News

Mayor gives upbeat message for RAP breakfast audience

Mayor David Gudgel addresses the RAP breakfast Thursday.

By Steve Dunn/Gate City Managing Editor

Published: Friday, February 17, 2006 2:35 PM CST

Keokuk is on the verge of true success, Mayor David Gudgel told an attentive Recognition, Appreciation and Participation breakfast audience Thursday.

“Although we have experienced difficult times, we now can see the light at the end of the tunnel and it is not a train,” said the mayor in his fifth State of the City address. “The glass is indeed half full.”

Gudgel cited several reasons for his optimism, including the establishment of a Cultural and Entertainment District, formation of the Keokuk Area Community Foundation, the Hampton Inn hotel now under construction, the new biodiesel plant, Roquette America Inc.'s possible $93 million investment, and an intermodal port authority and foreign trade zone in the final stages of development.

“Roquette's recent preliminary announcement to consider investing an additional $93 million in Keokuk can not only significantly increase our tax base, but creates the groundwork for stabilization of jobs at Roquette and creates more opportunity for plant expansion and cluster/magnet industrial growth,” Gudgel said.

The announcement of the port authority's formation should happen in the next two or three months, according to Gudgel. A port authority and free trade zone status will mean jobs and serve as a catalyst for new magnet industries, he said.

“It will mean warehousing. It will make Southeast Iowa an intermodal entity that the Midwest will call upon for a significant portion of its transportation needs,” Gudgel added. “Again, it will mean jobs. It will mean a better way of life for our citizens.”

In addition, he said, the city's tax base will increase, allowing the city to better serve its residents.

“It also will mean the city finally can invest much more prudently and willingly and abundantly in our convention and tourism affiliate in making Keokuk truly a destination point and capture the millions of dollars that are spent each and every year on tourism throughout our nation,” he observed.

More industrial development may be in the works, Gudgel indicated.

“It is my belief that another investment in Keokuk will occur soon - that being the establishment of an ethyl alcohol facility,” he said. “It is only a matter of time. It too will bring jobs and spur related magnet industries and businesses. Soon we will be called the alternative fuel capital of the world.”

He also said two other manufacturing facilities are considering locating in the Keokuk area. No specifics were given, though.

More good news may be forthcoming, he said.

Once the Hampton Inn is completed, more value added investment on the land adjoining the hotel is likely, according to the mayor. The city already is receiving inquiries from outside investors representing retail and commercial interests.

Gudgel also noted a new restuarant called Krieger's is expected to be built on a section of Tolmie Park that was rezoned recently.

“Soon another business will announce its groundbreaking on a parcel of land that is out in this area of Keokuk,” he said. “Undoubtedly, in the very near future, the land that abuts Main Street that was previously owned by Wal-Mart and is now owned by KSB Bank will be real estate that will bring investors to Keokuk.”

Gudgel didn't stop there in looking ahead at what is likely to occur.

He has asked Brian Tapp of the Southeast Iowa Regional Planning Commission to help him establish a plan to bring Vision Iowa community attraction and tourism funds to Keokuk. He also said he expects Main Street from Fourth to Seventh streets to get new sidewalks and new period lighting by the upcoming Christmas shopping season.

In addition, the city council will probably back a bond issue to repair streets.

“It is past time. This decision should be made in the next few weeks,” Gudgel said. “It also is my belief the citizens of Keokuk will begin to see a systematic reconstruction of streets each year for many years to come.”

The city's bonded indebtedness stands now at $6 millon compared to its limit of $24 million.

“We are one of the lowest bonded cities in our state,” the mayor said. “We need to start investing in our city and in our infrastructure.”

In addition, the city will conduct another citywide cleanup campaign this year with the help of the Keokuk Area Chamber of Commerce. A Beautification Committee will become a reality and implement not only the week-long cleanup campaign, but also other year-long events to make the city more appealing and restore citizens' pride, Gudgel said.

The city also will start a community visioning and strategic planning study spearheaded by Daily Gate City publisher Mark Smidt and chamber executive director Katie O'Brien.

As for city government itself, Gudgel said the city's overall tax rate will increase about 40 cents per $1,000 of assessed valuation when the new budget is certified next month. Keokuk's new rate of $14.36 per $1,000 will still be lower than four other major cities in Southeast and South Central Iowa: Ottumwa ($21.69), Muscatine ($16.05), Fort Madison ($15.28) and Burlington ($14.89).

By the end of this year, the city will have cut its payroll by more than $600,000 since 2001. Gudgel attributed the city's financial problems the past four years to state funding cuts, the lagging local economy, decreased property values, soaring city health costs and increasing city pension benefit costs.