Special to The Gardner News
The city of Edgerton created two Tax Incremental Financing (TIF) redevelopment districts during a council meeting Aug. 22.
The first district, located on the Northwest corner of 191st and Waverly Rd, is set to host an office complex. In creating this district, the council deemed the property blighted because it partly lies on a 100-year floodplain.
“The Kansas TIF statutes define a ‘blighted area’ as, among other things, any area where a majority of the property is in a 100-year floodplain area. In this case 55.6 percent of the proposed district is within a 100-year floodplain,” Scott Anderson, the city’s bond counsel told the council.
The district will have a multi-story office building.
The second district, located on the Northeast and Northwest corners of Interstate 1-35 and Homestead Lane, will host a retail businesses.
To qualify for TIF designation, the council declared the property a conservation area in danger of becoming blighted because of the presence of dilapidated buildings, structures below minimum code standards and inadequate utilities and infrastructure.
The TIF Act provides a means for local governments to encourage the redevelopment of locations within their communities that are substandard or economically underutilized and that would otherwise not be developed without public assistance.
In other business:
the council authorized the city to issue up to $26 million in industrial revenue bonds to fund the third expansion of ColdPoint Logistics, a cold storage facility located at LPKC.
According to the ordinance, ColdPoint Logistics will lease the project site to the city, and the city will then sublease the property back to ColdPoint Logistics.
“If lease payments from ColdPoint Logistics are insufficient to cover scheduled debt service on the bonds, the city is not obligated to makeup any shortfall from any other funds of the city,” Anderson said.