The deal that emerged in principle more than a year ago to bring a new 80-plus acre park and mixed-use development to the former Meadowbrook Country Club site is getting close to formal finality.
The Prairie Village City Council on Monday approved a series of agreements setting the stage for the issuance of bonds that will serve as the financial backbone of the deal between the city, Johnson County Park and Recreation District and VanTrust Real Estate. The parks board earlier this month approved many of the same agreements. The executed documents must be deposited into escrow with a title company by April 29 before the bonds can be issued in May.
The final plans being considered by the city would allow the issuance of approximately $11 million in general obligation bonds, which would be sold to the public, and $8 million in special obligation bonds, which would purchased by the developer. The general obligation bonds are backed by the full faith and credit of the city. The special obligation bonds are not.
One of the city’s financial advisors suggested on Monday that the general obligation bonds would likely carry an interest rate of around 3.2 percent and were expected to carry a Aaa rating. The special obligation bonds would have an interest rate of around 6 percent.
The Prairie Village City Council set a special meeting for next Monday, April 25, to consider and approve the final items needed to close the deal.