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Council authorizes letter of intent for Storytime Village to seek industrial revenue bonds
Summary
The council closed a public hearing and authorized a resolution allowing Storytime Village to pursue industrial revenue bonds (IRBs) to obtain a sales-tax exemption for the Storytime Village Literacy Center; Storytime seeks IRBs up to $3.5 million to preserve about $245,000 in sales-tax savings on construction.
The Wichita City Council closed a public hearing and adopted a resolution authorizing Storytime Village to seek industrial revenue bonds that would create a sales-tax exemption for construction purchases tied to the organization's planned literacy center.
Leah Sisco of Development Services explained that Storytime Village, a Kansas nonprofit focused on childhood literacy, requested IRBs not to exceed $3.5 million so the project can realize an estimated $245,000 in sales-tax savings on remaining construction purchases; Sisco told the council the city itself is not lending money and would not bear financial risk because the bonds would be purchased by Storytime or a related entity and Storytime would pay issuance costs.
Dr. Prisca Barnes Simmons, founder and CEO of Storytime Village, described the center as a nearly $10 million investment that will combine literacy programming, early childhood services and partner organizations under one roof. "By approving the sales tax exemption, you're allowing more of our charitable dollars to be invested directly into serving children and families instead of construction cost," Barnes Simmons told the council.
Councilmember Joseph Shepherd, whose district includes the project site near Wichita State University, moved to close the public hearing, adopt the resolution, and authorize signatures; the council voted 7-0 to approve the action.
The staff record notes the initial phase (about $5 million) was funded by the state's capital projects fund and came with operational deadlines the project needed to meet; the IRB request is intended to help protect that grant funding and reduce construction costs for the remaining work.
Next steps: city staff will finalize the bond documents with bond counsel and the city's law department will review the documents before signatures are finalized.
