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Edgerton Earns Historically Low Rate on Bond Sale

Posted on Aug. 31st, 2010

News Release
City of Edgerton

The KCP&L Peak Power Plant annexed into Edgerton helped to increase its assessed valuation by 266% and resulted in historically low bond rates. (GardnerEDGE file photo - Peter Solie)

EDGERTON, KS—The City of Edgerton, Kansas last week awarded its Series 2010 Temporary Renewal Notes at a true interest cost of 0.72%, an historically low interest rate for the City. The notes are one-year tax-exempt securities issued in support of the Sunflower Ridge development project.

“This is an outstanding result that will benefit both City taxpayers and the property owners included in the Sunflower Ridge development,” said City Administrator, David Dillner. “We were excited that our notes priced so competitively in the market, especially compared with similar recent offerings by other Kansas communities.” The low interest rate is considered a near equivalent to an AA+/A- bond rating.

Earlier this year the City annexed more than 400 acres, including a peak-power generating facility owned by Kansas City Power and Light, Inc. The annexation will result in an increase of the City’s assessed valuation from $9.2 million to $24.5 million.

The notes were purchased by UMB Bank, n.a. of Kansas City by competitive bid. Gilmore & Bell, P.C. of Wichita, Kansas, serves as bond counsel. Columbia Capital Management, LLC of Overland Park, Kansas, serves as financial advisor to the City.

The Sunflower Ridge development project is a preliminary platted development that will feature approximately 500 single-family homes, 27.28 acres of multi-family homes, and 12 acres of commercial/retail space. The development is located northwest of the Sunflower Road interchange off of 207th Street in Edgerton, Kansas. The real estate owner is currently Agnes Gates Realty.