September 12, 2020
Mallory Herrmann
Staff Reporter
An amendment to the Paragon Star TIF (tax increment financing) plan has been approved by the Lee’s Summit City Council.
The TIF plan is one funding mechanism supporting the $400 million sports complex and mixed-use project near Interstate 470 and NW View High Drive. The approved TIF plan funds will be used for public improvements, including the sports complex and water and sewer systems.
Since the initial TIF agreement was approved by the city council in 2016, the reimbursable cost projections have changed due to market changes, changes in project costs and state funding that wasn’t able to be secured.
The amendment increases the TIF reimbursement amount from about $13.1 million to $32 million. The increase reflects several changes in the project budget, including a 15.7% increase in the total project costs – from about $212 million to $245 million – and a $16 million decrease in state funding.
The increase in reimbursable funds will be allocated to wetlands mitigation, trailhead construction and the parking garage. Additional funding is also earmarked for the sports complex itself (more than doubling the initial $6.2 million allocated to $13.2 million) and for the interchange, roads and parking lots ($4.4 million). Additional reimbursable funds will go toward eligible costs related to utilities, engineering and contingency and soft costs.
The developer will also see increases in their costs, with their debt and equity projections changing from $105.8 million and $46.3 million, respectively, to $119.5 million and $51.2 million.
The changes reflect the updated cost benefit analysis too, which shows an increase in projected benefits to the city from approximately $31.5 million to $47.3 million over the duration of the 23-year plan. That includes more than doubling the school district tax benefit to nearly $6.5 million.
The amendment also adds 24 acres to the redevelopment area, facilitates revenue bond financing for construction of the sports complex and updates the TIF plan to match approved zoning plans. The developers said in a July update that they hope for occupancy in the multi-use village to begin in 2022.
The council voted unanimously in favor of the amendment at their Sept. 1 meeting. All councilmembers were present, either in person or via video conference.
