Title
An Ordinance approving the Tax Credit Agreement between the Missouri Development Finance Board and the City of Lee’s Summit, Missouri, for the Green Street Project.
(Note: First read by Council on March 18, 2025. Passed by unanimous vote.)
Body
Issue/Request:
This ordinance will approve the Tax Credit Agreement with the Missouri Development Finance Board (“MDFB”) to provide $3.0 million in tax credits for the Green Street project.
Proposed City Council Motion:
I move for adoption of an Ordinance approving the Tax Credit Agreement between the Missouri Development Finance Board and the City of Lee’s Summit, Missouri, for the Green Street Project.
Background:
Section 100.286.6 of the Revised Statutes of Missouri provides that any taxpayer shall be entitled to a tax credit against any tax otherwise due under the provisions of Chapter 143, RSMo, excluding withholding tax imposed by Sections 143.191 to 143.261, RSMo, Chapter 147, RSMo, or Chapter 148, RSMo, in the amount of fifty percent of any amount contributed in money or property by the taxpayer to the development and reserve fund, the infrastructure development fund or the export finance fund during the taxpayer’s tax year.
At meetings of MDFB held on February 21, 2023 and August 20, 2024, the City of Lee’s Summit made written and oral presentations to the Missouri Development Finance Board concerning the Project and Project Application. MDFB thereafter awarded up to $3,000,000 in tax credits pursuant to the Tax Credits for Contributions Program that is administered by MDFB.
Impact/Analysis:
The City will deposit funds with MDFB to receive the tax credits. The City plans to sell the tax credits at the most favorable selling price, and staff anticipates that the City could sell the tax credits for about $2,700,000 which provides an equal amount of financial benefit for the Green Street project.
Timeline:
The tax credits can be used by a qualified buyer for up to three years after the date of issua...
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