SECOND COMMITTEE SUBSTITUTE FOR ORDINANCE NO. 041163

Authorizing a $480,000.00 Cooperative Agreement between Kansas City, Missouri, the Kansas City Missouri Homesteading Authority and Dons Contracting & Property Development, Inc., for the purpose of providing financing for the construction of affordable homes in the Old Ballpark site project generally located at 21st and Brooklyn.

WHEREAS, Kansas City, Missouri, has invested over $1.7 million in CDBG funds for the development of public infrastructure at the Old Ballpark Site located at 21st and Brooklyn to create new houses in the urban core; and

WHEREAS, three speculative houses have been built by a private developer on this 47 lot site, but remain unsold as of this date; and

WHEREAS, additional construction of houses is needed in this area to jump start the development, and these houses will be sold to persons of low income as part of a mixed income development; and

WHEREAS, the City and Kansas City Missouri Homesteading Authority (KCMHA) wish to assist Dons Contracting and Property Development, Inc. (DCPD) as the Developer on the project by agreeing to providing financing for up to three (3) houses at a time designated for low income persons to the Developer in the event that the houses are not under contract for sale by the time the houses are substantially complete; and

WHEREAS, financing for no more than three (3) houses will be provided this fiscal year and, if the Developer markets and sells the three houses, the City and KCMHA will agree to provided financing for additional houses up to a total of ten (10) houses over the next three (3) years; and

WHEREAS, funds in an amount not to exceed $480,000.00 will be placed in an interest bearing account in a financial institution approved by the KCMHA and only drawn upon by the KCMHA and the City to provide financing for these houses from the Developer if needed; NOW, THEREFORE,

BE IT ORDAINED BY THE COUNCIL OF KANSAS CITY:

Section 1. That a $480,000.00 Cooperative Agreement between the City of Kansas City, Missouri, the Kansas City, Missouri Homesteading Authority and Dons Contracting & Property Development, Inc., is hereby authorized, to be paid from funds previously appropriated to Account No. 05-2940-552146-B, Homeownership Assistance.

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I hereby certify that there is a balance, otherwise unencumbered, to the credit of the appropriation to which the foregoing expenditure is to be charged, and a cash balance, otherwise unencumbered, in the treasury, to the credit of the fund from which payment is to be made, each sufficient to meet the obligation hereby incurred.

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Wanda Gunter

Acting Director of Finance

Approved as to form and legality:

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Nicole Rowlette

Assistant City Attorney