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Legislation #: 170961 Introduction Date: 11/30/2017
Type: Ordinance Effective Date: none
Sponsor: COUNCILMEMBERS HALL, SHIELDS AND LOAR
Title: Requiring the disclosure of financial information concerning the Kansas City Convention Center Hotel prior to the City of Kansas City issuing any bonds or expending any funds from any source for said development.

Legislation History
DateMinutesDescription
11/30/2017 Filed by the Clerk's office
11/30/2017 Referred to Finance and Governance Committee
12/6/2017 Advance and Do Not Pass, Debate
12/7/2017 Passed
12/7/2017 Failed

View Attachments
FileTypeSizeDescription
170961 FAILED.pdf Authenticated 105K FAILED
1709612.pdf Advertise Notice 320K Presentation

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ORDINANCE NO. 170961

 

Requiring the disclosure of financial information concerning the Kansas City Convention Center Hotel prior to the City of Kansas City issuing any bonds or expending any funds from any source for said development.

 

WHEREAS, in July 2015 on the last day of their term, the previous City Council approved the outline of an agreement with KC Hotel Property Owners LLC (“Developer”) to participate in the development of the Kansas City Convention Center Headquarters Hotel (“Convention Center Hotel Project”) as recognized in Committee Substitute for Ordinance No. 150597; and

 

WHEREAS, Committee Substitute for Ordinance No. 150597 authorized the City Manager to approve all subsequent contracts and documents as long as said contracts and documents were in substantial compliance with the terms set out in that ordinance; and

 

WHEREAS, greater than two years have passed, and the Developer has not provided the financial documentation it pledged to make available to the public of Kansas City, the press, and the City’s elected representatives at Council, despite commitment made by Developer to do so during a June 7, 2017 meeting of the City Council Committee on Planning, Zoning, and Economic Development; and

 

WHEREAS, on June 7, 2017, Developer pledged before the City Council Committee on Planning, Zoning and Economic Development in response to questions raised by committee members to make available to the press, the public, and the City’s elected representatives at Council the project term sheet and other financial information no later than August 30, 2017; NOW, THEREFORE,

BE IT ORDAINED BY THE COUNCIL OF KANSAS CITY:

 

Section 1. The City shall not issue any City bonds or the expenditure of funds from any City source in furtherance of the Convention Center Hotel Project until the Developer has disclosed and provided to the Council the financial agreements, term sheets and guaranteed price as well as other information as set out below:

 

(a)                Term Sheet, which shall disclose:

 

1.                  Terms of financing; and

2.                  Equity investor(s) involved in financing; and

3.                  Amount(s) to be invested by equity investor(s); and

 

(b)               Pro Forma Financial Statement of the Convention Center Hotel Project, which shall include financing sources and the planned used of funds;

 

(c)                Explanation, including consultation with Council, of any change or other modification to the Kansas City Convention Center Headquarters Hotel Community Improvement District (the “District”), as referenced in Communication No. 170845, filed on October 19, 2017, and the impact of any change or other modification to the District or other community improvement districts as existing prior to the change, particularly as may be related to other community improvement districts within one mile proximity of the “District,” including but not limited to the existing Convention Center Community Improvement District and the Performing Arts Center Community Improvement District; and

 

(d)               All Other Relevant Documentation, which shall include agreements provided to the Land Clearance for Redevelopment Authority on November 29, 2017, and relevant explanation, including consultation with Council, of changes to the project, its finances, and any changes in responsibilities of parties created by the agreements.

 

Section 2. The City Manager shall request that Developer provide all information requested pursuant to Section 1 within 10 days of the adoption of this ordinance.

 

_________________________________________

 

Approved as to form:

 

 

_______________________________

Brian T. Rabineau

Assistant City Attorney