Focus Area: Economy
Staff Contact: Jamie Robichaud / Kate Messer
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title:
title
Public Hearing and Consideration of Resolution No. 26-1048 on behalf of Scannell #798, LLC and assigns for an issuance request for industrial revenue bonds and tax phase-in for a single series application under a master resolution. The project will entail the construction of a 646,380 square feet industrial facility on a 32.47-acre lot located on the NWQ of 159th Street & Clare Road.
Body
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recommended motion:
Two votes are needed:
1.) Make a motion and vote to close the public hearing.
2.) Make a motion and vote to consider approval of Resolution No. 26-1048
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Summary:
The City has received an application under a master resolution (Scannell #476) for a single series application for industrial revenue bonds for the construction of and industrial facility in a business park setting. The request is for $55,000,000 in industrial revenue bonds for the construction of 646,380 million square feet of space on 32.47 acres. This will be a multi-series of bonds to be issued to cover land, and the building costs. This development is located near the NWQ of 159th Street and Clare Road.
The Applicant requests a 10-year / 80% property tax phase-in in conjunction with the issuance of the City’s industrial revenue bonds for all phases of the development. This project is applying under the City’s tax abatement policy (Policy F-5, Resolution 25-1099). Additionally, this project lies in the newly established zone allowing for increased abatement percentages.
This project under the master resolution has requested bond not to exceed $55 million for a 646,380 square foot industrial building on a 32.47-acre parcel. The single series request of industrial revenue bonds consist of:
o $3,900,000 to acquire land
o $51,100,000 to construct the building
• The project will create 461 new jobs over the next 10 years.
o Average salaries of the new jobs:
§ $48,000 in year one, growing to $74,464 in year ten
o A total of approximately $297.9 million in new wages in year 10 of the abatement
• Property taxes over the 10-year period with estimated 80% property tax phase-in on the project (excludes 8 mills for school district):
o All jurisdictions = $174,000 annually / $1,740,000 10-year total
o Olathe = $38,750 annually / $387,500 10-year total
o Olathe’s current annual property tax revenue from the property is $6,936
o Upon retirement of the tax phase-in, the City will receive approximately a total of $193,750 in annual property tax revenue once the property tax phase-in expires.
The cost-benefit ratio of this project for the City is .87 with payback expected to take more than 10 years.
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Financial Information:
See attached materials for more detailed fiscal impact information. All costs related to the issuance of bonds will be paid by Scannell #798, LLC.
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Attachment(s):
A. Executive Summary
B. Application & Firm Data Sheet
C. Project Cost Benefit Analysis
D. Site Aerial
E. Resolution No. 26-1048
F. Project Cost Benefit Analysis Comparison