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Legislation #: 190570 Introduction Date: 7/11/2019
Type: Ordinance Effective Date: none
Sponsor: COUNCILMEMBER CANADY
Title: Authorizing the City Manager to execute a cooperative agreement with the Shops On Blue Parkway Community Improvement District for the purpose of reducing and eliminating future cost deficiencies associated with a 162,000 square foot retail shopping center and office space authorized pursuant to various City cooperative agreements; authorizing the City Manager to take certain actions for purposes of implementing the objectives of this ordinance; reducing the Contingent Appropriation in the General Fund by $80,600; appropriating $80,600.00 from the Unappropriated Fund Balance of the General Fund to a STIF Blue Parkway Fund; reestimating $80,600.00 in the STIF Blue Parkway Fund; and appropriating $80,600.00 from the Unappropriated Fund Balance of the STIF Blue Parkway Fund to the CID Support account.

Legislation History
DateMinutesDescription
7/11/2019 Filed by the Clerk's office
7/17/2019 Hold On Agenda (8/7/2019)
8/7/2019 Hold On Agenda (8/14/2019)
8/14/2019 Hold On Agenda (8/21/2019)
8/21/2019 Hold On Agenda (9/18/2019)
7/11/2019 Referred to Finance, Governance and Public Safety Committee
9/18/2019 Hold On Agenda (9/25/2019)
9/25/2019 Hold On Agenda (10/9/2019)
10/9/2019 Advance and Do Pass as a Committee Substitute, Debate
10/10/2019 Passed as Substituted
10/10/2019 Councilmember Lucas (Second by Hall) Move to Reconsider
10/10/2019 Passed as Substituted

View Attachments
FileTypeSizeDescription
190570.pdf Authenticated 141K Authenticated Ordinance
190570_Fact Sheet_final.pdf Fact Sheet 312K Fact Sheet
fiscal note.pdf Fiscal Note 72K fiscal note

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COMMITTEE SUBSTITUTE FOR ORDINANCE NO. 190570

 

Authorizing the City Manager to execute a cooperative agreement with the Shops On Blue Parkway Community Improvement District for the purpose of reducing and eliminating future cost deficiencies associated with a 162,000 square foot retail shopping center and office space authorized pursuant to various City cooperative agreements; authorizing the City Manager to take certain actions for purposes of implementing the objectives of this ordinance; reducing the Contingent Appropriation in the General Fund by $80,600; appropriating $80,600.00 from the Unappropriated Fund Balance of the General Fund to a STIF Blue Parkway Fund; reestimating $80,600.00 in the STIF Blue Parkway Fund; and appropriating $80,600.00 from the Unappropriated Fund Balance of the STIF Blue Parkway Fund to the CID Support account.

  WHEREAS, Community Builders of Kansas City, formerly known as Swope Community Builders, a Missouri nonprofit corporation (“CBKC”), is a certified 501 (c)(3) nonprofit Community Development Corporation (“CDC”) and certified by the City as a Community Based Development Organization (“CBDO”); and

 

WHEREAS, as a CDC and CBDO with program goals of serving low-income residents by increasing business and employment opportunities, and mobilizing community resources by partnering with governments and the business and financial community, CBKC developed a 162,000 square foot retail shopping center and office space located generally at 4201-4501 Blue Parkway (the “Project”) for the purposes of providing a grocery store, bank, retail, health, and various other critical and necessary social services to the surrounding community and area residents; and

 

WHEREAS, on October 25, 2005, the Developer did execute and file with the City a Petition to Establish the Shops on Blue Parkway Community Improvement District and to Authorize Sales Tax (the “CID Petition”) for the purposes of, among other things, generating funds to maintain the Project, utilizing a one cent sales tax on all retail sales within the Project (the “CID Assessment”); and

 

WHEREAS, pursuant Ordinance No. 070128, the CID Petition was approved by the City, in accordance with Section 67.1401 et seq. of the Revised Missouri Statutes, and on February 9, 2006, CBKC did form The Shops On Blue Parkway Community Improvement District (the “CID”) with the Missouri Secretary of State, to facilitate economic development within the CID and endeavor to maintain long-term sustainability of the Project; and

 

WHEREAS, the severe economic downturn of 2009 and the loss of a major anchor tenant to the Project resulted in a decrease in the generated CID Assessment, and correspondingly, a significantly lower revenue from the CID than projected; and

 

WHEREAS, on February 9, 2012, as approved by Ordinance No. 120134, the CID did extend the term of the CID for fifteen (15) years; and

 

WHEREAS, on March 1, 2012, the City, the CID and others entered into a Cooperative Agreement (the “2012 Cooperative Agreement”) pertaining to, among other things, the renewal of the term of the CID and an agreement that the CID would allocate fifty percent of the CID Assessment annually to debt service obligations on the Project (the “Debt Service Payments”); and

 

WHEREAS, in fulfillment of the CID’s obligations under the 2012 Cooperative Agreement, the CID has, as of the date of this Ordinance, used the CID Assessment to make Debt Service Payments totaling $714,847.77.00; and

 

WHEREAS, notwithstanding the CID’s successful completion of the Project, the Debt Service Payments have and are expected to continue to deplete the CID Assessment, causing inadequate funds to be available to adequately allow the CID to fulfill its purposes of facilitating economic development and maintaining long-term sustainability of the Project, and current, deferred and anticipated Project maintenance needs are creating a financial hardship to the CID; and

 

WHEREAS, without adequate funds generated by the CID Assessment, the Project will not be able to sustain itself; and

 

WHEREAS, in consideration of the important public purpose fulfilled by the CID, a political subdivision of the State, and the programs of CBKC, the City has determined it is in the best interest of the City, the CID and the Project to provide funds to the CID to maintain the Project, and to stabilize the CID by reducing future obligations of the CID related to the Debt Services Obligations; NOW, THEREFORE,

 

BE IT ORDAINED BY THE COUNCIL OF KANSAS CITY:

 

Section 1. That the City Manager is hereby authorized to execute a cooperative agreement with The Shops On Blue Parkway Community Improvement District in substantial form and substance as that attached hereto as Exhibit A for the purposes of providing funds to the CID to maintain the Project and stabilizing the CID by reducing future obligations of the CID related to the Debt Services Obligations. Such agreement is approved in such form as is determined to be acceptable by the City Manager.

 

Section 2. That the City Manager is hereby authorized to take other actions the City Manager deems necessary to implement the objectives of this ordinance, and is hereby authorized and directed to execute and deliver such other documents, certificates and instruments as may be necessary or desirable to carry out and comply with the intent of this ordinance for and on behalf of and as the act and deed of the City without further City Council approval.

 

Section 3. That the appropriation in the General Fund is hereby reduced by the following amount.

 

20-1000-179990-619960 Contingent Appropriation $80,600.00

 


 

Section 4. That the sum of $80,600.00 is hereby appropriated from the Unappropriated Fund Balance of the General Fund to the following account.

 

20-1000-129998-905300 Transfer to STIF Blue Parkway Fund $80,600.00

 

Section 5. That $80,600.00 is hereby re-estimated to the following account in the STIF Blue Parkway Fund.

 

20-5300-120000-501000 Transfer from the General Fund $80,600.00

 

Section 6. That the sum of $80,600.00 is hereby appropriated from the Unappropriated Fund Balance of the STIF Blue Parkway Fund to the following account.

 

20-5300-642044-619080 CID Support $80,600.00

 

_____________________________________________

 

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.

 

 

___________________________________

Tammy L. Queen

Acting Director of Finance

 

Approved as to form and legality:

 

 

___________________________________

Katherine Chandler

Assistant City Attorney