Title
Presentation: Conceptual Economic Development Incentive Request - Chapter 100 incentives for the Town Centre Industrial Project; Ward Development, applicant.
Body
Issue/Request:
This is a conceptual presentation pursuant to the City's Economic Development Incentive Policy for the request by Ward Development (“Developer”), as the developer of an approximately 250,000 square foot industrial project to be constructed in one building on approximately 22 acres of property located at the southwest corner of NE Independence Avenue and Ne Town Centre Boulevard, for sales tax exemption on construction materials and real property tax abatement through Chapter 100 of the Revised Statutes of Missouri.
Key Issues:
Evaluation of a request for sales and use tax exemption on construction materials and real property tax abatement in the amount of 78% for the first 10 years and 50% for the second ten years.
Proposed City Council Motion:
No motion requested as this is only a conceptual presentation. The Developer is seeking the City Council's feedback pursuant to the City's Economic Development Incentive Policy.
Background:
Developer is requesting a Chapter 100 economic incentive in the form of (1) sales and use tax exemption on construction materials and (2) real property tax exemption in the effective amount of 78% for years 1-10 and 50% for years 11-20.
The attached modeling provides the Developer’s data for the calculation of the benefits to Developer and impacts to the taxing districts. The attached analysis from City staff provides a summary of the request, the benefit to the Developer and the impact to the City.
The abatement request as a portion of the total project budget is:
1.7% Sales Tax Exemption on Construction Materials
17.3% Real Property Tax Abatement / Public Improvements Assessment (net present value)
19.0% Total Requested Incentives
Public Improvements Assessment:
3% of the...
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