Developer pitches tax incentives for large senior living complex in Lee’s Summit
AI-generated summary reviewed by our newsroom.
- A developer is planning a senior facility near the Interstate 470-Bowlin Road interchange.
- The developer is floating a tax incentives package for the $43 million project.
- The site would have a mix of independent living, assisted living and memory care units.
A developer is working through plans for a $43 million senior living complex in Lee’s Summit near Lake Jacomo and is floating a request to city officials for a tax incentives package for the facility.
The facility being pitched by O’Reilly Development Company, which is based in Springfield, would be built on a 12-acre site near the Interstate 470-Bowlin Road interchange. O’Reilly also developed The Princeton Senior Living facility off Oldham Parkway in Lee’s Summit.
Plans during a conceptual presentation given to Lee’s Summit City Council members on Tuesday showed the new facility would have a mix of 104 independent living units, 48 assisted living units, 20 memory care units and 15 two-bedroom villa units.
Curt Peterson, an attorney representing the developer, told council members O’Reilly was seeking a sales tax exemption on construction materials and a 50% property tax abatement for 10 years. David Bushek, the city’s economic development legal counsel, estimated the value of the incentives to O’Reilly would be around $3 million.
The incentives, Peterson said, would make the project “feasible” and kick off construction this year. The developer was requesting the incentives because of roughly $1.5 million in extra costs for grading the property and adding retaining walls at the site, as well as a more general financial gap the project was facing, he said.
“Rents don’t keep up with the costs, and you literally can’t get your equity, you can’t close your loan to move forward,” he said.
Peterson said an independent living unit would cost around $3,000-$4,000 a month, which would cover a unit, food and other services.
Peterson pointed to the need for senior living facilities and noted one measure that indicated the area within 15 miles of the project site was short of assisted living and memory care living space by around 1,200 beds.
“We need more senior housing units,” he said. “We need it at all types, assisted living, independent living, skilled, memory care, everything, and we need it at all price points.”
The project has been working its way through the city’s planning review pipeline. Any incentives and a finalized plan for the site would need further approval from City Council. Tuesday’s presentation was only an informational session, and generally, council members gave the project positive feedback.
“This is a concept that’s needed in our community and across the region, of course,” said Mayor Beto Lopez. “I think that’s great to bring this concept to our community, and hopefully for most of our residents to take advantage of here in our community.”
Council member Cynda Rader voiced concerns about tax incentives council members have approved recently and “how much we’ve given away.”
“I think we need to be a little more diligent about that,” she said.
