The Edgerton City Council passed an ordinance Feb. 25 to refinance the bonds used to build the public infrastructure at Logistics Park Kansas City (LPKC) Phase I, north of I-35. Previous bonds were issued in 2015 and 2018.
Scott Anderson, bond counsel, told the city council that UMB Bank approached the city to buy the bonds at a significant interest savings. “Today the bonds have an interest rate just under 6 percent, but UMB offered the city a 2 percent interest rate, which would mean a tremendous savings,” he told council members.
The refinancing will allow Edgerton to pay off the debt used to finance the construction of the Quiet Zone Improvements along Nelson Street and the State Revolving Fund Loan for construction of the Big Bull Creek Wastewater Treatment Plant. The refinancing would also fully fund the 207th Street Grade Separation Project at $15 million dollars.
In addition, new infrastructure needed in LPKC Phase I will only be funded by new revenues generated by development. “This is truly a situation where the project pays for itself,” Anderson said. As part of this refinancing, beginning in 2032 certain revenues, such as franchise fees and intermodal property taxes, will flow directly to the city instead of to the Public Infrastructure Fund.
“Starting from Day 1, BSNF Railway and Logistics Park Kansas City has funded the infrastructure using revenues generated from the development. This refinancing continues the important public-private partnership commitment for development to pay for itself together with a significant savings in interest, which is great for our residents,” said Donald Roberts, mayor.