City Commissioners on Monday approved an ordinance authorizing the issuance of Industrial Revenue Bonds (IRB) for the Ranch House Senior Living, LLC complex.
During the Nov. 9 City Commission meeting, Commissioners approved a resolution for an ad valorem property tax exemption for property acquired with the proceeds of certain Industrial Revenue Bonds for the Ranch House Senior Living, LLC complex.
The Resolution of Intent provided a property tax exemption for the project. The cost benefit analysis showed that the project qualifies for a 60 percent exemption, according to meeting documents.
The ordinance authorizes execution of the following bond documents relating to issuance, payment and purchase of the 2017 bonds:
• A Trust Indenture between the City and the Trustee Bank.
• A Site Lease Agreement Ranch House and the City.
• A Lease Agreement between the City and Ranch House.
• A Bond Purchase Agreement.
• A Payment In Lieu of Taxes Agreement.
• A Direct Pay Agreement between the City, Ranch House and the Trustee.
• Other documents and certificates as necessary.
“They (Ranch House officials) have confirmed with us that they will be putting $20 million in this issue…” Mary Carson, the City’s Bond Counsel said during Tuesday’s meeting. “…The reason we used it (IRB’s) is because the IRB structure gives the city the legal ability to grant incentives to the developers. That’s why developers will come in and request them.”
Ranch House Senior Living, located in the 2900 block of Campus Drive, will be a senior community living facility, and community plan features multiple levels of care, including 40 assisted living suites and 60 skilled nursing rooms with access to a state-of-the-art rapid recovery rehabilitation unit.
The facility sits on 25 acres of property and is planned to be be 74,000 square feet.
“The City has no financial responsibility for repayment of any obligation under the IRB,” Carson said. “Your name is on the bonds, but it is paid for by the developers.
Carson said IRB’s are used quite a bit in Kansas, noting that IRB’s are a way to have a public/private partnership when bringing developments to a city or county.
Commissioners on Monday also adopted an ordinance, approving bids for the General Obligation Bonds that provide financing for the addition to the Central Fire Station.
Bret Shogren, with George K. Braum and Company, who serves as the City’s financial advisor, said there were a total of nine tax-exemption bids, with the lowest and winning bid coming from Country Club Bank at a 2.112220 percent interest rate.
On the taxable side, there were ten bids with the lowest and winning bid coming from Robert W. Baird and Company at 2.73286 percent, Shogren said.
The 2017 General Obligation Bond provides permanent financing for the addition to the Central Fire Station at 212 N. 9th St. including the relocation of a water transmission main, at a cost of $2,235,000 and the acquisition of rights to receive treated wastewater effluent from the Meadowlark Dairy Nutrition, LLC project for reuse by the City at a cost of $2,535,000.
Commissioners also adopted a resolution declaring the boundary of the City as of Jan. 1, 2018. State statute requires a resolution declaring the boundaries of the City of Garden City Kansas as of the 1st day of January 2018.
The City had three annexations in 2017, totaling 70.35 acres, bringing the area within the city limits to 7,031.55 acres or 10.99 square miles, according to Steve Cottrell, assistant to the city manager.