Murphy Bldg
Activities > Projects
Subject: Murphy Building –
Ideas for Community Economic Development
I am inclined to document my
thoughts and suggestions related to the Murphy Building – for whatever the
worth or value. I have no ulterior motives beyond imparting my comments and
suggestions that are based on my personal business experience. My interest would
be for economic benefit to the Area Community.
The often used phrase, “No
Man is an Island” may best focus my message, although it is not without the
possibility that a single person may be very financial able to accomplish a
successful plan with regard to the property in question. If I “assume”
that this may not be the case, then among my early suggestions would be to
consider integrating financial investors into the overall and primary business
plan. This is often referred to as “OPM” (Other People’s Money).
First – thought must be given to “parking”.
This facility once housed several hundred employees and required substantial
parking accommodations for their employee convenience. Any usage of the
building most likely will require some such facilities. In operating days of
the business, the large lot across the street from the building served as the
employee parking area. That area is now being used by a landscaping company and
is currently not available for any other usage. This topic should be given
serious thought prior to any further business planning that may be undertaken. This issue COULD be a “show stopper”. By far, this is the first major hurdle to confront, and until this
issue is satisfied, there may not be a reason for any further investment in
Time and Monies. Certainly until it is satisfied, it is not likely that any
Grants, Funding, Government Aid, outside investors, etc. would be possible.
Second – Before there is even the remotest chance to
entice investors, you would be advised to give serious thought to the usages
and applications for the facility. Basically there are three options, with
combinations thereof: a.) Residential, b.)
Commercial, and c.) Industrial with potentially combinations
of these usages, e.g. Combining Residential and Commercial, and Commercial and
Industrial.
I make no claims to be a Real
Estate Market Research specialist, but I would give very little, if any,
consideration to Residential (Apartments). Any such usage would most likely
only be of interest to local folks and that would do little to attract potential
renters/buyers from other communities. Apartments and Living Quarters only tend
to “shuffle” the Community Residents, but does little to attract
potential residents from outside the Local Community. With an area Community of
10,000 more/less and a city of 6,000 more/less, I would not see this offering a
significant financial success. Likewise with Retail Commercial, there simply
are not the numbers of people within the Community to attract profitable retail
businesses whose financial success is based on “traffic”, i.e. prospective
buyers of the products to be offered. It should be noted that 2 major retail
outlets (K-Mart & Shopco) have since closed their Red Oak facilities.
This leads me to suggest to you
explore the Industrial option. I include in this option, manufacturing,
processing and distribution. This is the only one of the three potential usages
that has the potential of attracting people and business from outside to our Local
Community, and without expecting the growth to come exclusively from only the
Local Community.
Within the big picture of
Manufacturing and Distribution are hard goods, much having to do with plastics,
metals, etc. The other form of Manufacturing and Distribution involves Food
Industry, including meat, poultry, fruit and vegetables, etc. This would be my
suggestion on which to focus for a number of reasons, including the fact that
everyone needs food, and our geographic location conforms to being able to
supply food stuffs. It is my experience feeling that until the usage of this
facility is determined, locating funding and investors will be difficult, at
best.
Third – My suggestion as best usage is “Industrial”
that would include Manufacturing, Processing and Distribution in some
combination with Commercial. The facility was built for manufacturing and the
local zoning should not be a concern. The interior is basically open space,
which should allow for flexible layout design. “Business Condominium” is
key description of facility usage, although that does not preclude rental and
lease areas. Some monies spent on a Consulting Company that could perform
Market Research, plus perhaps designing a flexible layout for such a usage
should be considered.
Potential
Usage – Food, Meat and Poultry Processing and Products Outlet Mall:
Food, Meat & Poultry Processing and Further Processing
Food - Commercial/Retail Condominium rental/lease areas/zones
Food – Canning / Preserving
Food Hubs & Commercial Kitchen Area(s)
Distribution & Warehouse, Coolers/Freezers/Lockers
Food related Sales Offices and Services
Manufacture Reps & Brokers – offices and distribution/warehouse storage, etc.
Food & Processing related Education Accommodations, e.g. ISU Extension
Food, Meat & Poultry Processing and Further Processing
Food - Commercial/Retail Condominium rental/lease areas/zones
Food – Canning / Preserving
Food Hubs & Commercial Kitchen Area(s)
Distribution & Warehouse, Coolers/Freezers/Lockers
Food related Sales Offices and Services
Manufacture Reps & Brokers – offices and distribution/warehouse storage, etc.
Food & Processing related Education Accommodations, e.g. ISU Extension
Soliciting
Potential Tenants
Solicit Companies in high cost states that may want a Midwest presence – states such as California, and a number of East Coast state.
Solicit existing Meat/Food Processing companies that may have expansion plans for a portion of their current product line, or may have an interest in adding production capacity, and/or a new product to offer
Solicit Local / Area Growers/Producers that would like to have processing capability – a number of Metro areas have “Kitchen Council” facilities for individual and small operations.
Solicit Companies in high cost states that may want a Midwest presence – states such as California, and a number of East Coast state.
Solicit existing Meat/Food Processing companies that may have expansion plans for a portion of their current product line, or may have an interest in adding production capacity, and/or a new product to offer
Solicit Local / Area Growers/Producers that would like to have processing capability – a number of Metro areas have “Kitchen Council” facilities for individual and small operations.
Marketing
and Potential Sources for Information, Finances and Economic Development
Local/State/Federal Economic Development Agencies:
* Iowa Rural Development Council - https://iowardc.org/
IEDA – Iowa Economic Development Agency -
https://www.iowaeconomicdevelopment.com/
IADG – Iowa Economic Development Group - https://www.iadg.com/
Iowa Economic Development Incentive Programs - https://blsstrategies.com/iowa
MCDC – Montgomery County Development Corp.
USDA – US Department of Agriculture
Golden Hills - Southwest Iowa Food and Farm Initiative (SWIFFI) -
http://www.goldenhillsrcd.org/swiffi.html
Southwest Iowa Planning Council - http://www.swipco.org/about-us/
Iowa Western Small Business Council - https://www.iowawesternsbdc.com/
USDA Rural Development - https://www.rd.usda.gov/
USDA Food Hub (multiple organizations)
https://www.ams.usda.gov/services/local-regional/food-hubs
https://www.rd.usda.gov/newsroom/news-release/usda-grant-form-cooperative-food-hub
USDA Grants & Loans - https://www.fns.usda.gov/cfs/other-federal-grants-available
Local/State/Federal Economic Development Agencies:
* Iowa Rural Development Council - https://iowardc.org/
IEDA – Iowa Economic Development Agency -
https://www.iowaeconomicdevelopment.com/
IADG – Iowa Economic Development Group - https://www.iadg.com/
Iowa Economic Development Incentive Programs - https://blsstrategies.com/iowa
MCDC – Montgomery County Development Corp.
USDA – US Department of Agriculture
Golden Hills - Southwest Iowa Food and Farm Initiative (SWIFFI) -
http://www.goldenhillsrcd.org/swiffi.html
Southwest Iowa Planning Council - http://www.swipco.org/about-us/
Iowa Western Small Business Council - https://www.iowawesternsbdc.com/
USDA Rural Development - https://www.rd.usda.gov/
USDA Food Hub (multiple organizations)
https://www.ams.usda.gov/services/local-regional/food-hubs
https://www.rd.usda.gov/newsroom/news-release/usda-grant-form-cooperative-food-hub
USDA Grants & Loans - https://www.fns.usda.gov/cfs/other-federal-grants-available
Why
a Food, Meat and Poultry Processing and Outlet Mall? There is no such facility in Southwest Iowa, and indeed there may
not be such a facility anywhere in Iowa, or perhaps the entire Midwest. It
should go without saying that Southwest Iowa is often ignored for Economic
Development opportunities within the State of Iowa, and with the Community
getting involved, it should be much easier to attract a great deal of attention
for such a project as this.
Local
Producers
There are numerous local and
area producers that may have potential products, but lack the facilities and
outlets. Perhaps it could be viewed as a permanent and ongoing Farmers Market
Facility, such as many Metro areas have.
The Cost of Sales and the
Overhead should be significantly less than large Metro areas and high cost
states, such as those mentioned previously.
To design and build a structure
even closely resembling the Murphy Building would be Mega-Millions. The updating
and rehabbing of this facility may be costly but would likely be a fraction of
starting from scratch on such a facility with similar square footage.
Further
Analysis and Review
Whatever the course you may
select for the usage of this facility, it should be understood to be considered
a long term project spanning years, not months – and include participation on
the part of the local Economic Development Corporation
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