The Effective Use of Economic Development Incentives in the City of Lee's Summit, MO

Abstract

The City of Lee's Summit has been utilizing economic development incentives for many years, and recently there has been an increase in projects seeking incentives. Many individuals feel incentives are an unnecessary use of potential public funds for private gain, while others believe their use is essential to attract and retain business in the area. Interviews were conducted with key city officials to identify overall themes present when evaluating incentive projects. The primary theme identified was clearly defining the public benefit a project will provide, and how an incentive is necessary to achieve the desired outcome. This report discusses the process used by the City of Lee’s Summit when evaluating incentive projects. An overview of the various incentive tools used, a summary of the themes identified from the key interviews, and a brief review of past projects are included. A suggested tool for evaluating, monitoring, and reporting on individual projects is proposed.