The relationship between the City of Great Bend and Great Bend Economic Development has come under scrutiny after construction was paused on the IGNITE Innovation Center.
City Council President Cory Urban replied to comments on an article detailing the funding shortage on a Great Bend Tribune social media account on Nov. 11 after several users issued comments critical of the project.
“The city doesn’t have ownership in any way of the Innovation Center. It is owned and will be operated by GBED or people they contract,” he shared. “I have no idea what their future maintenance or center employee plans are as they aren’t involved with the city.”
The City has funded GBED since its inception and regularly budgeted $250,000 to the 501(c)6 not-for-profit organization, in addition to loans and other funding initiatives. The city council approved an increase in the amount it provided to $325,000 after Barton County moved to a case-by-case funding method for GBED as of Jan. 1 2025.
Documents received indicate that the City does, or did, bear partial ownership of the organization.
When first attempting to access records through Kansas Open Records Act (KORA) requests sent to the City, the Tribune was denied access based on the claim that GBED is not connected to the City.
“This is a separate entity from the City and I have no such records for anything you are asking for except for the funding source the City contributes to them and it is a one-time payment each year,” City Clerk Shawna Shafer said in a email.
KORA requests for financial documents and meeting minutes sent to GBED were also denied. Newly hired GBED Executive Director Jason Kuilan replied by email saying, “as a contracted vendor with the city we don’t fall under KORA.”
A second KORA request sent to the City requesting the contract between the City and GBED was successful and established that the relationship between the two is more closely linked than previously indicated. The contract received, the Bylaws of Great Bend Economic Development dated Oct. 6 2021, as well as the Articles of Incorporation dated Nov. 2019 freely accessed on the Kansas Secretary of State’s website, reveal that the not-for-profit organization was established as a membership corporation comprised of two members; the City of Great Bend and the Great Bend Chamber of Commerce and signed by Mayor Cody Schmidt and former Chamber President Shelly Peacock.
Since the inception, the GBED board of directors has included at least one elected official and the Council also was permitted a seat on the board of director selection committee. After approving funding in Nov. 2021 the Barton County Board of Commissioners were allotted a board seat, as well as a position on the selection committee. A KORA request sent to the County and follow up questions sent to County Administrator Matt Patzner indicate there was not a formal operating contract between GBED and the County, only a Memorandum of Understanding regarding a pass-through grant for the City of Ellinwood.
Mayor Cody Schmidt talked of the public-private partnership established by the City and Chamber during a City Council meeting when council member Davis Jimenez asked questions about the County transitioning to project-based funding for GBED. At the prior meeting when the mayor was absent, Jimenez asked fellow council members and City Administrator Logan Burns about the change. His colleagues suggested he contact the County and GBED for answers.
On Feb. 18th, Mayor Schmidt explained that the Chamber and City were founding fathers of the organization. When Jimenez asked about a council member sitting on the board, Schmidt revealed that the GBED board had approached him about removing all elected officials from the organization’s board, which he and Urban gave the approval, citing conflict of interest. Council member Kevyn Soupiset, who was the city’s representative on the board, Schmidt and Council member Jolene Biggs, who was previously a GBED board member, explained that wearing multiple hats when sitting on boards and the council was difficult. Jimenez said ultimately the council member on the board was there as an elected official and that since taxpayer money was at least partially funding GBED, that there should be a council member on the board.
Council member Gary Parr agreed, saying, “If we have that much skin in the game,” we should have someone on the board.
Schmidt said the Mayor would remain an Ex-Officio member because of the City’s role in founding GBED and he and Urban had recently helped select the new board members replacing Soupiset and County Commissioner Shawn Hutchinson.
In request for comment on Tuesday about the removal of elected officials from GBED board, Shawn Hutchinson said he resigned from the GBED’s Board in December 2024, citing a lack of transparency regarding the spending of taxpayer funds.
The Bylaws received through the KORA request stated that the Corporation (GBED) shall provide quarterly reports to the Members (City and Chamber) of the Corporation’s property and business transactions, including assets, liabilities, receipts, and disbursements.
KORA request to the City asking for the quarterly reports only returned yearly profit and loss statements along with budget request from GBED. The city’s attorney replied to an email asking for the quarterly reports rather than the yearly statements received in the KORA request saying, “The City has satisfied its obligations under the KORA by providing all of the financial records provided to it by Great Bend Economic Development.”
“If you believe that the information provided by Great Bend Economic Development does not fulfill its statutory obligations, you will need to address those concerns to Great Bend Economic Development.”
When asked about the City’s membership in the corporation this week, Mayor Schmidt said the city was “not a member” and refused to elaborate on the timeline of when the change occurred.
Another Council member refused to go on record but suggested checking with the state to check for changes to the Bylaws of the GBED.
The Tribune is waiting for comment from GBED’s attorney.
