Title
An Ordinance authorizing the City of Lee’s Summit, Missouri to issue taxable industrial development revenue bonds in a principal amount not to exceed $65,700,000 in connection with the Tudor & Douglas Apartments Project; and authorizing certain documents and actions in connection therewith.
(Note: First read by Council on July 23, 2024.)
Body
Issue/Request:
This is the ordinance to approve the implementation documents for the Chapter 100 Plan for the Tudor & Douglas Apartments Project and authorizing the issuance by the City of its taxable industrial development revenue bonds in the aggregate principal amount of not to exceed $65,700,000 to finance costs of the residential project to be constructed by the company Archview Properties, LLC (“Developer”). The Bonds will be issued pursuant to the provisions of Sections 100.010 to 100.200 of the Revised Statutes of Missouri, as amended, and Article VI, Section 27(b) of the Missouri Constitution, as amended (collectively, the “Act”).
Key Issues:
Approval of the implementation documents for the Chapter 100 Plan.
Background:
At the October 18, 2022 Council meeting, the City Council heard a conceptual presentation about the incentive request presented by Developer. A majority of the City Council expressed an interest in considering the incentive request through the formal Chapter 100 process. The City Council did not vote or render any type of final or binding decision as part of the conceptual presentation.
On December 13, 2022, the City Council held the public hearing to consider the Chapter 100 Plan. On December 20, 2023, the City Council approved Ordinance No. 9571 which approved the Plan for a Chapter 100 Project for the Tudor & Douglas Project.
The Project to be financed by the Bonds consists of an apartment complex with approximately 358 units spread across eight four-story apartment buildings, with a clubhouse and pool facility, pickleball and bocce ball courts, a business center, separate dog parks for large and small dogs, a maintenance building, onsite detention basin, and parking that includes detached garages for some units. The Project will be situated on approximately 13.2 acres located south of NW Tudor Road, between NW Commerce Drive and NE Douglas Street.
Impact/Analysis:
The Project is expected to cost approximately $65.7 million. Under Article X, Section 6 of the Missouri Constitution and Section 137.100 of the Revised Statutes of Missouri, all property of any political subdivision is exempt from taxation.
The sources of funds to be expended for the Project will be the proceeds of the Bonds in a principal amount not to exceed $65,700,000, to be issued by the City and purchased by the Company and, if needed, other available funds of the Company. The Bonds will be payable solely from the revenues derived by the City from the lease or other disposition of the Project. The Bonds will not be an indebtedness or general obligation, debt or liability of the City or the State of Missouri.
The cost benefit analysis associated with the project is set forth in the public hearing materials for this Plan.
Presenter
David Bushek, Chief Counsel of Economic Development & Planning
Curt Petersen, Polsinelli, P.C. for Developer