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Hutchinson council backs $6 million industrial revenue bond advisability for Prairie Land Partners expansion
Summary
The Hutchinson City Council voted to find it advisable to issue up to $6 million in taxable industrial revenue bonds to support Prairie Land Partners' expansion of a commercial fill facility at 1800 South Lorraine, and authorized the mayor to sign related documents.
Angela Richard, Hutchinson's director of finance, told the City Council during a public hearing that Prairie Land Partners plans to expand a commercial fill facility at 1800 South Lorraine by about 32,000 square feet and has requested taxable industrial revenue bonds (IRBs) estimated at $6,000,000 and a 10-year property tax abatement.
Richard said the property was recently annexed into the city and that the packet included a cost‑benefit analysis showing the city's benefit-cost ratio at 1.63, meaning the quantified benefits exceed the estimated costs. She also explained that, under the structure of IRBs, the city would act as leaseholder while the company would be the lessee, and that the property would be deeded back to the company when the bonds are retired. "The estimate amount of the proposed IRBs is $6,000,000," Richard said.
No members of the public spoke in opposition during the hearing. After a brief council discussion in which members described the project as an economic driver for Reno County and the region, a motion was made and seconded to approve a resolution determining the advisability of issuing the taxable industrial revenue bonds and to authorize the mayor to sign.
The council recorded affirmative roll-call votes and the resolution passed. The resolution itself and related IRB documents will be finalized by staff and the city attorney, and the council authorized the mayor to sign the necessary paperwork.
The hearing packet notes that notice was sent to related taxing entities and that required publication occurred; staff confirmed a cost-benefit analysis was included in the council packet. The council did not adopt the tax abatement at final ordinance-level in this meeting; the action taken was a determination of advisability and authorization for signatures related to the resolution as presented.
What happens next: staff and the city attorney will finalize documents and follow the statutory procedures for IRB issuance, including coordination with taxing entities and any required additional approvals.
