104
T H E K A N S A S L I F E L I N E
July 2008
by Shane Holthaus
he present trend in
construction costs can be
summed up with three words:
“Higher and Higher!” Increased
costs for steel are impacting a
variety of construction projects,
including the buildings that cities
are developing through the popular
KAN STEP program. KAN STEP
is a self-help program that enables
small communities to make major
infrastructure improvements. Local
residents volunteer labor or services
– termed "sweat equity" – while the
Department of Commerce provides
funding for technical services and
materials. Commerce’s funding
originates with the federal
Community Development Block
Grant (CDBG) program. KAN
STEP provides small communities
an opportunity to invest in projects
they otherwise
could not afford.
Kansas Rural
Water Association
provides
inspection services
and technical
assistance on all
KAN STEP
projects.
As of June 1,
there are 12
projects in
construction or
contracted. The
KAN STEP projects in Hanover
and Hunter are both erecting steel
buildings and are in the middle of
construction. Both of these projects
have beat the escalating price
increases of 2008.
center
In early 2007, the Kansas
Department of Commerce awarded
the city of Hunter a $296,551 KAN
STEP grant to construct a new
community center. Hunter will
match the funding with $248,530 in
volunteer labor. The total retail cost
is estimated at $545,081. Hunter is
located in southwestern Mitchell
County in north-central Kansas.
This small town has an army of
volunteers that has attacked this
project with a fervor.
The 6,365 square-foot facility is
being constructed in the center of
town north of the elevator and
south of the cafe. The dimensions
are 73 feet x 88 feet. The
community center will include a
library with office, dining
area with a full kitchen,
reception hall with a
kitchenette and an office,
restrooms, storage and
utility room. A record
number of volunteers for a
KAN STEP project
pitched in on March 22
when the second half of
the slab was poured.
There were 32 volunteers
there. Hunter Mayor Bob
Wiles said, “It is sure nice
to see all these volunteers
Top: The framework for the City of Hunter's KAN STEP Community Building was erected in
April 2008. The manufacturer is Star. Structural steel costs have increased 26% from Jan. 1,
2008 to May 15, 2008.
Above: Leonard Moen, one of dozens of volunteers on the Hunter project, fastens the
subframe for the rake angle. Leonard is retired as a former industrial maintenance
supervisor. He and his wife are restoring a home in Hunter.
T
Two KAN STEP projects
beat increased steel costs
Shane Holthaus
KAN STEP Tech
105
July 2008 T H E K A N S A S L I F E L I N E
show up and lend a hand. I just hope
we have this many volunteers here
by the time we finish.”
The project representatives at
Hunter are Bob Wiles, Steve
Schneider and Ken Stewart. Grant
Administration is provided by Lori
Thielen, North Central Planning
Commission, Beloit, Kan. Don
Marrs, DMA Architects, Salina, is
the architect for the project
Hanover’s multi-purpose project
The city of Hanover in northeast
Washington County was awarded a
$300,000 KAN STEP Grant to
construct a new multi-purpose
community center. Hanover is
matching the funding with $272,970
in volunteer labor for a total retail
cost of $572,790.
The 9,000 square-foot facility
will include an assembly room,
restrooms and three food service
rooms to be used by different
organizations during community
events and fundraisers. Hanover
started their red iron work on April
22. As of June 5, the volunteers are
hanging tin on the exterior. The
center will have eight overhead
doors and nine walk-in doors. There
will be three serving windows in the
exterior of the building. There will
be an abundance of trim work
involved. Project Representative
Robert Holle and Dennis Minge are
setting a July 4 date to be finished
with the tin on the building.
Project representatives at
Hanover are Robert Holle and
Dennis Minge. Deb Olde, North
Central Kansas Planning, is
providing Grant Administration.
Architect is Don Marrs, DMA
Architects, Salina.
Sparkplug Robert Holle said, "It's
great on a Saturday morning to have
31 volunteers to show up for work
and 60% being younger men from
the community – that's just makes me
proud to be from a rural community.
We feel fortunate to have such a wide
range of talent and that is what is
making this project successful."
The weather has been a major
problem since late last year for
everyone. Both Hanover and
Hunter's steel buildings were shipped
in December 2007 in both groups’
anticipation of beginning their
projects. Concrete slabs however
Above: Another beam is lifted to be bolted to the main
columns on the Hunter project on April 15, 2008.
Right: Volunteers attach and cut openings in the exterior
metal for windows on the east side of the Hunter
Community Building.
Increased cost of materials
makes money more expensive
ccording to the United States Mint it costs in the
neighborhood of 1.7 cents to make a penny and 7.7 cents to
make a nickel. In 2007, the Mint produced 7.4 billion pennies and
1.2 billion nickels, according to the House Financial Services
Committee.
Other coins still cost less than their face value, according to
the Mint. The dime costs a little over 4 cents to make, while the
quarter costs almost 10 cents. The dollar coin, meanwhile, costs
about 16 cents to make, according to the Mint.
A
A
106
T H E K A N S A S L I F E L I N E
July 2008
Two KAN STEP projects . . .
were not poured in December due
to the ice storm that hit most of
Kansas. Cold and wet conditions
continue through February and into
March, further hindering progress.
The last floor pour was made on
March 22 at Hanover. Hunter
started red iron work on April 15.
Between rains work has progressed
and tin work has been started on the
buildings.
Steel costs
Norman Elliot with J & N Elliot
Construction, Morrowville, Kan., is
the supplier for both of these
projects. Elliot explained,
“Structural steel costs have gone up
26% since January of 2008 for the
Star brand of building.”
I am aware that rebar has
increased by 32%. Anyone
purchasing steel buildings or rebar
can expect price adjustments every
two weeks.
The increases in the cost of steel
began in 2000. BNET Business
Services reports that China's
demand for scrap metal to feed its
booming manufacturing industry
has driven the price from $120 a
ton in the summer of 2007 to $255
a ton by mid-February 2008. In
2001, the United States exported
7.44 million metric tons of scrap. In
2003 it exported 12 million metric
tons, with China buying 3.3 million
metric tons. China's demand for
scrap iron increased 22 percent in
2003 and 13 percent in 2004.
Recycled metal has helped keep the
prices down but the demand from
China is inflationary on world
markets.
KAN STEP is a unique
program. I encourage communities
that are interested to contact the
Kansas Department of Commerce
for more information.
Volunteers prepare to attach the eave girt on the north wall of KAN STEP project at
Hanover. The building will have a multi-purpose use including Days of 49, local auctions,
4th of July celebrations, weddings and other community events.
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107
July 2008 T H E K A N S A S L I F E L I N E
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