New director seeks to re-energize economic development group

Abdul Arif sees himself as a re-energizer.

Arif, a lawyer and entrepreneur, was named executive director of the nonprofit South Central Kansas Economic Development District about two months ago.

The organization, which operates across 14 counties, provides lending for businesses that can’t quite qualify for private lending. It works alongside the U.S. Small Business Administration, filling in financial gaps in deals that might include the SBA, private banks and the borrower’s own cash.

It also administers grants and offers consulting for smaller local governments and agencies throughout the 14-county region. That region includes Sedgwick, Butler, Chautauqua, Cowley, Elk, Greenwood, Harper, Harvey, Kingman, Marion, McPherson, Sumner, Reno and Rice counties.

In addition, the organization runs a separate home weatherization program that insulates the homes of low-income residents.

Altogether, SCKEDD has 29 employees, with 20 of them in the weatherization program.

The organization saw its budget and its staff swell in 2009 as the federal government pumped in stimulus dollars aimed at economic development. In 2010, the overall budget hit $10.9 million, but it has been shrinking quickly since then. In 2013, that overall budget was just $3.7 million.

The organization has been trying to juggle the rapid decline, and the board of directors brought in Arif to provide some fresh thinking and fresh energy.

Now 56, Arif came to the United States at age 16 from Hyderabad, India. He became a U.S. citizen in 1980.

At age 19, he started Alterations by Sarah, which has grown to six locations and more than 30 employees. After two decades of running the business, he completed his GED, then graduated from Southwestern College and, after that, law school.

He practiced law downtown for more than a decade.

He is also trying to redevelop Sutton Place, a 12-story office building.

Arif said he has had to continue to cut costs at the economic development agency. He laid off two staff members recently and is now looking to consolidate SCKEDD’s Garvey Center office into its weatherization warehouse operation. He is seeking about 10,000 or 12,000 square feet of office/warehouse space.

“There’s an overarching cultural change that I want to bring about,” he said. “This is not a jobs program. We have to serve the people in the age of a shrinking budget.”

“He brings a lot of entrepreneurial background and has a lot of energy and ideas on how to move the organization forward,” said board member Kerri Falletti, director of Cowley First Economic & Community Development.

To do that, Arif said, he’s been out shaking hands with commercial bankers.

The agency’s outstanding loans have been falling since they peaked in 2010 with $3.7 million; now the figure is about $2.3 million, according to chief financial officer Daniel Bass.

Arif wants the agency to raise its profile as a lender. He wants to get his name and number on bankers’ desks so that when applicants are close to qualifying for loans, the banker might call him for a little help.

“The unfortunate impression has been that we are the lender of last resort, that we’re slow and cumbersome,” he said. “I’m doing everything I can to change that.”

This story was originally published November 26, 2014 at 5:49 PM with the headline "New director seeks to re-energize economic development group."