Title
Presentation: Conceptual Economic Development Incentive Request - Chapter 100 incentives for Lee’s Summit Senior Apartments; Clover Communities Lee’s Summit, LLC, applicant.
Body
Issue/Request:
This is a conceptual presentation pursuant to the City's Economic Development Incentive Policy for the request by Clover Communities Lee’s Summit (“Developer”), as the developer of the Lee’s Summit Senior Apartments consisting of 128 age-restricted (55+) residential units on approximately 6.8 acres of property located at 830-900 Douglas Street, for sales and use tax exemption on construction materials and fixed payments in lieu of taxes (PILOTs) starting at $1,800 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 $1,800 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 $1,800 per unit for a period of 10 years.
The development is proposed to contain 128 age-restricted 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 $9,114 from lost sales taxes and $91,438 from lost use taxes, for a total impact to the City of about $100,581.
Fixed PILOTs / Real Property Tax Abatement
Developer has proposed a fixed PILOTs of $1,800 per unit in the first year of the project. The property is currently generati...
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