"The City Council approved a Development Agreement ("Development Agreement") between the City and 910 Springfield, L.L.C. ("Opus"), on June 30, 2008. The Development Agreement obligates the City to provide tax abatement* to the land to be purchased, and the office building to be constructed, by Opus pursuant to the Development Agreement. The Developer has requested tax abatement* in the form of issuance of Industrial Development Bonds pursuant to Chapter 100, RSMo("Chapter 100") as authorized* in the Development Agreement.
"Pursuant to Chapter 100, the land and improvements to be constructed by Opus will be owned by the City and leased to Opus. As a result of the City's ownership of the Project, the site will be exempt from payment of real property taxes.* The project is expected to cost $21,500,000* and bonds will be issued in that amount to fund the acquisition and construction of the project. Opus will purchase the bonds. Principal and interest on the bonds will be paid solely with revenue derived from rent payments under the lease agreement between the City and Opus."
My collegue, Stu, over at Stu's Potluck was wondering today why that Hammon's Agreement was made an "emergency bill" at the June 30, Council meeting, I think he might have just got his answer.
*all emphasis, mine
Update: Companion, item 17. COUNCIL BILL 2008-209.
"WHEREAS, 910 Springfield, L.L.C., a Delaware limited liability company (the "Company"), has requested that the City (i) approve a plan for a project for the building for use as office industry located at 910 St. Louis Street in the City of Springfield, Missouri (the "Project"), (ii) issue its industrial develoment revenue bonds in an aggregate principal amount not to exceed $21,500,000 to provide funds to pay the costs of the Project, and (iii) lease the Project to the Company with an option to purchase the Project, for the purpose of financing the costs of the Project, all in accordance with and pursuant to the Act; and..."
This bill is a resolution, meaning it only requires one reading for the Council to find and determine:
"...that the Project will promote the economic welfare and the development of the City...,"
among other things. Read it for yourself.