Ark Valley News - Bel Aire council approves bonds to assist development at business park

Bel Aire council approves bonds to assist development at business park
By David Dinell
Last Updated: June 18, 2015

With their sights set on improving the city's long-term business picture, two industrial revenue bonds totaling $2.5 million were approved by the Bel Aire City Council at its June 16 meeting. The bonds will be used by Freedom Buildings LLC for two new buildings in the city's Sunflower Commerce Park. One is for a lease for the South Central Kansas Economic Development District Inc. and the other for Factory Direct Copper and Granite LLC.

The IRBs means the developer gets tax incentives and a sales tax rebate for the project, said City Administrator Ty Lasher. During a five-year period, the company goes from a 100 percent property tax waiver to paying taxes after that span is up. The taxes apply even though one of tenants is a non-profit group.

Lasher said the deal makes sense for the city and its residents.

"For every $1 we give up in taxes, we get $1.84 back," he said. "That's why the council is comfortable with this."

Council members concurred.

"It's great to see more progress at the park," said council member Ken Lee.

Mayor David Austin said the city has to be competitive with others.

"When people are out shopping for development, we have to make sure we have the best package," he said. Such bonds are a "delicate balance," he said, because the city wants new business, but also needs to ensure that it's not doing it at a loss. With this contract, he said, it's a "win-win."

They are requirements that they have to meet, he said. Such rules require creating jobs and staying in Bel Aire when the bonds have expired.

Abdul Arif, executive director of SCKEDD, was at the meeting and expressed satisfaction that his agency would be getting a new home. The lease at its existing headquarters, 200 W. Douglas, No. 710, is expiring at the end of this year.

"I have a great deal of interest in seeing this project going through and worked long and hard with Ty (Lasher) to make this a reality," he said. "Thank you, guys."

In other action, the council:

•Approved the consent agenda, which includes a fireworks permit for the Community Bible Chapel, 3799 N. Harding.

•Approved appropriations in the amount of $718,870. That sum includes a payment of $471,000 to Andale Paving.

•Approved two of the mayor's appointments by a 2-1 vote. They are: Jeff Oldenettel to the Planning Commission and Dannielle Fisher to the Community Development committee.

•Guy MacDonald expressed concerned about the amount of money being spent on information technology. The city is currently spending $5,599 a month, or $67,188 a year, on it and he urged Lasher to seek ways to save on that cost. The move is toward hiring a full-time person who can do the same work at less expense for the city.