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Legislation #: 130585 Introduction Date: 7/25/2013
Type: Ordinance Effective Date: none
Sponsor: COUNCILMEMBERS WAGNER, CURLS AND REED
Title: Approving a Kansas City Brownfields Revolving Loan Fund program loan application in an amount not to exceed $300,000.00 for the Hardesty Renaissance Economic Development Corporation, authorizing the Director of City Development to execute the necessary loan documents and authorizing further acts.

Legislation History
DateMinutesDescription
7/25/2013 Filed by the Clerk's office
7/25/2013 Referred to Neighborhoods, Housing & Healthy Communities Committee
7/31/2013 Hold On Agenda (8/14/2013)
8/14/2013 Hold On Agenda (8/21/2013)
8/21/2013 Advance and Do Pass as a Committee Substitute, Debate
8/22/2013 Passed as Substituted

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http://kansascity.granicus.com/ViewSearchResults.php?view_id=2&keywords=130585 Video Link 0K http://kansascity.granicus.com/ViewSearchResults.php?view_id=2&keywords=130585
130585.pdf Authenticated 191K Authenticated
130585.Hardesty Loan Agreement v 4 1.pdf Other 210K Hardesty Loan Agreement
130585.Deed of Trust v 2.pdf Other 153K Deed of Trust
130585.Unconditional Guarantee v2.pdf Other 173K Unconditional Guarantee
130585.Security Agreement v2..pdf Other 90K Security Agreement
130585.Promisory Note.pdf Other 84K Promisory Note
130585 Fact Sheet.pdf Fact Sheet 26K Revised Fact Sheet
Hardesty Project v6.ppt Advertise Notice 7453K 130585 PowerPoint
130585 Fiscal Note.pdf Fiscal Note 168K Fiscal Note

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COMMITTEE SUBSTITUTE FOR ORDINANCE NO. 130585

Approving a Kansas City Brownfields Revolving Loan Fund program loan application in an amount not to exceed $300,000.00 for the Hardesty Renaissance Economic Development Corporation, authorizing the Director of City Development to execute the necessary loan documents and authorizing further acts.

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 awarded the City federal grant funds in the amount of $1,609,348.00 to capitalize the RLF under federal cooperative agreement No. BF-97700901 including amendments thereto (EPA Cooperative Agreement), and the City has entered into a cooperative agreement with the EDC Loan Corporation of Kansas City, Missouri (EDLC) to administer RLF program loans; 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 May 28, 2013, the Brownfields Commission adopted resolution 002-013 recommending approval of the application of Hardesty Renaissance Economic Development Corporation (HREDC) for a loan in the amount of $300,000 (Loan) from the RLF Program to abate asbestos containing materials and other hazardous substances (Project) from the structure known as Building 11 of the former Hardesty Federal Complex Site (Site), subject to certain preconditions; and

WHEREAS, the first precondition, that EPA approve a revised work plan for the RLF Grant to permit cleanup Project oversight to be conducted by qualified City personnel, has been determined by EPA to be unnecessary because the current work plan allows this arrangement; and

WHEREAS, the second precondition, that EPA confirm that the federal requirements for borrower eligibility, site eligibility, and the use of funds for Site remediation for this Loan and Project, has been met according to EPA email communication dated May 13, 2013; and

WHEREAS, pursuant to the third precondition, EDLC has reviewed all available financial information submitted by HREDC and has provided a basic financial evaluation of the loan applicant and Project satisfactory to the City and Brownfields Commission and, by memorandum dated June 5, 2013, recommends approval of the Loan based on the significant financial commitments made including a corporate guaranty to be provided by Asian Americans for Equality (AAFE), the parent corporation of HREDC; and

WHEREAS, on June 17, 2013, by resolution AAFE directors authorized a corporate guarantee of the $300,000.00 RLF loan to HREDC; and

WHEREAS, HREDC has submitted financial information sufficient to indicate a source of funds to satisfy the twenty percent (20%) cost share requirement for the Loan, in the amount of $60,000.00; and

WHEREAS, there remains an unobligated fund balance of $509,569.00 in the RLF Grant account for loan assistance; and

WHEREAS, the Department of City Planning shall continue to work with EPA and HREDC to ensure that the Project will comply with all applicable EPA and state laws and requirements; NOW, THEREFORE,

BE IT ORDAINED BY THE COUNCIL OF KANSAS CITY:

Section 1. The application of HREDC for a loan from the City in an amount not to exceed $300,000.00 for the Project at the Site is hereby approved and funded from funds previously appropriated in Account No. 14-2550-645020-B-G64BRLF, EPA-Brownfields Revolving Loan.

Section 2. The Director of City Development is authorized to execute with HREDC the necessary loan documents to memorialize, issue and secure the Loan, all in accordance with the terms and conditions of the City’s EPA Cooperative Agreement governing the RLF. A copy of the loan documents, approved in substantial form, is on file with the City Development Department.

Section 3. The Director of City Development is authorized to take such necessary further acts related to the loan documents, all consistent with this ordinance.

_____________________________________________

 

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