Focus Area: Economy
Staff Contact: Jamie Robichaud / Kathryn Messer
Subject: Consideration of Ordinance No. 25-48 authorizing issuance of the City's taxable industrial revenue bonds in an amount not to exceed $23,000,000 for LECC Building 5, LLC for the construction of a 200,194 square foot industrial facility on approximately 20-acres located in the northwest corner of Lone Elm Road and 167th Street.
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Consideration of Ordinance No. 25-48 authorizing issuance of the City's taxable industrial revenue bonds in an amount not to exceed $23,000,000 for LECC Building 5, LLC for the construction of a 200,194 square foot industrial facility on approximately 20-acres located in the northwest corner of Lone Elm Road and 167th Street.
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Summary:
Upon approval of Resolution No. 24-1041 on August 20, 2024, the City expressed intent to issue an amount to exceed $23,000,000 of the City’s taxable industrial revenue bonds (“bonds”) for the construction of a 200,194 square foot industrial facility.
The project will receive a 10 year, 50% tax phase-in in conjunction with the issuance of the City’s revenue bonds up to $23,000,000. City staff and the applicant have established a PILOT equivalent to a 50% tax abatement. Utilizing comparable facilities, year-one of the fixed PILOT will be $0.84 per square foot 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 $23,000,000 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 LECC Building 5, LLC
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Action Needed:
Approve Ordinance No. 25-48
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Attachment(s):
A. Resolution No. 24-1041
B. Ordinance No. 25-48