Item Coversheet
City of Independence
AGENDA ITEM COVER SHEET
BILL NO. 22-0591R.

Agenda Title:

  1. 22-059 - 1R.  An ordinance approving the petition for the establishment of the Eastgate Commerce Center Community Improvement District, establishing the District, making findings and authorizing actions related to establishment of the District.
Recommendations:

Staff recommends approval.
Executive Summary:

Northpoint Development, LLC developer of the Eastgate Commerce Center has submitted a petition to establish the Eastgate Commerce Center Community Improvement District which encompasses property along Little Blue Parkway and M-78 Hwy which will be occupied by the development plus certain right-of-way where future public improvements are planned. The petition requests the imposition of a 1% sales tax within the district, as well as the imposition of a special assessment of five cents ($0.05) per square foot on all constructed and occupied buildings within the project. The property owner will pay these special assessment fees. Revenues generated through both will supply additional revenue to finance the project specific public improvements, IPL public improvements needed to make this project possible, and to maintain public streets within the project area.

The petition meets the requirements laid out in the City’s economic development incentives policy and is in compliance with the Missouri State Statutes. The Independence Economic Development and Incentives Commission reviewed the proposal at their April 27, 2022, meeting and voted 10-0 to recommend approval by the City Council.
Background:

The City Council previously approved Ordinance No. 19329 approving a development agreement between the City and Northpoint Development, LLC.  That development agreement contemplated the creation of the Eastgate Commerce Center Community Improvement District.

  

Northpoint Development seeks to develop the Eastgate Commerce Center project, which is generally situated along Little Blue Parkway beginning about 3/4 miles north of RD Mize Road to Truman Road where it follows Route 78 to M-7 Hwy that encompasses approximately 1,262 acres and involves the development of a “class A” light industrial and distribution center with approximately 21 buildings totaling roughly 10,800,000 square feet to be constructed over approximately 15 years.  The District includes the contiguous tracts of real estate as described in the Petition and shown on the map.  It covers the land encompassing the development as well as the roadways adjacent to the project (i.e., Little Blue Parkway, Necessary Road, Truman Road and M-78 Hwy).

 

The maximum length of time for the existence of the District is 25 years from the date upon which any sales tax levied by the District is collected within the District.  Notwithstanding the 25-year limit stated above, the maximum length of time for the existence of the District under the CID Act is 27 years after the date of approval, unless extended in accordance with the CID Act.

 

Approval of the CID Petition and the District is conditioned upon the District entering into a cooperative agreement with the City, upon terms and conditions mutually acceptable to the City and District, which provides for implementation of the District, the process for reimbursement of eligible District costs and expenses and other matters as mutually determined by the City and District.  No payment or reimbursement of District costs and expenses shall occur and no disbursement of District revenues shall occur until the cooperative agreement is approved and executed by the City and the District.  Failure of the District to enter into such agreement within 1 year following the effective date of this Ordinance shall nullify and render void the approvals granted in this Ordinance upon such declaration by the City Council.   

Department:          Community DevelopmentContact Person:          Tom Scannell


REVIEWERS:
DepartmentAction
Community Development DepartmentApproved
Finance DepartmentApproved
City Managers OfficeApproved
City Clerk DepartmentApproved

Council Action:          Council Action:         

ATTACHMENTS:
DescriptionType
Draft OrdinanceOrdinance
CID PetitionBackup Material
CID MapBackup Material
CID City Clerk's CertificationBackup Material
Handout During MeetingBackup Material