cease at the location. Wednesday morning, Dynamic Discs owner Jeremy Rusco came before commissioners to discuss the potential venture.
Rusco says the move from their current distribution facility at 3601 West Sixth would give the business quadruple the space for operations and will help to create several new jobs in the local community.
Rusco says the ever-growing notoriety of disc golf as a sport and the subsequent demand for disc golf products, especially amid the COVID-19 pandemic, was a major motivator for the move.
Commissioner Rob Gilligan says approval of the project would show the city’s “recognition of a growing industry” which has been dedicated to helping grow the local economy.
The Regional Development Association of East Central Kansas has already lent support to the project. The RDA’s recommendation is that the city approves $650,000 for the purchase of the building as well as a performance-based cash incentive. Emporia Enterprises would then facilitate the real estate transaction for the current warehouse, with Emporia Enterprises owning, managing and then listing the Sixth Avenue property for sale afterward. Emporia Enterprises will borrow a portion of the cost and will need a cash infusion from the city to finish the transaction.
Word on when a formal decision could be made on the matter has yet to be determined.
In other business, commissioners were presented with an update on the city’s current insurance policy from Hays Company. According to Gilligan, last year the city switched to a “partially self-insured” plan meaning the city builds its own plan internally and deposits funds directly into the plan rather than purchasing one through a provider.
During the update, discussions focused on the plan’s reserve funds, a fund in place to cover costs in the event something occurs that leads to “above and beyond use of the plan.” The city has calculated its reserve fund need at roughly $2.2 million and has been slowly investing savings over the past three years into the reserve fund.
Gilligan says the city was budgeting for a 20 percent premium rate increase for the coming year, however, a recommendation made Wednesday shows the city will only require a 1.7 percent increase this year.
This will allow the city to take a portion of the previously budgeted amount and place it into the reserve fund to get closer to the $2.2 million need. Gilligan anticipates the city should reach that level within the next two to three years.
The Emporia City Commission is scheduled to reconvene next Wednesday at 1 pm for an active session inside the Municipal Courtroom at White Auditorium.
