Focus Area: Economy
Staff Contact: Jamie Robichaud/Kaili Stowers
Subject: Public Hearing and Consideration of Resolution No. 25-1032 on a request by Aspen Funds, LLC and assigns for the development and construction of the first phase project (Building 1), a 217,685 square foot speculative industrial facility located near the southeast corner of Hedge Lane and 167th Street.
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title:
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Public Hearing and Consideration of Resolution No. 25-1032 on a request by Aspen Funds, LLC and assigns for a development and construction of the first phase project (Building 1), a 217,685 square foot speculative industrial facility located near the southeast corner of Hedge Lane and 167th Street.
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Summary:
The Applicant requests a 10-year / 50% property tax phase-in in conjunction with the issuance of the City’s industrial revenue bonds. This project is applying under the City’s tax abatement policy (Policy F-5, Resolution 24-1075).
The first series request under the master resolution has requested bonds not to exceed $28,600,000 for a 217,685 square foot facility on a 11.84-acre parcel of the overall project. The first series request of industrial revenue bonds consist of:
o $645,774 to acquire land
o $27,954,226 to construct the building
• The first series project will create 164 new jobs over the next 10 years and the entire project will create 732 new jobs upon build-out.
o Average salaries of the new jobs:
§ $48,000 in year one, growing to $74,464 in year ten
o A total of approximately $94 million in new wages in year 10 of the abatement
• Property taxes over the 10-year period with estimated 50% property tax phase-in on the first phase of this project:
o All jurisdictions = $257,537 annually / $2,575,375 10-year total
o Olathe = $52,462 annually / $524,625 10-year total
o Olathe’s current annual property tax revenue from the property is $207.
o Upon retirement of the tax phase-in, the City will receive approximately a total of $104,925 in annual property tax revenue once the property tax phase-in expires.
The cost-benefit ratio of this project is below:
• City of Olathe
o 1.75
o Payback expected to take 5 years.
• Johnson County
o 3.19
o Payback expected to take 3 years.
• Gardner-Edgerton School District
o 1.01
o Payback expected to take 10 years.
• Johnson County Community College
o 1.54
o Payback expected to take 6 years
• State of Kansas
o 175.12
o Payback expected to occur during construction.
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Financial Impact:
See attached materials for more detailed fiscal impact information.
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Action Needed:
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. 25-1032
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Attachment(s):
A: Executive Summary
B: Building 1 Application
C: Building 1 Firm Data Sheet
D: Cost Benefit Analysis Building 1
E: Site Aerial
F: IRB Historical Cose Benefit Ratios
G: Resolution No. 25-1032