Title
Presentation and Reconsideration of Land Clearance for Redevelopment Authority (LCRA) Application - Bridge Space, LCRA Urban Renewal Redevelopment Project, 210 SW Market Street; SF003 LLC Applicant (LCRA Application #2017-001)
Body
Issue/Request:
Presentation and Reconsideration of Land Clearance for Redevelopment Authority (LCRA) Application - Bridge Space, LCRA Urban Renewal Redevelopment Project, 210 SW Market Street; SF003 LLC Applicant (LCRA Application #2017-001)
Key Issues:
On February 9, 2017 the City Council adopted Ordinance No. 8094 which approved a LCRA redevelopment project for Cowork Lee's Summit at 210 SW Market St. The project was approved for 100% real property tax abatement on the incremental increase in property value for an 8 year period. In addition, approval was granted to abate 50% of the base property tax for a period of 8 years as through ownership change, the property transfers from an exempt property to a taxable property.
After review and receiving further legal guidance, it has been determined that abating 50% of the base property tax is not a preferred method of abating real property taxes for a redevelopment project such as this. Having learned of this information, the applicant and LCRA have reconsidered the methodology of the abatement and is recommending 100% abatement on the incremental increase in value of the property for a 10 year period. The estimated net result of this reconsideration is a reduction of $3,926 in property tax abatement over the 10 year period. Staff has prepared a comparison table between what was approved in 2017 vs what is being recommended through the reconsideration. In addition to these revisions, the name of the project has changed from "Cowork Lee's Summit" to "Bridge Space".
A presentation will be made to the City Council to explain the differences in methodology and approach. An ordinance reconsidering the abatement and including a development agreement have been placed on the sam...
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