SECOND COMMITTEE SUBSTITUTE FOR ORDINANCE NO. 971295, AS AMENDED

Approving and designating Brush Creek Redevelopment Project I of the Brush Creek Plaza Tax Increment Financing Plan; adopting tax increment financing therefor; calling an election for November 3, 1998, to submit these matters for consideration by the voters; directing the City Clerk to notify the responsible election authorities of the election being called no later than August 25, 1998; and recognizing this ordinance to be an emergency measure.

WHEREAS, the City Council of Kansas City, Missouri by Ordinance No. 54556 passed on November 24, 1982 and thereafter amended in certain respects by Committee Substitute for Ordinance No. 911076, as amended, passed on August 29, 1991, created the Tax Increment Financing Commission of Kansas City, Missouri (the "Commission"); and

WHEREAS, the City Council passed Second Committee Substitute for Ordinance No. 971294, As Amended, which approved the Brush Creek Plaza Tax Increment Financing Plan (the "Redevelopment Plan") and designated the Redevelopment Area as a conservation development area, subject to approval of the voters on November 3, 1998; and

WHEREAS, the Redevelopment Plan and Ordinance contemplate the implementation of the Redevelopment Plan through one Redevelopment Project and the adoption of tax increment financing for such Redevelopment Project; NOW, THEREFORE,

BE IT ORDAINED BY THE COUNCIL OF KANSAS CITY:

Section 1. Definitions. All terms used in this ordinance shall be construed as defined in Sections 99.800 to 99.865 of the Revised Statutes of Missouri, as amended.

Section 2. Redevelopment area. The area selected for Redevelopment Project I legally described as follows:

Lots 17, 18, 19, 20, 21, 22, 23, 24, 25, 26, 27 and 28, Park Manor, Resurvey of Lots 1 to 5 and Lots 7 to 16, Block 4, a subdivision of land in Kansas City, Jackson County, Missouri, according to the recorded plat thereof, and Lot 6, Block 4, Park Manor, a subdivision of land in Kansas City, Jackson County, Missouri, according to the recorded plat thereof (2.671 acres).

is approved and designated as Project I for the Redevelopment Plan (Project I").

Section 3. Tax increment allocation financing adopted. Tax increment allocation financing is hereby adopted for taxable real property in the above described area selected for Project I. After the total equalized assessed valuation of the taxable real property in Project I exceeds the certified total initial equalized assessed valuation of the taxable real property in Project I, the ad valorem taxes, and payment in lieu of taxes, if any, arising from the levies upon the taxable real property in such project by taxing districts and tax rates determined in the manner provided in subsection 2 of Section 99.855 each year after the effective date of the ordinance until redevelopment costs have been paid shall be divided as follows:

1. That portion of taxes levied upon each taxable lot, block, tract, or parcel of real property which is attributable to the initial equalized assessed value of each such taxable lot, block, tract or parcel of real property in the area selected for the Project I shall be allocated to and, when collected, shall be paid by the Jackson County Collector and the City

Treasurer to the respective affected taxing districts in the manner required by law in the absence of the adoption of tax increment allocation financing;

2. Payments in lieu of taxes attributable to the increase in the current equalized assessed valuation of each taxable lot, block, tract, or parcel of real property in the area selected for Project I over and above the initial equalized assessed value of each such unit of property in the area selected for Project I shall be allocated to and, when collected, shall be paid to the City Treasurer who shall deposit such payment in lieu of taxes into a special fund called the "Special Allocation Fund" of the City for the purpose of paying Redevelopment Project Costs and obligations incurred in the payment thereof. Any payments in lieu of taxes which are not paid within sixty (60) days of the due date shall be deemed delinquent and shall be assessed a penalty of one percent (1%) per month.

Section 4. Economic activities taxes allocated. In addition to the payments in lieu of taxes described in subsection 2 of Section 3 above, fifty percent (50%) of the total additional revenue from taxes which are imposed by the City or taxing districts, and which are generated by economic activities within the area selected for Project I over the amount of such taxes generated by economic activities within such area in the calendar year prior to the adoption of this ordinance, while tax increment financing remains in effect, but excluding taxes imposed on sales of charges for sleeping rooms paid by transient guests of hotels and motels, licenses, fees or special assessments and personal property taxes, other than payments in lieu of taxes, shall be allocated to, and paid by the collecting officer to the City Treasurer or other designated financial officer of the City, who shall deposit such funds in a separate segregated account within the Special Allocation Fund.

Section 5. Redevelopment area limited. The area selected for Project I includes only those parcels of real property and improvements thereon which will be substantially benefitted by the proposed redevelopment project improvements.

Section 6. Effective date of sections 1 through 5. Sections 1 through 5 of this Second Committee Substitute for Ordinance No. 971295, As Amended, will become effective only if

(1) the voters of the City approve enactment of these provisions on November 3, 1998;

(2) the voters approve enactment of Committee Substitute for Ordinance No. 970035, As Amended establishing appropriate zoning for this project, on November 3, 1998; and

(3) the voters approve enactment of Second Committee Substitute for Ordinance No. 971294, As Amended, approving the Brush Creek Plaza Tax Increment Financing Plan; naming a Redeveloper; designating a Redevelopment Area; making certain findings with regard to the Plan; and authorizing the issuance of certain obligations and the pledge of certain funds for the Plan, on November 3, 1998.

Section 7. Election called. That a special election is called for November 3, 1998, to submit to the qualified voters of the City the question of whether the Brush Creek Redevelopment Project I of the Brush Creek Plaza Tax Increment Financing Plan should be approved and designated, and whether tax increment financing should be adopted for it as set forth in sections 1 through 5 of this Second Committee Substitute for Ordinance No. 971295, As Amended.

Section 8. Ballot Title. That the ballot title for the proposition established by this ordinance shall be as follows:

QUESTION _____

Shall Second Committee Substitute for Ordinance No. 971295, As Amended, approving and designating Brush Creek Redevelopment Project I of the Brush Creek Plaza Tax Increment Financing Plan and adopting tax increment financing therefor be approved?

Yes

No

The voter who desires to vote in favor of this proposition shall place an ה in the box opposite Yes. The voter who desires to vote against this proposition shall place an ה in the box opposite No.

Section 9. Election Date. That an election is called for November 3, 1998, for the purpose of submitting to the voters of Kansas City the question of approving and designating Brush Creek Redevelopment Project I of the Brush Creek Plaza Tax Increment Financing Plan and adopting tax increment financing therefor.

Section 10. Delivery of Ordinance by City Clerk to Election Authorities. That the Clerk shall deliver certified copies of this ordinance and notice of election to the Board of Election Commissioners of Kansas City, Missouri, to the Board of Election Commissioners of Clay County, to the Board of Election Commissioners of Platte County, and to the County Clerk of Cass County, which shall be the authority of the respective election authorities of the City to submit this question to the electors of Kansas City as herein provided and to give public notice thereof as provided by law on or before Tuesday, August 25, 1998.

Section 11. Election Notice. That the notice of election shall read as follows:

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NOTICE OF ELECTION

CITY OF KANSAS CITY, MISSOURI

Notice is hereby given that the City of Kansas City has called an election to be held in said City on Tuesday, November 3, 1998, at which election all qualified voters residing within the City of Kansas City, Missouri will be given the opportunity to vote.

The official ballot will be in substantially the following form:

OFFICIAL BALLOT

CITY OF KANSAS CITY

ELECTION NOVEMBER 3, 1998

QUESTION _____

Shall Second Committee Substitute for Ordinance No. 971295, As Amended, approving and designating Brush Creek Redevelopment Project I of the Brush Creek Plaza Tax Increment Financing Plan and adopting tax increment financing therefor be approved?

Yes

No

[Instructions to voters will be supplied by the election authorities]

A full and complete copy of Second Committee Substitute for Ordinance No. 971295, As Amended, submitting the above proposition to the electorate is on file in the office of the City Clerk of Kansas City, Missouri where the same is open for inspection and copying.

The polling places for the election will be [insert list of polling places in last publication only].

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I hereby certify that the foregoing is the legal notice to be published pursuant to Section 115.127, R.S.Mo., as amended.

Given under my hand and the official seal of the City of Kansas City, Missouri, this ___________ day of August, 1998.

(SEAL)

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CATHERINE T. ROCHA

City Clerk of the City of Kansas City, Missouri

Before me, a notary public, personally appeared Catherine T. Rocha, to me known to be the City Clerk of the City of Kansas City, Missouri, and the person who acknowledged to me that she executed the same for the purposes therein stated.

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Notary Public

My commission expires:

Section 12. Emergency. That this ordinance provides for the submission of a proposal to the people of Kansas City, Missouri, and is hereby recognized to be an emergency measure within the meaning of Section 15, Article II, of the Charter of Kansas City, and as such shall become effective immediately upon its passage.

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Approved as to form and legality:

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Assistant City Attorney