Title
Presentation: Conceptual Economic Development Incentive Request - Land Clearance for Redevelopment Authority for the Colbern Ridge Project; CEAH Realtors Development Services, applicant.
Body
Issue/Request:
This is a conceptual presentation pursuant to the City's Economic Development Incentive Policy for the request by CEAH Realtors Development Services (“Developer”), as the developer of the Colbern Ridge Project consisting of multi-family, senior housing, medical office, general office, warehousing, and a convenience store on property located on approximately 41 acres at the NE quadrant of Colbern Road and Rice Road. The incentive request includes three components as discussed below.
Key Issues:
Conceptual evaluation of the use of LCRA incentives and a City sales tax contribution to provide reimbursement for public improvements to be constructed in connection with a mixed-use residential, office and retail project.
Background:
Developer is requesting the use of LCRA incentive in the form of:
(1) LCRA sales and use tax exemption on construction materials to reduce project costs;
(2) LCRA property tax abatement in the amount of 50%, coupled with the imposition of public improvement assessments in the amount of the abated real property taxes, to provide a reimbursement source to Developer for public improvements; and
(3) City sales tax sharing in the amount of 50% of the City’s 2.75% total sales tax rate that is generated by retail sales in the project area, to provide a reimbursement source to Developer for public improvements.
Impact/Analysis:
The attached slides prepared by City staff, and the attached modeling prepared by Developer, provides a summary of the impact to the City and the taxing district and the benefits to developer from the incentive request.
Timeline:
Start: 2024
Finish: 2036 (projected end of incentive period)
Other Information/Unique Characteristics:
This is the largest LCRA request in Lee’s Summit to date measured by total project size.
Presenter
Curt Petersen, Polsinelli law firm
Mike Atcheson, CEAH Realtors Development Services
David Bushek, Chief Counsel of Economic Development & Planning