Title
An Ordinance approving the amended 1601 SE Hamblen Road, LLC, Land Clearance for Redevelopment Authority (LCRA) Redevelopment Plan.
Body
Issue/Request:
This is an ordinance to approve the Amended Land Clearance for Redevelopment Authority Redevelopment Plan which has been proposed by the parent company T&W Steel Company, Inc. (“T&W Steel”) which operates the facility at 1612 SW Jefferson Street, and which has formed the special purpose entity named 1601 SE Hamblen Road, LLC (the “Developer” or the “Company”), for proposed facility relocation and expansion on approximately 28.5 acres of property in Lee’s Summit for a 73,300 square foot industrial facility at 1601 SE Hamblen Road. The incentive request includes two components as discussed below.
Key Issues:
Approval of incentives through the Land Clearance for Redevelopment Authority Act (LCRA Act) set forth at Section 99.300, et seq. of the Revised Statutes of Missouri, to induce retention and expansion for the Company in a new location. The Company indicates it would sell the current facility at 1612 SW Jefferson Street.
Background:
The proposed LCRA Redevelopment Plan provides for the design, development, and construction of one (1) approximately 73,300 square feet industrial building, along with all associated onsite and offsite sitework and infrastructure, including, without limitation, utilities, stormwater management, street/drive and parking improvements, and landscaping, all of which will be located at 1601 SE Hamblen Rd in Lee’s Summit, Missouri.
Developer is requesting the use of incentive in the form of:
(1) Sales and use tax exemption on construction materials for facility expansion (not including sales and use tax on machinery and equipment); and
(2) Real property tax abatement in the amount of 75% for 10 years using a fixed PILOTs schedule.
The Company is not requesting abatement for:
• real property taxes generated by the base value of the current property which contains the current facility;
• sales taxes paid on the purchase of machinery and equipment for the expansion; or
• personal property taxes paid on the personal property maintained by the Company at the new facility.
Impact/Analysis:
The attached slides prepared by City staff, and the attached modeling prepared by Developer, provides a summary of the impact to the City and the taxing district and the benefits to developer from the incentive request. Retention and expansion of the Company operations in Lee’s Summit retains 31 full-time equivalent (FTE) jobs, and allows for the addition of 6 FTE jobs at the new facility.
Timeline:
Start: Building construction in 2026
Finish: Building construction in 2027, machinery and equipment placed in service in 2027
Presenter
Ben Bigham, Polsinelli P.C. for Developer
David Bushek, Economic Development Counsel