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Legislation #: 170362 Introduction Date: 5/18/2017
Type: Ordinance Effective Date: none
Sponsor: None
Title: Authorizing the City Manager to execute certain agreements with Crown Center Redevelopment Corporation for the purposes of providing financial assistance in the renovation of the Sheraton Kansas City Hotel at Crown Center and The Westin Kansas City at Crown Center Hotel; obtaining financial assistance to facilitate new economic development in distressed areas of the City; and approving the petition to establish the Pershing and Grand Community Improvement District.

Legislation History
DateMinutesDescription
5/10/2017 Filed by the Clerk's office
5/18/2017 Referred to Planning, Zoning & Economic Development Committee
5/24/2017 Advance and Do Pass as a Committee Substitute, Debate
5/25/2017 Passed as Substituted

View Attachments
FileTypeSizeDescription
170362.pdf Authenticated 146K Authenticated
cba.pdf Agreement 182K CBA
cfa.pdf Agreement 273K CFA
Crown Center Funding Agreement and CBA Fact Sheet FINAL.doc Fact Sheet 49K Funding Agreement and CBA fact Sheet
170362 Petition.pdf Petition 1145K Petition
170362 Fact Sheet.pdf Fact Sheet 27K Fact Sheet

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COMMITTEE SUBSTITUTE ORDINANCE NO. 170362

 

Authorizing the City Manager to execute certain agreements with Crown Center Redevelopment Corporation for the purposes of providing financial assistance in the renovation of the Sheraton Kansas City Hotel at Crown Center and The Westin Kansas City at Crown Center Hotel; obtaining financial assistance to facilitate new economic development in distressed areas of the City; and approving the petition to establish the Pershing and Grand Community Improvement District.

 

WHEREAS, Crown Center Redevelopment Corporation (“Developer”) is the owner of the Sheraton Kansas City Hotel at Crown Center located at 2345 McGee (“Sheraton”) and The Westin Kansas City at Crown Center Hotel located at 1 East Pershing Road (“Westin”) (Sheraton and Westin are referred to collectively as the “Hotels”); and

 

WHEREAS, Developer has considered a substantial capital investment in the Hotels, consisting of a complete renovation of the Hotel Rooms, other hotel amenities and facilities, and certain public spaces and improvements at the Hotels (the “Renovation”) at an estimated cost of approximately $30,000,000.00, but has determined that the Renovation is not financially feasible if all of the funding must be provided by the Developer; and

 

WHEREAS, City desires to cause the Renovation to occur, so that, upon completion of the Renovation, together with the completion of the previously-approved renovation of the Marriott-Muehlbach Hotel and the convention hotel project proposed to be located at approximately 16th Street and Wyandotte Street, approximately 3,245 new or newly renovated rooms in close proximity or attached to the City’s convention complex would be available for marketing to convention planners and users; and

 

WHEREAS, the addition of such new or newly renovated rooms is critical to the economic vitality of the City’s convention business and City’s interests in promoting the City as a premier convention destination, and without such an investment, the realization of the City’s objectives would be hindered; and

 

WHEREAS, in order to assure the public benefits that will accrue if the Renovation is carried out, City is willing to provide funding for a portion of the cost of the Renovation, and Developer is willing to proceed with the Renovation if City provides funding for a portion of the cost of Renovation and approves the establishment of the Pershing and Grand Community Improvement District (“District”); and

 

WHEREAS, City will contribute, subject to future appropriations, a defined portion of the revenues derived from the conventions sales tax generated at the Hotels in a principal amount not to exceed one-half of the estimated Renovation costs; and

 

WHEREAS, Developer will seek to establish the District and impose a one percent (1%) sales tax, the proceeds of which will be used to provide and pay for maintenance, repair and renovation of certain public improvements within the District and the provision of related services, including security; and

 

WHEREAS, City’s support of economic development is premised, in part, on the firm belief that economic development generates new opportunities for businesses to give back to the local communities that have enabled them to succeed; and

 

WHEREAS, Developer shares City’s commitment to bettering the local community and has elected to help the City realize its goals by making certain financial commitments to promote economic development projects in distressed areas of the City; NOW, THEREFORE,

 

BE IT ORDAINED BY THE COUNCIL OF KANSAS CITY:

 

Section 1. That the City Manager is hereby authorized to execute, on behalf of City, the Community Benefit Agreement and the Cooperative and Funding Agreement. The agreements are approved in substantial form as attached hereto with such additional revisions as are consistent therewith and which the City Manager determines to be advisable. Such agreements shall not be executed until such time as the City Manager shall be satisfied that the Developer and relevant management entities with respect to the Hotels shall have agreed upon the terms of a Room Block Agreement with the Convention and Visitors Bureau of Greater Kansas City d/b/a VISIT KC.

 

Section 2. That the petition to establish the District as a political subdivision in accordance with Sections 67.1401 - 67.1571, RSMo, otherwise known as the Community Improvement District Act (the “Act”), is hereby approved in its entirety.

 

Section 3. That the District is hereby established for the purposes set forth in the petition, shall have all the powers and authority authorized by the petition, the Act, and by law, and shall continue to exist for a period of thirty (30) years.

 

Section 4. That the District shall annually submit its proposed budget, report and copies of written resolutions passed by the District’s board to the City pursuant to Section 67.1471, RSMo.

 

Section 5. That upon the effective date of this ordinance, the City Clerk is hereby directed to report the creation of the District to the Missouri Department of Economic Development pursuant to Section 67.1421.6, RSMo, by sending a copy of this ordinance to said agency.

 

_________________________________________________

 

Approved as to form and legality:

 

 

____________________________

Brian T. Rabineau

Assistant City Attorney