Highland approves additional incentives for furniture store

More incentives have been approved for a local furniture store that plans to move into a vacant former grocery store in downtown Highland.

On June 18, the Highland City Council approved economic development incentives for Furniture Rewards LLC, the formal name for Kloss Furniture.

Last month, the company's CEO, Steve Kloss, and company president Josh Kloss announced their intention of moving into and remodeling a building located at 1100 Broadway, the former location of Schuette's Market, which announced its closing around this same time last year.

"If it were not for them, I hate to think of how long that building would stay vacant," Mayor Joe Michaelis said during the meeting.

The Kloss family has said they plan to invest about $1 million in the new location, which will be renovated inside and out. The anticipated opening date is Nov. 1.

"They are making a huge investment over there," said City Manager Mark Latham.

The company current operates The Tin Shed in Highland and plans to keep that space as a warehouse once the new showroom is opened.

Last month, the council approved an initial redevelopment agreement with the business. The new showroom will lie in the city's original business district, which makes it eligible for incentives through the program. However, during the meeting last week the council added another incentive package to the deal.

Latham said the new package reimburses the business for the number of new jobs the establishment will create and work to retain.

"You are going to have people working downtown. Everybody wants to save their downtown," Latham said.

The new store has potential to result in retention of 22 full-time jobs, according to the city's Economic and Business Recruitment Coordinator Mallord Hubbard. In addition, Hubbard said the business hopes to create 13 additional full-time jobs.

Out of these new jobs, Hubbard said five will have a salary range of $20,001-$40,000, whereas eight jobs will be created at the salary range of $40,001-$60,0000.

The Klosses broke down of the different positions that they will create:

• An assistant manager at a salary of $50,000 a year;
• A UPS desk employee at $26,000 per year;
• Six sales people with salaries of $50,000 per year;
• Three warehouse employees with salaries of $36,500 per year;
• A delivery driver at a salary of $43,500 per year;
• A delivery helper at a salary of $39,000 per year.

For each new employee who earns $20,001-$40,000, the Klosses will be reimbursed $5,000, minus 10 percent retainage. For each new employee making $40,001-$60,000, the incentive amount is $7,500, minus 10 percent retainage. In total, the business can earn $85,000 over a three-year retention period.

The Klosses will receive their allotted reimbursements on Jan. 1 of each of the three years after providing the proper paperwork and proof of employment, according to Latham.

Before the council voted on the incentive, Councilman Aaron Schwarz voiced opinions against continuing to provide such an incentive.

"I think there is little danger in, for lack of a better term, bribing companies to stay here," Schwarz said.

In response, Latham explained that this job incentives program was created after a survey of the city needs about 12 years ago.

"The No. 1 thing people wanted were more jobs," Latham said.

Latham said that the hope of the program would be to draw businesses to Highland to create jobs, which would then bring new citizens, more disposable income and more revenue to the city.

Within the last five years, Latham said that Kloss is among three parties who have taken advantage of the job incentive. The others are Engelmann Enterprises LLC, the business bringing Joiner Sheet Metal to town, and Apex Holdings LLC and Apex Physical Therapy LLC, which is renovating the old Tri-onics building. In the first first five years, Latham said he could only recall Tri-onics taking advantage of the incentive. But, the business no longer operates in Highland.

But Schwarz argued that the incentive plays little part in bringing businesses to town, compared with demographics and other attributes. And, like Tri-onics, he said that the incentive does not encourage businesses to stay.

"In a lot of cases, they are taking the break because it is there, but we are not incentivizing behavior," Schwarz said.

Frey echoed some of Schwarz's apprehension.

"I'm concerned about how we spend money," he said.

Councilwoman Peggy Bellm said that she understood the other council members' concerns, but she thought, if the incentive helps bring in business and supports existing businesses, it is worth it.

"It is an investment in the city," she said.

At one point, Michaelis also entered the conversation.

"I can't over emphasize looking at a total picture of how important it is to keep the businesses we have healthy," Michaelis said.

After the discussion, the council unanimously voted to approve the incentive. However, Schwarz and Frey recommended that the program needs to be revisited.

"If it has been 10 years, maybe it does need reviewed," Frey said.

Latham said that, in a meeting the next day, city staff discussed the program, and it was decided to work toward re-evaluating the program into something more tangible.

Other business

Relevant event approved

The council approved an walk and run to be hosted by Relevant Pregnancy Options Center.

The two-mile Walk 4 Life and 5K Life Run will be on Sept. 29 at the Square. Registration for the event will begin at 7 a.m., the run will begin at 8 a.m. with the walk following five minutes after.

Street Art Festival approved

The council approved the Highland Chamber of Commerce's annual Street Art Festival and Run for Color Event.

Festivities will begin on Sept. 14 at 7 p.m. with a Hops & Color Beer Festival. Then, starting at 11 a.m. on Sept. 15, local artists representing many Highland organizations and businesses, will draw large chalk murals on downtown streets surrounding the Square.

The chamber estimates that about 1,000 to 1,500 people will attend the event.

The rain date for the event was also approved for Sept. 15.

Re-appointments

The council approved reappointing a number of positions on city commissions and boards at the recommendation of Mayor Michaelis.

LeAnn Landmann, Sharon Rinderer and Joyce Zerban were reappointed to the city's Library Board of Trustees. The board oversees operations at the Louis Latzer Memorial Public Library and meets at 5 p.m. on the fourth Tuesday each month, with the exception of July and December. The trustees will serve another three-year term on the board to expire in June 2021.

Larry Brammer, Heather Warren and Susan Amaro were also reappointed to the Tree Commission. The commission is responsible for maintenance, inventory, and growing of the city's urban forest and meets the first Tuesday of every month at the Korte Recreation Center. Meeting times alternate each month and are either 3:30 or 7:30 p.m. The members will also serve another three-year term, which will expire in July 2021.

Burger King

The council approved a special use permit to allow the operation of a Burger King drive-thru restaurant to be located at 12556 Illinois 143.

The franchisee that will operate the establishment is Broadway Restaurant Group, a major franchisee of Burger King which owns 34 stores around the greater St. Louis and in Southern Illinois. The group's Managing Partner Henry Delouvrier said that they are looking forward to bringing the business to Highland.

Delouvrier said a December grand opening could be plausible.

Net Lease Development of Fort Worth, Texas will develop the project. The company's principal Ben Hidalgo said he expects construction to begin in three months, at which time it will take approximately four months to finish the project.

The council also approved a separate statement of findings and facts related to granting the special-use permit. The report included six conditions for the developer, including items like installed a landscaped sound and visual barrier between the restaurant and the homes of Cherry Lane, curbing the sidewalk, when a new permit, or amendments to the permit must be made, usage, and parking specifications.

Prelim plat approved

The council approved a preliminary plat for a new 46-lot subdivision named Carbay Crest.

The subdivision is being planned by Mettler Development, a development company in Highland that also built the Prairie Trails subdivision. The 20-acre plat of land, located on the northern side of Sportsman Road, near Arbor Crest Drive and Vulliet Road, was annexed into the city on May 21.

This will be the first new subdivision in Highland in 10 years, according to Latham.

Surplus property

The council approved naming a vehicle that was recently awarded to the Highland Police Department as surplus property.

A memo from Chief Terry Bell said the department acquired a 2007 Ford F-150 as a result of a DUI arrest for a multiple-time offender.

Bell said the vehicle will be sold through an open and fair bidding process by either public notice via newspaper, Facebook or other means.

SRO agreement amended

The council amended an intergovernmental agreement between the city and the Highland Community School District for a new school resource officer.

"It was a minor calculation error in the allocation of the shared costs between the city and the School District by $67.50," said Kelly Korte, the city's director of finance.

The agreement, which was originally approved on June 4, outlines the terms and conditions for the Highland Police Department to provide an officer for the position. The city has agreed to pay for 75 percent of the position.

Officer Chris Flake has been selected as the school resource officer.

Service request approved

The council authorized the signing of a service request made by Jason Wuebbel for 13880 Route 143.

A memo from Director of Light and Power Dan Cook said that the associated parcel of land resides in Ameren's service territory. However, Wuebbel receives power services from the city in a parcel adjacent to the property and wishes the lot in question to be serviced by the city as well.

Cook relayed that Ameren has granted Wuebbel's request, which then required Michaelis' signature to make the transfer official. During the meeting, the council authorized Michaelis to sign the document.

Sewer bid awarded

The council authorized the awarding a construction contract for a sanitary sewer extension project on Troxler Way.

Director of Public Works Joe Gillespie said the new sewer extension will help to serve three properties along Troxler Way and Illinois 143, including a new Jimmy John's restaurant. The city opened bids for the project on June 14, and Haier Plumbing and Heating Inc. in Okawville was awarded the bid for $117,215.

Gillespie said the project is not budgeted, but it the city will use funds received from Highland Community Schools as part of a prior agreement concerning the properties, as well as reserve funds from the sewer fund.

This story was originally published June 27, 2018 at 12:28 PM.