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Council approves tax incentives for Elevated Ventures development after developer presentation
Summary
The Edwardsville City Council approved an incentive agreement with Elevated Ventures Group for a proposed multi‑building flex‑space project that includes IRB exemptions, an annual $26,000 community payment and an expected $280,000 in property taxes over 10 years, with access and material sourcing among council concerns.
Edwardsville City Council voted unanimously to approve an incentive agreement with Elevated Ventures Group for a proposed flex‑space development on a roughly 10‑acre parcel, after staff and developer presentations and council questions about tax impacts and access.
Staff said the developer requested policy support for tax incentives including an IRB sales‑tax exemption on construction materials and a 65% abatement request that would ultimately translate to a 50% net abatement under the city’s policy. Staff said the project would still generate roughly $280,000 in property tax revenue over the 10‑year abatement period and that the developer agreed to an annual community development payment of $26,000 for both phases of the project.
Developer representative Matt Hendrickson showed a site plan and renderings for six buildings and described the tenant mix as small‑bay warehouse, contractor and sales‑tax‑generating uses. Hendrickson said, “we have 6 buildings spanning across roughly 10 acre site,” and explained that KDOT has limited permitted access points; he added the team could reconfigure on‑site circulation to work with KDOT’s ingress/egress limits.
Council members questioned how much sales‑tax revenue the city would actually gain from a materials sales‑tax exemption when materials are likely purchased outside city limits. One council member asked whether exempting construction material sales would meaningfully reduce city revenues if suppliers are located elsewhere; Hendrickson estimated a broad, illustrative net benefit at the regional scale but said much of materials purchasing is out of the city.
A motion to approve the recommendation for an incentive agreement with Elevated Ventures Group passed on a voice/roll call vote. The motion was moved by Councilman Malat and seconded by Councilman Adcox; the clerk recorded affirmative votes from Millat, Driver, Adcox and Mullen.
Next steps: staff said the formal development agreement and PUD uses would return to the council for final approval at a subsequent meeting, and the council will review final contract terms before construction begins.
