Title
Conceptual Economic Development Incentive Request - Chapter 100 sales tax exemption on construction materials and real property tax abatement for residential project, Griffin Riley applicant.
Body
Issue/Request:
This is a conceptual presentation pursuant to the City's Economic Development Incentive Policy for the request by Griffin Riley (“Developer”), as the developer of the mixed use residential and commercial project to be constructed at 2840 SE Blue Parkway, for sales tax exemption on construction materials and real property tax abatement for three types of residential products (apartments, townhomes and single-family units) pursuant to Chapter 100 of the revised statutes of Missouri (Chapter 100).
Key Issues:
Evaluation of a request for sales tax exemption on construction materials and real property tax abatement in the form of a fixed PILOT schedule for 10 years for three distinct types of residential products (single-family, apartments and townhomes).
Proposed City Council Motion:
No motion requested as this is only a conceptual presentation. The Developer is seeking the City Council's feedback pursuant to the City's Economic Development Incentive Policy.
Background:
Developer is requesting a Chapter 100 economic incentive in the form of (1) sales tax exemption on construction materials and (2) real property tax exemption in the form of fixed PILOTs on three types of residential products. Developer’s budget summary is:
A summary of the Developer’s savings for the requested sales tax exemption on construction materials is:
A summary of the Developer’s request for scheduled PILOTs is:
The sales tax exemption on construction materials is 1.6% of the total project budget, which is in the range of the same incentive as previously approved by the City Council for residential apartment projects.
The value of the apartment abatement is 2.4% of the total project budget ($2,431,800 / $102,800,000).
Developer has not quantified the impa...
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