Title
An Ordinance approving a standard form funding agreement to be used by the City of Lee’s Summit, Missouri for the purpose of defining the costs and fees associated with the review, implementation, and monitoring of incentivized economic development projects in Lee’s Summit.
Body
Issue/Request:
An ordinance approving a standard form funding agreement between the City of Lee’s Summit, Missouri and any potential developer that proposes a development and/or requests incentives for a development within the City of Lee’s Summit.
Key Issues:
Defining and standardizing the fees and costs associated with reviewing, implementing, and monitoring economic developments within Lee’s Summit, and any incentives associated with those developments.
Proposed City Council Motion:
I move for second reading of an Ordinance approving a standard form funding agreement to be used by the City of Lee’s Summit, Missouri for the purpose of defining the costs and fees associated with the review, implementation, and monitoring of incentivized economic development projects in Lee’s Summit.
Background:
With the departure of David Bushek, Chief counsel of Economic Development and Planning, the City must now address the cost of using outside counsel to handle the review and implementation of proposed economic development projects. To ensure comprehensive review and implementation, at the same level that the City is accustomed to, the City must clearly define the costs associated with each project at the time of the initial incentive and/or development request. A standard form funding agreement will ensure that the cost and time it takes for staff and outside counsel to review, prepare, and implement an economic development project are transparent, reasonable and standardized for every project that chooses to come to Lee’s Summit.
Historically, each incentivized project had its own unique funding agreement. That structure did not account for the many hours of work that City staff completed before approval of the funding agreement and of the project by City Council. The gap led to hours of inadequately compensated work completed by City staff. Going forward, and by standardizing a funding agreement, City staff anticipates that work completed before the City Council approval stage will be adequately compensated and will continue to be compensated through each stage of the project.
Impact/Analysis:
A standard form funding agreement will ensure that all potential economic development projects that come to Lee’s Summit will receive the same standard treatment. A standard form funding agreement will allow City staff to provide transparency to developers regarding the costs to review, implement, and monitor of an incentivized economic development project. A standardized funding agreement will ensure that the additional time and effort spent by City staff and outside council on economic development projects and/or an incentive requests is adequately compensated.
Presenter
Ryan Elam, Assistant City Manager
Recommendation
Staff recommends approval of the Ordinance