For-profit Iola Industries, a company connected to Commerce Secretary David Toland, is a delinquent corporation according to the Secretary of State’s Kansas Business Center. Iola Industries has been involved at nearly all levels of the financing of Toland’s economic development efforts through non-profit Thrive Allen County prior to joinging Commerce. The website for Iola Industries is now defunct and the phone number is disconnected.
The Kansas Secretary of State’s office confirmed that a company is listed as delinquent when its annual filing with the state is past due. Eastgate on Madison LLC, which owns Eastgate Lofts and is a wholly-owned subsidiary of Iola Industries, is also delinquent. Toland listed himself as a director in an information packet ahead of his confirmation as Secretary of Commerce. A message left for David Toland in the Commerce Secretary’s office was not returned regarding the delinquent status.
It’s not uncommon for companies to be late filing annual returns, but along with the defunct website and disconnected phone number, this adds to a series of controversies related to the companies and Thrive Allen County.
Iola Industries President John McCrae did not return phone calls requesting comment. Jim Gilpin, the registered agent for Iola Industries, says he doesnt know why the filings were not submitted and referred the question to the company’s accounting firm, Jarred, Gilmore & Phillips. Gilpin said Toland recently resigned from Iola Industries but he wasn’t aware that the phone was disconnected and the website isn’t working. Two different shareholders in Iola Industries who asked to not be identified were unaware the company was delinquent.
John Baker of Jarred, Gilmore & Phillips says they plan to file both annual reports tomorrow.
In an email to The Sentinel in March 2019, McRae confirmed that the Eastgate on Madison was a wholly owned subsidiary even though prior corporate filings said they didn’t own any other company.
“They should have disclosed years ago that Iola Industries does have a subsidiary corporation. That was just an oversight on our part,” says Gilpin.
Gilpin believes the delinquent annual filings are the result of the change to reflect ownership of Eastgate on Madison. The Eastgate lofts are currently valued at more than $1.3 million dollars.