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Legislation #: 170386 Introduction Date: 5/18/2017
Type: Ordinance Effective Date: none
Sponsor: COUNCILMEMBER WAGNER AND COUNCILMEMBER HALL
Title: Accepting, in part, the recommendations of the Tax Increment Financing Commission as to the Vivion Point Tax Increment Financing Plan; approving the Vivion Point Tax Increment Financing Plan; designating the Redevelopment Area; providing for the inclusion of a community benefit provision in the redevelopment agreement; and directing the City Clerk to transmit copies of this ordinance.

Legislation History
DateMinutesDescription
5/18/2017 Filed by the Clerk's office
5/18/2017 Referred to Planning, Zoning & Economic Development Committee
5/24/2017 Hold On Agenda (6/7/2017)
6/7/2017 Advance and Do Pass as a Committee Substitute, Debate
6/8/2017 Passed as Substituted

View Attachments
FileTypeSizeDescription
170386.pdf Authenticated 353K Authenticated
Vivion Road TIF Plan 6-7-17 (766151xA006D).pdf Plan 12231K TIF Plan

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COMMITTEE SUBSTITUTE FOR ORDINANCE NO. 170386

 

Accepting, in part, the recommendations of the Tax Increment Financing Commission as to the Vivion Point Tax Increment Financing Plan; approving the Vivion Point Tax Increment Financing Plan; designating the Redevelopment Area; providing for the inclusion of a community benefit provision in the redevelopment agreement; and directing the City Clerk to transmit copies of this ordinance.

 

WHEREAS, pursuant to the Real Property Tax Increment Allocation Redevelopment Act, Sections 99.800 to 99.865 of the Revised Statutes of Missouri, as amended, 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, Ordinance No. 100089, As Amended, passed on January 28, 2010, Ordinance No. 130986, passed on December 19, 2013 and Committee Substitute for Ordinance No. 140823, as amended, passed on June 18, 2015, created the Tax Increment Financing Commission of Kansas City, Missouri (the "Commission"); and

 

WHEREAS, the Vivion Point Tax Increment Financing Plan (the Redevelopment Plan” or “Plan”) was proposed to the Commission; and

 

WHEREAS, the Redevelopment Plan is a comprehensive program intended to satisfy, reduce or eliminate those conditions, the existence of which qualify the redevelopment area (the Redevelopment Area) as a conservation area, and to enhance the tax base within the Redevelopment Area through the implementation of a project (Redevelopment Project) and related public infrastructure improvements and the adoption of tax increment financing; and

 

WHEREAS, the Commission has been duly constituted and its members appointed; and, after all proper notice was given, the Commission met in public hearing and after receiving the comments of all interested persons and taxing districts with respect to the Redevelopment Plan, closed said public hearing on April 18, 2017; and

 

WHEREAS, during the public hearing, the Commission considered a request by the Applicant of the Redevelopment Plan to incorporate a provision within the Redevelopment Plan that provides, if at the end of any calendar year, after completion of all of the Project Improvements described by the Redevelopment Plan, the net cash flow exceeds the cash flow necessary to generate a cumulative 16% leveraged annual return on the Applicant’s equity investment for the current and all previous calendar years, 70% of such excess shall be retained by the Redeveloper and the remaining 30% of such excess shall be contributed to the Commission (the “Original Public Participation Split”) and shall be deposited into a “Public Infrastructure Account” within the Special Allocation Fund to be used by the Commission for certain Redevelopment Project Costs related to public infrastructure improvements contemplated by the Redevelopment Plan; and

WHEREAS, the Commission did not accept the Applicant’s requested Original Public Participation Split, but rather, by unanimous vote, approved Resolution No. 4-17-17 (the “Resolution”), which incorporated a provision that provides, if at the end of any calendar year, after completion of all of the Project Improvements described by the Redevelopment Plan, the net cash flow exceeds the cash flow necessary to generate a cumulative 16% leveraged annual return on the Applicant’s equity investment for the current and all previous calendar years, 60% of such excess shall be retained by the Redeveloper and the remaining 40% of such excess shall be contributed to the Commission (the “Revised Public Participation Split”) and shall be deposited into a “Public Infrastructure Account” within the Special Allocation Fund to be used by the Commission for certain Redevelopment Project Costs related to public infrastructure improvements contemplated by the Redevelopment Plan, along with certain modifications to the description of the project improvements and public improvements (including the inclusion of an Advisory Committee), the Budget of Estimated Redevelopment Project Costs, the Projected Economic Activity Taxes, the Sources and Uses of Funds and the Cost Benefit Analysis, as each modification is detailed on the version of the TIF Plan attached to the Resolution; and

 

WHEREAS, the Redevelopment Plan will include the demolition and reconstruction of some of the existing building, as well as expansion beyond the existing footprint in an area generally bounded by N.E. Vivion Road on the north, Chouteau Trafficway on the east, N.E. 50th Street on the south and N.E. Antioch Road on the west in Kansas City, Clay County, Missouri; and

 

WHEREAS, the City Council desires to approve the Vivion Road Tax Increment Financing Plan based on the recommendation of the Commission, provided however, the City Council desires to reject the Revised Public Participation Split recommended by the Commission and accept the Applicant’s Original Public Participation Split; and

 

WHEREAS, the modifications to the Redevelopment Plan were properly noticed in accordance with Section 99.825 and Section 99.830, RSMo; NOW, THEREFORE,

 

BE IT ORDAINED BY THE COUNCIL OF KANSAS CITY:

 

Section 1. That the recommendation of the Commission concerning the Vivion Point Tax Increment Financing Plan as set forth in the Resolution, except for the Revised Public Participation Split, which shall be replaced with the Original Public Participation Split, is hereby accepted.

 

Section 2. The City Council hereby approves and adopts the Vivion Point Tax Increment Financing Redevelopment Plan, as modified and as noted above.

 

Section 3. That 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 (the "Act").

 

Section 4. That the following described area is hereby designated the Redevelopment Area:

 

A tract of land lying in the West Half of the Southwest quarter of Section 31, Township 51 North, Range 32 East, and also being portions of Lots 28 through 41 inclusive, Lots 43, 44, 45, 46, 52 and Lot 56 and portions of vacated streets and alley all in Beulmar Acres, a subdivision of land in Kansas City, Clay County, Missouri, all being more particularly described as follows:

 

Commencing at the Southwest corner of Lot 28 BEULMAR ACRES, according to the recorded plat thereof; thence North 00 degrees 32 minutes 54 seconds West, along the West line of said Lot 28, a distance of 45.00 feet; thence South 83 degrees 57 minutes 26 seconds East, a distance of 9.78 feet to a point at the East right-of-way line of Antioch Road as established in Book 902, at Page 613, and the point of beginning, thence North 02 degrees 17 minutes 34 seconds East, along said East right-of-way line, a distance of 60.13 feet; thence South 83 degrees 57 minutes 26 seconds East, a distance of 352.64 feet, thence North 03 degrees 20 minutes 27 seconds East, a distance of 489.20 feet to a point lying on the vacated centerline of Russell Avenue; thence North 50 degrees 14 minutes 39 seconds East along said vacated centerline a distance of 160.18 feet; thence North 31 degrees 23 minutes 05 seconds West, a distance of 227.27 feet to a point lying on the South right-of-way line of Vivion Road; thence North 49 degrees 52 minutes 30 seconds East along said South right-of-way line, a distance of 16.20 feet; thence along a curve to the right having a radius of 1382.69 feet, (a central angle of 17 degrees 19 minutes 27 seconds) a length of 418.07 feet; thence South 28 degrees 03 minutes 17 seconds East, a distance of 151.25 feet; thence North 61 degrees 56 minutes 43 seconds East, a distance of 34.00 feet; thence South 28 degrees 03 minutes 17 seconds East, a distance of 40.00 feet; thence North 61 degrees 56 minutes 43 seconds East, a distance of 71.00 feet; thence South 28 degrees 03 minutes 17 seconds East, a distance of 34.00 feet; thence North 61 degrees 56 minutes 43 seconds East, a distance of 84.93 feet to a point lying on the Westerly right-of-way line of Chouteau Trafficway as now established; thence along said Westerly right-of-way line, on a curve to the left having a radius of 640.00 feet (an initial Tangent Bearing of North 34 degrees 37 minutes 39 seconds West, a central angle of 17 degrees 24 minutes 48 seconds) a length of 194.51 feet; thence South 52 degrees 52 minutes 44 seconds East along said Westerly right-of-way line, a distance of 133.30 feet to a point lying on the East line of Lot 43 BEULMAR ACRES; thence South 00 degrees 13 minutes 27 seconds West along the East line of Lots 43, 44, 45, 46, a distance of 606.67 feet to the Southeast Corner of Lot 46 BEULMAR ACRES; thence North 89 degrees 16 minutes 04 seconds West along the South line of said Lot 46, a distance of 370.21 feet to a point lying on the Southeasterly line of Lot 33 BEULMAR ACRES; thence along a curve to the right having a radius of 230 feet (an initial Tangent Bearing of South 54 degrees 27 minutes 45 seconds West, a central angle of 04 degrees 25 minutes 42 seconds) a length of 21.74 feet; thence South 58 degrees 29 minutes 40 seconds West, a distance of 159.76 feet; thence along a curve to the left, tangent to the last described course, having a radius of 200.00 feet (a central angle of 21 degrees 54 minutes 05 seconds) a length of 76.45 feet; thence South 41 degrees 04 minutes 05 seconds West, a distance of 44.47 feet; thence North 83 degrees 57 minutes 26 seconds West a distance of 650.02 feet to the point of beginning, except that part thereof in Vivion Road.

 

Section 5. That in accordance with the recommendations of the Commission as set forth in the Resolution that relate to all required statutory findings, the City Council hereby finds that:

 

(a) The Redevelopment Area as a whole is a conservation area, and has not been subject to growth and development through investment by private enterprise and would not reasonably be anticipated to be developed without the adoption of the Redevelopment Plan

 

(b) The Redevelopment Area has not been subject to growth and development through investment by private enterprise and would not reasonably be anticipated to be developed without the adoption of the Redevelopment Plan;

 

(c) The Redevelopment Plan conforms to FOCUS, the comprehensive plan for the development of the City as a whole and the applicable Area Plan;

 

(d) The area selected for the Redevelopment Projects include only those parcels of real property and improvements thereon which will be directly and substantially benefited by the Redevelopment Project improvements;

 

(e) The estimated dates of completion of each respective Redevelopment Project and retirement of obligations incurred to finance Redevelopment Project Costs, have been stated in the Redevelopment Plan and are not more than 23 years from the passage of any ordinance approving a Redevelopment Project within the Redevelopment Area;

 

(f) A plan has been developed for relocation assistance for businesses and residences;

 

(g) A cost-benefit analysis showing the impact of the implementation of the Redevelopment Plan on each taxing district at least partially within the boundaries of the Redevelopment Area has been prepared in accordance with the Act; and

 

(h) The Redevelopment Plan does not include the initial development or redevelopment of any gambling establishment; and

 

(i) A conservation study has been completed and the findings of such study satisfy the requirements provided under subdivision (3) of Section 99.805, RSMo.

 

Section 6. That the Commission is authorized to issue obligations in one or more series of bonds secured by the Vivion Point Account of the Special Allocation Fund to finance Redevelopment Project Costs identified by the Redevelopment Plan and, subject to any constitutional limitations, to acquire by purchase, donation, lease or eminent domain, own, convey, lease, mortgage, or dispose of, land or other property, real or personal, or rights or interests therein, and grant or acquire licenses, easements and options with respect there to, all in the manner and at such price the Commission determines, to enter into such contracts and take all such further actions as are reasonably necessary to achieve the objectives of the Redevelopment Plan pursuant to the power delegated to it by the City. Any obligations issued to finance Redevelopment Project Costs shall contain a recital that they are issued pursuant to Sections 99.800 to 99.865, which recital shall be conclusive evidence of their validity and of the regularity of their issuance.

 

Section 7. That pursuant to the provisions of the Redevelopment Plan, the City Council approves the pledge of all funds that are deposited into the Vivion Point Account of the Special Allocation F und to the payment of Redevelopment Project Costs within the Redevelopment Area and authorizes the Commission to pledge such funds on its behalf.

 

Section 8. That the Redevelopment Agreement will include a community benefit provision whereby the Redeveloper agrees to encourage its businesses locating within the Redevelopment Area to provide opportunities for employment by Kansas City residents who reside within two (2) miles of the Redevelopment Area and to work with area organizations who have a knowledge of residents in the area who are seeking employment opportunities.

 

Section 9. That the City Clerk shall send a copy of this ordinance to the County Clerk and County Commission of Clay County, Missouri.

 

 

 

Approved as to form and legality:

 

 

________________________________

Brian T. Rabineau

Assistant City Attorney