MEDC pays off Keystone Business Center

McCOOK, Neb. — And the Keystone mortgage is paid off!

The announcement was made to the McCook Economic Development Board of Directors by MEDC President, Dennis Berry at their regular board meeting.

Berry said that the purchase of the Keystone Hotel from Dale and Joan Stewart was controversial at the time, as the Hotel had sat empty for a number of years and was in need of major repair.

A number of citizens were unsure of the purchase price and renovations totaling just over five million dollars were not worth it and that the mortgage would never be paid, and the lending institutions would become the new owners. Grants from the Nebraska State Historic Preservation Office, the U.S. Department of Agriculture and $2 million dollars in federal grants lowered the amount that was needed to be borrowed from McCook National Bank. Tax increment financing to help meet monthly payments was also used.

The planning for the purchase began in 2005 and groundbreaking happened in April 2009.

The Hotel was first opened in 1922 and became a retirement facility in 1970 until it closed. The local firm, W Design was selected to oversee the conversion to its current condition with restrictions from the Nebraska State Historic Preservation Office on maintaining its original design.

Having a major landmark on Norris Avenue fall into disrepair or finding funding estimated at $1.5 million dollars to tear the building down were other options considered.

Although receiving economic development funds from the voters approved LB840 city sales tax and financial support from donors, making the monthly mortgage payments was still challenging. When Berry rejoined the MEDC in December of 2014 and became President in January of 2016, (he was previously on the Board for 13 years) there was even some discussion on needing to default on the loan. At the time Berry became President, the loan balance was $662,650.48. The Executive Team's goal at that time was to not let that happen.

A finance committee was formed with Berry, Tim Wiebe (MEDC-Treasurer), Troy Bruntz (MEDC-Vice-President) and the MEDC Executive Director serving on the committee. The committee not only created an annual budget but devised a five-year projected budget and both were constructed annually. Berry noted that through this time, the MEDC had four different directors — Rex Nelson, Kirt Dixon, Andrew Ambriz and Andy Long and a period of about six months when the Executive Committee acted in place of the Director.

Berry praised the work of Bruntz, Wiebe and current director, Long and office manager Angela Allen in the budget work. Long and Allen were credited with reducing expenses. A major shift happened when the MEDC stopped selling off property to meet monthly expenses to paying off the loan balance.

With the loan being retired, the MEDC can now more fully concentrate on housing, business/industry retention/expansion/attraction, broadband improvements, and childcare.

Current board members include Berry, Bruntz, Wiebe, Chris Wagner-secretary, Jerry Calvin, Kent Craw, Greg Wolford, Pat Farrell, Nick Nothnagel, Kim Schilling, Brett Schmidt and Ex-Officio Directors; Mike Gonzales, Kelly Rippen, Carol Schlegel, Nate Schneider and Brandi McConnell.