Title
An Ordinance Approving a Transferee Agreement Among Red Summit Fair, LLC, Sahara Pavilion South SC, LLC, Win, LLC, and the City of Lee’s Summit, Missouri, for the Transfer of Property in the Lee’s Summit East (Summit Fair) Tax Increment Financing Redevelopment Area.
(Note: First read by Council on July 20, 2021. Passed by unanimous vote.)
Body
Issue/Request:
Request to approve a Transferee Agreement which will allow for the sale of the property that is occupied by the Macy’s store in the Summit Fair shopping center.
Key Issues:
Sale of property occupied by the Macy’s store in Summit Fair to a new owner.
Proposed City Council Motion:
I move for adoption of an Ordinance Approving a Transferee Agreement Among Red Summit Fair, LLC, Sahara Pavilion South SC, LLC, Win, LLC, and the City of Lee’s Summit, Missouri, for the Transfer of Property in the Lee’s Summit East (Summit Fair) Tax Increment Financing Redevelopment Area.
Background:
The City and RED LEE'S SUMMIT EAST, LLC, a Missouri limited liability company, the developer selected by the City ("Developer") executed the Amended and Restated Tax Increment Financing Contract on May 27, 2008 (as amended, the “TIF Contract”) to implement the Lee’s Summit East (Summit Fair) Tax Increment Financing Plan (the “TIF Plan”), for development of the Summit Fair Shopping Center. Section 32 of the TIF Contract provides that no sales of property in the TIF Redevelopment Area may be made to proposed buyers that are not directly affiliated with the Developer, while TIF bonds remain outstanding, without the prior written approval of the City. Section 32 also provides that these buyers (designated as “transferees” in the TIF Contract) are required to enter into a transferee agreement to confirm the transferees’ obligations to comply with certain provisions of the TIF Contract as it relates to the transferred property.
Under Section 32 of the TIF Contract, when the City considers the proposed transfer of property t...
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