ORDINANCE NO. 060750
Acknowledging the prior
termination of Phases I.1 and II development rights and Phases I.1 and II
property tax abatement granted pursuant to the contract between Bishop Spencer
Place Redevelopment Corporation and the City dated March 2, 1994, so as to
clarify the 25-year property tax abatements granted to the newly created Phases
II and III pursuant to the Citys approvals of the First and Second Amendments
to the Redevelopment Plan for Bishop Spencer Place. (439-S-2)
WHEREAS, Bishop
Spencer Place Redevelopment Corporation (the Corporation), an urban
redevelopment corporation organized under and pursuant to the Urban
Redevelopment Corporations Law and amendments thereto, filed with the City
Clerk an application for approval of a Development Plan on September 24, 1993
(Original Plan), which was approved by the City Council by Committee
Substitute for Ordinance No. 931406 and passed December 20, 1993; and
WHEREAS, the
Corporation entered into a Contract with the City dated March 2, 1994 (the
Original Contract) for the implementation of the Original Plan, which
Original Contract provided for RSMo Chapter 353 tax abatement for a period of
25 years on the areas described therein as Phases I, I.1 and II provided the
areas were redeveloped in accordance with the Contract; and
WHEREAS, tax
abatement for Phases I, I.1 and II was triggered in 1995, the calendar year in
which the Corporation took title to the real property; and
WHEREAS,
pursuant to Section 6 of the Original Contract, failure of the Corporation to
complete construction of the projects within the time limits set forth on
Exhibit C to the Original Contract, if such failure continued for three years,
would result without further action by the City in the termination of the
Corporations rights and obligations under the Contract, including thus
termination of its development rights and rights to tax abatement; and
WHEREAS, because
the Corporation failed to complete construction of Phase I.1 by November 1997
or Phase II by November 1998, pursuant to the Section 6 automatic termination
provision of the Original Contract, this failure, without any further action by
the City, resulted in the termination of the Corporations development rights
and tax abatement as to Phase I.1 on December 1, 2000, and as to Phase II on
December 1, 2001; and
WHEREAS, the
above-described Phases I.1 and II automatic termination had no impact on the
Corporations development rights and tax
abatement for Phase I as created under the Original Plan and Original Contract,
which remain in full force and effect; and
WHEREAS, the
Corporation filed with the City the First Amendment to the Development Plan on
January 18, 2002, which was revised on June 14, 2002 (First Amended Plan),
and which was approved by the City Council by Committee Substitute for
Ordinance No. 020808, passed August 29, 2002; and
WHEREAS, the
First Amended Plan recognized, and the City Council approved, that the development rights for Phases I.1 and II had been
terminated pursuant to the Original Contract, though the First Amended Plan
inadvertently described the effective date of termination for both Phases as of
December 1, 2001, instead of as above-described, and further recognized that a
new 25 year abatement was granted for a newly created Phase II, property which
remained blighted; and
WHEREAS, the original Contract was supplemented
by the First Supplementary Contract between the Corporation and the City dated
September 30, 2002 (First Supplementary Contract), reflecting the
implementation of the First Amended Plan, reflecting in its WHEREAS clauses
that the purpose of First Amended Plan was to reinstate the previously
terminated Phases I.1 and II into a new combined Phase II with a new 25 year
abatement; and
WHEREAS, the
Bishop Spencer Place Redevelopment Corporation filed with the City Clerk an
application for a Second Amendment to the Development Plan on December 19,
2003, and revised on February 17, 2004 (the Second Amended Plan) and which
was approved by the City Council by Ordinance No. 040284,
passed April 1, 2004; and
WHEREAS, the
Second Amended Plan modified the project to be constructed within the
previously approved Phase II, expanded the redevelopment area to include and
declare blighted a new Phase III, and recognized, and the City Council
approved, tax abatement for a period of 25 years was granted as to the newly
created Phases II and III, provided that
development rights and tax abatement for Phase I created under the Original
Plan and Original Contract were not terminated, and remain in full force and
effect; and
WHEREAS, the Original Contract and First Supplementary
Contract were supplemented by the Second Supplementary between the Corporation
and the City dated April 28, 2004 (the Second Supplementary Contract), a copy
of which was recorded in the Jackson Recorders Office in June 2004; and
WHEREAS, the 25-year tax abatement granted to the
Corporation for Phase II under the First Amended Plan, and amended by the
Second Amended Plan, was triggered and commenced in 2005, the calendar
year in which the Corporation took title to the Phase II real property; and
WHEREAS, in
order to remove any confusion as to the tax abatements in effect under the
Plan, the City Council desires to acknowledge the automatic termination under
the terms of Original Contract of the Phase I.1 development rights and property
tax abatement as of December 1, 2000, the automatic termination under the terms
of the Original Contract of the Phase II development rights and property tax
abatement as of December 1, 2001, and the 25-year tax abatement granted to the
newly created Phases II and III under the First Amended Plan and First
Supplementary Contract, as amended respectively by the Second Amended Plan and
Second Supplementary Contract; NOW, THEREFORE,
BE IT ORDAINED
BY THE COUNCIL OF KANSAS CITY:
Section 1. The
City Council hereby acknowledges that pursuant to the terms of the Original
Contract, all of the Corporations rights and obligations as to Phase I.1 as
defined therein, including but not limited to the Corporations development
rights and the attendant right to tax abatement, were terminated without any
further City action as of December 1, 2000, and the Phase I.1 real property
should not have enjoyed any tax abatement from this date until later triggered
as described below in Section 6.
Section 2. The
City Council hereby acknowledges that pursuant to the terms of the Original
Contract, all of the Corporations rights and obligations as to Phase II as
defined therein, including but not limited to the Corporations development
rights and the attendant right to tax abatement, were terminated without any
further City action as of December 1, 2001, and the Phase II real property
should not have enjoyed any tax abatement from this date until later triggered
as described below in Section 6.
Section 3. The
City Councils passage of Committee Substitute for Ordinance No. 020808 on
August 29, 2002, approving the First Amended Plan, acknowledged the termination
of Phases I.1 and II under the Original Contract.
Section 4. The
Director of Finance is hereby authorized to execute, on behalf of the City, all
necessary documents to indicate the earlier termination of the Phases I.1 and
II development rights and attendant property tax abatement under the Original
Contract.
Section 5. The
Phase I development rights and attendant tax abatement granted under the
Original Plan and Original Contract remain in full force and effect, triggered
and commencing in 1995, the year in which the Corporation took title to the
Phase I real property.
Section 6. The
Phase II (formerly Phases I.1 and II under the Original Plan) development
rights and new 25-year tax abatement created and granted under the First
Amended Plan and First Supplementary Contract, as amended respectively by the
Second Amended Plan and Second Supplementary Contract, remain in full force and
effect, triggered and commencing in 2005, the year in which the Corporation
took title to the Phase II real property.
Section 7. The
Phase III development rights and new 25-year tax abatement created and granted
under the Second Amended Plan and Second Supplementary Contract, remain in full
force and effect, though the tax abatement has not yet been triggered as the
Corporation has not taken title to the Phase III real property.
Section 8. That
the Council hereby finds and determines that the public convenience and
necessity will be served by the above acknowledgement.
____________________________________________________________
Approved as to form and legality:
_____________________________
Heather A. Brown
Assistant City Attorney