Feb. 16 meeting will outline proposed tax abatement plan
By Seann McAnally
A developer wants a tax abatement to build a medical office complex in Grandview.
The Grandview Planning Commission has scheduled a public hearing for Wed. Feb. 16 to go over details of the plan, which would bring the Hickman Mills Clinic to Grandview. The public is welcome at the hearing. The Board of Aldermen is slated to consider the project, with the Planning Commission’s recommendation, on Feb. 22.
LADCO, the developer, has requested a Chapter 353 tax abatement for the project. The city and the developer have negotiated the following terms:
• 100 percent tax abatement on the increase in land value and improvements for 10 years;
• 50 percent tax abatement on the same through years 11-17;
• 25 percent abatement for years 18-20
• No abatement in years 21-25
Actually, a 50 percent abatement would technically continue for years 18-25, but the city is also requiring LADCO to pay the full amount in lieu of taxes over that time.
In return, LADCO will:
• By 2.5 acres of the 10-acre site. The remaining 7.5 acres are owned by Carondelet Health Systems, and is currently tax exempt.
• Tear down the existing building – formerly the southland’s Jackson County WIC clinic – and improve the property with a new 21,000 square foot medical office building.
• LADCO will require tenants to make and maintain a $355,000 investment in taxable furniture, fixtures, and equipment, which should result in $6,000 payments for each taxing jurisdiction in the area per year for the first 10 years of the abatement plan. If they fail to do this, they’ll have to pay these “lost” revenues to the city, who will distribute them to the taxing jurisdictions (such as the Mid-Continent Public Library, the Grandview C-4 School District, etc.).
• LADCO’s tenants will create and maintain at least 50 jobs with average wages of $60,000 per year.
• The tenants will provide an annual community health event.
The city hired consultants to review LADCO’s proposal, and according to city documents, find it acceptable and realistic in terms of its financial projections.
The consultants reported that the total abatement to the developer over the life of the program would be some $1.9 million; but payments in lieu of taxes should generate some $1.7 million.
That’s a winning proposition, said Alan Kenyon, the city’s economic development director, because there are currently no taxes being paid on the property, as it has been used for Jackson County’s WIC program and was considered a charitable use of the land.
The WIC clinic will relocate, Kenyon said.