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Legislation #: 100929 Introduction Date: 10/28/2010
Type: Resolution Effective Date: 11/28/2010
Sponsor: COUNCILMEMBER MARCASON AND COUNCILMEMBER GOTTSTEIN
Title: Stating the City's support of the concept of an amendment to the West Edge Tax Increment Financing Plan and the entry of an order in bankruptcy court to facilitate completion of the West Edge Project.

Legislation History
DateMinutesDescription
10/29/2010 Filed by the Clerk's office
10/28/2010 Referred to Planning and Zoning Committee
11/3/2010 Hold On Agenda (11/17/2010)
11/17/2010 Immediate Adoption as a Committee Substitute
11/18/2010 Adopted as Substituted

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COMMITTEE SUBSTITUTE FOR RESOLUTION NO. 100929

 

Stating the City's support of the concept of an amendment to the West Edge Tax Increment Financing Plan and the entry of an order in bankruptcy court to facilitate completion of the West Edge Project.

 

WHEREAS, the West Edge Tax Increment Financing Plan (“Plan”) was approved on April 17, 2003 by Ordinance No. 030397; and

 

WHEREAS, the First Amendment to the Plan was approved by Ordinance No. 050776 on June 30, 2005; and

WHEREAS, the Second Amendment to the Plan was approved by Ordinance No. 071212 on December 6, 2007; and

 

WHEREAS, the redeveloper, Trilogy Development Company LLC, entered into a redevelopment agreement (“Redevelopment Agreement”) with the Tax Increment Financing Commission of Kansas City, Missouri (“Commission”) in connection with the Plan; and

 

WHEREAS, construction of Projects 1 and 4 (“Project or “West Edge Project”) proceeded and buildings were erected, but construction was halted over one year ago, and the buildings which have been built have not been enclosed and are exposed to the elements; and

 

WHEREAS, the redeveloper filed a voluntary petition under Chapter 11 of the United States Bankruptcy Code and remains in possession of the Project; and

 

WHEREAS, Trilogy filed a sale motion on July 8, 2010 to auction the Project free and clear of liens and interests pursuant to 11 USC §363, pursuant to which the bankruptcy court issued its Order Approving Sale of Property Free and Clear of Liens and Interests on August 31, 2010 (the “Sale Order”); which order was approved by the bankruptcy court on August 11, 2010; and

 

WHEREAS, the Sale Order authorizes Trilogy to sell the Project to VA West Properties and the parties have agreed to close on the sale no later than November 22, 2010; and

 

WHEREAS, VA West Properties LLC, has represented to the City that it will close on the Project if it can be assured that it will not be required to accept the obligations of the Plan, known and unknown, until such time as it can negotiate an amendment to the Plan that is acceptable to both it and the City and a corresponding amendment to the Redevelopment Agreement with the Commission; NOW THEREFORE,

 

BE IT RESOLVED BY THE COUNCIL OF KANSAS CITY:

 

Section 1. That although no specific changes to the Plan have been presented to the Commission or the City, the Mayor and Council support the concept of an amendment to the West Edge Tax Increment Financing Plan acceptable to both VA West Properties LLC and the City which would insure completion of the Project.

 

Section 2. The Mayor and Council further state that the City has no objection to an order of the bankruptcy court approving rejection of the Redevelopment Agreement and express their hope that VA West Properties LLC, the Tax Increment Financing Commission and the City can agree upon a mutually acceptable amendment of the Plan, pursuant to which VA West Properties LLC and the Commission can execute a new Redevelopment Agreement.

 

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