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Council approves IRBs and PILOT agreement for Merriam Grand Station apartments
Summary
The council approved ordinance-level industrial revenue bonds and a payment-in-lieu-of-taxes (PILOT) arrangement for the Merriam Grand Station apartments, setting a fixed annual PILOT payment to taxed entities while providing the developer with a property-tax abatement for a term.
MERRIAM, Kan.
The Merriam City Council on Aug. 25, 2025 waived the customary first reading and then approved an ordinance authorizing industrial revenue bonds and associated bond documents for the residential component of Merriam Grand Station, and it approved a payment-in-lieu-of-taxes (PILOT) arrangement to mitigate effects on other taxing entities.
City staff explained the IRB structure is the statutory mechanism by which a developer receives a sales-tax exemption on construction materials and, in this case, a property-tax abatement for the residential component. The city's role is administrative: the development will be base-leased to the city and then leased back so lease payments mirror debt service; the city is not obligated to pay the bonds, staff said.
To reduce the fiscal impact on the other taxing bodies (school district, county, library and community college), the developer agreed to a PILOT amount of $24,741 per year. City staff said that payment amount mirrors the prior base level for those properties and that the county will receive the payment and distribute funds to taxing entities in the same manner as property-tax collections. Staff noted that the IRB and PILOT steps previously began with a 2022 resolution of intent for the project and that the current ordinance finalizes the bond authorization and the PILOT.
Bond counsel prepared the documents and was present to answer questions. Staff said that if council approved the ordinance, the abatement and PILOT would start on Jan. 1, 2026, beginning the term covered in the agreement.
Ending: The ordinance clears the developer to proceed with the final IRB issuance and PILOT schedule; staff said the county will handle collection and allocation of the PILOT payments to affected taxing entities.
