Focus Area: Economy
Staff Contact: Dianna Wright
Subject: Consideration of Ordinance No. 21-07 authorizing issuance of the City’s taxable Industrial Revenue bonds in an amount not to exceed $3,038,000 to Business Garage Authority, Inc, Series 2021, for the purpose of funding the cost of acquiring, purchasing, constructing, installing, and equipping a commercial facility located at 15571 S Mahaffie. (Mahaffie Business Park)
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Item Description:
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Consideration of Ordinance No. 21-07 authorizing issuance of the City’s taxable Industrial Revenue bonds in an amount not to exceed $3,038,000 to Business Garage Authority, Inc, Series 2021, for the purpose of funding the cost of acquiring, purchasing, constructing, installing, and equipping a commercial facility located at 15571 S Mahaffie. (Mahaffie Business Park)
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Summary:
On August 18, 2020 the City Council adopted Resolution No. 20-1054 (Attachment A), expressing the intent to issue an amount not to exceed $4,238,000 of the City’s taxable industrial revenue bonds (“bonds”) for the development of flex industrial space on six parcels totaling 3.32 acres in Mahaffie Business Park. This project is proposed to be completed in two phases. Phase one is for 24,000 sq ft spec office/industrial space and the second phase is expected in 2023 and will add an additional 24,000 sq ft. This project is under a master resolution for the Mahaffie Business Park located at 15571 S. Mahaffie.
The Ordinance (Attachment B), prepared by the City’s Bond Counsel, Gilmore & Bell, P.C., will authorize the issuance of bonds not to exceed $3,038,000 for this first phase of 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 Business Garage Authority, Inc.
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Action Needed:
Approve Ordinance No. 20-07 authorizing the issuance of industrial revenue bonds to Business Garage Authority, Inc.
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Attachment(s):
A: Resolution 20-1054
B: Ordinance No. 21-07