Incentives and Benefits in a Planned Industrial
Expansion Authority(PIEA) Plan Area

The Planned Industrial Expansion Authority (PIEA) of Kansas City, MO is a public body created pursuant to Ordinance No. 34677 (“PIEA”) adopted by the City Council of Kansas City, Missouri (“City Council”) on February 9, 1968, in accordance with Sections100.300 – 100.620 RSMo. (the “PIEA Law”).

THE PIEA is limited by State Law to involvement in industrial and commercial projects in areas designated eligible by the City. The authority may issue bonds to finance land, building and equipment through tax-exempt revenue bonds. PIEA also has the power to eminent domain and the ability to negotiate ad valorem taxes. The PIEA can also act as a developer in the planning and construction of industrial and office parks.

 

Typical Incentives and Benefits

• Real Property Tax Abatement: 10 years at 100%; the ensuing 15 years at 50% (lessees and tenants may realize some of the fruits of this incentive through attractive lease/rental rates)
• Personal Property Tax Abatement: 100% abatement on equipment for the term of the lease (essentially, equipment is purchased in the name of the PIEA, exempting it from personal and sales taxes)
• Capital Lease Contract: Major projects many be done in the name of PIEA (property, equipment, etc., are signed over to PIEA), exempting them from real and personal property tax and from sales tax on all material, supplies, and equipment involved in the project.

CAUTION: CARE MUST BE TAKEN IN A CAPITAL LEASE THAT LARGE AMOUNTS OF MOBILE (OR TRANSPORTABLE) EQUIPMENT ARE NOT INCLUDED, I.E., COMPUTERS, OFFICE FURNITURE, ETC., THAT ARE CAPABLE OF BEING REMOVED FROM THE SITE.

For further information, contact:
Alfred D. figuly, Executive Director
PIEA and IDA
20 E. 5th St., Suite 200
Kansas City, MO 64106
816/474-2227
e-mail: alfiguly@gkcftz.com