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Legislation #: 150080 Introduction Date: 2/5/2015
Type: Ordinance Effective Date: none
Sponsor: None
Title: Approving a Kansas City Brownfields Revolving Loan Fund subgrant in an amount not to exceed $400,000.00 to the Hardesty Renaissance Economic Development Corporation for authorized abatement activities at the former Hardesty Federal Complex site, Building No. 11, 607 Hardesty Avenue, Kansas City, Missouri, and authorizing the Director of City Development to execute an agreement governing the use of subgrant funds.

Legislation History
DateMinutesDescription
2/4/2015 Filed by the Clerk's office
2/5/2015 Referred to Planning, Zoning & Economic Development Committee
2/18/2015 Advance and Do Pass, Debate
2/19/2015 Passed

View Attachments
FileTypeSizeDescription
150080.pdf Authenticated 247K Authenticated
Subgrant Agreement (Hardesty - DRAFT 021715).pdf Related Documents 757K Subgrant Agreement
150080 Fiscal Note.pdf Fiscal Note 16K Fiscal Note
150080 Fact Sheet.pdf Fact Sheet 99K Fact Sheet

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ORDINANCE NO. 150080

 

Approving a Kansas City Brownfields Revolving Loan Fund subgrant in an amount not to exceed $400,000.00 to the Hardesty Renaissance Economic Development Corporation for authorized abatement activities at the former Hardesty Federal Complex site, Building No. 11, 607 Hardesty Avenue, Kansas City, Missouri, and authorizing the Director of City Development to execute an agreement governing the use of subgrant funds.

 

WHEREAS, a Brownfields Revolving Loan Fund (RLF) program has been established by the City of Kansas City, Missouri (City) and the U.S. Environmental Protection Agency (EPA) has, to date, awarded the City federal grant funds in the amount of $2,225,107.00 to capitalize the RLF under federal cooperative agreement No. BF-97700901 including any amendments thereto (the “Federal Cooperative Agreement”); and

 

WHEREAS, the primary objective of the Kansas City RLF program is to provide alternative financing through low-interest loans and subgrants to fund cleanup actions on brownfield sites in the City that will lead to successful redevelopments and ancillary social and economic benefits to affected communities; and

 

WHEREAS, on August 22, 2013, the City Council, by Committee Substitute for Ordinance No. 130585, approved a RLF loan in the amount of $300,000 to the Hardesty Renaissance Economic Development Corporation (HREDC) for the abatement of asbestos-containing materials (ACM), lead-based paint (LBP), and other hazardous substances in the structure known as Building 11 of the former Hardesty Federal Complex, located at 607 Hardesty Avenue, Kansas City, Missouri (the “Project Site”), and the City and HREDC executed a loan agreement and related instruments on December 11, 2013; and

 

WHEREAS, abatement work was performed between April 7 and August 19, 2014 and resulted in the completion of the initial scope of work in accordance with the City approved Remedial Action Plan (RAP) and approved plans and specifications for the work funded by the RLF loan; and

 

WHEREAS, in the course of performing the abatement work, additional LBP-coated building components, building areas contaminated with LBP dust, and additional ACM materials in friable condition were identified, and applicable environmental laws and regulations require these issues be addressed; and

 

WHEREAS, in an effort to address the additional environmental issues, HREDC prepared an acceptable work plan amendment, dated October 31, 2014, that includes the abatement of additional quantities of ACM, stabilization of additional quantities of LBP, cleaning building areas contaminated by LBP dust, and removal of LBP building components; and

 

WHEREAS, the cost to perform the approved work plan amendment is estimated to be approximately $480,000, based upon competitive bids solicited by HREDC; and

 

WHEREAS, on January 2, 2015, HREDC submitted to the City a letter requesting a RLF subgrant in the amount of $400,000 to fund the additional abatement work, and agreeing to pay all remaining costs of the additional work (approximately $80,000) to satisfy the 20% local cost share required by the Federal Cooperative Agreement; and

 

WHEREAS, HREDC and its parent organization, Asian Americans For Equality (AAFE) have expended approximately $1,000,000 on the purchase, improvement, study, cleanup and security of the Hardesty Federal Complex properties and have demonstrated a financial need for RLF subgrant assistance because the costs of the additional abatement work will reverse the financial feasibility of its planned renovation project; and

 

WHEREAS, on January 7, 2015, the Brownfields Commission adopted resolution 001-2015 recommending approval of RLF subgrant assistance in an amount up to $400,000 to complete the abatement of hazardous substances from the Project Site, subject to four (4) preconditions; and

 

WHEREAS, the first precondition, that EPA approve a waiver of the federal limit on subgrant assistance of $200,000.00, has been met via City receipt of correspondence from EPA indicating such approval; and

WHEREAS, the second precondition, that HREDC provide the City a detailed cost breakdown of the additional work, has been met by HREDC’s submission to the City of such detailed costs; and

WHEREAS, the third precondition, that HREDC notify the City of the qualified contractor(s) and subcontractor(s) who will perform the additional work, has been met by HREDC’s submission to the City of its list of contractors and subcontractors; and

 

WHEREAS, the fourth precondition, that HREDC provide a final operations and maintenance plan (the “O&M Plan”) to appropriately manage any remaining hazardous substances in Building 11, has been met by HREDC’s submittal to the City of a final O&M Plan; NOW, THEREFORE,

 

BE IT ORDAINED BY THE COUNCIL OF KANSAS CITY:

 

Section 1. That a subgrant from RLF program funds to HREDC to complete authorized abatement activities at the Project Site is hereby approved.

 


 

Section 2. That the Director of City Development is hereby authorized to enter into an agreement with HREDC to subgrant funds from the RLF in an amount not to exceed $400,000.00 from funds previously appropriated to the following account:

 

15-2550-645020-B-G64BRLF EPA Brownfields Grant $400,000.00

 

A copy of the subgrant agreement, approved in substantial form, is on file with the City Development Department.

 

_____________________________________________

 

I hereby certify that there is a balance, otherwise unencumbered, to the credit of the appropriation to which the foregoing expenditure is to be charged, and a cash balance, otherwise unencumbered, in the treasury, to the credit of the fund from which payment is to be made, each sufficient to meet the obligation hereby incurred.

 

 

___________________________________

Randall J. Landes

Director of Finance

 

Approved as to form and legality:

 

 

___________________________________

Matthew Gigliotti

Assistant City Attorney