Got it — "word" received.
Here is the exact language from the official JEDO Board minutes (December 11, 2024) plus the direct comparison you asked for.
1. Exact Language from JEDO Minutes on the $9.5 Million and Master Lease
From the Innovation Center 2.0 Request document presented by Stephanie Moran (SVP Innovation) and discussed/approved by the JEDO Board:
“Based on demand and opportunity to create additional economic impact through development of this integral asset for the community, the Innovation Advisory Board and GO Topeka Boards recommend allocating $9,500,000 from GO Topeka funds for the Innovation Center at 220 S.E. Kansas, including $6,589,000 for buildout costs and $2,911,000 for a 10-year lease term for the master lease agreement.”
Additional confirming language from the same packet:
“GO Topeka will utilize a local contractor … GO Topeka as the master lease holder for Phase 1 with revenues from the project staying within the community.”
The Board approved this exact package (after debate and procedural votes). GO Topeka/JEDO is therefore the master tenant paying the landlord (220 SE 6th, LLC) the $2.911 million lease portion over 10 years and directly funding the $6.589 million tenant buildout.
2. How the $9.5M Fits into the Proforma vs. the Link Innovation Labs Sublease Rent
The JEDO packet includes a detailed Financial Proforma for Innovation Center 2.0. Here is the key revenue line (transcribed directly from the document):
Total Revenue (projected sublease + other income)
- 2026: $255,977
- 2027: $310,961
- 2028: $366,190
- … escalating to $544,308 by 2035
- 10-year total revenue: $4,528,837
Link Innovation Labs Sublease Rent (from the signed July 2025 Master Lease, Exhibit A)
- 2026: $21,467.50/month = $257,610/year
- 2027: $22,183.08/month = $266,197/year
- … stepping up to $25,761/month = $309,132/year by 2032–2035
Comparison
- Link’s first-year rent alone ($257,610) is almost identical to the proforma’s entire 2026 revenue projection ($255,977).
- Link is clearly modeled as the anchor/primary tenant in GO Topeka’s financial projections.
- Over the full 10-year term, Link’s escalating rent will generate roughly $2.8–$3.0 million in sublease revenue for GO Topeka.
- The remaining proforma revenue comes from additional subleases, pitch/event space rentals, sponsorships/naming rights, and university/corporate partnerships.
In short: GO Topeka is using the $9.5 million public allocation (buildout + master lease payments) to stand up the space, then relies on Link Innovation Labs and future sub-tenants to repay the investment through market-rate sublease rents.
3. Quick Note on the Sales-Tax Source
The $9.5 million comes from GO Topeka / JEDO’s cash carry-forward, which originates from the dedicated countywide ½-cent economic development sales tax (established by interlocal agreement between Shawnee County and the City of Topeka). This is public money, not private bond proceeds.
The IRB bonds ($10.5 million) remain separate private-investor financing with no sales-tax dollars involved in their issuance or repayment.
This layered approach (private IRB capital for the building shell + public JEDO sales-tax funds for the final fit-out and lease guarantee) is how the full project was funded.
Yes — the “nine and a half million dollars” you are referring to is the exact $9,500,000 that the Joint Economic Development Organization (JEDO) approved on December 11, 2024 for Innovation Center 2.0 at the 220 SE 6th Street building (the former AT&T building).
It is not sales-tax revenue, and it is completely separate from the Industrial Revenue Bonds (IRBs) we have been discussing. Here is the clear, fully cross-referenced picture based on all the documents you have provided (IRB resolutions, bond indentures, leases, GO Topeka Dec 3 minutes, and now the complete JEDO Dec 11 minutes).
1. What the $9.5 Million Actually Is (Direct from JEDO Minutes)
From the JEDO Board packet and discussion (pages 4–13 of the minutes):
- Total Request: $9,500,000 from GO Topeka / JEDO carry-forward funds.
- $6,589,007 → Buildout / tenant improvement costs (labs, pitch room, mechanical, restrooms, etc.).
- $2,910,993 (≈ $2.911M) → 10-year master lease payments to the building owner.
- Funding Source: Remaining cash carry-forward from the 2024–2025 JEDO/GO Topeka budget (originally $8.442M available after other commitments; this uses most of it).
- Structure: GO Topeka becomes the master lease holder (they lease the space from 220 SE 6th, LLC / Cody Foster / AIM). They then sublease to tenants like Link Innovation Labs / TSC Innovation, LLC.
- Purpose: Create “Innovation Center 2.0” — the first-floor professional laboratory and office space we already saw in the Link lease (17,174 sq. ft., starting Jan 1, 2026).
This was approved after lengthy debate (procedural votes, recess, concerns about rushing, monopoly concerns, no pre-committed tenants yet, etc.). Final vote passed 6-1.
2. How This Compares to the IRB Bonds (No Overlap)
| Item | IRB Bonds (Private Financing) | JEDO / GO Topeka $9.5M (Public Funds) |
|---|---|---|
| Amount | ≈ $10.515M total ($3.815M Phase I + $6.7M Phase II) | $9.5M |
| Source of Money | Private investors who bought the bonds | Public economic development carry-forward funds |
| Who Repays | 220 SE 6th, LLC (via rental payments from tenants) | GO Topeka (master lease payments) + future sublease revenue |
| What it Paid For | Acquisition + phased renovations (HVAC, electrical, asbestos abatement, first-floor lab shell) | Tenant-specific buildout + 10-year master lease subsidy |
| Taxpayer Exposure | None (limited-obligation revenue bonds) | Direct public spending from JEDO/GO Topeka funds |
| Sales Tax Connection | Only an exemption on materials bought with bond proceeds | None |
The IRB bonds provided low-cost private capital and tax incentives. The JEDO $9.5M is additional public money being put in on top of that to accelerate the Innovation Center and make the economics work for GO Topeka as master tenant.
3. How Everything Fits Together (Full Picture)
- 220 SE 6th, LLC owns the building and received the IRB financing (lease-leaseback structure we analyzed earlier).
- GO Topeka / JEDO is now stepping in as the master tenant (paying the landlord with the $2.91M lease portion + funding the $6.59M buildout).
- Link Innovation Labs / TSC Innovation, LLC signed the private sublease we reviewed (July 2025) for the ground-floor lab space — this is exactly the tenant revenue that will help repay GO Topeka’s investment over time.
- Revenues from subleases (including Link), event/pitch space, sponsorships, etc. stay “within the community” per the JEDO documents.
The proforma in the JEDO packet shows the project is expected to generate positive net income over the 10-year term after expenses (including the master lease).
Bottom Line on Your Question The $9.5 million did not come from sales tax collections being spent on the building. It is a direct allocation of existing GO Topeka / JEDO economic development funds (carry-forward). The IRB bonds were (and remain) privately financed investor money. The two funding streams are layered on the same project to make the Innovation Center happen.
This is classic public-private economic development: private IRB debt + public subsidy/lease support + private tenant revenue.
SUMMARY OF THE LINK INNOVATION LABS MASTER LEASE AGREEMENT
(Signed July 17/18, 2025 – Document ID: sRFsx)
This is a standard commercial office/laboratory lease (12 pages + Exhibits A & B) between:
- Landlord: 220SE6th, LLC (the same entity that owns the building and is the “Company” in all the IRB documents).
- Tenant: TSC Innovation, LLC (doing business as Link Innovation Labs).
Key Terms (straight from the Lease Summary and Exhibits)
| Item | Details |
|---|---|
| Premises | Ground Floor (Suites), 220 SE 6th Ave., Topeka, KS – approximately 17,174 leasable square feet (includes laboratory, office space, and coffee shop area). |
| Permitted Use | Professional Laboratory and Office Use (explicitly allowed). |
| Term | 10 years: January 1, 2026 – December 31, 2035 (Commencement Date can slide up to March 1, 2026 if Certificate of Occupancy for tenant improvements is delayed; term still 10 full years). |
| Renewal Option | One 5-year option; rent to be renegotiated. If parties can’t agree, option is waived. 90 days’ written notice required. |
| Base Rent (Exhibit A) | Starts at $15.00/sf ($21,467.50/month) in 2026 and escalates annually to $18.00/sf ($25,761/month) from 2032–2035. |
| Security Deposit | $10,000 total at signing: $5,000 applied to first month’s rent, $5,000 held as deposit (non-interest bearing). |
| Tenant Improvements | Tenant (at its own cost) installs demising walls, plumbing, electrical, HVAC, fixtures, etc., before Commencement Date, with Landlord’s prior written approval of contractor and insurance. |
| Rent Payment | Monthly in advance on the 1st; 10% late fee after 5th; 18% interest on past-due amounts. |
| Services by Landlord | Standard full-service: HVAC, utilities (metered per floor and paid by Tenant based on actual usage), common-area maintenance, janitorial, taxes/insurance (building level), snow removal, etc. Tenant pays its own metered utilities and any extra cooling/electrical capacity. |
| Subletting | Explicitly allowed and anticipated — Tenant may sublet portions to third parties (must notify Landlord with subtenant info and copy of sublease). Tenant remains fully liable. |
| Assignment | Requires Landlord’s consent; Landlord can terminate if it’s a full assignment. |
| Insurance / Indemnity | Tenant carries $1M liability/property damage insurance naming Landlord as additional insured; mutual waiver of subrogation; Tenant indemnifies Landlord for most claims arising from Tenant’s use or construction work. |
| Default / Remedies | Standard: 10-day notice for rent, 30-day for other defaults; Landlord can terminate or re-let and hold Tenant for deficiency. |
| Damage / Destruction | Abatement of rent during repair; termination options if >30% damage or repair >120 days. |
| Other | Non-smoking building; 4 exclusive parking stalls for Tenant; detailed Rules & Regulations (Exhibit B) on signs, moving, waste, etc.; Tenant accepts premises “as-is” after its own improvements. |
The lease is a gross lease with Tenant paying its own metered utilities and tenant improvements — typical for a lab/office build-to-suit in a renovated historic building.
Signature Page Notes Signed by Landlord (220SE6th, LLC) on or about July 18, 2025 and by Tenant (TSC Innovation, LLC) around the same time. This lease was executed just weeks before the September 8, 2025 Board meeting that approved the Phase II IRB bonds.
CROSS-COORDINATION / CONNECTION TO THE SHAWNEE COUNTY IRB FINANCING (2021–2025)
This lease is the direct, market-rate end-user occupancy agreement for the exact space financed by the Phase II IRB bonds. Here is how it fits into the overall IRB structure you have in the earlier documents:
- Phase II Purpose Matches Perfectly
- Resolution 2025-71 and the First Supplemental Bond Trust Indenture / First Supplemental Lease Agreement Phase II explicitly state the $6.7 million Phase II bonds are to finance “renovation, asbestos abatement, equipping and improving the first floor … for a commercial facility to house innovative laboratories, suites and related facilities.”
- This lease is for the ground/first floor “Professional Laboratory and Office Use” — it is the anchor tenant that the IRB proceeds were used to build out.
- IRB “Lease-Leaseback” Flow-Through
- Under the Base Lease Agreement (2021), 220SE6th, LLC leased the entire building/site to Shawnee County.
- Under the Lease Agreement Phase I (2021) and First Supplemental Lease Agreement Phase II (2025), the County leased the improved phases back to 220SE6th, LLC.
- 220SE6th, LLC then turns around and executes this market lease with TSC Innovation, LLC.
- Result: The rent TSC Innovation pays to 220SE6th, LLC is ultimately used (through the Phase II Lease) to make the debt-service payments on the $6.7M Phase II bonds (and the parity Phase I bonds). The County is a pure conduit — no taxpayer money is at risk.
- Timing Alignment
- This lease starts January 1, 2026 (or shortly thereafter once tenant improvements and CO are complete).
- Phase II bond closing was September 2025. The IRB financing gave 220SE6th, LLC the capital to complete the first-floor lab build-out so it could deliver the premises to TSC Innovation on schedule.
- Economic Incentives Flow to the Landlord
- The IRB structure gave 220SE6th, LLC the 10-year property-tax abatement (via BOTA) and sales-tax exemption on construction materials for the Phase II work.
- In return, 220SE6th, LLC pays the County the annual PILOT ($63,000+).
- TSC Innovation’s rent (≈ $258k–$309k per year once fully escalated) is the private-market revenue that makes the whole deal cash-flow positive for the landlord while repaying the bonds.
- No Conflict — This Is the Intended Outcome The IRB documents never required the County or bondholders to approve individual tenant leases. They only required that the space be used for “commercial purposes” (which this lab/office lease satisfies) and that the Company (220SE6th, LLC) remain obligated to pay rent to the County regardless of occupancy. This signed lease proves the project is successfully attracting the exact type of high-value tenant the IRB program was designed to support.
Bottom Line The Link Innovation Labs lease is the real-world realization of Phase II of the IRB project. It puts paying lab/office tenants into the renovated first floor that the $6.7 million in County-issued (but Company-repaid) bonds financed. Everything ties together cleanly: the statutory IRB lease-leaseback structure enables the tax incentives and low-cost capital, and this market lease generates the revenue that services the bonds and provides return to 220SE6th, LLC / AIM.
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