Title
An Ordinance approving the redevelopment contract and the lease agreement between the City of Lee’s Summit, Missouri and 1601 SE Hamblen Road, LLC to implement the amended 1601 SE Hamblen Road, LLC Land Clearance for Redevelopment Authority Redevelopment Plan.
(Note: First read by Council on May 5, 2026. Passed by unanimous vote.)
Body
Issue/Request:
Approval of agreements to implement the Amended LCRA Redevelopment Plan as approved for the 1601 SE Hamblen Road, LLC industrial project, also known as T&W Steel Company, Inc. Industrial Project.
Key Issues:
Approval of the Redevelopment Contract and Lease Agreement to implement the Amended LCRA Redevelopment Plan to provide sales tax exemption on the purchase of construction materials and real property tax abatement for a period of 10 years for the 1601 SE Hamblen Road, LLC (T&W Steel Company, Inc.) development, as a reimbursement source for the redevelopment costs associated with the project.
Proposed City Council Motion:
I move for second reading of an Ordinance approving the Redevelopment Contract and the Lease Agreement between the City of Lee’s Summit, Missouri and 1601 SE Hamblen Road, LLC, to implement the 1601 SE Hamblen Road, LLC Land Clearance for Redevelopment Authority Redevelopment Plan.
Background:
On March 25, 2026, the Amended LCRA Plan was presented to the LCRA Board of Commissioners, and the Board then passed Resolution 2026-2 which recommended approval of the Amended LCRA Plan.
The Amended 1601 SE Hamblen Road, LLC Land Clearance for Redevelopment Authority Redevelopment Plan is subject to the execution of a Redevelopment Contract and Lease Agreement to implement the Redevelopment Plan, and this ordinance will satisfy that condition.
The proposed development provides for the design, development, construction and relocation of a facility which will be approximately 73,300 square feet. The Amended LCRA Redevelopment Plan also provides for associated onsite and offsite sitework and infrastructure, including, without limitation, utilities, stormwater management, street/drive and parking improvements, and landscaping.
To implement the Amended LCRA Plan, the City will become the fee owner of the project through the life of the incentive period and lease the property to the 1601 SE Hamblen Road, LLC (the “Developer”). The Lease Agreement will accomplish this lease arrangement to implement the tax abatement incentive.
Impact/Analysis:
Some of the key features of the Redevelopment Contract and Lease Agreement are summarized as follows:
Abatement Implementation: Developer will make a Payment In Lieu of Taxes (PILOT) each year during the life of the abatement period, which is 10 years. The PILOT will be 75% of the taxes that would otherwise be due and payable on the property. In order to provide an established level of PILOTs during the payment period, the Contract provides that the County’s valuation of the property will be used to measure the 75% PILOT while development is occurring.
Redevelopment Schedule: Developer is required to comply with the schedule of development that is attached to the Contract. Developer may request up to a one-year extension of time to commence and/or complete the development. Such request for an extension may be granted by the City Manager. Failure to comply with the schedule, as extended by the City, allows the City to terminate the real property tax abatement.
Lease Safeguards and Protections: A significant number of protections are built into the Lease, which are summarized in the attachment “LCRA Lease Protections.”
Timeline:
Start: Construction of the project is expected to commence in June 2026
Finish: Project is expected to be completed in December 2027
Presenter
Ben Bigham, Polsinelli, P.C., Developer
Ryan Elam, Assistant City Manager
David Bushek, Economic Development Counsel
Recommendation
The LCRA Board of Commissioners recommended approval of a contract to implement the Amended LCRA Redevelopment Plan.