Neodesha approves amendment to IRB authorization, raising Rhor Building bond cap to $11 million

The City of Neodesha Board of Commissioners voted on June 10 to approve Resolution No. 26-13, amending Resolution No. 24-16 to increase the aggregate principal amount authorized for taxable industrial revenue bonds for the Rhor Building project to $11,000,000 and to extend the resolution's effective period through Dec. 31, 2027. Commissioner Truelove moved to approve Resolution 26-13 as presented; Vice‑Mayor Duane Banzet seconded and the motion carried.

The amendment deletes and replaces Section 2 of the original resolution to raise the bond cap and modifies Section 8 to set the new expiration date. The resolution states the bonds will finance "purchasing, acquiring, constructing, furnishing, and equipping" a commercial facility consisting of apartments and non-retail office spaces at 519 and 523 Main Street. Administrator Jones introduced the amendment and attorney Andrew Kovar of Spencer Fane LLC participated by Zoom during the discussion. The resolution cites K.S.A. 12-1740 et seq. as its statutory authority.

Supporters said construction delays and increased anticipated project costs prompted the request from Griffith Development, LLC (the tenant) for more time and a higher authorized amount. The resolution also specifies that costs of issuance may be paid from bond proceeds and that, except for the amended sections, the Original Resolution remains in effect. The resolution becomes effective upon approval by the governing body.

Next steps: with the governing body's approval the resolution is in effect immediately; the record shows no additional on-the-record conditions attached to the vote.