Bridge Space gets city approval For LCRA Application
Ben • February 11, 2017
Lee’s Summit Cowork Seeks Council Approval For LCRA Application
February 11, 2017
By Stephanie Edwards
Tribune Reporter
Ben Rao, owner of Cowork Lee’s Summit, appeared before the city council for the third time in two months to discuss his bid to start a co-working space in downtown Lee’s Summit on the site of the old post office located at 210 SW Market Street.
On January 5, Rao presented his plan to turn the building into a shared working space that would provide desk spaces, conference rooms and thirty locking offices. In addition to the beautification of the outside of the building, Rao shared plans to have about 70 percent of the facility’s power from solar energy. He said the co-working space would draw small business, start-ups, freelancers, and even larger firms looking for an event space for meetings and other functions.
Rao was seeking council direction before moving forward with an application to the Land Clearance Redevelopment Authority for a break on the taxes over the next ten years. The January meeting was necessary because Rao is seeking tax abatements which exceed the city’s incentive policy. The request was a ten year, one hundred percent abatement on the increment, and a 50 percent request on the base.
Rao pointed out the benefits of opening the coworking space in the old post office. The business would provide some tax revenue in a location that had not generated any revenue for the city because the building is owned by the United States Post Office. Rao said that the new facility would provide foot traffic to downtown businesses and exposure to the city of Lee’s Summit. The project would beautify a neglected part of downtown and bring positive attention to the area as an environmentally friendly building.
Dona Gordon, Chair of the LCRA, told the council that the application had to be considered a bit differently from others since the business was a different type of business. She said the applicant provided “extensive discussion” with his application. The LCRA weighed the beautification of the area, and the potential for some sale tax revenue into the decision. The proposed coffee bar inside the building was the only source of sales tax revenue considered. The third consideration was the potential jobs to the city.
“We also recommend some potential stipulations as part of the agreement,” Gordon said, “So that there are some potential benchmarks, some hurdles this project will have to reach in order to earn this abatement.” The LCRA total for the abatement was estimated at $204,096 over an eight-year period.
Gordon suggested the requirement that the initial proposed investment of $950,000 be made and that the agreement for the tax abatement be contingent on the business itself. If Cowork decides in a few years that the business did not work, the agreement for tax abatement would be voided and not transferred to the next business to occupy the building. Finally, the agreement could be contingent on the creation of 15 new jobs, or 15 new business licenses sprouting from the Cowork address. No time frame was established for those new jobs or businesses.
“The beauty and the harm of this is that we want start-ups to grow,” Councilmember Rob Binney said. “But we don’t want them to leave Lee’s Summit.”
Councilmember Diane Forte said that she was pleased with the addition of the benchmarks. “But we are missing one thing,” Forte said. “MC Power provided the solar power and they are a local company.”
Councilmember Dave Mosby pointed out that if a grocery store or an assembly plant moved into the space the benchmarks would be immediate. The business would provide jobs and tax revenue immediately. He questioned Gordon on whether those projections were speculative. “How do you compare? It is apples and oranges,” he said.
Gordon answered that all businesses are speculative.
Councilmember Craig Faith said, “I think you have done great assumptions and your homework on this. I think we have seen a property sit vacant for two years now not generating any type of activity whatsoever. Now we see a cutting edge concept coming in to Lee’s Summit. I’m looking forward to it.”
Assistant City Manager Mark Dunning told the council that if the agreement was approved tonight there was one more step before the final agreement came before the council for adoption. The council voted to approve the LCRA application for the project.
The post Bridge Space gets city approval For LCRA Application appeared first on Bridge Space.
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