COMMITTEE SUBSTITUTE
FOR ORDINANCE NO. 041332
Approving a plan for industrial
development for the purpose of carrying out an industrial development project
including the redevelopment and rehabilitation of an office building for Cerner
Corporation; authorizing the execution of a cooperative agreement and a
development agreement with Cerner Corporation and other necessary documents in
connection with the plan.
WHEREAS, the
City of Kansas City, Missouri, a constitutional charter city and municipal
corporation of the State of Missouri (the City) is authorized pursuant to the
provisions of Article VI, Section 27 of the Missouri Constitution, as amended,
and Sections 100.010 to 100.200, inclusive, of the Revised Statutes of
Missouri, as amended, and the city of Kansas City Charter (collectively, the
Act), to issue its revenue bonds for the carrying out of a project under the
Act, such revenue bonds to be paid solely from revenue received from such
project, and to enter into a lease of the facilities financed with the proceeds
of such revenue bonds with any person, firm or corporation; and
WHEREAS, Cerner
Corporation has requested that the City approve a Chapter 100 plan for an
industrial development project in the City, consisting of the redevelopment and
rehabilitation of an office building for Cerner Corporation, including the
purchase of equipment to be leased to Cerner Corporation; and
WHEREAS, the City has adopted Committee Substitute
for Resolution No. 041149 expressing its interest in issuing Chapter 100 bonds
(the Bonds) for the purpose of carrying out a development project for Cerner
Corporation (the Project); and
WHEREAS, the Council
wishes to provide an additional economic incentive to Cerner in the form of a
Tenant Reimbursement Payment. Tenant Reimbursement Payment means an amount
equal forty percent (40%) of the tax collected by the City pursuant to Section
68-382 of the Code of Ordinances of Kansas City, Missouri, or any amendment or
successor provision thereto (exclusive of penalties and interest) on earnings
of employees of Cerner and its Affiliates located at the Property; and
WHEREAS, the delivery of
said incentive requires the execution of both a cooperative and development
agreement; and
WHEREAS, the
Council has heretofore and does hereby find and determine that it is desirable
for the economic development of the City and within the public purposes of the
Act that the Council approve a Chapter 100 plan as proposed by Cerner
Corporation; NOW THEREFORE,
BE IT ORDAINED
BY THE COUNCIL OF KANSAS CITY:
Section 1. The
Council hereby finds and determines that the Project will promote the economic
well-being and industrial development of Kansas City, Missouri, and the
issuance of the City's industrial revenue bonds to pay the costs of the Project
will be in furtherance of the public purposes set forth in the Act. The Council
hereby approves the following plan for an industrial development project:
(a)
Redevelopment and rehabilitation of an existing office building,
including the purchase of computers, office equipment and other related
personal property in the City of Kansas City, Missouri, at 3301 North Oak
Trafficway.
(b)
A total estimated project cost of up to $30 million in real and personal
property. Project costs include approximately $17 million for the redevelopment
and rehabilitation of the facilities; $5 million for furniture, fixtures and
equipment; and, $8 million for new computer equipment and technology.
(c)
The project will be funded from proceeds of the sale of up to $30
million maximum principal amount of Taxable Industrial Revenue Bonds to be
issued by the City.
Section 2. That
the Director of City Development is hereby authorized to execute a development
agreement with Cerner Corporation in connection with the project and a
cooperative agreement with Cerner Corporation in connection with the project.
The agreements are approved in substantial form as that on file with the
Director of City Development.
Section 3. That
the Director of City Development is hereby authorized to issue a tax exemption
certificate and to execute such other documents as necessary to effectuate the
intent of this ordinance.
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Approved as to form and legality:
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Heather A. Brown
Assistant City Attorney