Apr 03, 2024

Proposal for community development block grant support goes to the City

Posted Apr 03, 2024 4:44 PM

Deanna Pierson wants to bring a niche marketing manufacturing facility to the Montgomery Building on West 6th Street. She told Junction City Commissioners Tuesday night that she wants to acquire an existing cookie cutter manufacturing facility that's been in business for 30 years, and that is for sale. It would be brought from Missouri to Junction City.

Pearson wants the City to sponsor a community development block grant application which if awarded, would be in the form of a loan where she would have to make repayment. She would get 25% forgiveness if she creates about 20 jobs that she has proposed.

Pearson will seek $700,000 in grant funding  and would raise just under $1.2 million on her own. She would utilize the entire Montgomery Building for her operation. She informed the commission that the KJCK radio station ( 107.9 FM / 1420 AM ) could stay but the other organizations in the building would have to leave when their lease expires. Other organizations in the structure include the Chamber of Commerce, Convention & Visitors Bureau, Twin Valley,  JC Home Association and a carpet business.

The city commission would be asked to consider approval of a resolution of support and set a public hearing for a grant application, but for now the governing body has tabled the request so staff can gather more information and report back to the governing body at their next meeting.

Mayor Pat Landes expressed concern about zoning issues and throwing manufacturing right in the middle of 6th Street. A zoning change could also have to be necessary.

Commissioner Jeff Underhill expressed concerns as well, noting that there was no business plan or building. "I can't say that I'm in favor of that with what we've been presented right now. Pearson countered that the information mentioned is contained in a notebook with nearly 500 pages that has been presented to the city manager.

In documents provided to the City, Pearson noted about 100 orders would be shipped from the  facility daily by UPS, Fed EX and the Postal Service. A bake shop for sugar cookies, ice cream and cupcakes would also be established.

There would be an Aug. 1 move-in and it would take up to two years to establish 20 jobs.