KC Skyline

City Clerk Web Search

Search the Ordinances:

Legislation #: 200353 Introduction Date: 5/14/2020
Type: Ordinance Effective Date: none
Sponsor: None
Title: Approving the Third Amendment to the Linwood Shopping Center Tax Increment Financing Plan; directing the Tax Increment Financing Commission to enter into a Redevelopment Agreement with Linwood Shopping Center Redevelopment Company, LLC with certain requirements; and directing the City Clerk to transmit copies of this ordinance.

Legislation History
DateMinutesDescription
5/11/2020 Filed by the Clerk's office
5/14/2020 Referred to Neighborhood Planning and Development Committee
5/20/2020 Hold On Agenda (6/3/2020)
6/3/2020 Hold On Agenda (6/10/2020)
6/10/2020 Hold On Agenda (6/17/2020)
6/17/2020 Do Pass as a Committee Substitute
6/18/2020 Assigned Third Read Calendar as Substituted
6/25/2020 Passed as Substituted

View Attachments
FileTypeSizeDescription
200353.pdf Authenticated 186K Authenticated Ordinance
200353 cs to org ord-com.docx Other 33K compared version
00217990.pptx Other 785K Power Point
Third Amendment.PDF Other 8044K Third Amendment
00217793.XLS Fact Sheet 96K fact sheet

Printer Friendly Version

COMMITTEE SUBSTITUTE FOR ORDINANCE NO. 200353

 

Approving the Third Amendment to the Linwood Shopping Center Tax Increment Financing Plan; directing the Tax Increment Financing Commission to enter into a Redevelopment Agreement with Linwood Shopping Center Redevelopment Company, LLC with certain requirements; and directing the City Clerk to transmit copies of this ordinance.

 

WHEREAS, pursuant to the Real Property Tax Increment Allocation Redevelopment Act, Sections 99.800 to 99.865 of the Revised Statutes of Missouri, as amended (the “Act”), the City Council of Kansas City, Missouri (the “Council”) by Ordinance No. 54556 passed on November 24, 1982, and thereafter repealed and amended in certain respects by Committee Substitute for Ordinance No. 911076, as amended, passed on August 29, 1991, Ordinance No. 100089, passed on January 28, 2010, Ordinance No. 130986, passed on December 19, 2013, and Committee Substitute for Ordinance No. 140823, as amended, passed on June 18, 2015 (the “Authorizing Ordinances”) created the Tax Increment Financing Commission of Kansas City, Missouri (the “Commission”); and

 

WHEREAS, on June 16, 2016, the Council passed Ordinance No. 160448, which accepted the recommendations of the Commission as to the Linwood Shopping Center Tax Increment Financing Plan (the “Redevelopment Plan” or “Plan”), approved the Redevelopment Plan as a comprehensive effort intended to reduce or eliminate blight and enhance the tax base within the Redevelopment Area described by the Plan (“Redevelopment Area”) through the implementation of certain improvements (the “Project Improvements”) within redevelopment projects described by the Plan (“Redevelopment Projects”); and

 

WHEREAS, the First Amendment to the Plan (the “First Amendment”), which (a) provides for the expansion of the Redevelopment Area described by the Plan and incorporates the addition of a new Redevelopment Project Area 4; (b) provides for modifications to the Project Improvements described by the Plan; (c) modifies the Budget of Redevelopment Project Costs; (d) modifies the estimated amount of Payments in Lieu of Taxes and Economic Activity Taxes identified by the Plan; (e) modifies the most recent equalized assessed value of the Redevelopment Area; (f) modifies the estimated equalized assessed value after the completion of the Project Improvements; (g) incorporates the employment totals and construction totals for the Project Improvements contemplated Redevelopment Project Area 4; (h) modifies the Sources and Uses described by the Plan; (i) modifies the Cost Benefit Analysis described by the Plan; (j) modifies the “But-For” analysis described by the Plan; and (k) provides for the inclusion of Redevelopment Project 4 was approved by the Council by Committee Substitute for Ordinance No. 190524, passed on July 11, 2019; and

 

WHEREAS, the Second Amendment to the Plan (the “Second Amendment”), which provides for (1) certain modifications to the Budget Redevelopment Project Costs identified by the Plan, (2) certain modifications to the Sources of Funds for all estimated Redevelopment Project Costs identified by the Plan and (3) the inclusion of all conforming changes within the Exhibits to the Plan that are in furtherance of the foregoing modifications was approved by the Council by Committee Substitute for Ordinance No. 200063, passed on February 13, 2020; and

 

WHEREAS, the Third Amendment to the Plan (the “Third Amendment”) (1) modifies the boundaries of Redevelopment Project Area 4, (2) establishes a new Redevelopment Project Area 5, (3) modifies the Estimated Redevelopment Project Costs related to Redevelopment Projects 4 and 5, (4) modifies the Sources of Funds for Redevelopment Projects 4 and 5, (5) modifies the employment and construction totals for Redevelopment Projects 4 and 5, (6) modifies the Development Schedule and (7) modifies certain exhibits to and sections of the Plan that are in furtherance of the foregoing; NOW, THEREFORE, 

 

BE IT ORDAINED BY THE COUNCIL OF KANSAS CITY: 

 

Section 1. That the Third Amendment to the Linwood Shopping Center Tax Increment Financing Plan, a copy of which is attached to this Ordinance, is hereby approved.

 

Section 2. That all terms used in this Ordinance, not otherwise defined herein, shall be construed as defined in the Act.

 

Section 3. That the Council finds that: 

 

(a) Good cause has been shown for the Third Amendment to the Plan, and that the findings of the City Council in Ordinance No. 160448, Committee Substitute for Ordinance 190524 and Committee Substitute for Ordinance No. 200063, with respect to the Redevelopment Plan, except as expressly indicated below, are not affected by the Second Amendment to the Plan and apply equally to the Third Amendment to the Plan; 

 

(b) The Redevelopment Area is a blighted area evidenced by aging and deteriorating site improvements, excessive vacancy, obsolete platting and other blighting conditions stated within the Redevelopment Act in Section 99.805(1) RSMo

 

(c) The Redevelopment Area has not been subject to growth and development through private enterprise and would not reasonably be anticipated to be developed without the adoption of tax increment financing, as contemplated the Redevelopment Plan;

 

(d) The Redevelopment Plan, as amended by the Third Amendment and each Redevelopment Project described therein, conform to the comprehensive plan for the development of the City as a whole; 

 

(e) The areas identified by the Redevelopment Projects include only those parcels of real property and improvements which will be directly and substantially benefited by the Project improvements described by the Third Amendment; 

 

(f) The estimated dates of completion of the respective Redevelopment Projects and the retirement of any obligations incurred to finance Redevelopment Project Costs have been stated in the Redevelopment Plan and are not more than 23 years from the passage of any ordinance approving a Redevelopment Project authorized by the Plan; 

 

(g) A plan has been developed for relocation assistance for businesses and residences located within the Redevelopment Area; 

 

(h) A cost-benefit analysis showing the impact of the implementation of the Plan on each taxing district at least partially within the boundaries of the Redeveloped Area has been prepared in accordance with the Act;  

 

(i) The Third Amendment to the Plan does not include the initial development or redevelopment of any gambling establishment; and 

 

(j) A study has been completed and the findings of such study satisfy the requirements set out in subdivision (1) of Section 99.810, RSMo. 

 

Section 4. That the Council hereby directs the Commission to enter into a Redevelopment Agreement, or an amendment thereto (“Agreement”), with Linwood Shopping Center Redevelopment Company, LLC (the “Redeveloper”), which shall provide:

 

1. For the implementation of the improvements contemplated by the Third Amendment to the Redevelopment Plan, provided however, such Agreement shall provide that all certified Redevelopment Project Costs identified for the redevelopment of Project Area 5 shall be withheld until the Redeveloper has:

 

(a) demonstrated, to the reasonable satisfaction of the Commission, that it cannot obtain a reasonable economic return on or that no market exists for 3121 Prospect (the “Property”) in its present condition or after rehabilitation; and

 

(b) provided evidence to the Commission that it has used commercially reasonable efforts to obtain a commitment from a prospective tenant or buyer to lease or purchase the Property and use the Property for the sale of food and beverage services or otherwise in accordance with the UR plan and TIF Plan. This evidence may consist of:

 

a.                   advertisements or solicitations for a tenant or buyer and responses received; or

 

b.                  demonstration of reasonableness of terms offered by the Redeveloper to prospective tenants or buyers; or

 

c.                   information from third parties regarding feasibility of rehabilitation of the Property as opposed to demolition; and/or other relevant information and/or documentation; and

 

2. The Redeveloper shall not demolish the Property, currently owned by Arvest Bank, until the Commission provides written notice to the Redeveloper that the Commission is satisfied with the Redeveloper’s efforts to rehabilitate the Property; and

 

3. In the event that the Redeveloper is unable to obtain control of the Property within 5 years of the date of the Agreement, the Commission shall release any certified costs to the Redeveloper which would otherwise be due.

 

Section 5. That the Council directs the City Manager to provide, at no cost to the Redeveloper, reasonable technical assistance from existing City resources, as determined by the City Manager, to the Redeveloper in order to assist in determining the feasibility of rehabilitation. The City will provide the Redeveloper such technical assistance within 60 days of the Redeveloper’s request.  If the Redeveloper believes that it is not feasible to rehabilitate the Property, the Redeveloper may proceed with providing such evidence of its commercially reasonable efforts, as described in Section 4 above.

 

Section 6. That the City Clerk shall send a copy of this ordinance to the County Clerk and County Executive of Jackson County, Missouri.

 

_________________________________________________

 

Approved as to form and legality:

 

 

_______________________________

Katherine Chandler

Assistant City Attorney