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Council declares intent to issue up to $2.8 million in industrial revenue bonds for commercial expansion
Summary
The council adopted a resolution declaring intent to issue taxable industrial revenue bonds not to exceed $2.8 million to support a commercial facility expansion; the bonds are payable from project revenues and do not constitute a city general obligation or property‑tax abatement.
The Gardner City Council approved Resolution No. 2,151 declaring the city’s intent to issue industrial revenue bonds (IRBs) taxable under federal law in a principal amount not to exceed $2,800,000 to finance a portion of a commercial facility expansion.
Staff described the financing as intended to provide a sales‑tax exemption on construction materials for the developer’s expansion; the IRBs would be payable solely from revenues generated by the lease of the project and would not be general obligations of the city nor payable by taxation. ‘‘The bonds shall not be general obligations of the city, nor constitute a pledge of full faith and credit for the city, and shall not be payable in any manner of taxation,’’ staff said.
Council moved and seconded adoption of the intent resolution and the item passed. The resolution identified the development as an expansion to a commercial facility (referred to in the meeting as Olathe Ford R.V. Phase 1); staff noted there is no property‑tax abatement associated with the bonds.
What’s next: The resolution is a procedural step; future council action will be required to finalize bond issuance and any developer agreements.
