Edgerton City Council members continued a public hearing to issue $1 billion in industrial revenue bonds for an expansion of the Logistics Park Kansas City.
Northpoint Development, the development company for the project, recently purchased 560 acres that it would like to add to the LPKC. The addition would allow the developer to secure financial incentives including tax abatements for the property of up to 75 percent.
Beth Linn, city administrator, said the council will consider amending agreements between Northpoint, the city of Edgerton and BNSF.
She said the added acreage will add non-rail- served, industrial building sites.
“It gives (the developer) additional space, especially for very large buildings,” she said. “It gives them options for building placement.”
An amended contract would offer incentives similar to those available for the original 560-acre industrial development adjacent to the BNSF intermodal. The financial incentives include 10-year, 75 percent tax abatements for new buildings. Most of the original acreage will offer rail-service for potential warehouses. The addition will bring the total Logistics Park Kansas City to 1,120 acres.
According to a cost-benefit analysis, the additional development space will provide a net benefit to city coffers, however the majority of it will be reinvestment in development of the logistics park. The cost-benefit analysis envisions full build-out of the additional acreage by 2025. It also assumes 840,290-square feet will be developed in 2014. The study, conducted by Columbia Capital Management, projects the additional development space will result in 242 new residents in Johnson County, including 183 in Edgerton. It projects the addition will also tally 2,433 new jobs at the site by 2034. In today’s dollars, the analysis projects the added development space will grow city revenues by $30 million over 20 years. The analysis predicts the county will lose close to a million dollars over the next 20 years, while the school district stands to gain more than $11 million in revenues due to the project expansion.
The city of Edgerton is not being asked to back bonds for development of the additional acreage.
Linn said the council will consider amending the financing agreement between the city of Edgerton and Northpoint to include the additional acreage during the Jan. 9 city council meeting.
Northpoint looks to add acreage at intermodal