Title
An Ordinance approving a Sanitary Sewer Cost-Sharing agreement between North Oak Safety Storage, LLC, and the City of Lee’s Summit, Missouri, for the Lakewood Business Center Industrial Development Project
(Note: First read by Council on May 20, 2025. Passed by unanimous vote.)
Body
Issue/Request:
This is a Sanitary Sewer Cost-Sharing Agreement for the Lakewood Business Center Industrial Development Project. The Council approved the Chapter 100 Plan for this project on August 22, 2023 through the adoption of Ordinance No. 9560, and this ordinance will approve an agreement to implement the sewer cost sharing arrangement for the City and the Project.
Key Issues:
Consideration of the Sanitary Sewer Cost-Sharing Agreement with North Oak Safety Storage, LLC.
Proposed City Council Motion:
I move for adoption of An Ordinance authorizing the City of Lee's Summit, Missouri to enter into a Sanitary Sewer Cost-Sharing Agreement with North Oak Safety Storage, LLC, for the Lakewood Business Center Industrial Development Project.
Background:
On August 22, 2023, the Council held a public hearing to consider the approval of a Master Plan for an Industrial Development Project and Cost-Benefit Analysis for the Lakewood Business Park Project and authorizing the issuance by the City of its taxable industrial development revenue bonds in the aggregate principal amount of not to exceed $78,325,000 to finance costs of the industrial project for North Oak Safety Storage, L.L.C., which is an affiliate of Ward Development. The project consists of up to eight buildings and related public improvements with a combined square footage of approximately 400,000 square feet, each of which will be used for warehousing, distribution, manufacturing and/or industrial flex space purposes (the “Project”).
Additionally, the Project includes the construction and installation of streets, sanitary sewer lines and other public utilities (the “Public Improvements”) serving the site. The Project is being constructed on approximately 30.75 acres located southwest of the intersection of NE Jones Industrial Drive and NE Independence Avenue in Lee’s Summit, Missouri, which is referred to as the “Project Site.”
On September 5, 2023, the Council approved the Chapter 100 Plan through the adoption of Ordinance No. 9741. During the consideration of the Plan, the Council heard testimony that the Developer and City staff were coordinating for the joint funding of sanitary sewer improvements that would benefit the City Airport property and Developer’s Project. The parties have agreed in principal that a cost share agreement for the sanitary sewer improvements is appropriate because the improvements benefited City-owned facilities. The initial terms of the cost share agreement were presented during the Chapter 100 Public Hearing.
Following approval of the Plan, the Bonds were issued to facilitate construction of the Project. Developer constructed sanitary sewer improvements generally located along NE Hagan Road, between the Project and the Lee’s Summit Municipal Airport.
Impact/Analysis:
The sanitary sewer improvements will provide updated infrastructure to the Lee’s Summit Municipal Airport, while also supporting new development in the area.
Timeline:
The improvements were completed in 2025. This agreement will authorize payment to complete the cost sharing arrangement.
Presenter
David Bushek, Chief Counsel of Economic Development and Planning
Recommendation
Approval of the ordinance.
Committee Recommendation
None. Council action items for economic development incentives are typically considered by the City Council as a whole, rather than a Council Committee.