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Lenexa approves intent to issue about $9 million in IRBs, grants 10-year tax abatement for warehouse
Summary
The Lenexa City Council adopted a resolution expressing intent to issue approximately $9 million in industrial revenue bonds and approved a 10-year tax abatement and payment-in-lieu agreement for Lenexa Logistics Center East Building 1.
The Lenexa City Council adopted a resolution approving the city’s intent to issue about $9 million in industrial revenue bonds (IRBs) and a 10-year tax abatement for Lenexa Logistics Center East Building 1, a proposed approximately 50,000-square-foot office-warehouse facility in the Lenexa Logistics East business park.
Sean McLaughlin, city attorney, told the council the action follows a 2019 master resolution that enabled development of the east business park and anticipated four buildings and infrastructure on the 80-acre site. McLaughlin said the master resolution set a 10-year fixed abatement and an effective 71% abatement for each building as they come online.
City staff described the Building 1 proposal as roughly 50,000 square feet with a $9 million IRB request. Under the proposed structure, the fixed abatement is calculated on a base of $1.20 per square foot and a 71% effective abatement over 10 years; staff estimated total payment-in-lieu-of-tax (PILOT) payments to the city of about $191,000 across the 10-year term. Staff recommended approval of the resolution and the abatement.
No members of the public spoke during the public hearing on the item. Councilmember Chris moved adoption of the resolution; Councilmember Bill seconded. The motion passed with those voting in favor and no recorded opposition in the transcript.
The council’s action was to adopt the intent resolution and approve the 10-year abatement and PILOT agreement; the transcript records the motion and the passage but does not include the final executed bond documents or a closing date for issuance.
