UG approves resolutions to authorize Dairy Farmers of America agreement

The Unified Government Commission unanimously voted to authorize a development agreement with the Dairy Farmers of America at its Thursday, Feb. 26, meeting.

Also approved was authorization for $4.5 million in street improvements and issuance of $4.5 million in temporary notes for the Dairy Farmers of America project.

The project is a 100,000-square-foot office building that will serve as global headquarters of the DFA. It is on about 12 acres in the Vacation Village Redevelopment District, in the Schlitterbahn area, near the intersection of France Family Drive and 98th Street. That is between Parallel Parkway and State Avenue.

‘I want to thank the Dairy Farmers of America for your significant investment in our community,” Mayor Mark Holland said. “We’re looking forward to partner with you in the future.”

According to UG information, the $20 million capital investment project has a target completion date of Nov. 1, 2016. The development agreement will specify a 20-year commitment to the site.

The DFA currently has a building on the Missouri side of the state line, near the airport, and there are about 300 workers with an average annual salary of $90,000, according to UG documents.

The UG is issuing industrial revenue bonds, and the project qualifies for a 10-year, 75 percent abatement, according to UG information. There is also a $1 million pledge of STAR (sales tax revenue) bond proceeds toward eligible site costs.

The $4.5 million roadwork will be an “S” curve added to 98th Street. The ”S” curve was part of the planned improvements, and has now been accelerated according to UG documents.

The road improvement may be paid for with $4.5 million in temporary notes to start the project, according to UG documents. The long-term funding will come from either STAR bond issuance, the state of Kansas or contributions by SVV (Schlitterbahn Vacation Village), UG documents stated.