Junction City – Week of June 22 2025

Major Utility Grid Capacity Issues Hindering Economic Development; EDC ROI

Proposed Natural Gas Pipeline Sparks Outcry Among Property Owners

VA Clinic Project Extension Approved Amidst Bid Delays

Future of WIC Clinic in Geary County in Jeopardy

Discussion on Raising Transient Guest Tax for Community Improvements

1. Major Utility Grid Capacity Issues Hindering Economic Development; EDC ROI

A significant revelation from the Economic Development Council meeting was that large prospective projects, some representing billions in potential investment, have been unable to proceed in Junction City due to insufficient capacity in Evergy’s power grid. Economic Development Director Mickey Fornaro-Dean stated that Evergy “doesn’t have the capacity” to serve these projects, despite their willingness to invest in the community. The EDC is actively engaged in discussions with Evergy’s leadership in the Kansas City area to address this critical infrastructure limitation that is directly impacting the city’s economic growth opportunities.

At the same meeting, Mickey Fornaro-Dean , Executive Director for Economic Development, presented a quarterly update to the City Commission, touting a remarkable return on investment (ROI) for every dollar contributed by the city. Over the past seven years, the EDC has overseen over $223 million in investments and facilitated the creation of 733 new positions, resulting in an annual new payroll exceeding $27 million. This translates to an ROI of $105 for every dollar invested by the city. Fornaro-Dean also mentioned working on active projects with a potential investment of $3.5 billion and the creation of 2,800 to 3,000 jobs for Junction City and Geary County. A new brochure for the Neighborhood Revitalization Program was designed and will soon be rolled out to the public. A new “Vet EPiC” veteran entrepreneur pitch competition was also launched, providing classes and a pitch opportunity for veterans to win startup funds.

2. Proposed Natural Gas Pipeline Sparks Outcry Among Property Owners

A proposed natural-gas transmission line near Taylor Road on the southwest edge of Junction City has drawn significant concern and anger from Geary County property owners. Residents reported receiving letters about surveys for the pipeline but struggled to get information from the engineering firm SMH Consulting or Kansas Gas Service, and some surveyors allegedly trespassed on private property without permission. The 100-foot easement required for a high-pressure line raises fears of property-rights infringement and potential hazards such as explosions, fires, and leaks. Property owners are appealing to the County Commission and County Attorney for assistance.

3. VA Clinic Project Extension Approved Amidst Bid Delays

The City Commission approved a second addendum to the agreement with Highland Enterprises for the potential conversion of the ACT building on Spring Valley Road into a new VA clinic. This extension will prolong the purchase agreement until March 31, 2026, aligning with the anticipated VA bid award announcement in late 2025 or early 2026. The extension is crucial to prevent the project from being disqualified if the current agreement term ended before the VA announced its bid award. This ongoing project is part of the city’s efforts to attract and retain businesses and services, with Highland Enterprises working with the city for over a year and a half on the possibility.

4. Future of WIC Clinic in Geary County in Jeopardy

The Geary County Health Department's WIC (Women, Infants, and Children) clinic faces significant federal funding cuts, with a 44% reduction for the current grant cycle and a 100% cut for 2026. This means the clinic's contract will not be renewed, leading to the loss of two full-time staff members and the inability to hire a new nurse. The clinic currently serves 543 people, and while efforts are being made to transition these clients to other WIC providers in neighboring counties like Riley and Dickinson, there are concerns about their capacity to absorb such an influx, especially with their own budget cuts. This long-standing program has been in operation for 46 years.

5. Discussion on Raising Transient Guest Tax for Community Improvements

The Geary County Commission held a lively discussion regarding a proposal to increase the transient guest tax (TGT) from 6% to 7%. The proposal, supported by the Chamber of Commerce and EDC, aims to generate additional funds (estimated at $100,000 annually) for community improvements, particularly sports facilities like the 4-H fields and rodeo area. While proponents believe it will enhance tourism and help the hotels by attracting more events, hoteliers and Airbnb owners expressed concerns about competitiveness with neighboring cities, credit card fees, and the impact on contractors who frequently stay in the area. There was also debate about the use of existing funds in the sports complex account and the need for a concrete plan for how the additional TGT revenue would be spent. The commissioners ultimately decided to table a vote for further discussion and to allow for more concrete plans to be developed in collaboration with various community entities.

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Sources

1. https://junctioncityks.portal.civicclerk.com/event/452/media
2. https://www.youtube.com/watch?v=svlqQRwULcE, https://www.youtube.com/watch?v=hr4OW9KvLZg, https://www.youtube.com/watch?v=4fb4a0REYhY
3. https://junctioncityks.portal.civicclerk.com/event/452/media
4. https://www.youtube.com/watch?v=svlqQRwULcE, https://www.youtube.com/watch?v=hr4OW9KvLZg, https://www.youtube.com/watch?v=4fb4a0REYhY
5. https://www.youtube.com/watch?v=svlqQRwULcE, https://www.youtube.com/watch?v=hr4OW9KvLZg, https://www.youtube.com/watch?v=4fb4a0REYhY

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Contact: greg@loql.ai