HERMANN — As it eases into a new focus on promoting job growth in the area, the Hermann Regional Economic Development (HRED) Corporation board is asking its members to consider just what “affordable” would mean for residents looking to rent new housing units.

Having an available supply of affordable residential rental units is one of the two items contained in HRED’s top strategy as the non-governmental agency begins its efforts to promote economic development under a new mission and a board that soon will be receiving new members.

The discussion about an affordable price for rental housing arose during HRED’s regular monthly session Tuesday, May 2, held in the Gasconade County R-1 School District’s Administration Building. With nine of the 15 members in attendance, the board turned its attention to attracting a contractor willing to develop rental units in the county seat community.

But, at what cost to the renters?

“We can’t afford to build $400 or $500 (a month)” units, said Raylene Hollrah, a businesswoman leading the call for a renewed effort by HRED. She suggested that it might be more likely a developer would construct units with a monthly cost of $700 or $800 a month.

But other board members feel that lower-wage workers in the tourism-dependent community couldn’t afford the higher-priced units.

“We do need to look at a lower-cost housing,” said Luci Valbuena.

Hollrah, an original member of HRED who stepped down several years ago to deal with health issues, is hoping to make a return to the organization. Hollrah could be one or more new members named to the panel in the next month or so as other members move off. HRED Treasurer Chris Theissen is looking to step down, as well as Hermann Area District Hospital Administrator Dan McKinney, who is retiring from that position at the end of this month. McKinney said he presumes his successor — to be named by Mercy Healthcare, which has agreed to manage the Hermann hospital — will replace him on the HRED board.

“I’ve been looking to retire for two years,” said McKinney, who has been with the local hospital for three decades. “This will probably be my last meeting and the new person, hopefully, will be here in June.”

In other matters, the R-1 Superintendent Geoff Neill noted that discussions are continuing regarding the possible creation of a career center being developed as part of the R-1 campus that focuses on the industries of hospitality, horticulture and vitaculture.

“Our goal is to create not jobs but careers,” Neill said, noting that a program for vitaculture class for R-1 students could be worked into the curriculum by the 2024-25 school year with a goal of having the students entering an internship in the wine industry.

Neill has said it is his hope that a career center here eventually would be adopted and managed by a university or the University of Missouri Extension as one of its programs.

Also related to the local school district, the superintendent said area residents in the next school year will be hearing more talk of a tax levy increase and a bond issue. With the influx of COVID-related funds from the state and federal governments no longer available, the district is expecting to see its year-end balances shrink considerably over the coming years.

However, with capital projects still needed, more funding likely will be sought. Indeed, during a discussion with its bond counsel in recent months, the R-1 Board of Directors was urged to consider seeking a bond issue — possibly in 2024 —for capital projects largely because the district has been successful in building its bonding capacity through frugal spending practices.

But Neill explained that in order for R-1 to remain competitive in attracting new teachers and support staff, it will have to offer higher salaries. “You’re going to have to raise taxes at some point,” the administrator said. “There is no ifs, ands or buts about it.”

City Hall is mulling the documents developed by the Montgomery County Economic Council in its effort to win state approval of a Port Authority. Hermann City Administrator Patricia Heaney told the HRED members that aldermen might take up the Port Authority matter at its meeting earlier this week.

“I’m not sure how deep they’ll get into it” if they do, she said.

Hermann wants to be part of the Port Authority District, which would be designed to put together land for a “megasite” industrial development within the Interstate 70 corridor, complementing developments in the area such as the Love’s truck stop at I-70 and Highway 19, as well as other developments along the interstate as it runs through Montgomery and Warren counties.

But before considering a formal resolution of support, city officials want to study the particulars of the application documents. The city has a month from the time it received the documents to take action to be a part of the district.