KC Skyline

City Clerk Web Search

Search the Ordinances:

Legislation #: 041302 Introduction Date: 11/18/2004
Type: Ordinance Effective Date: none
Sponsor: COUNCILMEMBER XBARNES
Title: Approving the issuance of Variable Rate Demand Tax-Exempt Revenue Bonds (Kansas City Downtown Redevelopment District) Series 2005, by the Industrial Development Authority of the City of Kansas City, Missouri, in an aggregate principal amount not to exceed $180,000,000.00, in one or more series, to provide funds to finance certain redevelopment project costs; and authorizing and approving certain documents and actions in connection with the issuance of such bonds.

Legislation History
DateMinutesDescription
11/18/2004 Filed by the Clerk's office
11/18/2004 Referred to Finance Committee
11/22/2004 Hold On Agenda (12/8/2004)
12/8/2004 Advance and Do Pass as a Committee Substitute, Debate
12/9/2004 Passed as Substituted

View Attachments
FileTypeSizeDescription
041302.pdf Authenticated 312K Authenticated

Printer Friendly Version

COMMITTEE SUBSTITUTE FOR ORDINANCE NO. 041302

 

Approving the issuance of Variable Rate Demand Tax-Exempt Revenue Bonds (Kansas City Downtown Redevelopment District) Series 2005, by the Industrial Development Authority of the City of Kansas City, Missouri, in an aggregate principal amount not to exceed $180,000,000.00, in one or more series, to provide funds to finance certain redevelopment project costs; and authorizing and approving certain documents and actions in connection with the issuance of such bonds.

 

WHEREAS, the City has entered into a Master Development Agreement, dated as of April 27, 2004 as amended and supplemented (the Master Development Agreement) with Kansas City Live, LLC, a Maryland limited liability company (the Redeveloper) for the redevelopment of the southern portion of the loop portion of downtown Kansas City, Missouri, into a retail/entertainment district which may include restaurants, night clubs, bars, theaters, attractions, retail, residential and office components (the Kansas City Downtown Redevelopment District);

 

WHEREAS, the City has determined that in order to implement a portion of the Kansas City Downtown Redevelopment District as provided in the Master Development Agreement, it will utilize the statutory powers, functions and duties of certain statutory authorities, including The Industrial Development Authority of the City of Kansas City, Missouri (the IDA) Downtown Economic Stimulus Authority of Kansas City, Missouri (DESA) and the Tax Increment Financing Commission of Kansas City, Missouri (the TIF Commission);

 

WHEREAS, the City has requested the IDA to issue its Variable Rate Demand Tax-Exempt Revenue Bonds (Kansas City Downtown Redevelopment District), Series 2005 (the Bonds) in one or more series, for the purpose of providing funds to pay the costs of (a) acquiring and clearing property and designing, improving, constructing and equipping necessary infrastructure and improvements including, but not limited to, public parking facilities and other costs which are to be financed with the proceeds of the Bonds, in connection with the implementation of the Development Project described in the South Loop Downtown Economic Stimulus Plan and Redevelopment Project No. 1 described in the 1200 Main/South Loop Tax Increment Financing Plan (collectively, the Redevelopment Plans), as defined and more fully described in the Indenture, (b) funding capitalized interest on the Bonds and (c) paying costs related to the issuance of the Bonds, including fees associated with the provision of the Bond Insurance and the Liquidity Facility;

 

WHEREAS, in order to set forth the terms of their respective rights, duties and obligations, the City intends to enter into (i) a Cooperative Agreement by and between the City and the TIF Commission, and (ii) a Cooperative Agreement by and between the City and DESA, (collectively the Cooperative Agreements) which set forth their roles and responsibilities in connection with the implementation of the Redevelopment Plans and the payment of debt service on the Bonds;

 

WHEREAS, the City Council has approved the formation of DESA of Kansas City, Missouri (DESA) pursuant to Sections 99.915 et seq., Revised Statutes of Missouri (the DESA Act) and pursuant to Ordinance No. 030925 of the City passed on August 28, 2003;

 

WHEREAS, after all proper notice was given, DESA held a public hearing and after receiving the comments of all interested persons and taxing districts with respect to the South Loop Downtown Economic Stimulus Plan (the DESA Plan), closed such public hearing on June 30, 2004, and DESA has approved the DESA Plan by a resolution adopted on June 30, 2004, and the City Council approved the DESA Plan by Ordinance No. 040722 on July 1, 2004;

 

WHEREAS, the City is authorized under the Real Property Tax Increment Allocation Redevelopment Act, Sections 99.800 to 99.865, inclusive, of the Revised Statutes of Missouri, as amended (the TIF Act), to approve redevelopment plans, establish a special allocation fund and pledge such fund to the repayment of obligations issued to finance such redevelopment plans;

 

WHEREAS, after all proper notice was given, the TIF Commission held a public hearing and after receiving the comments of all interested persons and taxing districts with respect to the 1200 Main/South Loop Tax Increment Redevelopment Plan, closed such public hearing on January 14, 2004, adopted its Resolution No. 01-10-04 recommending to the City Council the approval of the Plan (the TIF Plan);

 

WHEREAS, the City Council of the City on March 4, 2004, by Ordinance No. 040154 approved the TIF Plan;

 

WHEREAS, concurrently with the execution and delivery of the Bonds, (a) Ambac Assurance Corporation (the Bond Insurer) will issue and deliver to the Trustee its financial guaranty insurance policy (the Bond Insurance Policy) insuring the payment when due of the principal of and interest on the Bonds, and (b) Depfa Bank plc, acting through its New York branch (the Liquidity Facility Provider) will provide and deliver to the Trustee its liquidity facility (the Liquidity Facility), providing for payment of the purchase price of the Bonds tendered for purchase, under a Standby Bond Purchase Agreement of even date herewith (the Standby Bond Purchase Agreement), among the IDA, the City and the Liquidity Facility Provider;

 

WHEREAS, the City finds and determines that in order to finance a portion of the Kansas City Downtown Redevelopment District it is necessary and desirable to approve the issuance by the IDA of the Bonds; and

 

WHEREAS, the City further finds and determines that it is necessary and desirable in connection with the issuance of the Bonds that the City execute and deliver certain documents and that the City take certain other actions as herein provided; NOW THEREFORE,

 

BE IT ORDAINED BY THE COUNCIL OF KANSAS CITY:

 

Section 1. Approval. The City hereby approves the issuance of the Bonds by the IDA in order to implement the Redevelopment Plans in accordance with the provisions of the TIF Act and the DESA Act. The City hereby finds and determines that the Bonds are being issued by the IDA for a valid purpose under and in accordance with provisions of Chapter 349 of the Revised Statutes of Missouri, as amended.

 

Section 2. Authorization and Approval of Documents. The following documents are hereby approved in substantially the form presented to the City at this meeting (copies of which documents shall be filed in the records of the City), and the City is hereby authorized to execute and deliver each of such documents (the City Documents) with such changes therein as shall be approved by the officers of the City executing such documents, such officers signatures thereon being conclusive evidence of their approval and the Citys approval thereof:

 

(a) Financing Agreement dated as of the date set forth therein (the Financing Agreement) among the IDA, the City, and UMB Bank, N.A., as bond trustee;

 

(b) Bond Purchase Agreement dated as of the date of pricing of the Bonds, among the IDA, the City and Oppenheimer & Co., Inc., on behalf of itself and the additional purchasers named therein;

 

(c)                A Cooperative Agreement between the City and the TIF Commission;

 

(d)               A Cooperative Agreement between the City and DESA;

(e) A Tax Compliance Agreement dated as of the date of closing of the Bonds (the Tax Agreement), by and among the IDA, the City and the Trustee pursuant to which each party thereto shall covenant to comply with federal tax law as it relates to the Bonds to preserve the tax exempt status of the Bonds;

 

(f) A Standby Bond Purchase Agreement dated as of the Dated Date, between the IDA, the City and the Liquidity Facility Provider, as defined in the Indenture pursuant to which the certain tendered bonds shall be purchased by the Liquidity Facility Provider subject to the terms set forth therein;

 

(g) A Remarketing Agreement dated the date set forth therein (the Remarketing Agreement) among the IDA, the City and Oppenheimer & Co. Inc. (the Remarketing Agent), pursuant to which the Bonds shall be remarketed by the Remarketing Agent subject to the terms set forth therein and in this Resolution;

 

(h) A Joinder Agreement and Amendment to the Master Development Agreement by and among the City, the Redeveloper and the TIF Commission; and

 

(i) A Joinder Agreement and Amendment to the Master Development Agreement by and among the City, the Redeveloper and DESA; and

Section 3. Annual Appropriation. The Citys Director of Finance or other officer of the City at any time charged with the responsibility of formulating budget proposal shall include in the budget proposals submitted to the City Council, in each Fiscal Year in which the Bonds shall be in effect, an appropriation for all payments required under the Bonds for the ensuing Fiscal Year; it being the intention of the City that the decisions to appropriate or not to appropriate to pay the Bonds shall be made solely by the City Council and not by any other official of the City. The City intends to appropriate funds to make debt service payments on the Bonds in accordance with the Indenture from all legally available revenue sources, including, but not limited to, tax increment revenues generated under the TIF Plan and Other Net New Revenues (as defined in the DESA Act) generated under the DESA Plan. The City reasonably believes that legally available funds in an amount sufficient to make all debt service payments during each Fiscal Year can be obtained. The City further intends to do all things lawfully within its power to obtain and maintain funds from all legally available revenue sources from which the debt service payments may be made, including making provision for such debt service payments to the extent necessary in each proposed annual budget submitted for approval in accordance with applicable procedures of the City. The Citys Director of Finance is directed to do all things lawfully within his/her power to obtain and maintain funds from all legally available revenue sources from which the debt service payments may be paid, including making provision for such debt service payments to the extent necessary in each proposed annual budget submitted for approval or by supplemental appropriation in accordance with applicable procedures of the City. Notwithstanding the foregoing, the decision to budget and appropriate funds is to be made in accordance with the Citys normal procedures for such decisions.

Section 4. Execution of City Documents. The Mayor, the City Manager, Director of City Development or Director of Finance is hereby authorized and directed to execute and deliver the City Documents for and on behalf of and as the act and deed of the City. The City Clerk or Deputy City Clerk is hereby authorized and directed to attest to the Bonds by manual or facsimile signature, to the City Documents and to such other documents, certificates and instruments as may be necessary or desirable to carry out and comply with the intent of this Ordinance. The Mayor, the City Manager, the Director of City Development or Director of Finance is hereby authorized to deem final the information concerning the City contained in the Preliminary Official Statement to be prepared with respect to the Bonds for purposes of SEC Rule 15c2-12, as amended.

 

Section 5. Bond Insurance and Liquidity Facility. The Mayor, the City Manager, the Director of City Development or Director of Finance is hereby authorized to negotiate and approve the terms of any agreement for bond insurance with the Bond Insurer and any agreement with the Liquidity Provider (including, but not limited to the Standby Bond Purchase Agreement) to provide liquidity with respect to the Bonds while the Bonds are Floating Rate Bonds (as defined in the Indenture), and with the advice of the Assistant City Attorney as to the form thereof, is hereby authorized and directed to execute such agreements.

 

Section 6. Further Authority. The City shall, and the officers, agents and employees of the City are hereby authorized and directed to, take such further action, and execute such other documents, certificates and instruments, including, without limitation, any credit enhancement or security documents, or closing certificates, as may be necessary or desirable to carry out and comply with the intent of this Ordinance, and to carry out, comply with and perform the duties of the City with respect to the Bonds and the City Documents.

 

Section 7. Governing Law. This Ordinance shall be governed exclusively by and construed in accordance with the applicable laws of the State of Missouri.

 

Section 8. Effective Date. This Ordinance shall take effect and be in full force and effect ten days after its passage.

 

___________________________________________

 

Approved as to form and legality:

 

__________________________

Heather A. Brown

Assistant City Attorney