Focus Area: Economy
Staff Contact: Jamie Robichaud/Kaili Stowers
Subject: Consideration of Ordinance No. 24-52 authorizing issuance of the City's taxable industrial revenue bonds in an amount not to exceed $71,594,289 for Scannell Properties #717, LLC for the construction of a 729,120 square foot warehouse facility for General Mills Blue Buffalo brand on 57-acres located west of the northwest of 159th Street and Clare Road (Old 56 Highway).
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Consideration of Ordinance No. 24-52 authorizing issuance of the City's taxable industrial revenue bonds in an amount not to exceed $71,594,289 for Scannell Properties #717, LLC for the construction of a 729,120 square foot warehouse facility for General Mills Blue Buffalo brand on 57-acres located west of the northwest of 159th Street and Clare Road (Old 56 Highway).
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Summary:
Upon approval of Resolution No. 24-1010 on Feb. 20, 2024, the City expressed intent to issue an amount not to exceed $71,594,289 of the City’s taxable industrial revenue bonds (“bonds”) for the construction of a 729,120 square foot industrial warehouse facility.
The project will receive a 10 year, 50% tax phase-in in conjunction with the issuance of the industrial revenue bonds up to $71,594,289. City staff and the applicant have established a PILOT equivalent to a 50% tax abatement.
The Ordinance (Attachment B), prepared by the City’s Bond Counsel, Gilmore & Bell, P.C., will authorize the issuance of bonds not to exceed $71,594,289 for the Project. The bonds are a special obligation of the City, paid solely by revenues generated by the Project. The Ordinance also authorizes the approval and execution of various documents required to facilitate the transaction under Kansas law, including a bond indenture and lease agreement.
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Financial Impact:
All costs related to the issuance of the bonds will be paid by Scannell Properties #717, LLC.
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Action Needed:
Approve Ordinance No. 24-52
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Attachment(s):
A: Resolution No. 24-1010
B: Ordinance No. 24-52