City approves Intervet industrial revenue bonds
The De Soto City Council last Thursday approved $20 million in industrial revenue bonds for the Intervet Inc. campus.
City bond attorney Dotty Riley said Intervet will purchase the bonds. She explained for the company entered into the financial maneuver so that it could qualify for tax abatement.
To lure the company to De Soto, the city council granted the Netherlands-based animal health pharmaceutical company a 75-pecent, 10-year tax abatement on the $28.5 million in new buildings it plans for the campus and $9.5 million in personal property.
The bond issue transfers title of the Intervet campus for the 10-year term of the tax abatement, she said.
Bill Marshall, who is directing construction of the campus, told the Explorer that Intervet doesn't share construction schedules. But it is obvious the campus is taking shape north of 91st Street.
City engineer Mike Brungardt said four large buildings are currently under construction at the site: a maintenance building, warehouse/office complex, production facility and research and development center. Of those, he said the maintenance building is nearest to completion.
Intervet officials haven't indicated when they will occupy any of the buildings, Brungardt said. But through informal conversations with construction personnel at the site, the city understands the company will soon apply for an occupancy permit for the maintenance building "so that they quit working our to trailers."
"But as far as when they plan to start production or occupy any of the other buildings, they haven't shared any of that," Brungardt said.
Riley said company officials have indicated additional construction might follow the completion of the current buildings. Intervet officials suggested future construction could increase the campus' value to $70 million.
In other business, the council:
Approved the rezoning of the Timber Trails Subdivision from R-0 to R-1. Burngardt said the rezoning was sought so contractors could build larger houses requiring less set back.
Approved a 2002 contract with the Johnson County Sheriff's Department to provide police protection and animal control enforcement for the city. The contract for $256,332 is 6.5-percent increase to cover inflation.