Title
Sale of State of Kansas Historic Preservation Tax Credits.
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Recommended Action: Award the sale of the tax credits to the best bidder.
The State of Kansas offers state tax credits equal to 25% of qualifying expenses incurred during rehabilitation projects of buildings listed on the National Register of Historic Places, the Register of Historic Kansas Places, or have been deemed contributors to a National or State Register Historic District. The proposed work must follow a qualified rehabilitation plan. Projects must be reviewed and approved by the State Historic Preservation Office. State tax credits are valid for 10 years.
Sedgwick County submitted three projects to the State Historic Preservation Office for consideration. All three projects were accepted and have been completed. The projects, associated credits and date issued are:
Historic Courthouse 12/21/2011 $452,274.00
Historic Courthouse 07/09/2010 $ 30,267.74
Calvary Baptist Church (KAAM) 12/14/2009 $ 24,525.00
Total credits to be sold $507,066.74
Alternatives: Not sell the credits and let the credits lapse.
Financial Considerations: Sedgwick County received three bids from 18 vendors contacted. Commerce Bank submitted the best bid of $0.9025 per dollar of tax credits. Commerce Bank will also pay the transfer fee charged by the State. Sedgwick County will receive $457,627.73. Funds will be deposited in cost center 70001-110.
Legal Considerations: The authority for this action is K.S.A. 79-32,211. A simple majority vote is required.
Policy Considerations: n/a