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File #: 2019-3004    Name:
Type: Presentation Status: Presented
File created: 8/28/2019 In control: City Council - Regular Session
On agenda: 9/3/2019 Final action: 9/3/2019
Title: Presentation and consideration of Land Clearance for Redevelopment Authority (LCRA) application - Aristocrat Motors LCRA Redevelopment, 704 SE Oldham Court; Aristocrat Motors, applicant.
Attachments: 1. Presentation, 2. LCRA Application, 3. 10 Year Tax Revenue Estimate, 4. Preliminary Development Plan, 5. Elevations, 6. LCRA Area Map
Title

Presentation and consideration of Land Clearance for Redevelopment Authority (LCRA) application - Aristocrat Motors LCRA Redevelopment, 704 SE Oldham Court; Aristocrat Motors, applicant.

Body

Issue/Request:

Presentation and consideration of Land Clearance for Redevelopment Authority (LCRA) application - Aristocrat Motors LCRA Redevelopment, 704 SE Oldham Court; Aristocrat Motors, applicant.

Key Issues:

Aristocrat Motors is pursuing the construction of a new 7,397 sq. ft. single story automotive dealership for the sale of pre-owned luxury vehicles.  Aristocrat Motors submitted a LCRA application in April 2019 requesting 100% property tax abatement on the incremental increase in value of the project over a five year period.  As this request is at or below the threshold established in the City's adopted Economic Development Policy, there was no conceptual incentive request presentation required or made to the Mayor and Council and the request proceeded directly to the LCRA for consideration.

The proposed development is estimated to be a $1,795,000 improvement to real property with an investment of $500,000 in business personal property. 

Aristocrat Motors anticipates the proposed new dealership will create 11 new jobs in Lee's Summit as follows:

                     Sales Manager - $150,000 salary

                     Assistant Sales Manager - $100,000 salary

                     6 Salespeople - $80,000 salary

                     Office Assistant - $ 40,000 salary

                     2 Porters - $ 40,000 salary

Aristocrat Motors estimates the new dealership will result in 480 car sales per year with an average cost per vehicle of $35,000 which would result in sales tax generation to the City of $378,000 annually (2.25% City sales tax rate).

The LCRA considered the application at their June 26, 2019 meeting and recommended approval of abatement of the incremental increase in property value of the project over a 5 year period.  ...

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