The Emporia City Commission has declared its intent to assist a local business in its continued relocation efforts.
During its recent action session Wednesday afternoon, the commission unanimously approved a resolution stating its intent to issue $14 million in taxable industrial revenue bonds to be used for the acquisition, construction and equipping of a new commercial food processing facility for Fannestil Meats. City Attorney Christina Montgomery explains Wednesday’s action is not the final step in issuing the bonds, she says there are still a few requirements and actions that need to be taken beforehand.
The commission’s action Wednesday also allows the city to apply for a sales tax exemption according to Montgomery.
The exemption will mean that the developer will not have to pay any sales tax on building materials or equipment which helps cut down on the cost of construction for the project.
Fanestil has been in the process of moving out of the Cottonwood River floodplain just south of Emporia for years, and this action helps the business both move out of the floodplain and finish long-desired plans to have its entire business complex just west of Emporia after opening its Fresh Local Market in the 4700 block of West US Highway 50 in 2015. The city will have no obligation and will not be liable for repaying any of the bonds according to Montgomery.
Word on when final approval will be given is currently pending.
In other business, commissioners approved a supplemental contract with BG Consultants to cover bid letting and construction inspection services by BG in relation to a pending improvement project on Sanitary Sewer Lift Station #2. The station upgrades are part of a larger overall project which also includes updates to stations 1 and 15, however, the supplemental contract only pertains to station 2.
The total contract is not to exceed $215,036 with work on the project tentatively set to begin at some time next year, however, Grant tells KVOE News it could take longer depending on the current state of national supply chains.
The Emporia City Commission adjourned Wednesday’s action session to next Wednesday at 9 am inside the Municipal Courtroom at White Auditorium.
