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1 City Council Information Form DATE: 08/12/2015 ASSIGNED STAFF: Mark Dunning DEPARTMENT: Development Center TYPE OF FORM: Other Business Form No.: 4978 APPROVALS: dept: MDUNNING 08/12/2015 ISSUE/REQUEST: Land Clearance for Redevelopment Authority (LCRA) Application 3rd Street Social, LCRA Urban Renewal Redevelopment Project, 123 SE 3rd Street; 3rd Street Restaurant Associates, Applicant (LCRA Application # ) KEY ISSUES: 3rd Street Restaurant Associates is pursuing the redevelopment of the vacant building located at 123 SE 3rd Street through the use of the Land Clearance for Redevelopment Authority (LCRA). The applicant is proposing to convert the vacant building into a first class destination restaurant use while respecting the buildings historic significance and value. 3rd Street Restaurant Associates submitted a completed LCRA Urban Renewal Redevelopment Application on August 7, 2015 requesting a 100% real property tax abatement for a 5 year period on the incremental increase in value of the project. Per the City's adopted Economic Development Incentive Policy, it was determined this request would be commensurate with a 50% abatement over a 10 year period, therefore staff directed the request to the LCRA for consideration without a conceptual plan presentation before the Council. The proposed redevelopment project is located with an existing Urban Renewal Area known as "Project No. Mo. R 47" which was created in September of The LCRA is recommending a 100% real property tax abatement for a 5 year period on the incremental increase in value of the project. The proposed project is a $1.6M investment in the downtown area and is anticipated to create 44 new jobs resulting in an annual payroll in excess of $562,000. The total annual sales tax revenue is estimated to be $1.5M the first year increasing to $2.5M in years In evaluating the proposed project to the adopted Economic Development Vision Statement the project scores well with regard to: Investment in Downtown Lee's Summit Entrepreneurship Redevelopment Attraction of targeted businesses The Lee's Summit R 7 School District is not opposed to the requested tax abatement for the project. PROPOSED COMMITTEE MOTION:
2 PROPOSED CITY COUNCIL MOTION: I move to direct staff to prepare an ordinance approving LCRA Application ; 3rd Street Social Urban Renewal Redevelopment Project, 123 SE 3rd Street; 3rd Street Restaurant Associates, applicant. BACKGROUND:(including location, programs/departments affected, and process issues) September 2012 the City Council adopted Ordinance No expanding the existing "Project No. Mo. R 47" Urban Renewal Area to include a significant portion of the downtown core including the subject property. July 20 August 7, rd Street Associates submitted a LCRA Urban Renewal Redevelopment Project application with a request to expedite the consideration of the request. August 11, 2015 the LCRA considered the Urban Renewal Redevelopment Project application and unanimously recommended approval of a 100% real property tax abatement for a 5 year period on the incremental increase in value of the project. IMPACT/ANALYSIS: Should the City Council approve the LCRA recommendation of real property tax abatement for the proposed project, the estimated amount of tax abatement over the 5 year period is approximately $63,360. The proposed project does not include any residential aspects, therefore negative impact(s) in terms of student enrollment to the Lee's Summit R 7 School District do not exist. TIMELINE Start: Finish: OTHER INFORMATION/UNIQUE CHARACTERISTICS: The anticipated schedule for the project currently reflects a construction start of late September with completion in the first quarter of STAFF RECOMMMENDATION Staff findings below are prepared to document required findings as required by State statute(s). The incentive requested is within the parameters as outlined within the the Economic Development Incentive Policy. The proposed redevelopment project is located within a designated blighted area (Urban Renewal Area Project No. Mo. R 47). The proposed redevelopment project is in conformance with the City's Comprehensive Plan and compliments the Downtown Master Plan. The proposed redevelopment project is sufficiently complete to indicate its relationship to local objectives. The proposed redevelopment project provides for a coordinated and harmonious development that will complement the City's downtown core. The plan includes a financial analysis, estimated schedule of completion and there is no need for a relocation plan as the building is vacant. OTHER BOARDS AND COMMISSIONS ASSIGNED: Land Clearance for Redevelopment Authority DATE: 08/11/2015 ACTION:
3 The LCRA voted unanimously (4 0) to recommend a 100% real property tax abatement for a period of 5 years on the incremental increase in value for the project. COUNCIL COMMITTEE ASSIGNED: Not Applicable DATE: ACTION: List of Reference Documents Attached 1. 3rd Street Social LCRA Application 2. Latest Project Renderings DRAFT Meeting Minutes of the LCRA 4. Downtown LS Urban Renewal Area map
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76 3rd Street Social ARNOLD HALL - LEE S SUMMIT MISSOURI UPDATED INTERIOR RENDERINGS 2015 DRAW ARCHITECTURE AND URBAN DESIGN LLC ALL DRAWINGS AND WRITTEN INFORMATION APPEARING HEARIN SHALL NOT BE DUPLICATED, DISCLOSED OR OTHERWISE USED WITHOUT WRITTEN CONSENT OF THE ARCHITECT. DD Mee ng NOT FOR CONSTRUCTION
77 3rd Street Social ARNOLD HALL - LEE S SUMMIT MISSOURI UPDATED INTERIOR RENDERINGS 2015 DRAW ARCHITECTURE AND URBAN DESIGN LLC ALL DRAWINGS AND WRITTEN INFORMATION APPEARING HEARIN SHALL NOT BE DUPLICATED, DISCLOSED OR OTHERWISE USED WITHOUT WRITTEN CONSENT OF THE ARCHITECT. DD Mee ng NOT FOR CONSTRUCTION
78 3rd Street Social ARNOLD HALL - LEE S SUMMIT MISSOURI UPDATED INTERIOR RENDERINGS 2015 DRAW ARCHITECTURE AND URBAN DESIGN LLC ALL DRAWINGS AND WRITTEN INFORMATION APPEARING HEARIN SHALL NOT BE DUPLICATED, DISCLOSED OR OTHERWISE USED WITHOUT WRITTEN CONSENT OF THE ARCHITECT. DD Mee ng NOT FOR CONSTRUCTION
79 3rd Street Social ARNOLD HALL - LEE S SUMMIT MISSOURI INSPIRATION IMAGES 2015 DRAW ARCHITECTURE AND URBAN DESIGN LLC ALL DRAWINGS AND WRITTEN INFORMATION APPEARING HEARIN SHALL NOT BE DUPLICATED, DISCLOSED OR OTHERWISE USED WITHOUT WRITTEN CONSENT OF THE ARCHITECT. DD Mee ng NOT FOR CONSTRUCTION
80 T-25 Hardwood Frame. COM Seat and Back. W 18.5 D 23 H 35 SH 19 T-26 Hardwood Frame. COM Seat and Back. W 22 D 23 H 35 SH 19 AH 28 3rd Street Social ARNOLD HALL - LEE S SUMMIT MISSOURI FURNITURE OPTIONS 2015 DRAW ARCHITECTURE AND URBAN DESIGN LLC ALL DRAWINGS AND WRITTEN INFORMATION APPEARING HEARIN SHALL NOT BE DUPLICATED, DISCLOSED OR OTHERWISE USED WITHOUT WRITTEN CONSENT OF THE ARCHITECT. DD Mee ng NOT FOR CONSTRUCTION
81 3rd Street Social ARNOLD HALL - LEE S SUMMIT MISSOURI BANQUETTE UPHOLSTERY OPTIONS 2015 DRAW ARCHITECTURE AND URBAN DESIGN LLC ALL DRAWINGS AND WRITTEN INFORMATION APPEARING HEARIN SHALL NOT BE DUPLICATED, DISCLOSED OR OTHERWISE USED WITHOUT WRITTEN CONSENT OF THE ARCHITECT. DD Mee ng NOT FOR CONSTRUCTION
82 3rd Street Social ARNOLD HALL - LEE S SUMMIT MISSOURI REVISED VESTIBULE EXTERIOR RENDERING 2015 DRAW ARCHITECTURE AND URBAN DESIGN LLC ALL DRAWINGS AND WRITTEN INFORMATION APPEARING HEARIN SHALL NOT BE DUPLICATED, DISCLOSED OR OTHERWISE USED WITHOUT WRITTEN CONSENT OF THE ARCHITECT. DD Mee ng NOT FOR CONSTRUCTION
83 CITY OF LEE'S SUMMIT LAND CLEARANCE FOR REDEVELOPMENT AUTHORITY (LCRA) DRAFT MEETING MINUTES DATE: August 11, 2015 TIME: 4:00 p.m. PLACE: Lee s Summit City Hall, Strother Conference Room 220 SE Green Street Lee s Summit, Missouri 1. Call to order at 4:06 p.m. by Chairman Keith Asel. Board Members Present: Staff: Public Keith Asel, Chairman Troy Pfeifer Bill Brown Mark White Mark Dunning, Development Center Director Conrad Lamb, Finance Director Brian Head, City Attorney Michael DeNight, Financial Advisor Andy Lock, Applicant Russ Pulley, LS Journal 2. Approval of July 22, 2015 meeting minutes Motion was made and seconded to approve the minutes for the July, 2015 meeting. The motion passed unanimously approving the meeting minutes. 3. Land Clearance for Redevelopment Authority (LCRA) Application 3rd Street Social, LCRA Urban Renewal Development Project, 123 SE 3 rd Street; 3 rd Street Restaurant Associates, Applicant (LCRA Application # ) Mr. Andy Lock provided a general overview of the proposed redevelopment project, converting the currently vacant Arnold Hall building located at 123 SE 3 rd Street into a first class destination restaurant. In pursuing the redevelopment project, they are respectfully requesting a 100% property tax abatement on the incremental increase in value of the project over a 5 year period. Mr. Lock explained the business plan for the restaurant involves attracting customers from all over the Kansas City metropolitan area and surrounding communities which would be of significant benefit to their business as well as the City of Lee s Summit. Following Mr. Locks overview, LCRA Chairman Keith Asel provided a summary of the LCRA evaluation tool/model highlighting how the proposed project would be calculated per the project data inputs. Mr. Asel informed the LCRA that with all data input into the model, the resulting proposed abatement percentage calculates out to be an overall 72% abatement over a 10 year period which equates to roughly $92,074. The applicant is requesting a lower percentage of abatement at 100% over a 5 year period which results in an estimated $63,360 abatement.
84 After brief discussion over the benefits the proposed project would bring to downtown Lee s Summit, Commissioner Brown moved to recommend a100% real property tax abatement for a period of 5 years on the incremental increase in value for the project. Mr. Brown s motion was seconded by Commissioner Pfeifer. Vote was unanimous (4-0) in favor. Mr. Dunning informed the LCRA and the applicant that this matter would be placed on the August 20 th City Council agenda as it was understood that timing of the request is important. 5. Roundtable Chairman Asel called for any roundtable items and no items were voiced. 6. Adjournment Chairman Asel adjourned the meeting at 4:29 p.m. Minutes prepared by Mark Dunning
85 OBRIEN RD R-1 RP-3 PI Project No. MO R-47 (Downtown) Urban Renewal Area R-1 R-1 R-1 R-1 R-1 R-1 RP-4 R-1 R-1 RP-2 TNZ MAIN ST CP-2 R-1 RP-4 R-1 RP-2 CBD PO AG R-1 RP-2 2ND ST RP-2 3RD ST RP-2 CBD CBD TNZ R-1 R-1 R-1 R-1 R-1 R-1 R-1 JEFFERSON ST TNZ R-1 TNZ R-1 MARKET ST DOUGLAS ST R-1 PO R-1 R-1 R-1 ± R-1 US 50 HWY RP-3 CP-2 AG RP-2 ZONING AG-Agricultural CBD-Planned Central Busin CS-Planned Commercial Se RP CP-1-Planned Neighborhoo CP-2-Planned Community C Adopted by Ordinance #7228 by Lee's Summit City Council on 9/6/2012.
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