SECOND COMMITTEE
SUBSTITUTE FOR RESOLUTION NO. 100139
Expressing the City Council’s
intent to identify certain funds for demolition debris and asbestos removal at
the site of 2715 -21 Swope Parkway if MAC Healthcare purchases the property.
WHEREAS, in 2003, the
City expended $211,534.00 to demolish a large, dilapidated structure then
located at what was commonly referred to as either 2715 Swope Parkway or
2715-21 Swope Parkway that had been duly and lawfully declared a dangerous
building pursuant to the City’s ordinances and to remove asbestos containing
materials during the demolition; and
WHEREAS, these
demolition and asbestos removal costs became a debt owed by the property owner
and a lien on the parcel of property, which was never paid by the property
owner; and
WHEREAS, in 2007, the
City filed a lawsuit in Jackson County, Missouri Circuit Court styled City
of Kansas City, Missouri v. North American Islamic Trust, Inc., et al., Case
No. 0716-CV31722, to attempt to collect these demolition and asbestos removal
costs; and
WHEREAS, the
principal, interest and penalties currently owed for the demolition and
asbestos removal is approximately $395,762.50; and
WHEREAS, Masjid Omar,
the current owner of this parcel of property and a defendant in the above
lawsuit, filed for Ch. 11 bankruptcy in the U.S. District Court for the Western
District of Missouri on August 21, 2008, in the proceeding styled In re Masjid
Omar, 08-43451-abf11, and listed this parcel of real property (legally
described as all of Lots 4 through 21, Block 6, in Warder Park, Jackson County,
Missouri) as the only asset of the debtor’s estate and listed this demolition
debt and lien as one of the debts of the debtor; and
WHEREAS, Masjid Omar
has proposed to the Bankruptcy Court a plan by which it would sell to MAC
Healthcare all but four platted lots (Lots 13 through 16) of the real property
commonly described as located at 2715 Swope Parkway for the sum of $187,500.00,
and
WHEREAS, on December
17, 2009, the City Council adopted Resolution No. 091023, As Amended, which recommended to the Missouri Housing Development Commission the
issuance of Missouri Low Income Housing Tax Credits to a senior citizen housing
project containing affordable housing proposed by MAC Healthcare, and
WHEREAS, MAC
Healthcare has obtained an engineering report which indicates that there remain
portions of the demolished structure(s) in the ground on this site which may
require additional expenditures over and above typical excavation costs
required by development of this previously blighted parcel; and
WHEREAS, MAC
Healthcare has expressed to the City that it will be unwilling to develop this
property unless the City provides funding for demolition debris and asbestos
removal at the site in an amount equal to the amount of money the City receives
from the Bankruptcy Court as a result of the purchase by MAC Healthcare of the
larger portion of the real property located at 2715 Swope Parkway; and
WHEREAS, it is
anticipated that the claims of other creditors of the debtor and certain fees
associated with the administration of this bankruptcy proceeding will reduce
the City’s share of the sales proceeds to approximately $160,000.00; and
WHEREAS, the City
recognizes that there exists a public purpose in development of this previously
blighted parcel and in the economic redevelopment of the area between Benton
Boulevard and Prospect Avenue; and
WHEREAS, the City
recognizes that there are certain circumstances in which such public purposes
are furthered by providing public funds to offset extraordinary expenses
associated with the site at which such construction and redevelopment is to
occur; NOW, THEREFORE,
BE IT RESOLVED BY THE
COUNCIL OF KANSAS CITY:
Section 1. That the
Council recognizes the existence of a public purpose in the economic
redevelopment of the area between Benton Boulevard and Prospect Avenue and on
the site of 2715 Swope Parkway in particular.
Section 2. That the
Council expresses its intent to identify funds in an amount equal to the amount
of proceeds the City receives from the Bankruptcy Court attributable to MAC
Healthcare’s purchase of this parcel of real property
and to make those funds available to offset the costs for extraordinary
demolition debris and asbestos removal at the site of 2715 Swope Parkway
actually incurred by, or on behalf of, MAC Healthcare, subject to the
conditions set out below in Section 3 being first satisfied.
Section 3. That the
conditions that MAC Healthcare must satisfy before the funds described above
can be paid to MAC Healthcare, if it purchases this parcel, shall be:
a.
That
if MAC Healthcare develops this parcel to conform to the current zoning, they
may proceed without a development plan; otherwise they must present, and have
approved by the City, a development plan for this parcel of property; and
b.
That
MAC Healthcare will make application for Brownfield funding for the costs of
removal of demolition debris and asbestos at the site and, if approved for
those funds for at least $160,000.00 in 8 months from the time of their
application, they will accept such funds in the lieu of the funds provided by
this resolution; and
c.
That
MAC Healthcare must have entered into a funding agreement with the City that at
least provides that such City funding derived from proceeds the City receives
from the Bankruptcy Court attributable to MAC Healthcare’s purchase of this
parcel of real property will be provided on a documented, reimbursement basis.
Section 4. That, in
the event that MAC Healthcare or one of its affiliated entities does not
purchase or does purchase but does not subsequently develop this parcel, the
amount of proceeds the City receives from the Bankruptcy Court will be
deposited into the General Fund as they would have otherwise.
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