Focus Area: Economy
Staff Contact: Jamie Robichaud / Kathryn Messer
Subject: Public Hearing and Consideration of Resolution of Intent No. 25-1066 on behalf of CB Olathe Holdings LLC (Char Bar) and assigns for an issuance request for industrial revenue bonds and tax phase-in resolution for a single series project. The project will entail the redevelopment and expansion of a existing 4,062 square foot facility. The redeveloped facility will house Char Bar in 26,271 total square feet, after a 22,209 square foot expansion. The facility will house a full-service barbecue restaurant, pickleball courts and outdoor area for dining and yard games at 200 W Santa Fe St Olathe, KS 66061.
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Public Hearing and Consideration of Resolution of Intent No. 25-1066 on behalf of CB Olathe Holdings LLC (Char Bar) and assigns for an issuance request for industrial revenue bonds and tax phase-in resolution for a single series project. The project will entail the redevelopment and expansion of a existing 4,062 square foot facility. The redeveloped facility will house Char Bar in 26,271 total square feet, after a 22,209 square foot expansion. The facility will house a full-service barbecue restaurant, pickleball courts and outdoor area for dining and yard games at 200 W Santa Fe St Olathe, KS 66061.
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Summary:
The City has received an application for $10,521,660 in industrial revenue bonds for the purchase and redevelopment of the existing 4,062 square foot facility and a 22,209 square foot addition at 200 W. Santa Fe Street. The facility was previously used as a fire station and park and rec office space for the City of Olathe. This project will bring redevelopment and a coveted sit-down dining restaurant to Downtown Olathe and expand entertainment options.
This will be a single-series of bonds which will be issued to cover the building remodel, addition, furniture, fixtures and equipment and other development costs for the project.
The Applicant requests a 10-year / 100% 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 total request for the single-series of bonds under the resolution should not exceed $10,521,660 in industrial revenue bonds for the redevelopment and construction of 26,271 total square feet in a facility located on 2.93-acres of land. The resolution request of industrial revenue bonds for the project consist of:
• $42,525 for the purchase of the property
• $8,479,135 for redevelopment and expansion of the building and other costs
• $2,000,000 furniture, fixtures and equipment
• The project will create 370 new jobs over the next 10 years.
• Average wages:
§ $50,000 in year one growing to $65,239
• The City of Olathe will be forgoing property taxes over the 10-year period however the increase in sales tax revenue will help to offset the expected property tax loss over the life of the abatement. This facility was previously owned by the City of Olathe and was already property tax exempt.
The cost-benefit ratio of this project is below.
• City of Olathe
o 1.48
o Payback expected to take 6 years.
• Johnson County
o 4.12
o Payback expected to take 3 years.
• Olathe School District
o 0.02
o Payback expected to take more than 10 years.
• Johnson County Community College
o 1.14
o Payback expected to take 9 years.
• State of Kansas
o 332.99
o Payback expected during construction period.
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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. 25-1066
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Attachment(s):
A. Executive Summary
B. Application
C. Firm Data Sheet
D. Project Cost Benefit Analysis
E. Site Aerial
F. IRB Historical Cost Benefit Ratios
G. Resolution No. 25-1066