Olathe to review multi-million dollar request to support new business park

Business

OLATHE, Kan. — Next week, the Olathe City Council will review a proposal to build a $76 million business park south of Interstate 35. 

BlueScope Properties Group is requesting approval of a master resolution to build four warehouse buildings totaling 640,150 square feet near 159th Street and Lone Elm Road.

Olathe has received a request to issue industrial revenue bonds [IRB] and 10-year, 50% tax abatement for the project. 

The developer is also requesting approval of the first phase of construction to build a 236,160-square-foot building in the northeast corner of 159th Street and Lone Elm Road. 

Under the master resolution, the first phase would include issuing $23,441,712 in IRBs to cover the cost of acquiring land, constructing the building and purchasing furniture and equipment for the warehouse. 

According to city records, $1,121,712 will be used to purchase the land; $14.4 million will be used to construct the building, with an additional $6.52 million allocated to covering additional costs associated with construction, and $1.4 million will be used to purchase furniture and equipment. 

The project is expected to create 158 new jobs over the next decade and offer employees an average annual salary of $38,000 in the first year. 

Over the course of the 10-year abatement period, the first phase of the new development is expected to generate $170,318 in annual property taxes for all jurisdictions. When the abatement period ends, the project is expected to provide $1,703,175 in annual property taxes for all jurisdictions.

Olathe currently receives roughly $37 in property tax revenue from the property as it is today. At the conclusion of the tax abatement period, the city would receive approximately $65,988 in annual property tax revenue on the property.

On Nov. 2, the Olathe City Council will host a public hearing before voting on the master resolution and first-phase project. 

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