SECOND COMMITTEE
SUBSTITUTE FOR ORDINANCE NO. 081187
Establishing
the Southtown Urban Life Development Bond Fund in the records of the City;
estimating and appropriating $20,500,000.00 from the anticipated sale of bonds;
authorizing the City Manager to execute certain documents and to expend
$20,500,000.00 for the Southtown Urban Life Development Tax Increment Financing
Plan; authorizing the Director of Finance to close out accounts at the end of
the project; declaring the City's intent to reimburse itself for certain
expenditures; and recognizing an emergency.
WHEREAS, the Council has stated its intention to issue
revenue bonds in an amount sufficient to fund Phase 1 of the Southtown Urban
Life Development Tax Increment Financing Plan in the amount of $20,500,000.00;
and
WHEREAS, in order to begin Phase 1 of the project, the
developer has requested that the City provide a portion of the funding prior to
the issuance of the bonds; NOW, THEREFORE,
BE
IT ORDAINED BY THE COUNCIL OF KANSAS CITY:
Section
1. That the 2008 Southtown Urban Life Development Bond Fund is hereby
established in the records of the City as Fund No. 3430.
Section 2. That the revenue in the following account of the
2008 Southtown Urban Life Development Bond Fund is hereby estimated in the
following amount:
AL-3430-120000-590000 Proceeds from the Sale of Bonds $20,500,000.00
Section 3. That the sum of $20,500,000.00 is hereby
appropriated from the Unappropriated Fund Balance of the 2008 Southtown Urban
Life Development Bond Fund to the following account:
AL-3430-642023-B 63rd Street Corridor $20,500,000.00
Section 4. That the City Manager is hereby authorized to
execute the Cooperative Agreement for Plan Financing, the Acquisition Funding
Agreement and the First Amendment to the Cooperative Agreement among the City,
the Tax Increment Financing Commission of Kansas City, Missouri
(the Commission), and Citadel Plaza LLC, in substantially the forms on file
in the office of the Director of Finance. The First Amendment shall contain
provisions which (a) prohibit the payment (from any city source) of legal fees,
costs, judgments or settlements incurred as a result of any pending or
threatened litigation or claim against Citadel Plaza LLC or its affiliates or
relating to the project unless payment of the judgment or settlement has the
effect of obtaining, at a reasonable cost, the real property necessary for the implementation of the Southtown Urban Life Development
Tax Increment Financing Plan free and
clear from all liens and encumbrances; (b) prior to the advance of any city
funds or the issuance of either Tranche of Bonds,
require Citadel Plaza LLC to certify to the satisfaction of the City Attorney
that any pending or threatened litigation or claim against Citadel Plaza LLC or
its affiliates will not affect the ability of the Commission to acquire the property necessary for
the implementation of the Southtown
Urban Life Tax Increment Financing Plan,
free and clear of all liens or encumbrances; and (c)
prior to the advance of any city funds or the issuance of either Tranche of Bonds, require that
Citadel Plaza LLC enter into a written agreement (the terms of which are
reasonably acceptable to the City and Commission)
with a party reasonably satisfactory to the City and Commission to serve as
co-developer for the project.
Section 5. That the Director of
City Development is hereby designated as requisitioning authority for Account
No. AL-3430-
642023 and is authorized to expend
$20,500,000.00 for this project.
Section 6. That upon completion
of the final cost of this project, the Director of Finance is hereby authorized
to return the unexpended portion of this appropriation to the Unappropriated
Fund Balance from which it was derived.
Section 7. That the City declares
its intent to reimburse itself for certain expenditures made within sixty (60)
days prior to or on and after the date of this ordinance with respect to the
project with the proceeds of the bonds expected to be issued. The maximum
principal amount of bonds expected to be issued for the
Project is $20,500,000.00. This
constitutes a declaration of official intent under Treasury Regulation 1-150-2.
Section 8. That this ordinance is recognized as an
emergency measure within the provisions of Section 503 of the City Charter in
that it appropriates money, and shall take effect in accordance with that
section.
________________________________________________
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.
___________________________________
Jeffrey Yates
Director of Finance
Approved as to form and legality:
___________________________________
Heather A. Brown
Assistant City Attorney