Title
An Ordinance approving the amended and restated Paragon Star Apartments Land Clearance for Redevelopment Authority (LCRA) Redevelopment Plan and approving the redevelopment contract and lease agreement for the project in connection therewith.
Body
Issue/Request:
This is an ordinance approving the amended and restated Paragon Star Apartments LCRA Plan (“Plan”) and the Redevelopment Contract and the Lease Agreement for the Plan, which would provide sales and use tax exemption on construction materials for the Apartments to be constructed for the project by Grayson Capital, LLC, (the “Developer”).
Key Issues:
Request to approve Plan and the implementation documentation Plan to provide sales and use tax exemption on construction materials for the Apartments.
Council Motion:
I move for second reading of An Ordinance Approving the Amended and Restated Paragon Star Apartments Land Clearance for Redevelopment Authority (LCRA) Redevelopment Plan and Approving the Redevelopment Contract and Lease Agreement for the Project in Connection therewith.
Background:
Paragon Star Incentive History
The City approved the original Paragon Star Tax Increment Financing (TIF) Plan through the adoption of Ordinance No. 7833 on March 10, 2016. The City approved the First Amendment to the TIF Plan through the adoption of Ordinance No. 8946 on September 8, 2020. The City and Paragon Star, LLC (the “Developer”) executed the Amended and Restated TIF Contract on September 8, 2020 (the “TIF Contract”).
The City Council has also approved other incentives for the Project. The City Council approved the I-470 and View High Community Improvement District (“CID”) through the adoption of Ordinance No. 7762 on December 3, 2015.
The Western Gateway Transportation Development District (“TDD”) was approved by the Jackson County Circuit Court on May 24, 2018. The TDD issued the Transportation District Sales Tax Bonds in February 2019 in the total amount of approximately $31,773,000 which are funding the road improvements, bridges and the interchange improvements.
Previously, the Council approved the Paragon Star LCRA Redevelopment Plan for the Paragon Star Apartments through the adoption of Ordinance No. 9467 on July 19, 2022.
New Request
Grayson Capital, LLC is requesting that the City approve an amended and restated LCRA Redevelopment Plan for the purpose of providing sales and use tax exemption on the purchase of construction materials that are used to construct the Apartments.
LCRA Proceedings
The LCRA Board of Commissioners held a public hearing on February 25, 2026, and adopted a resolution recommending approval of the amended and restated LCRA Plan for the Apartments.
Impact/Analysis:
Grayson Capital, LLC has calculated that the sales and use tax exemption request will result in a savings of approximately $1,095,164.18 to the company. The impact to the City of Lee’s Summit from this request is projected to be about $212,241.12.
Timeline:
The Apartments construction is expected to commence in 2026.
Presenters
Ryan Elam, Assistant City Manager
Megan Miller, Gilmore & Bell, Economic Development Counsel
Committee Recommendation
The LCRA Board of Commissioners approved a resolution that recommended approval of the amended and restated LCRA Plan for the Apartments to the City Council.