Title
Presentation: Conceptual Economic Development Incentive Request - Land Clearance for Redevelopment Authority for the Colbern Ridge Project; CEAH Realtors Development Services, applicant.
Body
Issue/Request:
This is a conceptual presentation pursuant to the City's Economic Development Incentive Policy for the request by CEAH Realtors Development Services (“Developer”), as the developer of the Colbern Ridge Project consisting of multi-family, senior housing, medical office, general office, warehousing, and a convenience store on property located on approximately 41 acres at the NE quadrant of Colbern Road and Rice Road. The incentive request includes three components as discussed below.
Key Issues:
Conceptual evaluation of the use of LCRA incentives and a City sales tax contribution to provide reimbursement for public improvements to be constructed in connection with a mixed-use residential, office and retail project.
Background:
Developer is requesting the use of LCRA incentive in the form of:
(1) LCRA sales and use tax exemption on construction materials to reduce project costs;
(2) LCRA property tax abatement in the amount of 50%, coupled with the imposition of public improvement assessments in the amount of the abated real property taxes, to provide a reimbursement source to Developer for public improvements; and
(3) City sales tax sharing in the amount of 50% of the City’s 2.75% total sales tax rate that is generated by retail sales in the project area, to provide a reimbursement source to Developer for public improvements.
Impact/Analysis:
The attached slides prepared by City staff, and the attached modeling prepared by Developer, provides a summary of the impact to the City and the taxing district and the benefits to developer from the incentive request.
Timeline:
Start: 2024
Finish: 2036 (projected end of incentive period)
Other Information/Unique Characteristics:
This is the largest LCRA request in Lee’s Summit to date measured by total pr...
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