Title
An Ordinance approving the Real Estate Sale Agreement between the City of Lee's Summit, Missouri, and Summit DC Real Estate Holdings, LLC, for the sale of land located at 420 SE Thompson Drive.
Body
Issue/Request:
This ordinance will authorize the sale of approximately 1.42 acres of land consisting of a strip of land on the north side of the building located at 420 SE Thompson Drive.
Key Issues:
Approval of a Real Estate Sale Agreement for the sale of approximately 1.42 acres of land.
Proposed City Council Motion:
I move for second reading of An Ordinance approving the Real Estate Sale Agreement between the City of Lee's Summit, Missouri, and Summit DC Real Estate Holdings, LLC, for the sale of land at 420 SE Thompson Drive.
Background:
The City holds title to property located at 420 SE Thompson Drive, consisting of a strip of property on the north side of this parcel which is the northern 50 feet of the lot which is 1,234 linear feet from west to east (the “Property”). Summit DC Real Estate Holdings, LLC, has proposed to purchase the Property. The buyer is connected to Mid-States Distributing, LLC, which proposed to expand the industrial operations at the property by expanding the building to the north and constructing new facilities over the strip of land.
The strip of land is owned by the City and reserved for rail line usage. Mid-States proposed to expand operations, which would eliminate the need for a possible rail line over the strip of land because the new building expansion would be constructed over this strip of land.
Impact/Analysis:
The City will sell the Property for fair market value pursuant to the Real Estate Sale Agreement. The buyer seeks to purchase the property prior to the City Council considering any zoning or other approvals or entitlements that may be requested by Mid-States to expand industrial operations on the property.
The sales price will be maintained as a closed record, as allowed by Section 610.021(2) of the Revised Statutes of Missouri, until the transaction closes. This is to maintain the sales price as a closed record in the event that the transaction set forth in the Agreement fails to close and the City seeks to sell the property to another buyer at a later date. Disclosure of the current sales price might adversely affect the sales price to a different buyer, in the event the pending transaction under the Agreement that is authorized by this Ordinance fails to close.
Timeline:
The real estate agreement has a 180-day due diligence period. It is expected that the transaction would close during the first or second quarter of 2026.
Presenter
David Bushek, Chief Counsel of Economic Development and Planning