Focus Area: Economy
Staff Contact: Jamie Robichaud / Kaili Stowers
Subject: Public Hearing and Consideration of Resolution No. 24-1068 on a request by PT Property LLC (Pizza 51 South) 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 of a existing 1,715 sf building and addition of 1,690 sf. The redeveloped facility will total 3,405 sf with a 880 sf patio to house Pizza 51 at 200 S. Kansas Avenue.
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Public Hearing and Consideration of Resolution No. 24-1068 on a request by PT Property LLC (Pizza 51 South) 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 of a existing 1,715 sf building and addition of 1,690 sf. The redeveloped facility will total 3,405 sf with a 880 sf patio to house Pizza 51 at 200 S. Kansas Avenue.
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Summary:
The City has received an application for $1,085,000 in industrial revenue bonds for the purchase and construction of 1,690 square feet of space onto an existing 1,715 square foot facility at 200 S. Kansas Avenue. The facility was formerly used as a service center and garage. This project will bring redevelopment and a coveted fast-casual restaurant to Downtown Olathe.
This will be a single-series of bonds which will be issued to cover the building, furniture, fixtures and equipment and associated 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 23-1080).
The total request for the single-series of bonds under the resolution should not exceed $1,085,000 in industrial revenue bonds for the redevelopment and construction of 3,405 total square feet in a facility located on .31-acres of land. The resolution request of industrial revenue bonds for the project consist of:
o $825,000 for the building and the construction of the additions
o $75,000 for furniture, fixtures and equipment
o $185,000 in other development costs
• The project will create 30 new jobs over the next 10 years.
o Average hourly pay:
§ $19 per hour in year one growing to $25 per hour
• 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.
The cost-benefit ratio of this project is below.
• City of Olathe
o 1.55
o Payback expected to take 5 years.
• Johnson County
o 5.85
o Payback expected to take 2 years.
• Olathe School District
o 0.01
o Payback expected to take more than 10 years.
• Johnson County Community College
o 1.29
o Payback expected to take 8 years.
• State of Kansas
o 459.95
o Payback expected to take 1 year.
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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. 24-1068
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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. 24-1068