Summit Orchards development approved with incentive for apartments

Summit Orchards, a 47-acre development of apartments and office and retail space at the northeast corner of Chipman and Ward roads, has been approved by the Lee’s Summit City Council.
With unanimous votes, the council at its May 19 meeting approved the development plan and Chapter 100 financing for the 310-unit apartment complex to be known as Summit Square Residences by NorthPoint Development.
Summit Orchards is a joint project between Townsend Capital, RED Development and NorthPoint Development.
Rich Wood, an attorney for the city, said the Chapter 100 project will set levels of payments to the city and other taxing agencies so that both NorthPoint and the city can predict revenues.
It also will aid the development by exempting the sales taxes on material bought for construction of the apartments.
Under the Chapter 100 deal, Wood said, the city will buy the apartment property and lease it to NorthPoint for 10 years.
Northpoint will pay the city enough to cover the principal, interest and an equivalent amount that would have been collected in taxes, Wood said. After 10 years, the property ownership will return to Northpoint.
Sometimes a Chapter 100 deal is used to cut a development’s tax burden, but not in this instance, Wood said.
Rents will start at $900 for a one-bedroom apartment, said Brent Miles, vice president of economic development for NorthPoint.
NorthPoint is also builder of the Residences at New Longview project, at 3301 SW Kessler Drive.
Miles said NorthPoint is selective about choosing locations and Lee’s Summit has done a great job with creating a community where it can be successful. “We don’t do this everywhere,” Miles said.
The taxing jurisdictions previously received about $77,000 from the undeveloped property; under the Chapter 100 agreement, they will received nearly $3 million over 10 years, Wood said.
The commercial project will be along Chipman Road and similar in quality and style to the nearby SummitWoods Crossing and Summit Fair, also RED Development projects, said Jeff Haney with RED. It will offer retail and restaurants, he said. 

read the full article >>