Focus Area: Economy
Staff Contact: Jamie Robichaud/Kaili Stowers
Subject: Consideration of Resolution No. 25-1034 expressing the intent to issue industrial revenue bonds on behalf of Bach Homes Montage Apartments at Mur-Len, LLC at 1051 N Mur-len Rd, Olathe Kansas (Sales Tax Exemption Only).
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Consideration of Resolution No. 25-1034 expressing the intent to issue industrial revenue bonds on behalf of Bach Homes Montage Apartments at Mur-Len, LLC at 1051 N Mur-len Rd, Olathe Kansas (Sales Tax Exemption Only).
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Summary:
The City has received a request from Montage Apartments at Mur-Len, LLC for $58,236,092 in industrial revenue bonds to finance the cost of acquiring, constructing, and equipping a mixed-use development at 1051 N Mur-Len Rd Olathe, Kansas.
The proposed project includes the development of a 515,205-square-foot multifamily and mixed-use commercial complex. It will consist of 384 apartment units, six leasable commercial spaces, a designated pad site for a corner commercial unit, and a gas station.The Bonds will be issued to obtain a sales tax exemption on construction materials used for the project.
In January of 2024, the Council approved a zoning amendment and revised preliminary site development plan for this site. The packet materials from that meeting are attached.
At the May 6 Council meeting, the Council requested to continue this item to the May 20 meeting to gather more information about the project and related infrastructure costs. The applicant indicates the total costs of public improvements required for this site total $5.7M and the sales tax exemption would total $2.2M. The City’s portion of that sales tax exemption would be $347,600.
The applicant will be present to give a short presentation on the project and the requested sales tax exemption.
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Financial Impact:
All costs related to the issuance of the Bonds will be paid by the Applicant. The City’s estimated portion of sales tax that would be exempted if approved is up $347,600 (assuming all materials and equipment were bought in Olathe).
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Action Needed:
Approve Resolution No. 25-1034 expressing the intent to issue industrial revenue bonds on behalf of Montage Apartments at Mur-Len, LLC.
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Attachment(s):
A. Application
B. Resolution No. 25-1034
C. Planning Commission Packet for Zoning Amendment and Revised Preliminary Site Development Plan