Title
An Ordinance approving the Tax Increment Financing Contract between the City of Lee’s Summit, Missouri, and Streets of West Pryor, LLC, for the Streets of West Pryor Tax Increment Financing Plan.
(Note: First Reading by City Council on January 8, 2019.)
Body
Issue/Request:
Ordinance to approve the TIF Contract to implement the Streets of West Pryor Tax Increment Financing Plan.
Key Issues:
The TIF Contract will implement the Streets of West Pryor TIF Plan. Developer has executed the contract.
Proposed City Council Motion:
I move for adoption of an Ordinance Approving the Tax Increment Financing Contract between the City of Lee's Summit, Missouri, and the Streets of West Pryor, LLC, for the Streets of West Pryor Tax Increment Financing Plan.
Background:
The TIF Contract establishes the rights, duties and obligations of the City and Developer to implement the Streets of West Pryor TIF Plan, which allows for the overall development. As approved, the TIF Plan allows for reimbursement in the maximum principal amount of $29.95 million from the several incentive revenue sources, compared to total projected project costs of about $182 million. The TIF Plan contained a project budget which itemizes the project costs and lists the items that are reimbursable from public sources (TIF, CID, TDD) and Chapter 100 cost savings. That same budget is used as an attachment to the TIF Contract.
Impact/Analysis:
A memorandum from the Law Department provides a summary of the TIF Contract, portions of which are repeated here:
Financing Structure
The Contract allows for bonds to be issued on terms that are acceptable to the City. Developer will be responsible for funding with private funds all costs of the project that are not funded by bonds. After the Contract is executed, the Developer must present a Financing Plan to the City, which sets forth the anticipated sources of funds to pay for all project costs, and the type and term of each source. The Financing Pl...
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