LSEDC Offers Focus on Local, Regional and Statewide Economic Development Issues

Off Shoring

The Kauffman Foundation’s recent study of why companies off-shore their R&D efforts illustrates the need for "town and gown" relationships, even in Lee’s Summit.

Contrary to popular belief, it is intellectual capital and university collaboration, not just lower costs that primarily attract companies to locate R&D activities in locations away from their home country, according to a new study sponsored by the Ewing Marion Kauffman Foundation. The study of more than 200 multinational companies across 15 industries, mostly headquartered in the United States and Western Europe, finds that emerging countries such as China and India will continue to be major beneficiaries of R&D expansion. View the study at http://www.kauffman.org/items.cfm?itemID=678.

Fortunately, there are many examples of great public/private partnerships in Lee’s Summit which help to ensure that students are educated for real jobs. Examples include: the Summit Technology Academy, Summer Internships at local companies, Fabtech’s and R&D Tool’s sponsorship of our efforts to establish student and teacher exchanges with China, and R-7’s Partners In Education which links businesses, schools, and students.

LSEDC Special Research Using the CNN/Money Magazine Community Statistics

From median home prices to student test scores; from job growth to household income Lee’s Summit ranks in the top 10 nationally and regionally. 

These are the results of a "slicing and dicing" exercise your LSEDC recently completed using the statistics compiled by CNN/Money Magazine. As many of you recall, CNN/Money Magazine bumped Lee’s Summit from 77^th place nationally in 2005 to 44^th in 2006. 

We took their statistics a step further. We compared Lee’s Summit to the magazine’s Top 10 communities. We also cross-tabbed Lee’s Summit with 10 leading communities in Greater Kansas City. In both cases, Lee’s Summit stacked up quite well. To review both studies for yourself, visit http://www.leessummit.org/commstats.asp.  

Another study for your review is our updated Lee’s Summit Advantage, released in June. Updated from 2004, the study compares Lee’s Summit to top nationally-known, high-quality-of-life communities and to our regional competitors. Visit http://www.leessummit.org/commstudrep.asp for the complete report.

Lee’s Summit Carrier Wins Federal Dental Contract

Government Employees Hospital Association, Inc. (GEHA) has been selected as one of four national companies that will offer dental insurance to 3.8 million federal civilian employees and retirees through a new program.

Based in Lee’s Summit, GEHA will provide coverage under the new Federal Employee Dental and Vision Program, effective at the end of 2006, the company said Tuesday.

"Federal employees have been asking for additional dental coverage," GEHA President Richard Miles said in a release. "This new program is an answer to that need."

GEHA, the third-largest carrier in the Federal Employee Health Benefits program, is ranted ninth on the Kansas City Business Journal’s list of Top 150 Area Private Companies. It employs 800 at sites in Lee’s Summit and Independence, and had $1.85 billion in 2005 revenue.

The company has been serving the federal employee market for nearly 7 years, providing three health plan options. It launched the Connection Dental Plus plan in 1997 and administers the State of Texas Dental Choice Plan for state and higher-education employees in Texas.

There is an 80-20 rule in economic development just like there is in so many industries. In the realm of economic development, our rule of thumb is that 80% of all new jobs created within a community will come from existing businesses. That’s right. Most new jobs are not created by a new mega-company moving into town. Most lasting, well-paid jobs - and the tax revenues they generate - come from the businesses that are already operating in Lee’s Summit.

That is why it is so important that the LSEDC takes the pulse of these businesses from time to time. We did so in the fall of 2004. With the help of "Synchronist" software, funded in part by Aquila, the LSEDC staff called on 61 Lee’s Summit businesses. What we found was startling in the range of positive impacts they have on our community.
 

LSEDC investor companies participating in the interview process include: Archer Engineers, Bank Midwest, Bank of Lee’s Summit, Bank of the West, Bank Liberty, First National Bank of Missouri, Saint Luke’s East - Lee’s Summit, Summit Bank of Kansas City, Union Bank and Aquila.

LSEDC Business Retention Team Members are pictured above.

Row One - Keri Mathew, First National Bank of Missouri; Teresa Evans, LSEDC; Row Two - Klara Parrish, Bank of Lee's Summit; Pat Case, Summit Bank of Kansas City; Todd Harris, Bank of the West; Row Three -  Dan Kauffman, Bank of Lee's Summit; Mark Dawson, Aquila; Charlie Hill, Bank of Lee's Summit; Row Four- Jeff Blendick, Bank Midwest; Larry Hillier, Union Bank; Jess Adams, Union Bank; Tom Earley, Bank of Lee's Summit; Not Pictured - Jim Devine, LSEDC; Stan Christopher, Archer Engineers; Bob Guntert, LSEDC Advisory Board; and Dr. George Pagels, Saint Lukes East Lee's Summit.

The final report will be released in early summer 2007, when all the interviews are completed and the data synthesized. We expect the economic impact of our existing businesses to be even greater in 2007 than 3 years ago. When the survey is complete next spring, we will report back to the community with results and changes.

The entire 2004 Lee’s Summit Business Retention Report is available online at www.leessummit.org under the Studies tab.

The Train Depot, home to the LSEDC and the Lee’s Summit Chamber of Commerce, has been in need of major drainage and mold remediation work. The city and several LSEDC investors have pitched in to solve the problems.

Archer Engineers developed the plans and specifications for the drainage project and served as liaisons between the Chamber and City Staff. Stan Christopher and Joe Bauer with Archer Engineers completed the on-site assessment and coordinated the construction activities with Mike Atcheson of Atcheson Lawn and Landscape, Inc.

Atcheson and Archer Engineers graciously agreed to donate all the labor for the construction. The City agreed to cover all materials costs, estimated at about $18,000.

Thanks go out to these LSEDC investors and to Mark Dickey of the Chamber of Commerce, who served as project representative from the Depot on behalf of the Chamber, Lee's Summit Museum and LSEDC.

Dale Hartley submitted the following Letter to the Lee’s Summit Journal. We appreciate his kind words and thank him for his many years of service to our community.

Dear Friends,

On Friday, August 18^th the exterior of the building that was once Hartley’s Home Furnishings will change, but the heart of the structure will continue beating proudly. Having owned the business and worked in the building for more than 50 years, we want to express sincere gratitude to those who helped us and the entire community preserve a great historic legacy on the corner of Southeast Douglas and Third streets.

Jim Devine, Lee’s Summit Economic Development Council President, volunteered his expertise and extraordinary knowledge of economic development tools to help me transition the business and building. He gave me a lot of great ideas and helped show us how we could utilize state historic preservation and community development programs. We give him a lot of credit for how well this whole effort has turned out.

Kurt Pycior will redevelop the property into an exciting commercial and residential project that will last for generations to come. We were very impressed by his plans, and are grateful to Jim for having put Kurt and us together.

Our mayor, city council and city staff deserve special praise. They saw how a public private partnership could further improve downtown Lee’s Summit, making it even more special than it already is.

Our father and mother started Hartley’s Home Furnishings in 1953. Dale went to work there in 1954 and was later joined by his brother Cliff and many other family members. In 1959 the business moved from its initial home to the corner building at Third and Douglas, previously a hardware store. Over the years we acquired the adjacent restaurant, grocery store, shoe shop, movie theater, post office and vacant lot that abutted the property. For half a century our family was proud to serve our friends and neighbors with the highest quality products and services we could muster. Dale was also proud to serve on the board of Main Street, Inc., and to lend his support to the enormous efforts undertaken on behalf of downtown Lee’s Summit. Ironically, one of those efforts was to "modernize" and "update" the Hartley’s building in the 1970s by installing the aluminum façade that will be removed later this week. At the time we got a plaque from the city for helping turn around downtown. Now we’re happy to do our part by seeing the façade come off. As they say, the more things change the more they stay the same.

Lee’s Summit has been our life. Cliff and Dale were born and raised 2 blocks from the store. Over more than 5 decades many wonderful people have been loyal friends, customers and associates. Now, as the aluminum comes off and the original brick is exposed we can’t wait to see what is in store for the Hartley building, downtown Lee’s Summit and future generations.

Cliff, Dale, and the Hartley Family

Everyone in the economic development industry lost a great friend with the passing of Richard King. Dick was a strong advocate and leader in the quest for high quality development throughout the region and especially in Eastern Jackson County. He was an active and valued member of the LSEDC. He will be greatly missed.

Each quarter we highlight an LSEDC Investor company in our E-Newsletter. If you would like to be featured, attend our Quarterly Investor Meeting and drop your business card in the box. If your card is drawn, you will be featured in an upcoming e-newsletter.

Since its founding in 1946, Block & Company, Inc., Realtors has evolved into one of the Midwest's leading, full-service commercial real estate organizations by adhering to the basic business philosophy of approaching every real estate transaction with the creativity needed to help achieve our client's goals. Our fundamental policy has allowed us to grow and serve an increasing number of Clients in Brokerage, Property Management, Development, and an ever-widening scope of services

We understand there is no single approach to handling every real estate transaction; each has its own goals, its own challenges.  Our team has been assembled with the creativity and variety of experience to meet any and all demands of our clients. 

Block & Co., services extend across many disciplines.  We have been involved in site selection and leasing for hundreds of retail developments and currently control more than 18 million square feet of shopping center and retail space.  Our Restaurant Team has been involved in more than 2,000 restaurant site selections and has worked with local, regional and national chains including Pizza Hut, Taco Bell and Applebee’s. 

Tenant representation, industrial real estate services, office leasing services, hospitality brokerage, asset management, investment services, development & build-to-suit, and financial services round out our offerings to clients.

Block & Co. operates locally, regionally and nationally with leasing and management in 25 states.  We have a unique understanding of the Kansas City commercial real estate market and currently have over 50 development projects underway in the Kansas City Metropolitan area. 

Block’s East Branch offices are located in Lee’s Summit.  Our agents there possess a thorough knowledge of and experience in Eastern Jackson County Real Estate. Call 816-753-600 for more information.

Why did you invest in LSEDC?

The LSEDC promotes and administers economic development initiatives that, often, we are directly involved with.  Our goal at Block & Company, Inc. is to develop shopping centers, power centers and strip centers that contribute to the community not only aesthetically but with increased property value and business opportunities for all.

 What have you gained from your LSEDC Involvement?

The networking that happens at meetings is beneficial to the commercial development of the Lee’s Summit area.  It aids in our relationships with the contractors, developers and brokers who are committed to making Lee’s Summit THE place to live, work and shop in Eastern Jackson County.

What projects have you or your company worked on in Lee’s Summit?

We are most excited about a new proposed power center at the northeast corner  of 50 Highway and Chipman Road called Summit Plaza.  We have just finished construction on Douglas Square, next to the Dickenson Theatres and across from the new hospital on Douglas Road.  Other properties that we are involved with are:

• Chapel Ridge Shopping Center

• Summit Woods Shopping Center

• Summit Point Plaza

• Douglas Corporate Center

• Brookside Center

• Shops of Raintree