Title
An Ordinance authorizing the City of Lee’s Summit, Missouri to issue Taxable Industrial Development Revenue Bonds in a principal amount not to exceed $47,700,000 in connection with the Greens at Woods Chapel Apartments Phase 1 Project and authorizing certain documents and actions in connection therewith.
(Note: First read by Council on December 2, 2025.)
Body
Issue/Request:
To authorize the City of Lee’s Summit, Missouri to issue Taxable Industrial Development Revenue Bonds for the Greens at Woods Chapel Apartments Phase 1 Project, in the amount of and not to exceed $47,700,000.00.
Key Issues:
Approval of the issuance of Bonds for the purpose of the development of the Greens at Woods Chapel Apartments Phase 1 Project.
Background:
At the June 20, 2023, Council meeting, the City Council heard a conceptual presentation about the incentive request presented by Developer. A majority of the City Council expressed an interest in considering the incentive request through the formal Chapter 100 process. The City Council did not vote or render any type of final or binding decision as part of the conceptual presentation.
The City then approved the Plan for an Industrial Development Project for the Greens at Woods Chapel Apartments Project (the “Plan”), pursuant to Ordinance No. 9760.
The first phase consists of the construction of a multifamily apartment complex of approximately 276 one- and two-bedroom units consisting of approximately ten 3-story apartment buildings with masonry, lap siding, and board and batten facades, high-end interior finishes, with approximately 54 garage spaces, approximately 27 electric vehicle charging stations, a swimming pool, clubhouse, fitness center, leasing office, and lounge area (the “Project”), to be situated on approximately 11 acres situated to the east of NE Akin Boulevard near the intersections of that road with NE Custer Drive and NE Meadowview Drive in Lee’s Summit, Missouri.
The overall project to be financed by the Bonds consists of 396 residential units on approximately 18 acres of property located on multiple parcels that are west of NE Ralph Powell Road and south of NE Woods Chapel Road, for sales and use tax exemption on construction materials and fixed payments in lieu of taxes (PILOTs) starting at $1,350 per unit pursuant to Chapter 100 of the Revised Statutes of Missouri.
Impact/Analysis:
The Project is expected to cost approximately $68,340,000. The investment is anticipated to be made in 2023, 2024 and 2025 as shown in the Cost-Benefit Analysis, although the actual years of investment may vary based on Project implementation. Under Article X, Section 6 of the Missouri Constitution and Section 137.100 of the Revised Statutes of Missouri, all property of any political subdivision is exempt from taxation. Under this Plan, the City intends to issue the Bonds in 2023.
The sources of funds to be expended for the Project will be the proceeds of the Bonds in a principal amount not to exceed $68,340,000 to be issued by the City and purchased by the Company and, if needed, other available funds of the Company. The Bonds will be payable solely from the revenues derived by the City from the lease or other disposition of the Project. The Bonds will not be an indebtedness or general obligation, debt or liability of the City or the State of Missouri.
The sales and use tax exemption is projected to be a savings of about $1,671,767 for the Developer, and the projected impact to the City from this exemption is approximately $413,457 (24.73%).
The Companies will make payments in lieu of taxes (“PILOTS”) for each component of the Project as follows:
(1) prior to construction, the amount calculated to equal the taxes that would have been due on the unimproved land were it in private ownership.
(2) During construction, an amount calculated from a starting point of $1,350 dollars per door, with an inflation adjustment of 3.0% in each odd year starting with 2025, for units under construction, pro-rated by percentage of completion.
(3) From and after completion, for a period of 10 years, a fixed PILOT calculated from a starting point of $1,350 dollars per door, with an inflation adjustment of 3.0% in each odd year starting with 2025.
The total PILOT payments are estimated in the Cost-Benefit Analysis. The projected impact to the City for the real property tax exemption is summarized as follows:
Total Abatement Value to Developer: $3,195,564
City Portion: $826,396
Total PILOTs: $5,676,528
City Portion: $978,253
Pilots per unit in Year 1: $1350
The total impact to the City from the two requested incentive mechanisms is about $1,239,853. The total projected PILOTs to be made to the City through the construction period and the 10-year abatement period is $978,253.
Developer is also proposing to make a voluntary payment to the City in the amount of $250,000, which can be expended by the City as general fund revenues. This payment will be handled in the implementation documents.
Presenter
David Buskek, Chief Council of Economic Development and Planning
Recommendation
Recommendation: Approval