Department: Resource Management
Staff Contact: Dianna Wright/Emily Vincent
Subject: Consideration of Ordinance No. 19-78 authorizing the issuance of taxable industrial revenue bonds, Series 2019, not to exceed $2,000,000 to Hunt Investments, LLC for the construction of a 15,000 sq. ft. office/warehouse space located on property at 579 N. Lindenwood.
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Item Description:
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Consideration of Ordinance No. 19-78 authorizing the issuance of taxable industrial revenue bonds, Series 2019, not to exceed $2,000,000 to Hunt Investments, LLC for the construction of a 15,000 sq. ft. office/warehouse space located on property at 579 N. Lindenwood. .
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Summary:
On February 20, 2018 the City Council adopted Resolution No. 18-1020 (Attachment A) expressing the intent to issue an amount not to exceed $5,800,000 of the City’s taxable industrial revenue bonds (“bonds”) for the construction of a 47,000 sq. ft. new light industrial building.
On August 6, 2019 the City Council adopted Resolution No. 19-1052 (Attachment B) assigning $2,000,000 of the benefits of resolution No. 18-1020 from Ace Properties LLC to Hunt Investments, LLC.
Hunt Investments, LLC plans to use the bond proceeds to acquire, construct and equip an approximate 15,000 sq. ft. office and warehouse facility.
The Ordinance (Attachment C) prepared by the City’s Bond Counsel, Gilmore & Bell, P.C. will authorize the issuance of bonds not to exceed $2,000,000 for the Project. The bonds are a special obligation of the City, paid solely by revenues generated for the Project. The ordinance also authorizes the approval and execution of various documents required to facilitate the transition on 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 Hunt Investments, LLC.
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Action Needed:
Approve Ordinance No. 19-78 authorizing the issuance of industrial revenue bonds for the Hunt Investments, LLC Project, Series 2019.
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Attachment(s):
Attachment A: Resolution No. 18-1020 Attachment B: Resolution No. 19-1052 Attachment C: Ordinance No. 19-78