The Unified Government Commission tonight approved bond issues for some economic development projects.
The Associated Wholesale Grocers expansion was a project that returned to the commission because of a ruling by the Court of Tax Appeals.
AWG made an addition onto its existing building. According to George Brajkovic, director of economic development, COTA’s interpretation was the only portion eligible for abatement was the tower portion of the building.
Approved tonight was a larger industrial revenue bond participation, which did not require UG backing, Brajkovic said. The new ordinance allows issuing $17.2 million in industrial revenue bonds for AWG’s property, including a newly constructed corporate office tower.
According to UG documents, AWG has consolidated its offices into a newly constructed corporate office tower at the property location.
Also approved tonight was a resolution for a performance agreement for the General Motors paint shop expansion at the Fairfax plant, an $80 million project. The resolution calls for a 50 percent payment in lieu of taxes for the expansion. In addition, there may be additional incentives applied to this, up to 75 percent PILOT, if more GM suppliers locate in Wyandotte County.
Originally, in 2012, this project was planned for industrial revenue bonds. A new statute allows a 10-year term on abatement for certain projects, Brajkovic said.
Two General Motors executives from Detroit, along with the manager of the Kansas City, Kan., plant, attended the meeting.
One of them, John Blanchard, director of local government relations for GM, expressed appreciation for the support the plant has received from the UG through the years, and said it was a significant investment for the company. He said this plant will be very competitive for future products, and an investment like this is critical for the future.
UG officials expressed their appreciation for the expansion and the plant’s continued presence in the community throughout four or five generations.
Another economic development project approved tonight involved two ordinances authorizing the issuance of industrial revenue bonds for PQ Corp.’s expansion at 1700 Kansas Ave. The first is for $22 million and the second, for $34.1 million.
Last year the commission adopted a resolution approving the intent to issue $219 million in IRBs and a 75 percent tax abatement, and approved an ordinance to issue $101 million in IRBs for the project.
Several projects in the CMIP budget for 2015 temporary note and bond financing were approved. Two of the 14 projects originally proposed were removed from the list.
The two projects that were removed included elevator upgrades scheduled in 2015, and the upper Conner Creek interceptor sewer 115th Street projects. Those projects will be revised and considered at a later time, according to the agenda.
The total budgeted financing of the original 14 projects was reduced by about $1.2 million.
Also at tonight’s meeting, an ordinance was approved to authorize UG lawyers to commence legal proceedings to acquire property for the Oak Grove Road, South 53rd to South 55th Street project.