Variety the Key to Economic Success

By Olive L. Sullivan

BAXTER SPRINGS, Kan.  — One of the keys to success in a small town (population 4,602) is that everyone pitches in to get things done. With that in mind, Bert Kellum of King Rey Kellum Real Estate, has spent 10 years volunteering on the economic development council for Baxter Springs.

“As things go in a town this size, we’re all volunteers,” he said. “We’re just trying to do what we can to help the town prosper. Since I’m a business owner, I thought I would volunteer.”

The first step in creating an economic development plan, Kellum says, is to “figure out who we want to be.” The council studied Raytown, Mo., a Kansas City suburb that Kellum says made a pointed effort to be the best bedroom community around. It was tempting for Baxter to follow the same path, since nearby Joplin, Mo., is a major regional employer. Assets like the city’s Blue Ribbon Schools, some of the best in the nation, make it an attractive place for young families to settle.

“You can’t just be a bedroom community, though,” said Kellum. “You have to have a commercial tax base as well.

The tax base created by residences is a fraction of that brought in by big industry, and tax revenue is what pays for the infrastructure that makes the city such a welcoming place to live. The mix is crucial. “It’s very clear that you’ve got to have some commercial, some industrial tax base. You’ve got to have something else going on,” he said.

Over the past several years, Kellum said, the council has brought in new businesses as well as helped existing ones expand. Some of the biggest include Bagcraft Papercon. Nationwide, the packaging company employs 215 people and estimated sales may reach up to $100 million dollars. Another big player is KMT McCartney Products, a company that sells high-pressure water cutting equipment. Baxter Springs is the world headquarters for the company, which has been in town for more than 50 years.

For the future, Kellum sees tourism as a big draw for Baxter Springs. The city sits on part of the 13-mile stretch of historic Route 66 that goes through Kansas, and Kellum believes that exploiting this asset can draw attention to the history that’s already here. “We’ve got one of the best museums in the region right here,” he said. The Baxter Springs museum features an outstanding collection of mining history, gifted to it when the Picher, Okla., Mining Museum closed. It documents the Tri-State Mining District, one of the largest lead and zinc mining regions in the world.

This year marked the first Mother Road Marathon, which followed Route 66 from Quapaw, Okla., to Joplin, Mo. Baxter Springs was right on the way. Kellum believes tourism efforts should focus on people who are already going through town. Once they’re here, they’ll stop at local shops, eat at local restaurants, and visit local sites like the National Cemetery No. 2. The Convention and Visitors Bureau, the Chamber of Commerce, and the city’s tourism board are all working to capitalize on tourism and history.

“The history in this town is so diverse,” Kellum said. “This Route 66 is such an untapped resource for everyone.”

Baxter Springs is also weathering the recession fairly well, Kellum said. “I think we’ve been fairly fortunate. I don’t think we’ve had an inordinate amount of labor reductions.”

But there are challenges.

There are several empty buildings on Main Street. “We’re trying to get a handle on what it is that will sustain a main street in a town like this, where we have such a unique combination of economic influences.”

Those influences include nearby Joplin. Missouri’s tax structure is half of that in Kansas, which means Missouri is an attraction for businesses looking to relocate. It’s something Kansas cities have to reckon with, but Kellum says working with Joplin on a regional initiative can benefit everyone. He volunteers on the Joplin Regional Prosperity Initiative, which is working to create community profiles to present to prospective candidates. It’s a big project, requiring an inventory of the city’s asset, potential commercial land, industrial parks, and so forth.

Kellum says that, from this perspective, the lack of housing is the biggest issue facing the city. The tax issue is another, of course. Because of Missouri’s lower taxes, it’s cheaper to build there, and because Joplin is a larger city, the selling price will be higher.

However, the state of Kansas offers a favorable business climate. A recent survey rated Kansas 11th in the nation in terms of retention of businesses, in part because of state incentives designed to encourage growth.

Kellum is hoping the state will also make good on plans to expand its part of US 69, the highway that runs from Kansas City to Tulsa and beyond. The Kansas portion of the highway is now four-lane for most of its length, but approximately 60 miles of two-lane road remain, including the part near Baxter Springs.

If the state can finish the four-lane expansion, Kellum said, “that’s going to cause some good things.” Continued development of state highway 400 and of I-44 will also benefit southeast Kansas. But such plans require a long view. Kellum said he hopes to see action in the next 10 to 15 years.

“We’re excited about the possibilities and potential,” Kellum said, adding, “But it takes a lot of hard effort and a lot of time.”

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