Lee's Summit council hears conceptual $70 million Midstates warehouse expansion, staff outlines Chapter 100 incentive terms

Midstates Distributing LLC told the Lee’s Summit City Council on Nov. 3 that it plans a roughly 500,000-square-foot expansion of its existing Thompson Drive distribution facility and is seeking a Chapter 100 public‑private incentive package to keep the project in the city.

Kurt Peterson, representing Midstates, said the company expects about $70,000,000 in real and personal property investment for the expansion and asked the council to consider two categories of benefits: a 10‑year, 75% abatement on the real‑property increment and a sales‑tax exemption on construction materials. "The requested term here for this project would be 10 years," Peterson said during the presentation. He also described a personal‑property request of a five‑year, 50% abatement tied to approximately $25 million of equipment purchases, including automation and material‑handling systems.

City economic development counsel David Bushek outlined staff’s analysis, saying the abatement would be applied to the increment above the site’s existing property value (the ‘base’), protecting current tax receipts while reducing tax on added value during the abatement period. Bushek said the city’s estimated portion of the sales‑tax exemption on construction materials would be about $191,000 and that the developer’s total incentive value would amount to roughly 10.4% of the project cost under the staff proposal presented.

Midstates executives said the expansion would preserve about 165 existing jobs and is projected to add roughly 90 new positions across management and warehouse roles. CEO Tom Mulkey told the council the company values Lee’s Summit’s workforce and wants to keep and grow operations locally: "We love this community," Mulkey said. Midstates also described planned investments in automated goods‑to‑person systems and robotics that would be installed across the existing and new facility.

Council members pressed for local‑hire numbers and wage expectations. The applicant estimated roughly 30% of current employees live in Lee’s Summit and suggested an average annual pay “around $50,000” across roles, while staff confirmed that the Chapter 100 package proposed would apply the abatement to the entire building but would add the existing valuation as the protected base so current tax flows would not be reduced.

Several council members expressed support for continued discussions. Councilmember Shields called the proposal “exactly what our incentive tools are for,” while Mayor Pro Tem Lopez said it fits the city’s retention and expansion goals. The council did not take a final vote on incentives; staff will return with formal terms and documentation for later consideration.

What’s next: If the council decides to pursue the Chapter 100 package, staff will present a formal ordinance and a term sheet for deliberation and separate hearings on any property transfers or development agreements required to implement the deal.