ORDINANCE NO. 051128
Authorizing the Director of
Finance to fund the construction of a Mexican Customs Facility under a Master
Lease Purchase Agreement and/or Ground Lease Agreement with a municipal leasing
institution in an amount not to exceed $2.500,000.00; estimating and
appropriating revenues in the amount of $2,500,000.00 in the Equipment Lease
Capital Acquisition Fund; stating the Citys intention regarding the source of
repayment for the draw; designating requisitioning authority; declaring the
intent of the City to reimburse itself from the lease purchase proceeds for
certain expenditures; setting forth the Citys commitment to provide paving
work on the project site; and authorizing a Cooperative Agreement with Kansas
City Smartport, Inc. for the development and operation of the customs facility.
WHEREAS, Resolution
No. 050990, adopted August 11, 2005, directed the City Manager to develop a
plan of finance to support the construction of an inland Mexican customs
facility in the West Bottoms area; and
WHEREAS, the
City owns the real property located on the east side of Liberty Street between
14th and 15th Streets; and Kansas City SmartPort, Inc. (SmartPort) has
requested City support in constructing, equipping, and acquiring the Customs
Facility on a portion of that site (the Project Site); and
WHEREAS,
SmartPort, in promoting Kansas City as a strategic hub for trade between the U.S. and Mexico, has secured the support of both Mexican and U.S. Customs officials for the
construction of a customs facility (the Customs Facility) in Kansas City; and
WHEREAS, the
construction of such a facility offers great economic benefit to Kansas City; and
WHEREAS, the City
may contribute land, services and construction moneys and seek state, federal,
local and private contributions, as well, each benefiting from the unique
business opportunities that will result from the facility; and
WHEREAS, the City expects to incur capital expenditures not to exceed $2,500,000.00
for the Customs Facility; and
WHEREAS, the
Citys Master Lease Purchase Agreement with Banc of America Leasing &
Capital, LLC, expired on April 30, 2005; and
WHEREAS, the
City is in the process of selecting a new leasing company to provide funds for
the Customs Facility under a Master Lease Purchase Agreement; NOW, THEREFORE
BE IT ORDAINED BY THE
COUNCIL OF KANSAS CITY:
Section 1. That the
Director of Finance is authorized to fund the construction of the Customs
Facility through a draw upon the Master Lease Purchase Agreement in an
approximate principal amount not to exceed $2,500,000.00 with a leasing
company, selected through an RFP process, subject to the approval of the City
Council, and is further authorized to execute, deliver and file in the name of
the City any and all documents and agreements necessary to complete such
transactions.
Section 2. That
the revenue in the following account of the Equipment Lease Capital Acquisition
Fund is hereby estimated in the following amount:
AL-3230-120000-830000
|
Reimbursement from Bank or
Lease Co.
|
$2,500,000.00
|
Section 3. That
the sum of $ 2,500,000.00 is hereby appropriated from the Unappropriated Fund
Balance of the Equipment Lease Capital Acquisition Fund to the following
account of the Equipment Lease Capital Acquisition Fund:
AL-3230-647410-E
|
Mexican Customs Facility
|
$2,500,000.00
|
|
|
|
Section 4. That the sum of
$45,000 is hereby appropriated from the Unappropriated Fund Balance of Fund No.
3090, the Capital Improvement Fund, to the following account:
06-3090-129600-G Interest Expense $45,000.00
Section 5. The City intends to use its Capital
Improvements Sales Tax as the primary financial resource to repay any
indebtedness incurred for construction of the Customs Facility within the
five-year term. In the event of non-renewal of the Capital Improvements Sales
Tax during the term of any indebtedness approved to provide funds for
construction of the Customs Facility, the City will dedicate other general
municipal resources generally budgeted for capital improvements to repay such
debt
Section 6. That
the Director of Finance is hereby authorized to close project accounts upon
project completion and return the unspent portion of the appropriation to the
fund balance from which it came.
Section 7. That
the City Manager is hereby designated as requisitioning authority for Account
No. AL-3230-647410-E and that the Director of Finance is hereby designated as
requisitioning authority for Account No. 06-3090-129600-G.
Section 8. That
the City declares its intent to reimburse itself for certain expenditures made
within 60 days prior to or on and after the date of this ordinance with respect
to the Customs Facility with the proceeds of the lease purchase expected to be
drawn upon the Master Lease Purchase Agreement. The maximum principal amount
expected to be financed under the lease purchase is $2,500,000.00.
Section 9. The
City shall provide additional support in the form of paving work in an amount
not to exceed $600,000.00 for the project under its current paving contract,
and the Director of Public Works is authorized and directed to take all
necessary action to fulfill this obligation in accordance with the
development/construction schedule set forth in the cooperative agreement with
SmartPort authorized in Section 10 of this ordinance.
Section 10.
That the City hereby authorizes the execution of a cooperative agreement with
Kansas City SmartPort, Inc. in connection with the development and operation of
the Customs Facility. The cooperative agreement, which is approved in
substantial form as that on file in the office of the City Manager, will
contain a 50-year sublease of the Project Site to SmartPort, with an option to
renew for an additional 50 years, and a provision for repayment in full of the
Citys principal and interest on the $2,500,000.00 draw on its master lease
purchase at an interest rate of 4% no later than 15 years from the date of the
first draw.
_______________________________________________________
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.
___________________________________
Wanda
Gunter
Acting
Director of Finance
Approved
as to form and legality:
_____________________________
Heather
A. Brown
Assistant City Attorney