Focus Area: Economy
Staff Contact: Jamie Robichaud / Kathryn Messer
Subject: Report on a request by Commercial Reposition Partners 17, LLC and assigns for a Master Resolution request to allow for issuance of industrial revenue bonds and tax phase-in for multiple series of bonds to cover a business park development. The project will entail the construction of a total of 2,200,000 square feet of warehouse and industrial facilities on a total of 145-acres located at the northeast corner of 175th Street and Lone Elm Road.
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Report on a request by Commercial Reposition Partners 17, LLC and assigns for a Master Resolution request to allow for issuance of industrial revenue bonds and tax phase-in for multiple series of bonds to cover a business park development. The project will entail the construction of a total of 2,200,000 square feet of warehouse and industrial facilities on a total of 145-acres located at the northeast corner of 175th Street and Lone Elm Road.
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Summary:
The City has received a master resolution application for $670,000,000 in industrial revenue bonds for the construction of 2,200,000 square feet total of industrial and warehouse facilities in a business park setting. The project is located on 145-acres at the northeast corner of 175th Street and Lone Elm Road. This will be a multi-series of bonds to be issued to cover land, the building and furniture, fixtures and equipment costs for each series project.
The Applicant requests a 10-year / 80% property tax phase-in in conjunction with the issuance of the City’s industrial revenue bonds for each series of bonds under the master resolution. This project is applying under the City’s tax abatement policy (Policy F-5, Resolution 24-1075).
The total request for the multi-series of bonds under the master resolution should not exceed $670,000,000 in industrial revenue bonds for the construction of a total of 2,200,000 square feet of commercial space on 145-acres of land. The master resolution request of industrial revenue bonds for all of the projects consist of:
• $23,200,000 to acquire land
• $477,000,000 to construct the buildings
• $134,000,000 for furniture, fixtures & equipment
• $35,800,000 to cover other development costs including site work and soft costs
• The overall project will create 735 new jobs over the next 10 years.
• Average estimated salaries of all of the new jobs:
§ $50,000 in year one, growing to $77,566 in year ten
The first series application is being submitted in conjunction with the master resolution. A separate Application and Executive Summary out lining this project are included.
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Financial Impact:
A cost benefit analysis will be completed for each series of bonds based on each project application that is submitted to the City.
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Action Needed:
Accept report. A public hearing and resolution regarding the master resolution and first-phase project are scheduled for the September 16th City Council meeting.
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Attachment(s):
A. Executive Summary
B. Master Resolution Application
C. Master Resolution Firm Data Sheet
D. Site Aerial
E. First Phase Project Application
F. Resolution No. 25-XXXX