Go Topeka: Future on line

Sales tax supporters say failure at the polls

could allow local economy to continue to shrink.

By MICHAEL HOOPER

The Capital-Journal

If Shawnee County voters decide against passage of a quarter-cent sales tax for economic development on Nov. 7, the consequences would be far reaching, supporters of the ballot question say.

Go Topeka, the local economic development group that is pushing for passage of the sales tax, won't go away. But the trend of a shrinking local economy will continue, said Pat Michaelis, senior consultant for Go Topeka.

"We have pledges signed by people who stand by us," Michaelis said. "If it doesn't pass, the problems won't go away.

"It's the trend we have to reverse. The sooner you start, the sooner you begin to make a difference."

On Nov. 7, voters will decide whether to extend a quarter-cent sales tax for four years beginning Jan. 1, 2003, "to finance countywide infrastructure development and economic development," according to the ballot.

If voters don't extend the sales tax, Shawnee County commissioners could put the issue back on the ballot during any of the two elections in 2001 or the two elections in 2002. County commissioners also could call a special election. Voters conceivably could vote on the issue five times before the quarter-cent sales tax expires at the end of 2002.

"The county board could put it on the ballot as long as the commissioners approve it with a majority vote," said Rich Eckert, attorney for Shawnee County.

Critics have said they are uneasy about approving the quarter- cent sales tax because there is no interlocal agreement signed by the city and the county addressing management and accountability of the funds.

Even Eckert, who wrote the ballot question, said Thursday: "I am uncomfortable with the accountability of the issue at this point. Until there is an interlocal agreement in place, anything could happen. Until that agreement is in place, there is no promise that it (the money) will go to Go Topeka."

Maynard Oliverius, president and chief executive officer of Stormont-Vail HealthCare, said he is comfortable with the ballot question because elected officials would be responsible for managing the money.

As it stands, Eckert said, the sales tax revenue would be divided, with the county receiving 39 percent, Rossville and Silver Lake receiving 1 percent each, and the balance, about 59 percent, going to Topeka. The way the ballot was written, those governments could use the money for roads, bridges (infrastructure) and economic development.

Mayor Joan Wagnon, speaking at a town hall meeting Wednesday sponsored by Go Topeka and the League of Women Voters, said the quarter-cent sales tax issue has its roots in a study commissioned by the city and county in 1998 on why the community wasn't growing. After that, the city and the county adopted a plan to create 14,000 jobs during the next five years. As a result, Go Topeka was formed as an economic development organization.

"It seems more companies are leaving and not moving in. We need to change that," Wagnon said.

Grindmaster Corp., originally called Wilch Manufacturing, closed in November, eliminating about 25 jobs. Burlington Northern Santa Fe Railway has cut more than 70 jobs in the past two years in Topeka. About 245 jobs were lost when Superior Essex closed its plant in nearby Pauline a year ago. Menninger announced last month that it plans to move to Houston by 2002. In 1997, the 90-employee NewTek Inc. left for San Antonio because company officials said they couldn't find enough young, high-tech employees here.

"I really think this is a crossroads for Topeka," said John Moenius, president of Martin Tractor Co. of Topeka and a member of Go Topeka.

After Menninger closes its doors, the loss of its $56 million payroll is expected to hurt retail stores, real estate and community organizations. As a result, the local economy would start contracting, Moenius said.

Business leaders said Topeka's work force and the community's quality of life, combined with some investment from the quarter-cent sales tax, would attract business expansions.

"We have the most dedicated work force; they are loyal and hard working," Moenius said. "They are the salt of the Earth. It's one of our best resources."

Oliverius said more than 30 percent of the sales tax would come from people who live outside the county but shop in Shawnee County.

By increasing the jobs here, there would be more residents in Topeka to broaden the tax base. That would reduce the burden on existing property taxpayers, Oliverius said.

"In a time of great national economic growth and prosperity, Topeka has remained flat," Oliverius said. "Will Topeka survive without the sales tax? Certainly. Will it thrive? I don't think so."

See FUTURE, page 9-A

Future

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