COMMITTEE SUBSTITUTE FOR ORDINANCE NO. 941494

Authorizing the Port Authority to retain insurance proceeds from the fire loss at the Wharf Building.

WHEREAS, in May 1993, a leasehold interest in the Wharf Building (the "Structure") at 1st Street west of Grand, was conveyed to the Port Authority of Kansas City (the "Port Authority"); and

WHEREAS, as required by the lease, full replacement cost insurance on the Structure was obtained; and

WHEREAS, the Structure sustained fire loss in December of 1993; and

WHEREAS, the City desires to authorize the Port Authority to retain all insurance proceeds realized from said fire loss; NOW, THEREFORE,

BE IT ORDAINED BY THE COUNCIL OF KANSAS CITY:

Section 1. That the Port Authority is authorized to retain all insurance proceeds realized from the fire loss sustained at the Wharf Building at 1st Street west of Grand on or about December 1993, provided however, that if such proceeds are not used prior to December 31, 1996 for replacement of improvements to the leased site, pursuant to Section 4.01 of the subject lease, they shall revert to the City to the extent previously received by the Port Authority.

Section 2. That the City Manager or his designee is authorized to take any and all actions necessary to effectuate the intent of this ordinance.

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Approved as to form and legality:

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Assistant City Attorney