Heart of America helping business develop

By PHYLLIS J. ZORN

Hays Daily News

For a group that likes to work behind the scenes, Heart of America Development Corp. has made a lot of headlines in the past year.

Heart of America has been involved in the closing of two businesses, the opening of two new businesses and the expansion of an existing business.

In January 2004, Sykes announced the pending closure of its Hays call center. Sykes actually closed the doors in June. The Sykes building was sold to Heart of America.

Also in June, Hays International Mailing, operating in a building leased from Heart of America, collapsed amidst unpaid debts and taxes and soft business.

Things started turning around soon after.

A new call center, N.E.W. Customer Service, announced in July it would locate in Hays at the former Sykes building, which it rents from Heart of America.

“Hopefully, N.E.W. Corporation will stay around a long time and we'll make some money off that. If not, we'll own a building out there that we can either lease or sell,” said Dale Montgomery, Heart of America's president of the board.

A-1 Plank and Scaffold, the mailing company's neighbor to the south, was looking to expand because it had partnered with another company to manufacture a new product, the Tabla concrete slab forming system.

A-1 Plank in August purchased the former Hays International Mailing building from Heart of America.

Heart of America also was involved in a three-way land trade that made possible the construction of a new U.S. Army Reserve headquarters and training center at Hays. The new training center is on 15 acres on the east side of Commerce Parkway between Old U.S. Highway 40 and 13th.

Heart of America sold the 15 acres to the city, which in turn gave it to the U.S. Army Corps of Engineers to build on. In return, the city will get the current Army Reserve headquarters when it is vacated. Heart of America at that time will get the purchase money, which it can reinvest.

After slicing off the 15 acres for the Army Reserve center, Heart of America still has about 70 acres left.

In November, Heart of America sold land to Nex-Tech to build a facility where a new wireless cellular service will be located. Nex-Tech Wireless is co-owned is by Golden Belt Telephone and Rural Telephone. Rural Telephone is the parent company of Nex-Tech.

Construction on the switching facility is ongoing and the anticipated completion date is May. Then construction of the administration building will begin. Nex-Tech Wireless expects the administration building to be completed by the end of the year. It will begin signing customers for its new wireless service in the fall.

“It's been a good year. We'd love to have the opportunity to buy more land and look for a business that's a good match for the community,” Montgomery said.

The development corporation began in the mid-1980s, when about 40 local businesses decided to join forces to purchase land to attract more companies to town. Businesses that still contribute to the organization appoint representatives to the board of directors to serve for two or three years.

Montgomery was appointed to a six-year term on the board. This is his second year as president.

He made it one of his goals to develop a closer working relationship with the Hays Area Chamber of Commerce and the Ellis County Coalition for Economic Development. He sees each organization having an important yet different role in economic development.

He and Mike Michaelis, the director of the coalition, are now in contact at least weekly, Montgomery said.

Both communication and cooperation among the three entities has increased over the last year.

“Really, the Heart of America Development Corp. is willing to take a look at any business that wants to come in and help them any way that we can,” Montgomery said.

Reporter Phyllis Zorn can be reached at (785) 628-1081, ext. 137, or by e-mail at

phylz@dailynews.net.