City approves Industrial Revenue Bonds for Cosmic Pet expansion in South Wichita
Developers got the approval they needed Tuesday to finance and secure property and sales tax relief for a new manufacturing facility in south Wichita leased to CosmicPet.
The City Council voted 7-0 to issue Industrial Revenue Bonds in an amount not to exceed $6.1 million to construct an additional 100,000- square-foot building, doubling Cosmic Pet’s footprint in Jeff Lange’s Ironhorse Industrial Park at Seneca and MacArthur. The Wichita-based pet toy manufacturing company designs and distributes dog collars, leashes, toys and other pet-related products.
Cosmic Pet, formerly known as Hyper Pet, moved its headquarters to a 103,000- square-foot industrial spec building in Ironhorse Industrial Park in 2018. Since then, the company has acquired several other businesses. To support its growth, Cosmic Pet plans to add a second manufacturing facility in the industrial park and 24 new employees to its 50-member workforce, according to a City Council agenda.
The IRBs approved Tuesday were requested by IH1 LLC, which is owned by Triple Crown Realty Trust, the developer behind Ironhorse IndustrialPark.
IRBs require no taxpayer commitment, but they can help developers secure lower interest rates on projects. The City’s speculative building program was approved in December 2017. It was designed to address what many in the commercial real estate industry say is the ongoing need for existing industrial space in Wichita.
In addition to the IRBs, the city also approve IH1 LLC’s request for a 94 percent five-plus-five-year tax abatement.
The proposed industrial building will be the third in the south Wichita complex. A second speculative building is under construction and Brent Peterson with Area Real Estate Advisors is the listing agent looking for tenants for the space.
During Tuesday’s meeting, City Council members emphasized that Industrial Revenue Bonds are not money the city is loaning to developers.
“I appreciate those that are investing in our community.” Mayor Jeff Longwell said. “This is how we grow. This is how we do the things we want to do without tax increases.”
Originally appeared: https://www.bizjournals.com/wichita/news/
Written by: Shelby Reynolds – Reporter