COMMITTEE SUBSTITUTE
FOR ORDINANCE NO. 051494
Authorizing a development
agreement with Cerner Properties, Inc., for the Cerner Data Center Project.
WHEREAS, Cerner Properties, Inc.
(Cerner), has proposed to develop a project (the Project), consisting of
the construction of a data center consisting of approximately 105,000 square
feet, together with approximately 15,000 square feet of office space and the
acquisition and installation from time to time of equipment, furniture,
furnishings and other personal property for use in connection with the
operation and occupancy of the center; and
WHEREAS, the City desires to
consider Cerners request to provide certain economic development incentives to
Cerner, including the issuance of Chapter 100 bonds in a par amount not to
exceed $70,000,000 to provide funds for initial real property improvements at
the Project site of approximately $60 million and the acquisition of $10
million of personal property, respectively. The bond sale is expected to occur
in December 2007; and
WHEREAS, the City may issue
additional Chapter 100 bonds during the 10-year term of the Chapter 100 plan to
further support Cerners investment of up to an additional $430,000,000 in the
Project through the acquisition of additional new and replacement personal
property for the Project; and
WHEREAS, the City and Cerner desire
to execute a development agreement to set for the rights and obligations of
each respective party in connection with the proposed Chapter 100 bond issuance
and other matters; NOW, THEREFORE,
BE IT ORDAINED BY THE COUNCIL OF KANSAS CITY:
Section 1. That the Director of
City Development is authorized to execute, on behalf of the City, a development
agreement with Cerner Properties, Inc., setting forth the rights and
obligations of the parties in connection with the proposed issuance of Chapter
100 bonds for the Project. The agreement is approved in substantial form as
that attached to this ordinance with such changes deemed necessary by the
Director of City Development.
________________________________________
Approved
as to form and legality:
____________________________
Heather
A. Brown
Assistant City Attorney