Department: Resource Management
Staff Contact: Dianna Wright/Emily Vincent
Subject: Consideration of Ordinance No. 19-79 authorizing the issuance of taxable industrial revenue bonds, Series 2019, not to exceed $4,000,000 for constructing and equipping a 20,442 sq. ft. grocery store. (Aldi Inc. Project) (Sales Tax Exemption only)
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Item Description:
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Consideration of Ordinance No. 19-79 authorizing the issuance of taxable industrial revenue bonds, Series 2019, not to exceed $4,000,000 for constructing and equipping a 20,442 sq. ft. grocery store. (Aldi Inc. Project) (Sales Tax Exemption only)
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Summary:
On June 4, 2019, the City Council adopted Resolution No. 19-1041 (Attachment A), expressing the intent to issue an amount not to exceed $15,000,000 of the City’s taxable industrial revenue bonds (“bonds”) to Stag’s Ridge, LLC or its successors and assigns to finance the costs of acquiring, constructing and equipping a commercial project near Santa Fe St. and K-7.
The Aldi Inc. Project will be a 20,442 sq. ft. grocery store located on the Northwest corner of K-7 and West Spruce St. A portion of bonds expressed in Resolution No. 19-1041 are being assigned to this project at the request of Stag’s Ridge, LLC.
The Ordinance No. 19-79 (Attachment B), prepared by the City’s Bond Counsel, Gilmore & Bell, P.C. will authorize the issuance of bonds not to exceed $4,000,000 for the Aldi Inc. 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.
The bonds will be issued to obtain sales tax exemption on construction materials used for the Project.
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Financial Impact:
All costs related to the issuance of the Bonds will be paid by the Applicant.
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Action Needed:
Approve Ordinance No. 19-79 authorizing the issuance of industrial revenue bonds for the Aldi Inc. Project. (Sales Tax Exemption Only)
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Attachment(s):
Attachment A: Resolution No. 19-1041 Attachment B: Ordinance No. 19-79