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Legislation #: 180863 Introduction Date: 11/1/2018
Type: Ordinance Effective Date: none
Sponsor: COUNCILMEMBER JUSTUS
Title: Authorizing the City Manager to execute an agreement for the purpose of consenting to the assignment and assumption of a 353 Urban Redevelopment Contract and the right to receive certain revenues in connection with the Tower Properties Downtown Redevelopment Tax Increment Financing Plan.

Legislation History
DateMinutesDescription
11/2/2018 Filed by the Clerk's office
11/1/2018 Referred to Planning, Zoning & Economic Development Committee
11/14/2018 Advance and Do Pass as a Committee Substitute, Debate
11/15/2018 Passed as Substituted

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180863.pdf Authenticated 97K Athenticated Ordainance
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COMMITTEE SUBSTITUTE FOR ORDINANCE NO. 180863

 

Authorizing the City Manager to execute an agreement for the purpose of consenting to the assignment and assumption of a 353 Urban Redevelopment Contract and the right to receive certain revenues in connection with the Tower Properties Downtown Redevelopment Tax Increment Financing Plan.

 

WHEREAS, on November 27, 1995, the City Council of Kansas City, Missouri (the City Council), by Committee Substitute for Ordinance No. 951469, approved the Tower Properties Downtown Tax Increment Financing Plan (the TIF Plan); and

 

WHEREAS, on May 31, 2001, the City Council, by Ordinance No. 951477, approved and authorized tax increment financing for Project H of the TIF Plan (Project H) which included the vacant office building located at 909 Walnut (formerly 911 Walnut) (Project Area H); and

 

WHEREAS, on March 27, 2003, the City Council passed (a) Committee Substitute for Ordinance No. 030256, authorizing the Third Amendment to the Tower Properties Tax Increment Financing Plan, which extended the boundaries of the Redevelopment Area for the TIF Plan, and (b) Committee Substitute for Ordinance No. 030257 extending the boundaries of Project Area H, both extensions to provide for the construction of a parking facility (the Parking Facility) and to provide for the redevelopment of the vacant office building located at 929 Walnut; and

 

WHEREAS, Project H called for the redevelopment of two vacant buildings as a residential/commercial mixed use development and provided for the construction of the Parking Facility between the two buildings; and

 

WHEREAS, on March 27, 2003, the City Council adopted Resolution No. 030371, authorizing the development of financing for the Parking Facility, through revenue bonds; and

 

WHEREAS, on January 8, 2004, the City Council adopted Resolution No. 030338, expressing the intent of the Council to approve a Super TIF for the construction of the Parking Facility; and

 

WHEREAS, on May 6, 2004, the City Council adopted Ordinance No. 040438 for the purpose of authorizing the City Manager to execute a Cooperative Agreement with the Tax Increment Financing Commission of Kansas City, Missouri (the Commission) and 911 E. Walnut, LLC to provide for the construction and financing of the Parking Facility; and

 

WHEREAS, on September 24, 2004, 911 E. Walnut, LLC, the Commission and the City entered into that certain Cooperative Agreement (the Cooperative Agreement); and

 

WHEREAS, the Cooperative Agreement provides that upon the payment in full of the revenue bonds, the Super TIF revenues would be made available for the payment of other reimbursable project costs under the TIF Plan; and

 

 WHEREAS, the City and 909 Walnut Redevelopment Corporation (the Redevelopment Corporation) entered into a 353 Urban Redevelopment Contract with the City, dated as of September 24, 2004 (the 353 Contract) and recorded with the Jackson County, Missouri Recorder of Deeds as Document No. 2005K0009619, pursuant to which the Redevelopment Corporation had certain obligations to develop the property within Project H (the Property); and

 

WHEREAS, the Redevelopment Corporation simultaneously assigned the 353 Contract to 911 E. Walnut, LLC, and the obligations thereunder were assumed by 911 E. Walnut, LLC pursuant to an Assignment and Assumption Agreement recorded with the Jackson County, Missouri Recorder of Deeds as Document No. 2005K0009620; and

 

WHEREAS, 911 E. Walnut, LLC intends to sell certain parcels within the Property and wishes to assign certain rights and obligations under the Cooperative Agreement and 353 Contract, and

 

WHEREAS, the purchasers intend to buy said parcels and assume certain rights and obligations; and

 

WHEREAS, the City issued $7.8 million in taxable variable rate debt in 2005 to construct the Parking Facility (the Bonds); and

 

WHEREAS, the outstanding principal balance on the Bonds is $3,905,000; and

 

WHEREAS, as a condition of the assignments and assumptions authorized herein, the Bonds are to be fully redeemed; and

 

WHEREAS, the assignments and assumptions authorized herein are in the public’s interest as they will result in the early retirement of public debt; NOW, THEREFORE,

 

BE IT ORDAINED BY THE COUNCIL OF KANSAS CITY:

 

Section 1. That the City Manager is hereby authorized to execute that certain Assignment and Assumption of Redevelopment Agreement, 353 Contract and Cooperative Agreement, which is approved in substantial form as attached hereto.

  

_____________________________________________

 

Approved as to form and legality:

 

  ____________________________

Brian T. Rabineau

Assistant City Attorney