Title
Conceptual Economic Development Incentive Request - Chapter 100 sales tax exemption on construction materials and real property tax abatement for industrial project, Scannell Properties applicant.
Body
Issue/Request:
This is a conceptual presentation pursuant to the City's Economic Development Incentive Policy for the request by Scannell Properties (“Developer”), as the developer of a 783,000 square foot industrial project to be constructed on approximately 79 acres of property located north of Tudor Road which is bisected by Main Street, for sales tax exemption on construction materials and real property tax abatement 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 amount of 95% for the first ten years and 75% for the second ten years.
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 effective amount of 95% for years 1-10 and 75% for years 11-20.
A summary of the Developer’s savings for the requested sales tax exemption on construction materials is:
The abatement request as a portion of the total project budget is:
3.1% Sales Tax Exemption on Construction Materials
18.8% Real Property Tax Abatement / Public Improvements Assessment
21.9% Total Requested Incentives
Public Improvements Assessment:
20% of the requested real property tax abatement during years 1-10 is in the form of a Public Improvements Assessment, which is imposed upon the tenants and paid to the Developer which results in effective abatement for the taxing districts, to reimburse Developer for a p...
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