Title
Public Hearing: Chapter 100 Plan for Victory Hyundai Project at 1231 NW Ward Road; Victory Hyundai of Lee’s Summit, applicant
Body
Issue/Request:
This is an incentive request for a proposed $13,400,000 Hyundai dealership which would be located at 1231 NW Ward Road, which is to the northeast of Summit Fair and north of the Summit Tech campus. The request originally came to the City from Townsend Capital, LLC, as seller to Victory Automotive to operate a Hyundai dealership on the property to deal with unexpected site acquisition costs and public improvement costs.
Key Issues:
The City Council of the City of Lee’s Summit, Missouri (the “City”) will consider ordinances
approving this Plan and authorizing the issuance by the City of its taxable industrial development revenue bonds in the aggregate principal amount of not to exceed $13,400,000 (the “Bonds”), to finance costs of an automobile dealership and related improvements (the “Project”) for Premier RE of Lee’s Summit LLC, a Missouri limited liability company, and/or its assignees or designees (altogether, the “Company”) as more fully described herein. 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”).
Proposed City Council Motion:
I move for second reading of
Background:
History of Prior Proposed Development and Prior Incentives
This property has an extensive history regarding incentives for development that did not occur.
The Summit Fair Tax Increment Financing Plan was originally approved on August 24, 2006 for the Summit Fair shopping center project. The City Council approved the Amended and Restated TIF Plan (the “TIF Plan”) on April 17, 2008. The full history of the Sum
The Redevelopment Area of the TIF Plan was expanded on May 14, 2014 to include the property located to the northeast of the Summit Fair shopping center to include the property north of Ward Road that was planned for a project called “Summit Place.” Summit Place was originally planned to include a Cabella’s store and a Sam’s Club store, along with other retail and commercial uses.
The City executed the Tax Increment Financing Contract with RED LSE, LLC on August 7, 2014 (“TIF Contract”). The TIF Contract includes certain land use restrictions that limit development of the property, including a list of restricted land uses and a prohibition against selling the property to a non-profit entity. TIF revenue collections for the Summit Place project area was activated on July 21, 2016.
The Summit Fair CID was also expanded on May 15, 2014 to include property in the Summit Place project. At that time, the CID and the TIF Plan were active over the Summit Place property, even though the Summit Place project did not happen. In 2017, Cabella’s was purchased by Bass Pro, which effectively blocked the Cabella’s store from being constructed in Summit Place. Sam’s Club followed by pulling out of the project, and thus the project was never constructed.
Summarized, the key dates associated with Summit Place are:
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Approve Original Summit Fair TIF Plan |
August 24, 2006 |
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Approve TIF Plan expansion for Summit Place |
May 15, 2014 |
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Approve CID expansion for Summit Place |
May 15, 2014 |
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Approve PMIX Zoning |
July 10, 2014 |
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Execute TIF Contract with RED LSE, LLC |
August 7, 2014 |
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Extension of TIF Contract Schedule |
July 2, 2015 |
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Approve TIF Projects and activate 23-year TIF Clock |
July 21, 2016 |
Townsend Summit, through subsidiary companies, owned the Summit Place property after these Council actions. In 2021, Townsend indicated that it would like to proceed with sales of the former Summit Place property but was hindered by the TIF Contract restrictions discussed above. Townsend requested that the TIF Contract be terminated. RED Development, as the party to the TIF Contract with the City, was agreeable to this course of action. RED requested that, as part of the TIF termination, the CID should also be terminated on the Summit Place project area.
On November 9, 2021, the City Council passed three Ordinances which accomplished the following:
(1) Terminated the CID over the Summit Place property (Ordinance No. 9277)
(2) Terminated the Summit Place CID Agreement (Ordinance No. 9277)
(3) Terminated the TIF Contract for Summit Place (Ordinance No. 9278)
(4) Terminated the TIF Redevelopment Projects 2A and 2B on the Summit Place property (Ordinance No. 9279)
On April 9, 2024, the City Council passed Ordinance No. 9883 which approved a preliminary development plan (Phase 1) and a conceptual development plan (Phase 2) for development at 1151, 1201 and 1231 NW Ward Road, called “Summit Orchard North.” The proposed auto dealership at 123 NW Ward Road, which is the subject of this incentive request, was included in the PDP approval.
Proposed New Automotive Dealership
On April 8, 2025, the City Council heard a conceptual presentation from the Developer and provided generally positive non-binding feedback about the incentive request.
The Project to be financed by the Bonds consists of an automobile dealership and related improvements to be located on approximately 7.44 acres of land situated to the southeast of the intersection of Highway 470 and NW Blue Parkway in the City (the “Project Site,” as shown in the map below). The Project will consist of a showroom and service building of approximately 21,815 square feet, a parking lot with approximately 470 spaces and charging station for electric vehicles. The Project will also include the completion of certain public improvements, including a new traffic light at the intersection of NW Blue Parkway and NW Ward Road and construction the of a new turn lane, shared access road and extensions of storm and sanitary sewer improvements.
Impact/Analysis:
The tax impact analysis for this incentive request is set forth in the Cost Benefit Analysis that is part of the Chapter 100 Plan. The tax impact is also discussed in the Developer and City presentation slides.
For purposes of determining the impact of the sales and use tax exemptions for the qualified building materials on the affected taxing jurisdictions, it is assumed that the total amount of qualified building materials purchased will be $4,036,459 and that the situs of sale for the purchases will be as follows: 5.0% within the City, 22.5% within Jackson County but outside the City, 22.5% within Missouri but outside Jackson County, and 50% outside Missouri.
Timeline:
Start: 2025
Finish: 2026
Other Information/Unique Characteristics:
This is the second incentive package that the Council is considering for development of this parcel.
Presenters
Ryan Westhoff, Dentons law firm, for applicant
Austin Duree, Managing Partner of Victory Hyundai of Lee’s Summit and Premier Automotive
David Bushek, Chief Counsel of Economic Development & Planning
Committee Recommendation
Committee Recommendation: This public hearing is held by the City Council pursuant to the Chapter 100 requirements, rather than a Council committee.