Title
Presentation: Conceptual Economic Development Incentive Request for Pathways at Kensington Farms; Petra Development, applicant.
Body
Issue/Request:
The applicant is requesting that the Council consider using Chapter 100 to provide the following incentive benefits to the multifamily (townhome and apartments) components of the project:
(1) Sales tax exemption on the purchase of construction materials used for construction of townhomes and multi-family residential units.
(2) Real property tax abatement through Chapter 100 with a fixed PILOT starting at $1600 per unit, which is approximately 55% abatement, for ten years.
Background:
Neighborhood Improvement District
In 2006 and 2007, the City of Lee’s Summit, Missouri (the “City”) was working with Pulte Homes of Greater Kansas City, Inc., an affiliated company of Pulte Homes, Inc., a publicly traded company listed on the New York Stock Exchange, on the development of approximately 320 acres expected to be built into four neighborhoods in two phases to include over 700 homes (the “Development”). By January 1, 2007, the Developer acquired the site and made significant site development improvements within and adjacent to the Development including: (i) construction of a water storage facility and water distribution and water transmission lines, (ii) construction of road infrastructure, and (iii) construction of storm sewer, sanitary sewer, electrical and related utilities. The Developer entered into an agreement (the “Development Agreement”) with the City that provided, among other things, for the funding and dedication of various public improvements.
On July 13, 2006, the City established the Kensington Farms Improvement Project Neighborhood Improvement District (the “District”). The District was formed after a petition by the Developer to provide for the construction and financing of public improvements, primarily street and road improvements (the “Project”), benefiting the property within the Distri...
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