Title
Public Hearing: Arborside Land Clearance for Redevelopment Authority (LCRA) Redevelopment Plan; Land Reserve, Inc., Applicant
Body
Issue/Request:
This is a public hearing for the City Council to consider the Arborside Land Clearance for Redevelopment Authority (LCRA) Redevelopment Plan to fund the primary public infrastructure improvements which will serve the northern approximately 1000 acres of property owned by Land Reserve in the northern part of the City, east of I-470.
Key Issues:
Long-term land-use planning and infrastructure funding for the northern approximately 1000 acres of the Land Reserve property in the northern part of the City.
Background:
On March 26, 2024, the City Council heard a presentation from City staff and representatives of Land Reserve, Inc., a Utah corporation (“Land Reserve”), regarding the development of approximately 4,203 acres of property within the City (collectively the “Property”). Land Reserve is under contract to purchase certain portions of the Property and anticipates purchasing the balance of the Property over time; after purchasing any portion of the Property, Land Reserve intends to sell such portions of the Property to third parties for usage and development.
The City Council approved Ordinance No. 9888 on April 9, 2024, which led to the execution of the Memorandum of Understanding between Suburban Land Reserve, Inc., and the City (the “MOU”). The purpose of the MOU is to coordinate for the planning, platting and zoning for development of the Property and the establishment of a funding plan for the construction of public infrastructure to serve development of the Property, as well as the attraction and inducement of certain private development to the Property. The Parties also seek to coordinate for the acquisition of portions of the Property for public institutional uses by the City and other governmental entities as the Property develops over time.
In August 2025, the City and Land Reserve teams provided a conceptual presentation to the City Council to introduce the structure of the funding plan for the north 1000 acres that has since been designated as the Arborside development area by Land Reserve.
On March 25, 2026, the City and Land Reserve teams made a presentation to the LCRA Board to give the Board a preview of the infrastructure funding plan that the City has developed in coordination with Land Reserve, and a preview of the upcoming proceedings to approve the LCRA Plan.
On April 14, 2026 the City Council approved Ordinance No. 10358 which approved the Cooperative Agreement between the City and Land Reserve for the Todd George Parkway Project. This Agreement governs the funding, design, engineering and construction of the Todd George Parkway project in the northern area of approximately 1000 acres of Property Reserve property. The project will be undertaken by Land Reserve, and reimbursed by the City up to the maximum amount of $24 million, as set forth in the Capital Improvements Plan for this project. This Agreement allows Land Reserve to accelerate the construction of Todd George Parkway, as compared to the schedule that the City would otherwise use for this project. The schedule calls for construction to commence no later than October 2027 and be finished by April 2030
On May 12, 2026, City and Land Reserve teams provided an update to the City Council regarding the ongoing work for this project, and a preview of the upcoming proceedings to evaluate and consider approval of the infrastructure funding plan for the Arborside area.
On May 14, 2026 the Planning Commission held two public hearings to consider an amendment to the Ignite! Comprehensive Plan and to evaluate the consistency between the Arborside LCRA Plan and the Comprehensive Plan. Thereafter, the Planning Commission approved Resolution 2026-4 which amended the Comprehensive Plan for the Arborside area; and approved Resolution 2026-5 which recommended approval of the LCRA Plan and recommended that the City Council find that the LCRA Plan is consistent with the Comprehensive Plan. This provided a recommendation to the City Council regarding the conformity of the LCRA Plan with the Comprehensive Plan by the City’s “planning agency” as required by the LCRA Act.
On June 4, 2026, the LCRA Board of Commissioners held a public hearing to consider the LCRA Plan. Thereafter the LCRA Board approved Resolution 2026-3 which recommended to the City Council approval of the LCRA Plan, including the factual findings required by the City Council to approve the Plan.
Recommendation:
The Planning Commission and LCRA Board have both recommended approval of the LCRA Plan.
Impact/Analysis:
Cost Benefit Analysis
The LCRA Plan is projected to have a positive impact on City tax revenues. A Cost Benefit Analysis is included in the packet which demonstrates that all of the real property taxing districts will receive substantial additional real property tax revenues as a result of development of the Arborside area.
Real Property Taxes
The LCRA Plan will allow the City to implement tax abatement on the Arborside property by placing the property in City ownership and leasing the property back to Land Reserve, which then may be subleased to site developers and end-users that build and operate the development projects.
Special Assessments: Certain portions of the abated taxes will be re-imposed as CID special assessments, which will generate CID funds to reimburse the appropriate parties for the primary infrastructure costs.
PILOTs: The property owner will make payments in lieu of taxes (PILOTs) for certain portions of the abated real property taxes, as set forth in the presentation slides. PILOT payments will flow to the real property taxing districts in proportion to their real property tax levy rates, as property taxes are normally distributed.
Abatement: A certain portion of the abated taxes will remain abated (no payment by the property owner), thus achieving an inducement incentive for industrial projects and residential development that is R-2 density or higher density.
Sales and Use Taxes
The LCRA Plan would provide sales tax exemption on the purchase of construction materials which are used to construct the projects in the Arborside area. Traditionally, most developers have indicated to the City that most of these construction material purchases are made from sellers in other states, thus triggering the City’s use tax for these purchases. The benefit of this component of the structure to the master developer is set forth in the “Reimbursement Ratios” slides in the presentation.
Sales taxes which are imposed by the State of Missouri, Jackson County, the City, the Zoo District and the Arborside CID will not be diverted or affected by the LCRA Plan, and will flow to the taxing district as normal. The only exception would be if the City Council later approves some type of additional discretionary incentive that results in sales tax redirection for the benefit of a landowner or developer for a specific project. The City team has not evaluated any type of sales tax diversion as part of this funding plan. The LCRA Plan will change the flow of real property tax revenues, but sales taxes imposed on retail sales in the Arborside area will flow as normal to the sales taxing districts that impose each sales and use tax after the LCRA Plan and CID are approved.
Arborside CID
The Arborside CID will use two funding mechanisms to reimburse Land Reserve for costs associated with the primary public improvements. The CID will impose a 1% CID sales and use tax that will apply to all retail sales within the District, including retail purchases by users in the District from out-of-state sellers which triggers the City’s use tax. The CID will also impose special assessments equal to a designated percentage of the abated real property taxes associated with each land use, as set forth in the presentation slides. This structure will be implemented through the Master Development Agreement. The LCRA Plan and CID work in concert to abate real estate taxes and impose special assessments for a portion of the abated taxes to generate funds to reimburse the Master Developer for public improvements costs.
Timeline:
Land Reserve has indicated that it will pursue development projects promptly after approval of the LCRA Plan and CID Petition, focusing on initial development in Phase I (central area, primarily commercial and residential development) and Phase II (southern area, primarily industrial development and park/recreational area). Land Reserve has indicated they are ready to sell land for development projects. Zoning applications and other required City permits and approvals will proceed as normal for each project that is pursued in the Arborside area.
Presenter
David Bushek, Gilmore & Bell. P.C., Economic Development Counsel for the City
Tyler Buswell, President, Land Reserve, Inc.
Curt Petersen, Polsinelli P.C., attorney for Land Reserve
Mike VanBuskirk, Vice Chairman, Newmark Zimmer