County Commissioners Consider Consent for Industrial Revenue Bonds in Support of Salina Apartment Project

County Commissioners Consider Consent for Industrial Revenue Bonds in Support of Salina Apartment Project

In the latest county commission meeting held on Tuesday, commissioners reviewed a significant proposal from the county administration regarding granting consent to the City of Salina for industrial revenue bonds (IRB's). The request for action pertains to a crucial development project by Salina Destination Development LLC, selected by the city to construct and manage a large apartment complex situated west of I-135 and Magnolia Road on currently unincorporated county land.

This ambitious project aims to address the pressing housing needs in the area, prompted by the continuous expansion of businesses and their growing workforce. To facilitate the demand for housing, the City of Salina secured a state grant and plans to issue IRB's for a duration of 10 years, covering both sales tax on building materials and personal property. The city has initiated the annexation process for the property, but compliance with state statute (K.S.A. 12-1741a) necessitates the consent of the Board of County Commissioners before IRB's can be granted since the property lies outside city limits.

Salina Destination Development LLC's Development Agreement stipulates that approval for IRB's must be obtained within 45 days of closing on the property. Given uncertainties in the annexation timeline and to meet the 45-day requirement, the county commission seeks consent to proceed with IRB issuance before annexation completion.

Regarding the budget impact, the proposed action is anticipated to have no immediate financial consequences. Although the issuance of IRB's will reduce tax revenue to the county for the initial 10 years of development, it is emphasized that the project would not advance without these incentives.

The motion to approve the proposal was carried with a unanimous 4-0 vote. Commissioner Shadwick was not present.

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