OLATHE, Kan. — On Tuesday, the Olathe City Council will review a request to issue more than $200 million in industrial revenue bonds (IRBs) to build a new business park in the southern part of the city.
The 175th Commerce Centre West business park would be located on approximately 223 acres of land at the corner of 175th Street and Hedge Lane. In January, the Olathe City Council approved a request to rezone the 223-acre property to M-2 (General Industrial) and BP (Business Park).
Two companies affiliated with the Georgia-based developer TPA Group LLC have requested a master resolution of intent for the construction of six warehouses totaling approximately 3.6 million square feet.
Developers plan to use approximately $21 million to purchase the land, $158 million to construct the warehouses and $30 million to purchase machinery and equipment.
Under the master resolution, applicants are requesting a 10-year, 50% tax abatement phase-in for the development.
In addition to the master resolution, developers have also submitted a first phase industrial revenue bond application for the business park. BT 175 Phase 1 LLC has requested roughly $65 million of the $213 million bonds be used for the construction of a new 1,123,470-square-foot industrial warehouse to be located in the northwest corner of 175th Street and Hedge Lane.
According to city documents, roughly $6 million would be used to acquire the land. Developers would use $49 million to cover construction costs and $10 million to cover furniture and equipment.
The project is estimated to create 560 new jobs over the next 10 years with the average salary of jobs created in the first year to be approximately $39,672.
The council will vote on an ordinance to issue industrial revenue bonds for the 1.1 million-square-foot facility Tuesday night following a public hearing.
The council will also vote on a master resolution from BTM Land, LLC to create another business park in the East. BTM Land is requesting $160,901,096 in IRBs be issued for the construction of four planned industrial, flex and warehouse buildings totaling approximately 2.6 million square feet to be located inside 175th Street Commerce Centre East.
The project is estimated to create 1,308 new jobs over the next 10 years with the average salary of jobs created in the first year to be approximately $45,936.
Developers intend to use roughly $16 million to acquire land; $118 million to construct the buildings and $126 million to cover the cost of furniture and equipment. City officials say so far no project proposals have been submitted for the east business park. All future developments within the Commerce Centre East or Commerce Centre West developments must meet requirements set by the city and be approved by the Olathe City Council.
The Olathe City Council is scheduled to vote on these requests during the next regular council meeting on Tuesday, August 3 at 7 p.m.