Title
An Ordinance authorizing The City of Lee’s Summit, Missouri to make certain changes with respect to the Chapter 100 Bond Documents to be executed in connection with the Lakewood Business Park Project (Building 2).
(NOTE: First read by Council on September 1, 2026. Passed by unanimous vote.)
Body
Issue/Request:
This request stems from the approval of the Master Plan for an Industrial Development Project and Cost-Benefit Analysis for the Lakewood Business Park Project. As a part of that approval, the City Council agreed to authorize the issuance of taxable industrial development revenue bones to finance costs of the industrial project for North Oak Safety Storage, LLC, which is an affiliate of Ward Development. The Phase II 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”).
The Building 2 Project size has decreased from 60,000 square feet to 44,500 square feet. This change in building size requires adjustments to previously approved documents related to the furtherance of the Master Plan for an Industrial Development Project and Cost-Benefit Analysis for the Lakewood Business Park Project.
Key Issues:
An updated Payment in Lieu of Taxes (PILOT) Payment Schedule is included as Exhibit A in the proposed ordinance.
Proposed City Council Motion:
Second Motion: I move for adoption AN ORDINANCE AUTHORIZING THE CITY OF LEE’S SUMMIT, MISSOURI TO MAKE CERTAIN CHANGES WITH RESPECT TO THE CHAPTER 100 BOND DOCUMENTS TO BE EXECUTED IN CONNECTION WITH THE LAKEWOOD BUSINESS PARK PROJECT (BUILDING 2).
Background:
The City has previously approved the Master Plan for an Industrial Development Project and Cost-Benefit Analysis for the Lakewood Business Park Project (the “Master Plan”) which provides for the issuance of not-to-exceed $78,325,000 of industrial development revenue bonds by the City.
In furtherance of the Master Plan, the City has previously approved a project originally intended to consist of the construction of an approximately 60,000 square foot industrial building with related private and public improvements (the “Building 2 Project”), which is part of the development described in the Master Plan, and has previously approved the issuance of the City’s Taxable Industrial Development Revenue Bonds (Lakewood Business Park Project - Building 2), in an aggregate principal amount not to exceed $9,975,000 (the “Building 2 Bonds”), for the purpose of providing funds to pay the costs of the Building 2 Project.
In connection with the Building 2 Bonds, the City approved a series of documents with North Oak Safety Storage, L.L.C., a Missouri limited liability company, or its designee or assignee (the “Company”) and the bond trustee named in such documents, including a Trust Indenture (the “Trust Indenture”), a Lease Agreement (the “Lease Agreement”), and a Bond Purchase Agreement (the “Bond Purchase Agreement”, and together with the Trust Indenture and the Lease Agreement, the “Bond Documents”)
The Bond Documents impose payments in lieu of tax during the term of the Bonds in an amount calculated on a square footage basis that is intended to provide the following real property tax abatement: (1) during the project period, 75%, (2) in years 1 through 10 after project completion, 75%, and (3) in years 11 through 20 after project completion, 50%.
The payments in lieu of tax described in the Bond Documents were fixed at a set dollar amount per year based on the assumption of a 60,000 square foot building being constructed as part of the Building 2 Project. Due to changes during the development process, the Company has informed the City that the actual square footage of the Building 2 Project will be 44,500. The Company has requested that the Bond Documents be amended prior to execution to adjust the square footage of the Building 2 Project to 44,500 and to reduce the schedule of payments in lieu of tax accordingly.
Presenter
David Martin, Gilmore & Bell, P.C., Economic Development Counsel for the City
Recommendation
Recommendation: Staff recommends approval of the ordinance.