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 $13,400,000 in connection with the Victory Hyundai Project; and authorizing certain documents and actions in connection therewith.
Body
Issue/Request:
This is an ordinance to approve the bond transaction and bond documents associated with implementation of the 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.
Key Issues:
The City Council of the City of Lee’s Summit, Missouri (the “City”) is considering the issuance 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 (the “Company”). 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 a first reading of An Ordinance authorizing the City of Lee’s Summit, Missouri to issue Taxable Industrial Development Revenue Bonds in a principal amount not to exceed $13,400,000 in connection with the Victory Hyundai Project; and authorizing certain documents and actions in connection therewith.
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 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:
|
Approve Original Summit Fair TIF Plan |
August 24, 2006 |
|
Approve TIF Plan expansion for Summit Place |
May 15, 2014 |
|
Approve CID expansion for Summit Place |
May 15, 2014 |
|
Approve PMIX Zoning |
July 10, 2014 |
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Execute TIF Contract with RED LSE, LLC |
August 7, 2014 |
|
Extension of TIF Contract Schedule |
July 2, 2015 |
|
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.
On June 10, 2025, the City Council approved Ordinance No. 10144 which approved the , the City Council passed Ordinance No. 10144 which approved the Chapter 100 Plan discussed above.
Impact/Analysis:
The City has previously approved the Plan for an Industrial Development Project and Cost-Benefit Analysis for the Victory Hyundai Project (the “Plan”) which provides for the issuance of not-to-exceed $13,400,000 of industrial development revenue bonds by the City.
The Bonds and the interest thereon shall be limited obligations of the City payable solely out of the payments, revenues and receipts derived by the City from the Lease Agreement, and such payments, revenues and receipts shall be pledged and assigned to the Trustee as security for the payment of the Bonds as provided in the Trust Indenture. The Bonds and the interest thereon shall not be deemed to constitute a debt or liability of the City within the meaning of any constitutional provision, statutory limitation or City Charter provision and shall not constitute a pledge of the full faith and credit of the City. The issuance of the Bonds shall not, directly, indirectly or contingently, obligate the City to levy any form of taxation therefore or to make any appropriation for their payment.
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
David Bushek, Chief Counsel of Economic Development & Planning
David Martin, Gilmore & Bell, P.C.