COMMITTEE SUBSTITUTE
FOR ORDINANCE NO. 050228
Approving an amended and
restated plan for industrial development for the purpose of carrying out an
industrial development project including the construction and equipping of a
facility and lease of the facility to Hearst-Argyle Stations, Inc. for an
office building with broadcasting facilities at 6455 Winchester Drive,
authorizing an agreement to allow the project to proceed through the issuance
of industrial revenue bonds and other matters related thereto.
WHEREAS,
the City of Kansas City, Missouri, a constitutional charter city and municipal
corporation of the State of Missouri (the City) is authorized pursuant to the
provisions of Article VI, Section 27 of the Missouri Constitution, as amended,
and Sections 100.010 to 100.200, inclusive, of the Revised Statutes of
Missouri, as amended (the Act), to issue its revenue bonds for the carrying
out of a project under the Act, such revenue bonds to be paid solely from
revenue received from such project, and to enter into a lease of the facilities
financed with the proceeds of such revenue bonds with any person, firm or
corporation; and
WHEREAS,
the City has engaged the Economic Development Corporation of Kansas City,
Missouri (EDC) to assist in the marketing, attraction, retention and
expansion of existing business, and to attract new business to Kansas City,
Missouri; and
WHEREAS,
the City, pursuant to the Act and its Chapter 100 Policy, intends to issue and
sell industrial revenue bonds in an amount not to exceed $18,000,000.00
(Bonds), to construct and equip an office building and broadcasting
facilities at 6455 Winchester Drive (the Project) for lease to Hearst-Argyle
Stations, Inc., a Nevada corporation, doing business as KMBC-TV (KMBC); and
WHEREAS,
the Project is located wholly within the Winchester Office Center Tax Increment
Financing Project (the TIF Project) and is governed by the Winchester Office
Center Tax Increment Financing Plan approved by Ordinance No. 911435 on
December 19, 1991, as amended, by the Tax Increment
Financing Contract between the Tax Increment Financing Commission of Kansas
City (TIF Commission) and Winchester Ventures II, a Missouri general
partnership (the Developer) dated May 21, 1992, as amended (the TIF Contract);
and
WHEREAS, the Council approved
Second Committee Substitute for Ordinance No. 040218 on March 11, 2004,
approving a plan for industrial development for the purpose of carrying out an
industrial development project including the construction and equipping of a
facility and lease of the facility to KMBC for an office building with
broadcasting facilities at 6455 Winchester Drive, and made certain findings and
determinations related to the Project; and
WHEREAS, the controlling state
statute for the use of Chapter 100 bonds has been amended to require additional
procedural steps, including the requirement that the City shall provide written
notice of a project not less than 20 days prior to approval to property taxing
jurisdictions in which the project is located;
WHEREAS, the Council approved
Committee Substitute for Resolution No. 041033 (the Policy) on September 16,
2004, revising the policy for the use of Chapter 100 bonds and desires to
conform to the KMBC plan to the statutory and policy amendments;
WHEREAS,
the Councils policy on Chapter 100 financings requires that a company make
contract payments in lieu of taxes over a ten-year period to the affected
taxing jurisdictions, which contract payments would normally be equal to fifty
percent (50) of the real and personal property taxes that would have been due
for such ten-year period as a result of the development of the Project; and
WHEREAS,
the obligations of the parties to the TIF Contract respecting the TIF Project
conflict with the Policy and make application of the Policy impracticable for
the Project; and
WHEREAS, as a property and
business located within the TIFP, certain agreements have been entered into to
provide funding based on the incremental increase in the value of property; and
WHEREAS, in light of the
separate agreement for the TIF Project, the City desires to waive the
application of its Policy so as not to require real
property payments in lieu of taxes to
the taxing jurisdictions; and
WHEREAS, the City desires to
authorize the Chapter 100 Plan for the Project, to authorize the Director of
Finance to execute the certain documents in order to accomplish the purposes
both the Chapter 100 Plan and the TIF Plan and which will allow the Project to
proceed with the acquisition of equipment and materials on a tax-exempt basis; NOW THEREFORE,
BE IT ORDAINED BY THE COUNCIL OF KANSAS CITY:
Section 1. The Council hereby finds and
determines that the Project will promote the economic well-being and industrial
development of Kansas City, Missouri, and the issuance of the Citys industrial
revenue bonds in a maximum principal amount of $18,000,000 to pay the costs of
the Project will be in furtherance of the public purposes set forth in the Act
and the Project will promote the welfare of the City and its inhabitants and
hereby approves the industrial development plan of Hearst-Argyle Stations,
Inc., a Nevada Corporation (KMBC) to construct and equip an office building
and broadcasting facilities at 6455 Winchester Avenue, a copy of which plan is
attached hereto as Exhibit A and made a part hereof.
Section 2. That the Director of City
Development is authorized to execute, on behalf of the City, a preliminary
agreement for the construction and acquisition and a sales tax certificate in
connection with the agreement to provide for the purchase of equipment for the
Project set forth on Exhibit A. The agreement is approved in substantially the
form as the agreement on file with the Director of City Development.
Section 3. That the City Attorney, the
Director of City Development and the Director of Finance are authorized and
directed to negotiate with the appropriate officials of KMBC and, in
consultation with the EDC, prepare the necessary documents for the issuance of
the Bonds, the construction of the Project and the purchasing of equipment for
the Project, and any other documents, for final presentation to and approval by
the Council, which documents will provide
that payments-in-lieu of personal property taxes as described in Section 5 of
this Ordinance will be made by KMBC.
Section 4. That the City Council hereby waives
the application of its Policy as to this Project, in recognition of the fact
that the City, the TIF Commission, the Raytown School District, KMBC and the
Developer have entered into a Tax Revenue Distribution Agreement which requires
that KMBC pay an amount equal to sixty percent (60%) of the real property tax
increment that would have been paid on the Project except for the approval of
the Bonds, and that the TIF Commission direct a portion of such payment to the
Raytown School District.
Section 5. That, as a result of implementation
of the TIF Project, KMBC shall receive real property tax abatement on the
Project in an amount of forty percent (40%). That, as a result of the
implementation of the Chapter 100 Plan, KMBC shall receive personal property
tax abatement in the amount of fifty percent (50%) over a ten-year period.
Section 6. That the Council reaffirms its
findings and determinations and the approvals under Ordinance No. 040891, as
approved by the Council on August 12, 2004.
Section 7. That the notices required by the
Act, have been given and the County and affected school district have been
given an opportunity to comment on the industrial development plan as required
by law.
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Approved as to form and legality:
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Heather A. Brown
Assistant City Attorney