Title
Update on Economic Development Incentive Request - Chapter 100 sales tax exemption and real property tax abatement for residential project, Griffin Riley applicant.
Body
Issue/Request:
On November 2, 2021 a conceptual presentation pursuant to the City's Economic Development Incentive Policy was made 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).
On February 22, 2022, the City Council evaluated an update on the Developer’s incentive request. The Developer proposed a PILOT on all units in the project at the rate of $1300 per unit per year. The Council’s direction was for the Developer and staff to hold further discussions on the request and determine if a revised incentive request can be achieved that addresses the Council’s lingering concerns and that is also satisfactory for Developer to undertake the project.
This is a status update on the incentive request based on Developer's changes to the request since the February 22, 2022.
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). The changes proposed by Developer since the February 22nd Council meeting are:
1. Increase the initial PILOT rate from $1300 to $1400 per door per year.
2. The annual PILOT will increase bi-annually at the rate of 1.5% during years 1-5, and then 3% during years 6-10.
3. Incorporate a mechanism that makes the PILOT during years 6-10 to be the lesser of (a) the amount described above or (b) the average taxes per residential unit...
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