Special to The Gardner News
Edgerton city council had 46 items on the agenda at their April 27 meeting. Members considered construction contracts for two road projects, tax abatement for new LPKC developments and changes in the ownership group of ten existing LPKC buildings.
LPKC developments and expansion
Council considered tax abatement applications for three new warehouse and distribution facilities in Logistics Park.
Proposed construction projects include a 777,000 sq. ft. building at 18451 Montrose Street, a 492,000 sq. ft. building at 30700 W. 183rd Street and a 200,000 sq. ft. building at 19400 Essex Road.
The three projects were considered and voted on separately. A public hearing was held on all three.
All three projects would offer a 100 percent tax abatement for ten years, and impose a Payment In Lieu Of Taxes (PILOT) at the rate of $0.21 per square foot.
The cost benefit analysis prepared by Columbia Capitol Management says the property on Montrose generates $2,498 in property taxes annually as undeveloped land.
After construction, it would generate $163,170 annually in PILOT payments.
The 492,000 sq. ft. project collects $1,818 in property taxes and $103,320 in PILOT payments.
The 200,000 sq. ft. project property tax of $3,323, is to be replaced with $42,000 in PILOT payments.
Scott Anderson, bond counsel, presented the items to council.
Anderson said the city had received a letter from USD 231.
The school district continues to object to the terms of abatement offered by the city to Logistics Park developments.
The district claims the 21 cents per square foot rate amounts to a 90 percent abatement. The district wants abatement rates to stay closer to 50 percent.
Anderson says the exact percentage is difficult to determine precisely, but he believes it’s closer to 80 or 85 per cent. He quoted numbers from previously completed projects to support his opinion.
”A lot of the disconnect here is coming from the fact that when they send us their letters, they’re basing the taxes off the par amount of bonds being issued. As I’ve told you before, we issue bonds for the actual construction costs and land, also personal property equipment and other soft costs that the county appraiser does not take into account when appraising property,” said Anderson.
Don Roberts, mayor, compared numbers from the Hampton Inn development deal in Gardner to Logistics Park project ELHC VI.
USD 231 has said the Hampton rate averages out to 66 percent over ten years. Roberts says the Hampton deal is actually 74 percent, according to his figures.
“In my opinion, the school district is picking sides between communities. And unless they want to play fairly and treat both of us the same, then I’ll continue to listen to them because it’s our job, but until they want to be reasonable and make sense, and use factual information, you know, they’re just not getting anywhere,”Roberts said.
The city and school district also differ on the effect LP developments have had on student population.
“Prior to LPKC they had higher growth numbers than they have today,” Roberts said.
Roberts offered handouts of the charts and figures he had used to come to these conclusions.
In addition to the three new developments applying for abatement, a fourth request was considered for expansion of an existing LPKC facility, Cold Point Logistics.
Cold Point currently has a 161,000 sq. ft. facility. They want to add an 184,000 sq. ft. expansion.
The expansion would be a separate abatement from the existing facility.
According to the cost-benefit analyisis, the property generates $413 in property tax as farm land, and that would increase to $38,725 in PILOT payments.
Council approved all four developments with 5-0 votes.
Changes in LPKC ownership group
Council considered changes in the ownership group of ten buildings at LPKC.
Scott Anderson, bond counsel, explained the details.
North Point, the main owner, wants to bring in a new player – the financial investment firm Ares. The lender will also change from UMB Bank to Mass Mutual.
“What this will do is allow North Point to in effect cash out some of their investment in these ten projects and give them funds, so they can go out and do new projects,” said Anderson.
Resolutions are necessary to enable the minor changes/amendments to legal descriptions and documents relating to the projects.
Council passed Resolutions No. 04-27-17E through 04-27-17W with 5-0 votes.
Widmer Street construction
Council considered awarding a contract to Clarkson Construction Company for construction of Widmer Street Phase I (Essex Road and 193rd Street) in Logistics Park.
The city collected three bids on the project, and all three were under the engineer’s estimate.
Clarkson submitted the low bid of $2,550,604.23.
The city expects to receive an economic development grant of $1 million to be applied to the project.
The remaining funds will come from the Public Infrastructure Fund.
Council approved with a 5-0 vote. The contract requires substantial completion by June 15 and final completion by July 1.
Traffic light on Waverly
Council considered construction bids for a traffic signal at 191st and Waverly.
A total of four bids were received, and all bids were below the engineer’s estimate.
The low bid from Teague Electric, was rejected because Teague failed to submit all the materials required for the bid.
The next lowest bid was from J. Warren Co. at $210,644.90.
Council voted 5-0 to award the contract to J. Warren.
Once material is secured and Notice to Proceed is issued, the project is expected to be completed within 30 days.
Rezoning 80 acres at LPKC
Council considered Ordinance No. 1053, which would approve a request for rezoning 80 acres of land east of Montrose Street and south of 183rd, from RUR, Rural to L-P, Logistics Park District.
The property was annexed into Edgerton on March 23, 2017, and is considered an expansion of the Logistics Park and Intermodal Facility.
The planning commission held a public hearing on April 11 regarding this rezoning.
Council approved the rezoning with a 5-0 vote.