The Joplin Globe, Joplin, MO

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November 25, 2009

Pittsburg officials: Loan paves way for renovation of landmark

By Andra Bryan Stefanoni

news@joplinglobe.com

PITTSBURG, Kan. — After three years of planning and discussion, Pittsburg will see work by a real estate developer who is planning to create downtown housing for 75 to 100 people in the vacant Hotel Besse.

City commissioners during a meeting Tuesday night approved a request by Garrison Hassenflu, president of Garrison Development Corp., for a $200,000 loan toward the project. They also approved a 50-year parking lot lease that will allow him to begin work on the 49-unit structure.

Garrison Development purchased the Besse in 2006 but has faced several financial roadblocks in starting the project.

John VanGorden, interim city manager, said the $200,000 will come from multiple sources, including jobs bill money that the city has had “for years,” the city’s revolving loan fund, and money from the Presbyterian Fund specifically earmarked for housing.

The project will be a $9 million investment and will include the creation of at least two jobs, according to Mark Turnbull, the city’s economic development director, who has served as a liaison to Hassenflu on the project.

“In a week to 10 days, they can get started with the construction process,” VanGorden said. “The only thing we need to do right now is the attorney is drawing up an agreement.

“I think it’s going to be a great project for the city of Pittsburg. The Besse is kind of the pillar of downtown, and a landmark people see when they come in from east or west. It’s a building that if we don’t renovate, probably it will deteriorate in time and the city will be forced to do demolition five or 10 years from now.”

VanGorden said construction likely will take 10 months and should use local subcontractors.

“It should help the local economy a bit,” he said. “We’re really happy we’re at this point.”

The commissioners also approved a request by Turnbull to join the Southwest Missouri Development Alliance in establishing the Joplin Prosperity Initiative. The initiative is a five-year, $3.5 million project with several quantifiable objectives related to attracting new businesses, developing new opportunities for existing businesses and creating thousands of new jobs.

“Prior to the meeting, commissioners spent a significant amount of individual time studying and listening to the consultants,” Turnbull said. “They had a multipage synopsis case study, all the information they needed, and they were ready to make a decision.”

The plan calls for Pittsburg to eventually invest $20,000, representing $1 per city resident.

Rob O’Brian, president of the Joplin (Mo.) Area Chamber of Commerce who is heading up the initiative, said he anticipates work will begin in January.

“We are very pleased to be a member of the economic development region now, officially,” Turnbull said. “We’ve kind of been sitting in second chair for a year or so, and now we anticipate great success.”

In other business Tuesday, the commission:

n Awarded a contract for the Meadowbrook Mall lift station replacement to Sprouls Construction, of Lamar, Mo. The company’s bid of $310,678 was the lowest submitted. Sprouls was the contractor that completed the downtown streetscape project.

n Awarded a contract for a southeast lift station to LaForge and Budd Construction, of Parsons, for its bid amount of $815,000, which was the lowest submitted. VanGorden said city leaders were especially pleased with the bid, because they expected it to come in at $1 million.

n Approved a five-year tax exemption for Progressive Products for a 20,000-square-foot addition the company built at its plant at the Pittsburg Airport Business Park. The company manufactures ceramic elbows and joints for manufacturing projects.

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