Focus Area: Economy
Staff Contact: Jamie Robichaud / Kathryn Messer
Subject: Consideration of Resolution No. 26-1003 for the Assignment and Assumption of Lease Agreements and Related Bond Documents from BPG Olathe 1 LLC to GPCC Investors, LLC, and amendment to Resolution No. 21-1067.
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Consideration of Resolution No. 26-1003 for the Assignment and Assumption of Lease Agreements and Related Bond Documents from BPG Olathe 1 LLC to GPCC Investors, LLC, and amendment to Resolution No. 21-1067.
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Summary:
On November 16, 2021, the City Council adopted Master Resolution 21-1067, authorizing the issuance of industrial revenue bonds in a principal amount not to exceed $76,980,000 for the benefit of BPG Olathe 1 LLC (formerly BlueScope Properties Group LLC). In 2022, the City issued taxable industrial revenue bonds in the aggregate maximum principal amount of $28,000,000 for the construction of an approximately 236,160 square foot industrial facility (Building A). In 2023, the City issued taxable industrial revenue bonds in the aggregate maximum principal amount of $13,575,000 for the construction of an approximately 140,490 square foot industrial facility (Building C), both located at the northeast corner of Lone Elm Road and 159th Street.
Additionally, on July 16, 2024, the City adopted Resolution No. 24-1031 (Building B Resolution of Intent), expressing the City’s intent to issue up to $16,250,000 in IRBs for the benefit of BPG Olathe 1 LLC for the construction of an approximately 149,500 square foot industrial facility known as Building B. The resolution also authorizes the assignment of BPG Olathe 1 LLC’s interest in the Building B Resolution of Intent to GPCC Investors, LLC, contingent upon their purchase of the Building B property.
BPG Olathe 1 LLC is selling all of its right, title, and interest in the projects to GPCC Investors, LLC, a Delaware limited liability company, and is assigning its interest in the Resolutions, the Bonds, and accompanying bond documents and related agreements.
The resolution also amends a portion of Resolution No. 21-1067 to provide for an 80% ad valorem tax abatement for future buildings, subject to the normal statutory approval process.
The resolution (Attachment A) authorizes these assignments and approvals.
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Financial Impact:
None.
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Action Needed:
Approve Resolution No. 26-1003
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Attachment(s):
A. Resolution No. 26-1003
B. Assignment/Assumption Agreement for Series 2022 Bonds
C. Assignment/Assumption Agreement for Series 2023 Bonds