FORT SCOTT – The Fort Scott City Commission voted 4-1 Monday to award Holmtown Pub $15,000 from the city’s Land Bank fund, delivering financial relief to the 19-year-old establishment nearly five months after a wall collapse forced its closure and left owners without insurance coverage.
Co-owner Kristy Holmes returned to the commission following her appearance at the June 16 meeting, where commissioners had asked her to submit an itemized accounting of expenditures before a vote could be taken. Holmes appeared Tuesday with receipts in hand.
Before taking up the financial request, Commissioner Matthew Wells asked Holmes whether she had applied for the city’s quarterly small business grant, a program established by the commission as an economic development tool. Nine businesses have received assistance through the grant so far.
Holmes told the commission she had previously spoken with City Manager Brad Matkin and Business Development Director Mary Wyatt and had been told funding through that avenue would not be available until October.
“We have one every quarter. I believe they’re taking applications right now,” Wells said, adding that Holmes would be a strong candidate and that nothing in the policy prevented multiple applications.
Commissioner Tim Van Hoecke told the commission he had reviewed the submitted receipts and visited the facility. He noted the insurance company had inspected the building shortly before the collapse and declared it sound, then denied the claim.
Holmes confirmed that conversations with the insurer are ongoing but that the carrier continues to maintain its denial. Two contractors have not yet submitted final bills, and Holmes said the ownership has paid out of pocket on several line items including the block work, rebuilding of the back wall and hallway repairs.
Van Hoecke drew a comparison between the Holmtown improvements and work previously assisted through the Land Bank for the Kitchen Collective, noting the bathroom remodels and paint work. He introduced a motion to award $15,000 from the Land Bank, equivalent to a single quarterly small business grant.
“In light of waiting for that new next grant and what they’re trying to get done, I’m going to make a motion to assist them with $15,000 out of the land bank, which would be the same as being awarded one of the quarterly equivalents of the economic development bonus,” Van Hoecke said.
Commissioner Tracy Dancer initially withheld a second to the motion, raising a policy concern. The small business grant, as written, requires applicants to be establishing or expanding a business. Dancer argued the Holmtown situation did not fit that framework.
“Conditions for the small business grant are to expand business. This is a catastrophic failure,” Dancer said, adding that the situation also exposed a broader need for city policy to address aging historic buildings before more are lost to neglect.
Holmes reminded the commission that Holmtown recently marked its 19th anniversary and that the owners were not seeking anything close to $100,000.
“In the fight with the insurance company, if we do succeed in any way, shape or form, we would be refunding back the money that you all would provide us with,” Holmes said.
Housing & Community Development Coordinator, Lisa Dillon, raised a concern about drawing from the Land Bank, noting that a significant number of properties are expected to enter tax sale in October and that those funds may be needed. She asked whether an alternative fund could be used.
Commissioner Wells also expressed reservations about the Land Bank as a funding source, citing potential needs related to properties at 118 West Wall, the Moody Building and incoming tax sale acquisitions. He suggested the commission could instead prematurely award a small business grant to Holmtown from that fund rather than tap the Land Bank.
Van Hoecke clarified that his motion was for a $15,000 city award regardless of the specific fund source, leaving the allocation to the city manager. City Manager Matkin noted approximately $98,000 remains in the Land Bank and recommended drawing from it, with the option to recoup from another fund if needed.
Mayor Kathryn Salsbury, who said she had initially expected not to support the request, said a conversation with a fellow commissioner shifted her thinking. She framed the vote less as a small business grant matter and more as the city taking a proactive stance on saving historic buildings.
“I see your situation as less about the small business grant, not that you shouldn’t go for that also, but more about us taking a proactive stance in saving buildings,” Salsbury said.
Holmes noted that work at the property is not yet complete, with concrete pouring and stair repairs still remaining. She told commissioners an answer that evening would be welcome.
The commission voted 4-1 to approve the $15,000 award from the Land Bank. Commissioner Wells cast the dissenting vote.
