Title
Request by Lee’s Summit Housing Authority to Purchase City-owned Property at 25 NW Tudor Road
Body
Issue/Request:
Request by Lee’s Summit Housing Authority (LSHA) to purchase property owned by the City of Lee's Summit for a multi-family residential development.
Key Issues:
Sale of property to LSHA.
Background:
LSHA has requested to purchase property owned by the City at 25 NW Tudor Road. The property is Tax Parcel No. 52-900-04-39-00-0-00-000 which is Lot 3A of the “Plat of Lee’s Summit Police and Courts Facility” containing 127,326 square feet which is approximately 2.92 acres, as illustrated on the attached Plat. The market value assigned to this parcel by Jackson County in 2021 is $1,079,000 (2021 Market Value Assessment).
Project
The project proposed by LSHA consists of 126 multifamily residential units which will be restricted to rental by persons aged 55 and older, in two phases as follows:
LSHA and its Master Development Consultant/Partner will seek Federal and State Low-Income Housing Tax Credits with the Missouri Housing Development Commission (MHDC). The City will not participate directly in this application and no separate approvals are required by the City for this application.
Ownership Structure
The property will be transferred from LSHA to a limited liability company (LLC) that will own the property and the apartment building (the “Apartment Company”) which will be a partnership with the following ownership arrangement:
• 51% owned by non-profit entity (the “Non-Profit Partner”) that is owned, controlled and managed by LSHA
• 49% owned by a for-profit LLC (the “For-Profit Partner”) that is owned, controlled and managed by a private company that will be selected by LSHA through an RFP process.
No member of LSHA will have a personal interest, or direct or indirect business ownership interest, in the For-Profit Partner.
The arrangement for this project will be formally memorialized in a Development Agreement which must be...
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