ORDINANCE NO. 180316

Approving real property tax abatement for improvements on real property located at 215 E. 18th Street within Enhanced Enterprise Zone 1, Kansas City, Missouri, and directing the City Clerk to provide a copy of this Ordinance to the Director of the Missouri Department of Economic Development.

WHEREAS, Section 135.963, RSMo, authorizes, upon governing body approval, up to twenty-five years of tax abatement for improvements made to real property within an Enhanced Enterprise Zone after the date of enterprise zone designation by the Missouri Department of Economic Development; and  

WHEREAS, on August 25, 2005, by Resolution No. 051066, the City Council designated pursuant to Section 135.960, RSMo, an enhanced enterprise zone program area known as Enhanced Enterprise Zone 1; and

WHEREAS, on August 25, 2005, by Resolution No. 051066, the City Council directed that improvements to real property within the Enhanced Enterprise Zone 1 shall be exempt from assessment and payment of at least 50% of the ad valorem taxes on such improvements for a period of ten years, and shall be eligible for abatement of ad valorem taxes for rates and periods exceeding the 50% for 10 year abatement by passage of an ordinance or resolution by the City Council authorizing the abatement and establishing the terms of such abatement; and 

WHEREAS, on November 22, 2005, by Ordinance No. 051411, the City Council identified the types of business by NAICS sector names which would qualify for state and local incentives within the Enhanced Enterprise Zone 1; and

WHEREAS, Tallgrass Technologies Inc., has requested tax abatement for certain improvements to real property located within Enhanced Enterprise Zone 1 at 215 E. 18th Street, for use by the company; and

WHEREAS, Tallgrass Technologies Inc., application complies with the requirements of Section 135.963, RSMo, and the City’s ordinances and resolutions governing enhanced enterprise zones; and

WHEREAS, pursuant to Section 135.963.3, RSMo, the requisite public notices were timely and properly mailed and published, and the requisite public hearing was timely and properly held; and

WHEREAS, Tallgrass Technologies Inc., estimates the creation of 50 new full-time jobs in Kansas City over a five-year period with an average annual salary of $92,291.00; and

WHEREAS, the Board for Enhanced Enterprise Zone 1, upon consultation with staff, recommends to the Council that the resulting tax abatement for 215 E. 18th Street be a 15-year abatement of 100% to incent the production of these new high-paying jobs for Kansas City ("EEZ Board Recommendation”); NOW, THEREFORE, 

BE IT ORDAINED BY THE COUNCIL OF KANSAS CITY:  

Section 1. That pursuant to Section 135.963, RSMo, the City Council hereby approves the application for tax abatement by Tallgrass Technologies Inc., for improvements made after the date of Enhanced Enterprise Zone designation to the real property located in the Enhanced Enterprise Zone 1 at 215 E. 18th Street, Kansas City, Missouri (the “Property”).

Section 2. That the tax abatement granted herein shall be implemented in accordance with the EEZ Board Recommendation.

Section 3. That the abatement granted herein shall apply to all ad valorem taxes, imposed by all political subdivisions with the power to tax, on improvements made on the Property after August 19, 2005, subject to continued compliance with Section 135.963, RSMo, and the City’s ordinances and resolutions governing enhanced enterprise zones.  The affected political subdivisions are:

City - Kansas City 

Kansas City Missouri School District

Jackson County

Board of Disabled Services

Mental Health

Metropolitan Community College

Kansas City Public Library

State Blind Pension

Section 4. That the tax abatement granted herein shall not extend to any property categorized by the Jackson County Assessor as residential real property for ad valorem taxation purposes.

Section 5. That the City Clerk is hereby directed to deliver a copy of this ordinance to the State Director of Economic Development within thirty days following passage of this ordinance.

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Approved as to form and legality:

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Brian T. Rabineau

Assistant City Attorney