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Legislation #: 100755 Introduction Date: 9/2/2010
Type: Ordinance Effective Date: 9/19/2010
Sponsor: COUNCILMEMBER SKAGGS
Title: Authorizing execution of the First Amendment to MCI Overhaul Base Lease and Supplemental Agreement and the Tenant Reimbursement Agreement Termination Agreement with American Airlines in connection with American’s vacation of the MCI Overhaul Base at Kansas City International Airport; authorizing execution of the First Amendment to the Tax Credit Agreement with Missouri Development Finance Board in connection with future use of tax credits previously issued for MCI Overhaul Base; and authorizing execution of a First Amendment to the Cooperative Agreement with the Kansas City International Airport Community Improvement District.

Legislation History
DateMinutesDescription
9/2/2010 Filed by the Clerk's office
9/2/2010 Referred to Transportation and Infrastructure Committee
9/9/2010 Advance and Do Pass as a Committee Substitute, Debate
9/9/2010 Passed as Substituted

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COMMITTEE SUBSTITUTE FOR ORDINANCE NO. 100755

 

Authorizing execution of the First Amendment to MCI Overhaul Base Lease and Supplemental Agreement and the Tenant Reimbursement Agreement Termination Agreement with American Airlines in connection with American’s vacation of the MCI Overhaul Base at Kansas City International Airport; authorizing execution of the First Amendment to the Tax Credit Agreement with Missouri Development Finance Board in connection with future use of tax credits previously issued for MCI Overhaul Base; and authorizing execution of a First Amendment to the Cooperative Agreement with the Kansas City International Airport Community Improvement District.

 

WHEREAS, the City operates an international airport in Platte County, Missouri, known as the Kansas City International Airport (“Airport”) and leases real property known as the MCI Overhaul Base (“Overhaul Base”) to American Airlines (“American”) pursuant to the MCI Overhaul Base Lease Kansas City International Airport dated January 1, 2005 (“Lease”); and

 

WHEREAS, under the Lease, the City agreed to provide American with certain bond and tax credit funds to perform repair, maintenance and construction work at Overhaul Base; and

 

WHEREAS, on December 30, 2004, the City and the Missouri Development Finance Board (“MDFB”) entered into a certain Tax Credit Agreement (“Original Agreement”) that set forth the terms and conditions pursuant to which MDFB issued tax credits in the amount of $16,000,000, (“Tax Credit Proceeds”) to provide for the acquisition, construction and equipping of certain capital improvement at the Overhaul Base; and

 

WHEREAS, to date, Tax Credit Proceeds in the amount of $7,868,213 have been expended, and Tax Credit Proceeds in the amount of $8,131,787 remain; and

 

WHEREAS, pursuant to the Lease, the City and American also entered into a Tenant Reimbursement Agreement dated November 25, 2005 (“Tenant Agreement”) pertaining to Lessee’s use of the bond funds and Tax Credit Proceeds described above; and

 

WHEREAS, the City and Kansas City International Airport Community Improvement District (“KCI CID”) entered into a Cooperative Agreement whereby KCI CID agreed to provide sales tax revenue to assist in financing of the Overhaul Base; and

 

WHEREAS, pursuant to the Lease, American has vacated and returned to the City a portion of the Overhaul Base called the Remainder space and has given notice to the City of American’s intent to vacate the rest of the Overhaul Base on or before October 30, 2010; and

 

WHEREAS, the City and Lessee wish to amend the Lease and to terminate the Tenant Reimbursement , City and MDFB wish to amend the Tax Credit Agreement, and the City and KCI CID wish to amend the Cooperative Agreement all in connection with American’s vacation of the Overhaul Base; NOW, THEREFORE,

 

BE IT ORDAINED BY THE COUNCIL OF KANSAS CITY:

 

Section 1. That the Director of Aviation is hereby authorized to execute the First Amendment to MCI Overhaul Base Lease and Supplemental Agreement and the Tenant Reimbursement Agreement Termination Agreement with American Airlines in substantial conformance with the documents attached to this ordinance setting forth the parties’ duties and obligations in connection with American Airlines’ vacation of the Overhaul Base.

Section 2. That the Director of Aviation is hereby authorized to execute the First Amendment to the Tax Credit Agreement with Missouri Development Finance Board in substantial conformance with the documents attached to this ordinance in connection with American Airlines vacation of the Overhaul Base and use of the Tax Credit Proceeds.

 

Section 3. That the Director of Finance is authorized to execute the First Amendment to the August 1, 2005 Cooperative Agreement with the Kansas City International Airport Community Improvement District for use of sales tax revenues for the repair, maintenance and rehabilitation of the Overhaul Base and appurtenant facilities.

 

Section 4. That the Director of Finance is hereby authorized to execute the Cooperative Agreement Termination Agreement with Kansas City International Airport Community Improvement District in substantial conformance with the documents attached to this ordinance in connection with American Airlines’ vacation of the Overhaul Base and use of sales tax revenue.

 

Section 5. That the Director of Aviation and/or Director of Finance are hereby authorized to execute on behalf of the City, such documents, agreements, certificates and other instruments as may be necessary or desirable to carry out and comply with the intent of this ordinance and to implement the actions contemplated.

 

_________________________________________________

 

Approved as to form and legality:

 

 

__________________________

Dorothy L. Campbell

Senior Associate City Attorney