Title
An Ordinance approving the Tax Credit Purchase Agreement between the City of Lee’s Summit, Missouri, and U.S. Bank National Association for the Green Street Project.
(Note: First read by Council on November 4, 2025. Passed by unanimous vote.)
Body
Issue/Request:
This ordinance will approve the Tax Credit Purchase Agreement with U.S. Bank National Association (“U.S. Bank”) to authorize the purchase of tax credits that are expected to be received by the City pursuant to the Tax Credit Agreement between the City and the Missouri Development Finance Board (MDFB) for the benefit of the Green Street project.
Proposed City Council Motion:
I move for second reading of An Ordinance approving the Tax Credit Purchase Agreement between the City of Lee’s Summit, Missouri, and U.S. Bank National Association for the Green Street Project.
Background:
Section 100.286.6 of the Revised Statutes of Missouri provides that any taxpayer shall be entitled to a tax credit against any tax otherwise due under the provisions of Chapter 143, RSMo, excluding withholding tax imposed by Sections 143.191 to 143.261, RSMo, Chapter 147, RSMo, or Chapter 148, RSMo, in the amount of fifty percent of any amount contributed in money or property by the taxpayer to the development and reserve fund, the infrastructure development fund or the export finance fund during the taxpayer’s tax year.
At meetings of MDFB held on February 21, 2023 and August 20, 2024, the City of Lee’s Summit made written and oral presentations to the Missouri Development Finance Board concerning the Project and Project Application. MDFB thereafter awarded up to $3,000,000 in tax credits pursuant to the Tax Credits for Contributions Program that is administered by MDFB.
On April 9, 2025, the City and MDFB executed the Tax Credit Agreement to implement the tax credit award provided by MDFB for the Green Street Project. Pursuant to the Tax Credit Agreement, the City will make a contribution to the MDFB Infrastructure Development Fund and receive tax credits from MDFB, which the City can sell to a willing purchaser.
Impact/Analysis:
The City will deposit funds with MDFB to receive the tax credits. The Purchase Agreement obligates U.S. Bank to purchase the tax credits for a purchase price of ninety-three cents ($0.93) for each one dollar ($1.00) of Credits actually sold and delivered by the City to U.S. Bank, which is estimated to equal a $2,790,000.00 payment to the City from U.S. Bank. These funds will be advanced to reimburse the City for costs associated with construction of the Green Street Project, as previously outlined for the City Council during budget discussions for the project.
Timeline:
The tax credits transactions are expected to be completed by the end of 2025.
Presenter
David Bushek, Chief Counsel of Economic Development and Planning
Ryan Elam, Assistant City Manager
Recommendation
Staff recommends approval.