Real Estate changed hands between the City of McPherson and Kansas Municipal Utilities, Incorporated, Monday, though the issue itself is a little complicated.
McPherson City Attorney Jeff Houston says the purchase by KMU for the lot of land on Centennial Avenue south of Walmart is a first step towards the issuance of Industrial Revenue Bonds for the construction of a new training facility.
“We entered into a lease agreement when they started doing training out there,” Houston said. “And that lease agreement had an option in it for a nominal sum for them to buy that facility as long as they built that training facility that everyone had been talking about.”
Houston adds the move is merely to transfer the title to Kansas Municipal Utilities as they prepare land documents.
“As soon as we do the bond documents, then we transfer title back from KMU and the city will hold title of security under the IRBs like we've been doing it here forever while those IRBs run,” Houston said. “But, before they can transfer it back with collateral, they have to have it in their own name. So it's a nominal real estate contract.”
The transfer of deed was approved for id="mce_marker"0 by the city commission.
The McPherson City Commission approved the transfer of the title to KMU unanimously.