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Legislation #: 061350 Introduction Date: 12/7/2006
Type: Ordinance Effective Date: none
Sponsor: COUNCILMEMBER MCFADDEN-WEAVER
Title: Authorizing the Director of City Development to authorize the resubordination of a $1,000,000.00 loan to the Black Economic Union of Greater Kansas City for the Heritage Business Park I Complex project, authorizing the City Attorney to seek court approval of this resubordination and to execute a release of the Receiver from any liability to the City arising from such requested relief and expressing the Councils intent regarding appropriating funds to pay creditors of HEDFC if harmed by such requested relief.

Legislation History
DateMinutesDescription
12/1/2006 Filed by the Clerk's office
11/30/2006 Referred to Neighborhood Development and Housing Committee
1/3/2007 Do Pass as a Committee Substitute
1/4/2007 Assigned Third Read Calendar as Substituted
1/11/2007 Passed as Substituted

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COMMITTEE SUBSTITUTE FOR ORDINANCE NO. 061350

 

Authorizing the Director of City Development to authorize the resubordination of a $1,000,000.00 loan to the Black Economic Union of Greater Kansas City for the Heritage Business Park I Complex project, authorizing the City Attorney to seek court approval of this resubordination and to execute a release of the Receiver from any liability to the City arising from such requested relief and expressing the Councils intent regarding appropriating funds to pay creditors of HEDFC if harmed by such requested relief.

 

WHEREAS, on June 26, 2001, the Black Economic Union of Greater Kansas City (BEU) entered into a loan agreement with the Housing and Economic Development Financial Corporation (HEDFC), Promissory Note No. 90-304 (Note), in the amount of $1,000,000.00, for renovation costs related to the Heritage Business Park I Complex, located at 17th Street and Paseo Boulevard to support services provided by the Full Employment Council and Urban League; and

 

WHEREAS, said renovations have occurred and employment and training services, as well as business development and leadership, continue to be provided to the general public; and

 

WHEREAS, BEU desires to meet the terms and conditions for repayment of the Note and has a commitment to maintain and protect the appraised value of this asset; and

 

WHEREAS, HEDFC is currently under a federal receivership, pursuant to City of Kansas City, Missouri v. Housing & Economic Development Financial Corporation, Case No. 05-00368-CV-W-GAF, and approval of a resubordination is subject to the approval by the Federal Court; NOW THEREFORE,

 

BE IT ORDAINED BY THE COUNCIL OF KANSAS CITY:

 

Section 1. That the Director of City Development is hereby authorized, upon approval by the Federal Court in City of Kansas City, Missouri v. Housing & Economic Development Financial Corporation, Case No. 05-00368-CV-W-GAF, to approve the resubordination of the loan issued to BEU by HEDFC in Promissory Note No. 90-304 in the amount of $1,000,000.00 under the terms and conditions for repayment under the Note.

 

Section 2. That the City Attorney is hereby authorized to execute a release of the Receiver of any and all claims, causes of action or other liabilities of the City that might arise from the Receivers compliance with any order issued by the Court in response to the Citys motion.

 


Section 3. That the Council hereby expresses its intent, if necessary, to cause the City Manager to docket for consideration an ordinance appropriating funds up to the amount of the unpaid principal of $1,000,000.00 plus the accrued and unpaid interest and any additional interest that may accrue as the note matures.

 

________________________________________________

 

Approved as to form:

 

 

___________________________

Nicole Rowlette

Assistant City Attorney