The Wyandotte Plaza refinancing plan moved forward in the Unified Government Economic Development and Finance Committee on Jan. 4.
Wyandotte Plaza, at 78th and State in Kansas City, Kan., is being sold to a real estate investment trust that owns more than 270 properties, including many shopping centers with grocery store anchors, according to a recent announcement. Wyandotte Plaza underwent a $28 million redevelopment recently by Red Legacy, now Legacy Development.
Under the plan, the UG will increase the financing authority for Wyandotte Plaza from $7.125 million to $13.86 million, plus interest, according to Lew Levin, UG chief financial officer.
“That is what we had contemplated all along with the project,” Levin told a UG standing committee. When the UG issued debt in 2012, the decision was to limit the debt to $7.1 million.
“Any future issuance of debt would be dependent on the developer’s ability to move forward with the project and complete the project. The developer has accomplished those objectives,” he said.
Another ordinance allows the UG to refinance bonds that were issued in 2012, not to exceed $15.9 million. Other specifications are the interest rate will not exceed 6 percent; the final maturity date will not be later than 2035; and bonds are subject to an optional call on or after Dec. 1, 2026, Levin said.
“What’s really positive about this project, it removes the government’s annual appropriation,” he said.
Right now, the UG is backing the existing bonds that have been issued, he said. With this action, the backing will become the project’s revenues, he said. Those revenues include a property tax increment, a sales tax increment over a base, and a community improvement district pledge, he added.
“This financing is backed strictly by project revenues, there’s no general obligation bond backing, so it’s not a negative to our credit rating,” Levin said.
The agenda stated $611,396 was the amount that had been listed in the 2016 city general fund budget as an annual appropriation pledge. This pledge will not be required when the project is refinanced, according to agenda information.
The refinancing plan may now go to the full UG Commission for approval.
To see an earlier story on Wyandotte Plaza refinancing, visit
https://wyandotteonline.com/deal-to-sell-wyandotte-plaza-advancing-through-ug/.