Johnson County staff on Oct. 2 discussed a proposed resolution (No. 124‑25) to authorize taxable industrial revenue bonds (IRBs) up to $25,300,000 to finance construction of an industrial facility at New Century and to grant a 10‑year ad valorem tax abatement on improvements under a payment‑in‑lieu‑of‑tax (PILOT) schedule.

Why it matters: The county said IRBs are an economic-development tool the airport and county use to attract development while pursuing airport financial self‑sufficiency. The financing approach removes property from the tax rolls for the lease term under state law that governs IRBs and commonly pairs tax-exemption with a PILOT so local taxing jurisdictions receive a negotiated payment that is distributed pro rata by mill levy.

Details presented: Staff described the proposed PILOT schedule starting at $0.30 per square foot and escalating at 1.5% annually for 10 years. County bond counsel Kevin Whitby (Gilmore & Bell) explained that state law requires property to be either on the tax rolls or off; IRBs permit the removal from tax rolls and a PILOT substitutes a negotiated payment for property taxes. Whitby said PILOT payments are treated like property taxes for distribution across taxing jurisdictions according to the applicable mill levies; not all PILOT money goes only to the county.

Board questions and direction: Commissioners asked for clarification about who receives PILOT distributions and how the arrangement supports airport self‑sustainability. Commissioners also thanked staff and county bond counsel for the briefing and said the item would return next week for action.

Next steps: The resolution and related documents were presented at agenda review and will be placed on a future business meeting agenda for formal consideration; no vote occurred Oct. 2.

Ending: County bond counsel and staff said annual reporting requirements in the performance agreement will provide oversight of the PILOT schedule and the development’s performance.