Title
Conceptual Economic Development Incentive Request - Chapter 100 incentives for the Douglas Station Residential Project; Andy Mackey, applicant
Body
Issue/Request:
This is a conceptual presentation pursuant to the City's Economic Development Incentive Policy for the request by Andy Mackey (the “Developer”), as the Developer of the Douglas Station Residential Project consisting of 150 residential units on approximately 6.3 acres of property located east of NW Commerce Drive and north of the Lee’s Summit Police & Courts Facility, for sales and use tax exemption on construction materials and fixed payments in lieu of taxes (PILOTs) starting at $1,350 per unit pursuant to Chapter 100 of the Revised Statutes of Missouri.
Key Issues:
Evaluation of a request for incentives in the form of sales and use tax exemption on construction materials and fixed PILOTs for 10 years starting at $1,350 per door.
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:
Request
Developer is requesting a Chapter 100 economic incentive in the form of (1) sales and use tax exemption on construction materials and (2) fixed PILOTs starting at $1,350 per door for a period of 10 years. The development is proposed to contain 150 residential units.
Impact/Analysis:
Sales and Use Tax Exemption
The sales tax exemption request would have an impact on the City based on the loss of sales and use tax revenues. City staff has preliminarily calculated that the lost sales and use tax revenue for the City would be about $13,700 from lost sales taxes and $137,000 from lost use taxes, for a total impact to the City of about $151,000.
Fixed PILOTs / Real Property Tax Abatement
Developer has proposed a fixed PILOTs of $1,350 per unit in the first year of the project. The property is currently generating nominal real propert...
Click here for full text