Title
An Ordinance approving an Assignment Agreement among RED Lee’s Summit East, LLC, SF TIF, LLC, and the City of Lee’s Summit, Missouri, for the Assignment of Developer’s Interests in the Lee’s Summit East (Summit Fair) Tax Increment Financing Redevelopment Area.
(Note: First read by Council on November 4, 2025. Passed by unanimous vote.)
Body
Issue/Request:
This is a request from RED Lee’s Summit East, as the current Developer of record for the Lee’s Summit East (Summit Fair) Tax Increment Financing Plan (the “TIF Plan”) and related incentives, to transfer all of its remaining land and “Developer” interests in the shopping center to a new single-purpose entity that consists of investing parties and Block & Company as the proposed new manager of the shopping center.
Key Issues:
Council consideration of the Summit Fair Developer to transfer land and its remaining Developer interests to a new single-purpose entity that will be managed by Block & Company.
Proposed City Council Motion:
I move for adoption of an Ordinance approving an Assignment Agreement among RED Lee’s Summit East, LLC, SF TIF, LLC, and the City of Lee’s Summit, Missouri, for the Assignment of Developer’s Interests in the Lee’s Summit East (Summit Fair) Tax Increment Financing Redevelopment Area.
Background:
TIF Contract and Land Transfers:
The City and RED Lee’s Summit East, LLC, a Missouri limited liability company, the developer selected by the City ("Developer") executed the Amended and Restated Tax Increment Financing Contract on May 27, 2008 (as amended, the “TIF Contract”) to implement the TIF Plan (as defined above), for development of the Summit Fair Shopping Center. Section 32 of the TIF Contract provides that no sales of property in the TIF Redevelopment Area may be made to proposed buyers that are not directly affiliated with the Developer, while TIF bonds remain outstanding, without the prior written approval of the City. Section 32 also provides that these buyers (designated as “transferees” in the TIF Contract) are required to enter into a transferee agreement to confirm the transferees’ obligations to comply with certain provisions of the TIF Contract as it relates to the transferred property.
Under Section 32 of the TIF Contract, when the City considers the proposed transfer of property to an entity that is not included in the pre-approved user list in the TIF Contract, the City may require that the transferee demonstrate to City's reasonable satisfaction that it has sufficient financial, management, property ownership and operation capabilities, and that it is interested in the long-term viability of the subject land use and the Redevelopment Plan as a whole. This provision provide a measure of protection for the City in the process of evaluating proposed transferees while the TIF Plan is in effect and TIF bonds remain outstanding.
TIF Contract and Assignment of “Developer” Interests:
RED Lee’s Summit East, LLC, is the formal “developer of record” under the TIF Contract. Pursuant to Section ___ of the TIF Contract, Developer can assign its interest as the developer of record to a new entity upon approval by the City.
Transferee Information:
The seller and buyer to the pending transaction have provided the following information to the City:
RED SUMMIT FAIR, LLC, a Delaware limited liability company, (“Seller”), is in escrow to sell the property to:
• Merriam North Bell LLC (undivided 9.090% interest),
• Station Merriam I-35/63 LLC (undivided 20.909% interest),
• Summit Fair Investors 2025 LLC (undivided 31.818% interest),
• Papa K&M - SF LLC (undivided 24.545% interest),
• DeSoto Farms, LLC (undivided 8.678% interest), and
• Compton Farms, LLC (undivided 4.960% interest).
Together these parties will be tenants-in-common (collectively, “Buyer”), comprising 100% of the Members of SF TIF LLC, a Missouri limited liability company, and is requesting that the City approve the sale/transfer to SF TIF LLC, a Missouri limited liability company, as required by the TIF contract.
David M. Block is the Manager of SF TIF LLC and Block Asset Management will be the Manager of the property. David M. Block is also the Manager of Merriam North Bell, LLC; Station Merriam I-35/63 LLC; Summit Fair Investors 2025, LLC; and Papa K&M - SF LLC, and has an ownership interest (either personally or through an entity owned, controlled and/or managed by David M. Block) in each of such entities. These parties as the new manager of the developer entity and manager of the property are hereinafter referenced collectively as “Block & Company.”
Block & Company History / Experience
The following information about Block & Company has been submitted to City staff for inclusion in this packet.
Kansas City's Premier Commercial Real Estate Company
Since our founding year of 1946, Block & Company, Inc., Realtors has been an industry leader and the foremost provider of full-service commercial real estate in the Greater Kansas City area and the Midwest region. With over 200 years of combined industry experience, our team of agents brings a broad range of insight and knowledge to the arena. Block & Company's brokerage proudly closes hundreds of millions of dollars in transactions annually and our strong reputation has provided us the opportunity of representing thousands of clients on the local, regional, and national levels throughout our 80-year history.
Experience
Block & Company offers a wide array of in-house services tailored to our clients' needs in virtually every sector of commercial real estate. Our brokerage and support staff is strategically comprised of industry professionals who specialize in the following sectors:
Expertise
- Investment Services
- Property Development
- Redevelopment/Renovation
- Market & Site Analysis
- Regional/National Expansion Strategies
- Consulting Services
- Financing/Venture Capital
- Sales & Leasing Brokerage
- Tenant/Buyer Representation
- Landlord/Seller Representation
- Build-To-Suit
- Sale Lease-Back/1031 Exchange
- Construction Management
- Asset Management
Industry Focus
Restaurant | Retail | Shopping Center | Automotive | Hospitality | Industrial | Office | Business For Sale
Network
Block & Company's network of valuable resources and key business relationships enables us to provide the highest level of oversight to preserve and advance the value of our clients' real estate interests. Market knowledge is key to all successful real estate endeavors.
From start to finish, our team assists our clients in resolving issues involving zoning, city approvals, codes compliance, and licenses - as well as proven vendor contacts, equipment acquisition sources, and financing solutions.
From new start-ups to national chains - whether you are expanding or relocating your business or selling or leasing existing property, Block & Company brings the tools vital to success.
Relationships
Our proven business philosophy embodies a supreme commitment to integrity, excellence, and teamwork. We are continually moving forward with new and innovative tools to build on our strong foundation and to secure new opportunities in the future. Block & Company's full-service, customer-oriented approach facilitates seamless integration with all of the services our company provides.
For nearly 80 years, Block & Company has been on the forefront as a pioneer of new and cutting-edge initiatives that has made it the premier commercial real estate company in Kansas City and throughout the region.
Impact/Analysis:
If the Council approves this ordinance, it will (1) authorize the execution of a Transferee Agreement which will allow transfer of RED’s remaining land interest in the shopping center to an entity that will be managed by Block and (2) authorize an assignment of RED’s interests in the TIF Contract as the “developer of record” under the TIF Plan to the special-purpose entity that will be managed by Block.
Timeline:
The outside parties seek to complete the private transactions promptly after the Council acts on this ordinance on November 18, 2025. The closing may occur in November or December 2025.
Other Information/Unique Characteristics:
This ordinance would install a new entity (Block) as the primary developer of record for the Summit Fair shopping center, in the capacity as manager of the new developer entity.
Presenters
David Bushek, Chief Counsel of Economic Development and Planning
Kevin Schremp, Director of Asset Management, RED Development, LLC
Frank Escobar, General Manager of Summit Fair Shopping Center, RED Development, LLC
David M. Block, Block & Company, Inc., Realtors
Greg Hoeffer, Vice President of Property Management, Block & Company, Inc., Realtors
Madison Baddick, Director of Property Management, Block & Company, Inc., Realtors
Zachary Albrecht, Development & Investment Specialist, Block & Company, Inc., Realtors