Negotiations continue on sale of Schult Home plant
A contract is still being negotiated, but it appears that all is in line for the City of Plainville to purchase the former Schult Home plant in Plainville. CMH Manufacturing has offered the facility to the City at a reduced price from what it was publicly offered--$1.5 million. The Rooks County Economic Development (RCED) Commission has agreed to join with the City in funding the purchase, and in return would be involved in the process of attracting tenants to the facility.
An
interlocal agreement will be entered into between the City and RCED that would
spell out the terms of cooperation between the two entities. Details are still
being worked out on this agreement as well. It is hoped that the agreement with
CMH and the interlocal agreement can all be finalized within the next 60 days.
The announced closing of the Schult facility came in January, 2008, and no tenant has been found since that time. One of the biggest challenges in finding a tenant has been the size of the facility. According to Economic Development Director Roger Hrabe, there have been several companies that were interested, but for one reason or another, it just did not work for them. "In several of the cases, the facility was just much more than they needed. And for the price, they could get a smaller facility for less money" Hrabe said.
CMH was also not willing to lease out parts of the facility simply due to the liability and security issues that they anticipated with such an arrangement. "We had several businesses that were interested in leasing, but once again, it just did not work out."
All of this makes the local ownership of the facility a positive development according to Hrabe. "All of our options are now open. We will only be limited by our imagination and by the offers from the companies that are looking start a business" Hrabe stated. "Our emphasis is going to be on job creation. There is no willingness on our part to have the facility used for storage. We want jobs to be created, and if that can happen, then I think all options are on the table."
The unemployment rate in Rooks County has hovered around 7% since the facility closed in 2008. Additional closures of the Stockton Correctional facility, the Brooke Corporation in Phillipsburg, and the downturn in the oil field has kept the unemployment rate at a higher than normal rate for western Kansas. "We still think we have the workforce available to meet the demand for a new business" Hrabe said.
Hrabe also stated that neither the City or RCED have any long-term ownership plans for the facility. "Our hope is that we will find buyers who have the commitment to job creation and to the Rooks County community itself."
Information and pictures of the Schult facility can be accessed online at www.rookscounty.net/schult_homes_buildings.htm.