Members of the Edgerton City Council approved a resolution that will allow the Allen Group to use $7.5 million in industrial revenue bonds (IRBs) for the DeLong Company project.
DeLong announced its intent to build a grain exporting facility at the KC Logistics Park in June 2011.
Scott Anderson, bond counsel for the Allen Group, explained the resolution to council members during a meeting on Jan. 24.
Edgerton approved a master resolution allowing $500 million in IRBs for the logistics park project in 2010. The resolution council members approved last week simply dedicates $7.5 million to the DeLong project, Anderson explained. The approval is a partial assignment of the master resolution.
IRBs are a financing mechanism that will allow the city to offer 65 percent abatements for 10 years once the project is completed and online. Once the project is complete, the city takes ownership of it and then leases it back to the company.
“These are limited obligations,” he said. “The city can not be held liable in instance of default.”
The DeLong Company is one of the nation’s largest exporters of containerized grain and is the first organization to close on land within the logistics park site adjacent to the Edgerton intermodal.
The DeLong facility will be constructed on an 8.7 acre site in the Logistics Park Kansas City and is supposed to open along with the completion of the BNSF intermodal, set to open sometime in 2013.
Edgerton council approves IRBs