Title
Presentation: Land Clearance for Redevelopment Authority (LCRA) Project - K&R Wholesale Building Materials, 1460 SE Broadway; Kevin Higdon, applicant
Body
Issue/Request:
This is a presentation to consider the application for a certificate of qualification to provide tax abatement at 100% abatement of the incremental increase in land valuation for five (5) years for the proposed project to be undertaken by the applicant K&R Wholesale Building Materials (“Developer”), to be located at 1460 SE Broadway, Lee’s Summit, Missouri.
Key Issues:
Mr. Kevin Higdon with Developer is pursing the construction of a new 21,250 sq. ft. industrial space building on property located at 1460 SE Broadway in Lee's Summit, Missouri. The property is currently zoned PI (Planned Industrial) and sits on 1.89 acres. Mr. Higdon is requesting the abatement of the incremental increase in real property taxes afforded through the Land Clearance for Redevelopment Authority (LCRA) Act. K&R Wholesale Building Materials intends to occupy the building, and currently operates from a location in Kearney, Missouri.
The LCRA Certificate of Qualification Project Application Area is located within the “US 50 / M-291 Highway Urban Renewal Area” which was approved in June 2014 by the City Council and adopted by Ordinance 7472, which determined that certain real property within the Missouri Highway 291 and US Highway 50 corridors was blighted and designated a land clearance for redevelopment authority urban renewal area.
The LCRA Certificate of Qualification application was filed with the City Clerk on September 4, 2024 by Developer. The request is 100% property tax abatement on the incremental increase in value of the project over a 5-year period.
On October 2, 2024, the LCRA Board of Commissioners opened and held a public hearing to consider the proposed LCRA application. A receiving testimony and evidence in the hearing, the LCRA Board of Commissioners recommended that the City Council adopt and implement the LCRA application.
Assuming a $1,532,500 investment in the construction of the building and improvements to the property, the LCRA evaluated the project through the LCRA incentive model (spreadsheet) and developed a recommendation for 100% abatement on the incremental increase in value of the property for a 5-year period. The LCRA recommendation is estimated to result in an annual property tax abatement of $9,900 therefore over the 5-year period of recommended abatement, approximately $ 49,400 in real property taxes would be abated. The City’s portion at about 17% of this amount would be $8,400.
Impact/Analysis:
The Developer is requesting a 100% Tax Abatement of the incremental increase in valuation for five (5) years.
Timeline:
The project will start in 2024 and be completed in 2025
Presenters
Kevin Higdon, K&R Wholesale Building Materials, Inc.
Ryan Elam, Assistant City Manager
David Bushek, Chief Counsel of Economic Development & Planning