Albert Rukwaro
Special to The Gardner News
The Edgerton city council approved a one billion dollar industrial revenue bond issue for the construction of commercial facilities of the Phase 2 of the Kansas City Logistics Park on April 25.
The council approved the bonds following a request by the Edgerton Land Holding Company. The bonds will be issued in multiple series for the purpose of financing the acquisition of land, constructing facilities and equipping facilities within the park.
In a cost-benefit analysis conducted by Columbia Capital, an Overland Park based municipal advisory firm, Phase 2 of LPKC is projected to total more than 13 million square feet in warehouse and distribution space -encompassing more than 1,500 acres of land.
The analysis projects that LPKC Phase 2 will create 3,519 jobs in the next 20 years. In the same period, the city will have derived $43 million in revenues while the county is expected to get $760,814.
According to the analysis, USD 231 will receive $13,771,547 through 2039.
“Our analysis focuses on financial impacts to the city, Johnson County and the Gardner-Edgerton schools,” Jeff White of Columbia Capital told the council. “We have not calculated the cost-benefit on other taxing jurisdictions.”
Phase 2 of the logistics park is located southeast of the intersection of Interstate 35 and Homestead Lane. The city expects the project to be constructed in phases with one or more buildings being constructed and financed at a time.
The resolution stipulates that the bonds will be payable solely out of rentals, revenues and receipts derived from the lease of each project by the city to the land holding company.
The resolution also stipulates that the Logistics Park projects will be granted an exemption from taxes.
However, Edgerton will receive $0.16 per square feet in lieu of taxes for the duration of the exemption.
According to the resolution, “Each series of bonds and the interest shall be special, limited obligations of the city payable solely out of rents, revenues and receipts of the city derived from the lease of the related project to lessee.
“The bonds shall not constitute a general obligation of the city, the state of Kansas or any other political subdivision, shall not constitute a pledge of the full faith and credit of the city, the state of Kansas or any other political subdivision and shall not be payable in any manner by taxation,” according to the resolution.
During the same meeting:
the council approved a resolution allowing Edgerton Land Holding Company to assign $60 million of the bond money to a new entity, ELHC LI LLC to proceed with the construction of a 756,000 square feet warehouse and distribution facility at the northeast corner of Waverly road and 207th Street.