During the public comments portion of the Eureka City Council meeting held on Monday, Oct. 28, community member Miranda Colangelo returned before officials for continued discussion in regards to Eureka Downs.
After voicing appreciation to members of the council for their service to the city, Colangelo noted she was present to ask questions. Colangelo commented that she had read in The Eureka Herald that horse racing was returning. After noting that she thought this was great and would be beneficial to local businesses, Colangelo referenced plans for continued payment of utilities by the city and asked what the year-to-date expenses were. This was referenced at roughly $27,300. Colangelo then questioned when the city had begun paying utilities for the structure.
This was noted as having begun in August of 2023. When Colangelo questioned who owned the Eureka Downs, Mayor Stephen Coulter explained that the Greenwood County Fair Association owns the building.
Colangelo then questioned if there were plans, once the facility begins generating revenue, for a percentage of the dollars the city has been contributing into the privately-owned building to be paid back. Mayor Coulter then explained, since the doors were closed for horse racing, multiple attempts were made in the past to bring it back and those had failed. Coulter went on to note that, when the agreement for the structure was initially made, the following had been the general outlook: sell the former Matt Samuels Community Building to keep a local business and help them expand, and utilize a building that was, by and large, sitting empty. Thus, the Fair Association, 4-H Foundation, City of Eureka and Greenwood County came together, under the Greenwood County Community Center (GCCC), and utilize and invest in the Eureka Downs. He then noted there had been needs for the former community building, including military surplus electrical components, heating and air and painting.
Colangelo then offered her thoughts, as a citizen, for the future. After referencing her previous service on the Main Street Board, Colangelo explained they had focused energy on looking at ways to get trust back into the community and getting people to believe in the city again. She noted it would be beneficial to pull out Eureka Downs cost in the city’s annual budget to make it more visible. Colangelo reiterated that horse racing was a good opportunity for the community, but added she felt they should be carrying the expenses and not the city. She commented that the city would never recuperate dollars invested in Eureka Downs through rental revenue. Colangelo then noted that once fixed up, rental cost would likely see an increase and use of the structure would not be feasible for many community members. Coulter noted that use of the facility for racing would likely be limited. He added that formerly, the racing season was roughly April-July. Colangelo then commented that though she believed it should be rented out, she didn’t feel Eureka Downs should serve as the community building. After acknowledging that her thoughts were fair, Coulter noted that simply withdrawing from the structure without an option for the community would not be feasible. He added that constructing a building would come at high cost and, given budgetary constraints, in light of concerns regarding the future of the 1% street sales tax and inherited needs for street work and work to Memorial Hall, it would be difficult for him to see a facility being built.
Colangelo returned to the subject of inability to get back dollars being invested, noting to regain what has been invested through sales tax revenue, $9 million in sales would be necessary. She commented that to her, this should be treated as a business. Coulter noted that though he is business minded, this is a local government, not a business. For example, he stated that the pool does not make money and looses dollars annually. He questioned if this were something she would like to lose? He went on to note that the city lost some money on the former Matt Samuels building annually as well. Coulter stated, “We can’t look at this as a business transaction. This is a government transaction.” He continued, “What we were trying to do was invest back into our community.” He noted Eureka Downs is near the center of town and was being neglected after horse racing stopped. “And now it looks like it is coming back,” stated Coulter.
Councilman Dan Campbell noted that he was business minded and the facility made sense to him. He commented that if the county were to split the annual cost over the next three years while racing is getting off the ground, both parties would be spending $15,000 a year to facilitate operation at the $2.3 million dollar facility. He then noted that it would be revenue generating.
Colangelo commented that gambling, particularly in Kansas, is a volatile market, and most businesses take five years to either make it or break. She also conveyed she didn’t believe they would earn enough the first year for them to make it on their own. Coulter noted they are aware they won’t, but they will be getting funds from the machines in Wichita.
Colangelo noted that if it were to fail, the city would once again be supporting the building. Coulter commented that, if that were to happen down the road, facility updates would be made through the racing dollars which would reduce utility costs. Colangelo noted she felt most of the initial $2.3 million would likely go to the track so that races can be held. She then questioned how much of the building would be fixed? As she looked at building needs, Coulter commented that they had already voted to fix the roof. Councilman Kevin Lawrence noted that they are not planning on horse racing sustaining the building; the money would be coming from Wichita. As conversation drew to a close, Coulter stated, “We are listening to you.” He apologized for the headaches she dealt with when using the structure and noted that the Matt Samuels Building was ran the same way, but the city would be considering cleaning bids for the facility. Coulter stated, “We are trying to make it better, but it is not a perfect process.” Councilman Lawrence noted that if Wichita (the former Greyhound Park, to be the Golden Circle) performs as projected, it will be a nice boost to the local economy. Lawrence noted that Kansas race tracks would be seeing a percentage of the dollars earned in Wichita, adding that Eureka is the only track. Lawrence commented that the city was formerly spending roughly $8,000-$10,000 on the Matt Samuels Building. Coulter then spoke towards to the issue of transparency. Colangelo noted the need for the public to seek out information, commenting that she reads the paper and expressed understanding that only so much space is available for reporting. Coulter noted the importance of transparency, commenting that all regular meetings are open for public attendance and nothing was hidden.
Later in meeting proceedings, Jamie Nelson, who serves as president of the Greenwood County Community Center (GCCC), attended the City Council meeting in conjunction with community member Jamie Lindamood. When given the floor, Nelson first commented that a lot of the items discussed earlier were reported in the newspaper. He then spoke to the issue of cleaning, noting that a solution to this is being considered by the GCCC. Nelson then addressed council members in regards to the sale of the Matt Samuels Building. Nelson noted that when the structure had sold for $50,000, the GCCC had been told that dollars from this would be put into a line-item account to be used as match funds for grants. He told members of the council he was present to inquire about these dollars, questioning if this money was still there. After Nelson commented that Councilman Lawrence had a good explanation for why the dollars weren’t put into a separate account during the last GCCC meeting.
Lawrence then explained he had shared that dollars from the sale of a city structure could not be encumbered, so these dollars had to go into the general fund. Nelson then questioned if those dollars were still there for their intended use. It was shared by city officials that these dollars had been put into the general fund and this is being used to pay utilities for the structure. Coulter noted that the exact amount was probably not still sitting in the account. He then noted this didn’t mean they would be unable to come up with the total to aid in seeking a grant. Coulter then noted that if a proposal were presented, this could be considered, but he was unsure if the total was available in the current budget year. Councilman Campbell commented that without Greenwood County’s support, a decision could not be reached in regards to the total sum of $50,000. After clarifying that half the total was the county’s, Nelson noted the county had supported 2023 and 2024. Coulter affirmed this, commenting that the county contribution of the total $30,000 towards the facility had been $8,000. Campbell then noted plans for the city to outline involvement options as well as their plans, but noting they were waiting to see the county’s plan.
Lindamood stated they had previously spoken with the county, with the understanding that no decisions were being made until more information was available in regards to horse racing. Since then, Lindamood noted that the Fair Board has received partial funds and has an approved budget for all of the money with the State of Kansas. She noted that there are funding limitations in regards to use of these dollars. For example, Lindamood noted that the GCCC approved a bid for the roof of Eureka Downs during their last meeting. A signed contract with the roofing company is in place. Lindamood noted that architectural and engineering is not an included use within the funds. She then explained without workable drawings of the building, it poses difficulty in seeking grants for supplemental funding. Some work was recently completed at no cost by Kansas State University. Lindamood noted they are looking to see if this is going to save them a significant amount of money. A report on this was slated to be included in the next GCCC meeting. She then commented that, as a board, they have no resources. Nelson commented that the building is very vital to the Greenwood County Fair. He then noted that the fact the Greenwood County 4-H Foundation and the Fair Board had no resources was made transparent from the beginning. Nelson told council members that it is imperative they have the seed money to help with the engineering study. Lindamood discussed building needs, including ADA updates. Lindamood noted that there is money in the budget for renovations of HVAC and electrical systems and dollars received can be applied towards this work, but not for the drawings. As discussion continued, Lindamood and Nelson noted that the future of the building is the Fair Board’s priority. Nelson commented that a big part of the budget is going to go to be building. “We’re all heading for the common goal. Everybody wants that building to be a community building.” Councilman Richard Drake recommended they start looking for donors. Nelson responded, expressing agreement and commenting that the number of volunteer hours which have gone into the building have been remarkable. He noted that Lindamood and the Myreka organization had invested a lot of time into the structure. Lindamood added that the kids in the community had been integral. Councilman Campbell commented that, in regards to future plans, transparency from the county would be beneficial. As discussion continued in regards to funding engineering and design, it was shared that an outside party had paid for the engineering study on the track. Councilman Drake expressed concern in relation to the expenditure, noting that they are facing uncertainty in regards to the 1% sales tax for streets and commenting that it didn’t seem wise financially. When the question of what dollars remained was posed, Laws commented that without deduction of salaries, $16,000 would be remaining. Campbell noted that before they looked to support this themselves, they needed the county’s support. Campbell then suggested the city and county each budget $15,000 for annual expenses; once this is done they can look at considering cost for the item. City Administrator Joel Laws commented that for fiscal year 2025, $46,500 was budgeted for the year. This factors in utilities and toilet paper while leaving dollars for needed repairs. Coulter commented that utility costs would decrease with improvements they are looking to make. When conversation turned back to funding the architectural and engineering studies, Coulter noted they would need specific details. Lindamood noted that budget items would be provided. As turnover in staff and members of boards/ councils was noted, Nelson stated, “We did this for the kids and we did this for the community.” He continued, “I realize that community buildings don’t make a lot of money. I’ve never met one that has. But it would be nice to have one.”
Laws advised that a new Memorandum of Understanding (MOU) be drafted that all parties (The City of Eureka, Greenwood County, the Greenwood County Fair Board, Greenwood County Fair Association and the Greenwood County 4-H Foundation) receive it for review. Lindamood asked if the city could draft a proposed document, noting that she was speaking as a community member and wasn’t a member of the GCCC, she simply cares about the future use of structure for the fair. As Lindamood and Nelson volunteered to present the document to commissioners, Nelson stated, “There has been a lot of people who put a lot of work into this building, me included. And I’ve stayed pretty quiet about it. We’ve all paid our dues and we’ve tried to make it work and we are all doing it for one reason: for this community. And we need to not lose sight of that.” He continued, “I believe that building will make this community better.” Councilman Lawrence noted that the opinion of a commission conveyed had been, they didn’t see the benefit. Lawrence then recommended that fair supporters explain the importance of the building to the fair, livestock community, the county and the kids. The city is to draft a proposed document.
Additional coverage of the Oct. 28 regular meeting is included elsewhere in this week’s edition. The next meeting of the Eureka City Council will be held Tuesday, Nov. 12 at 7 p.m.
