Title
Presentation: Conceptual Economic Development Incentive Request - Chapter 100 incentives for the Lakewood Business Park Industrial Project; Ward Development, applicant.
Body
Issue/Request:
This is a conceptual presentation pursuant to the City's Economic Development Incentive Policy for the request by Ward Development (“Developer”), as the developer of approximately 400,000 square feet of industrial space to be constructed in eight (8) buildings on approximately 31 acres of property located near the southwest quadrant of I-470 and NE Strother Road extending NE Maguire Boulevard to NE Hagen Road, for sales tax exemption on construction materials and real property tax abatement through Chapter 100 of the Revised Statutes of Missouri.
Key Issues:
Evaluation of a request for sales and use tax exemption on construction materials and real property tax abatement in the amount of 95% for the first 10 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 and use 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.
The attached modeling provides the Developer’s data for the calculation of the benefits to Developer and impacts to the taxing districts. The attached analysis from City staff provides a summary of the request, the benefit to the Developer and the impact to the City.
The abatement request as a portion of the total project budget is:
1.7% Sales Tax Exemption on Construction Materials
11.0% Real Property Tax Abatement / Public Improvements Assessment (net present value)
12.7% Total Requested Incentives
Public Improv...
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