Monday, July 14, 2008

In the interest of including all the facts: Council Bills 2008-208, 209

In, "Council to consider tax breaks for BKD building," The Springfield News-Leader's Wes Johnson wrote:

"The council will consider giving several tax breaks to facilitate a $21.5 million industrial revenue bond for the 109,600-square-foot BKD headquarters building at 910 St. Louis St.

The site currently is a parking lot owned by John Q. Hammons, just south of the Jordan Valley Car Park.

Tonight's discussion is a first reading of the proposal, and the public will have an opportunity to speak about it. A final vote is likely within two weeks."

Johnson was writing about, one must assume, Council Bill 2008-208.

However, the Resolution, Council Bill 2008-209, will be read tonight and, as a Resolution, only requires one reading. Citizens may speak but the Council may, and most likely will vote tonight, either for or against approval of the City acting as necessary to issue its Industrial Development Revenue Bonds in a principal amount not to exceed $21.5 million to finance the costs of Opus' building of the "BKD" office building.

If the Council approves the Resolution, the City will become the owners of the property and will lease it to Opus, with Opus having an option to buy the property and its improvements. You can read the terms for yourself under both bills.

Johnson failed to note that, so I thought I would.

The original agreement Council approved, which was negotiated with Hammons on the former arena site/parking garage, stipulated that Hammons would sell the property, which Hammons owned and is currently a parking lot, to Opus for the purpose of developing an office building which would be leased, in part, to BKD.

Council approved the option of the bond issuance as a part of the authorization they gave the City to negotiate a development agreement with Opus on June 30. Whether they realized the option of a City ownership, finance and City bond issuance was approved because of the City's inclusion of RSMo Chapter 100 being cited or not, I do not know. I haven't taken the time to find out yet.


17. COUNCIL BILL 2008-209. (Carlson)A resolution approving a plan for an Industrial Development Project for 910 Springfield, L.L.C., and determining the official intent of the City of Springfield, Missouri, to issue its Industrial Development Revenue Bonds in a principal amount not to exceed $21,500,000 to finance the costs of such project

1 comment:

Anonymous said...

I believe the City Charter requires any project built with 3000 feet of the JQH statue to be approved by Council without any questions asked.

This area is zoned tax free, public financed.