Department: Economy
Staff Contact: Jamie Robichaud/John Page
Subject: Consideration of Ordinance No. 24-44 authorizing issuance of the City's taxable industrial revenue bonds in an amount not to exceed $350,000,000 for the construction of an approximately 677,349 square foot industrial facility on the southwest corner of 167th Street and Hedge Lane for Heartland Coca-Cola Bottling Company, LLC.
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Item Description:
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Consideration of Ordinance No. 24-44 authorizing issuance of the City's taxable industrial revenue bonds in an amount not to exceed $350,000,000 for the construction of an approximately 677,349 square foot industrial facility on the southwest corner of 167th Street and Hedge Lane for Heartland Coca-Cola Bottling Company, LLC
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Summary:
Upon approval of Resolution No. 23-1029 on April 18, 2023, the City expressed intent to issue an amount not to exceed $810,000,000 of the City’s taxable industrial revenue bonds (“bonds”) for the construction of an approximately 1,320,000 square foot bottling, warehouse, and distribution facilities. Resolution No. 23-1029 was approved with the expectation that the bonds would be issued in two phases to cover land, the building and furniture, fixtures, and equipment costs for the Project.
This phase of the Project will receive a 10 year, 55% property tax phase-in in conjunction with the issuance of the industrial revenue bonds up to $350,000,000. City staff and the Applicant have established a PILOT equivalent to a 55% tax abatement with year one of the PILOT being roughly $2.00/sq. ft. with an annual escalation of 2%.
The Ordinance (Attachment B), prepared by the City’s Bond Counsel, Gilmore & Bell, P.C., will authorize the issuance of bonds not to exceed $350,000,000 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 Heartland Coca-Cola Bottling Company, LLC.
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Action Needed:
Approve Ordinance No. 24-44
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Attachment(s):
A: Resolution No. 23-1029
B: Ordinance No. 24-44