SHAWNEE, Kan. — Developers have secured more funding to build out the next phase of Heartland Logistics Park.
On Monday, the Shawnee City Council unanimously approved a resolution to issue $45 million in Federally Taxable Private Activity Revenue Bonds for the construction of new warehouses in Heartland Logistics Park.
In 2019, the city agreed to issue up to $250 million in bonds to cover the cost of acquiring land, materials and construction to build out approximately 2 million square feet of warehouse space across multiple buildings near 43rd Street and K-7 Highway.
As part of that $250 million cap, developer Heartland Logistics Land, LLC intends to use the $45 million in bonds to create Building II, a 574,732-square-foot industrial building on approximately 36 acres within Heartland Logistics Park.
“We keep talking about [how] we need to increase the tax base, and this is the type of thing that’s going to do that and supplement that. I think it’s a great opportunity to properly use the bonds,” Councilmember Eric Jenkins said.
By issuing the bonds, the city will also authorize a sales tax exemption and property tax abatement for each building constructed within the scope of the project.
The developer will receive a 10-year property tax abatement on the project, but will be responsible for making payments in lieu of taxes (PILOT). The developer will pay $0.37 for each square foot of the developed building each year of the term of the abatement.