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Legislation #: 900151 Introduction Date: 7/12/1990
Type: Ordinance Effective Date: 3/31/1991
Sponsor: None
Title: Amending Chapter 36, Code of General Ordinances of Kansas City, Missouri, commonly known as the Urban Redevelopment Ordinance, by repealing Sections 36.7 (Contents of Development Plan), 36.7.1 (Tax Agreements by Corporations), 36.7.5 (Certifications Required by Corporations), 36.7.8 (Relocation Plan), 36.10 (Prerequisites to Amendment of Plan), 36.11 (Commission to Check Compliance, Make Reports, Adopt Rules and Regulations), 36.19 (Financial Restrictions on Corporations) and 36.24 (Tax Relief for Redevelopment Corporations) and enacting in lieu thereof new sections of like number and subject matter.

Legislation History
DateMinutesDescription
7/12/1990

Prepare to Introduce

7/12/1990

Referred Plans And Zoning Committee

7/18/1990

Hold Off Agenda

2/13/1991

Hold On Agenda

2/20/1991

Hold Off Agenda

3/6/1991

Hold On Agenda

3/13/1991

Do Pass as a Third Committee Substitute

3/14/1991

Assigned to Third Read Calendar

3/21/1991

Passed


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THIRD COMMITTEE SUBSTITUTE FOR ORDINANCE NO. 900151

 

Amending Chapter 36, Code of General Ordinances of Kansas City, Missouri, commonly known as the Urban Redevelopment Ordinance, by repealing Sections 36.7 (Contents of Development Plan), 36.7.1 (Tax Agreements by Corporations), 36.7.5 (Certifications Required by Corporations), 36.7.8 (Relocation Plan), 36.10 (Prerequisites to Amendment of Plan), 36.11 (Commission to Check Compliance, Make Reports, Adopt Rules and Regulations), 36.19 (Financial Restrictions on Corporations) and 36.24 (Tax Relief for Redevelopment Corporations) and enacting in lieu thereof new sections of like number and subject matter.

 

BE IT ORDAINED BY THE COUNCIL OF KANSAS CITY:

 

Section A. That Chapter 36, Code of General Ordinances, commonly known as the Urban Redevelopment Ordinance, is hereby amended by repealing Sections 36.7, 36.7.1, 36.7.5, 36.7.8, 36.10, 36.11, 36.19 and 36.24 and enacting in lieu thereof new sections of like number and subject matter, to read as follows:

 

Section 36.7. Contents of development plan.

 

A development plan shall contain:

 

(a) Legal description. A legal description of the development area by metes and bounds or other definite designation.

 

(b) Stages of project. A statement of the various stages, if more than one (1) is intended, by which the development is proposed to be constructed or undertaken, and the approximate time limit for the commencement and completion of each stage, together with a description of the real property to be included in each stage so as to reasonably identify the various stages. The statement shall also set forth a time schedule clearly setting forth reasonable times for commencement and completion of:

 

1. Acquisition of properties;

 

2. Demolition of buildings;

 

3. New construction and/or building renovation.

 

(c) Property to be demolished. A statement of existing buildings or improvements in the development area to be demolished immediately, if any, and the approximate period of time during which demolition, if any, of each such building or improvement is to take place.

 

(d) Property not to be demolished. A statement of existing buildings or improvements in the development area not to be demolished immediately, if any, and the approximate period of time during which demolition, if any, of each such building or improvement is to take place.

 

 

(e) Building renovation. A statement of the proposed improvements, if any, to each building not to be demolished immediately, any proposed repairs or alterations to such buildings, and the approximate period of time during which such improvements, repairs or alterations are to be made.

 

(f) New construction. A statement of the type, number and character of each new residential, commercial, and industrial building or other type of improvement to be erected or made.

 

(g) Amenities. A statement of those portions, if any, of the blighted area which shall be determined to be amenities to the project including but not limited to permanent residential open space for recreation, streetscape, plaza areas, and other similar visual effects.

 

(h) Property for public agencies. A statement of those portions, if any, of the blighted area which are proposed to be sold, donated, exchanged or leased to the Board of Education, Public Library Board, Art Commission or other public agency and an outline of the terms of such proposed sale, donation, exchange or lease.

 

(i) Zoning changes. A statement of the proposed changes, if any, in zoning ordinances or maps, necessary or desirable for the redevelopment, and its protection against blighted influences.

 

(j) Street changes. A statement of the proposed changes, if any, in streets or street levels, alleys, any proposed street closings, and any changes which would have to be made to streets or alleys adjoining or near the redevelopment project including the plan for financing these changes.

 

(k) Dwelling accommodations. A statement of the character of the existing dwelling accommodations, if any, in the blighted area, the approximate number of occupants residing therein, together with the schedule of the rentals being paid by them, a schedule of the vacancies in such accommodations, if any, together with the rentals demanded therefor, and the names and addresses of occupants if the information is available.

 

(l) Housing and business relocation. A statement of the housing accommodations available in other locations in the city for those occupants who will be displaced by the redevelopment project. The development plan shall set forth a feasible plan for the relocation of all occupants and businesses and any other entities displaced, including adequate reimbursements for reasonable relocation cost, according to the information required by Section 36.7.8.

 

(m) Proposed housing. A statement of the character, type and quality of construction, approximate number of units, approximate rentals and approximate date of availability of the proposed dwelling accommodations, if any, to be furnished during construction and upon completion of the redevelopment.

 

(n) Financing. A statement of the proposed method of financing the costs of the development plan. Included as a part of the financing statement shall be reasonable estimates on the costs of acquisition, demolition, construction and rehabilitation, if any. Further, the financing statement shall identify the amount of equity capital which shall be required and how that equity will be raised. Evidence shall also be submitted that the project is financially feasible based on a financial feasibility and marketability study satisfactory to the City. Further, evidence shall be submitted that sufficient funds are available, or will be available upon approval of the development plan, to provide for the cost of acquisition within the area and relocation benefits described herein

 

(o) Management. A statement of the names of the individuals who it is proposed will be active in or associated with the management of the redevelopment project during the period of at least one (1) year from the date of the approval of the development plan and the name and address of the registered agent for the corporation.

 

(p) Eminent domain. A statement giving the legal description of the real property owned, or proposed to be purchased or to be acquired by eminent domain by the corporation, and the reasons why acquisition by condemnation is proposed.

 

(q) Eminent domain on behalf of proponents of plan. A statement giving the legal description of the real property, if any, proposed to be purchased or acquired by eminent domain by the City on behalf of the proponents of the development plan or by any other body authorized to acquire by eminent domain and the reasons why the aid of the City or other body is sought for that purpose.

 

(r) Assignment of plan. Appropriate controls shall be provided over the right of assignment of the development to any other entity in order that the City Council be assured that the intention and purpose of the redevelopment project will, in fact, be carried out.

 

(s) Certificate of Incorporation. The corporation shall include in its plan a copy of the Certificate of Incorporation from the Secretary of State.

 

(t) Affirmative action plan. A program to encourage the participation of all individuals regardless of race, color, creed, sex or age in all aspects of the redevelopment project.

 

(u) Other information. The development plan, and any application for amendment thereto, shall contain such other statements or exhibits as may be deemed relevant.

 

Section 36.7.1. Tax agreements by corporations.

 

(a) Payments in lieu of taxes. In the course of considering any development plan for approval, the City Plan Commission and the City Council shall give particular recognition to any agreement, in writing, on behalf of the corporation presenting such plan that, notwithstanding the provisions of the Missouri Redevelopment Corporations Law, it will make payments in lieu of real property taxes to the appropriate political subdivisions in such amount which, together with the real property taxes to be paid on the land for the first ten (10) years, shall, as a minimum, equal the total real property taxes on the land and improvements during the tax year immediately preceding purchase of the property by the corporation; however, such sum may actually in fact exceed the current level of taxes.

 

(b) Distribution. Payments in lieu of taxes shall be distributed to all political subdivisions levying taxes on the area to be redeveloped on the same pro rata basis and in the same manner as the ad valorem real property tax revenues received by each taxing authority from such property in the year such payments are due.

 

(c) Hearing and report. As part of the consideration of any development plan, there shall be a full report on any agreement for payments in lieu of taxes.

 

(d) Interest payments. In the event that any redevelopment corporation, its successors or assigns, fails to tender the payments in lieu of taxes to the appropriate political subdivision as required by any contract or amendment thereto, interest shall be due thereon at the same rate and in the same manner as interest on general ad valorem taxes and in the same manner commencing on January 1st of the calendar year following the year in which payment is due. Any action by the City to declare the redevelopment project in default or abandoned shall not release the redevelopment corporation, its successors or assigns, from the liability under this subsection.

 

 

Section 36.7.5. Certifications required by corporations.

 

(a) Certification to be made with application and prior to approval. At the time of filing a development plan which provides for the acquisition of property by eminent domain, the corporation shall certify that the corporation, as a consideration for approval of the plan, after approval of the plan, shall in good faith attempt to purchase by negotiation any given property within the project area subject to eminent domain within one hundred eighty (180) days following a request, in writing, by the property owner to the corporation that he desires to proceed with the sale of the property, and that it will, if a sale of the property cannot be consummated within said period, proceed forthwith to file a proceeding in condemnation after the one hundred eighty (180) days have elapsed. Said certification shall be filed with the City Clerk. Failure to abide by the terms of the certification shall be grounds for a finding of a breach as hereinafter provided.

 

(b) Certifications to be filed after approval. After approval of a development plan by the Council, the corporation shall file an annual report providing the following information:

 

(1) Availability of equity financing as provided for in section 36.7(n) hereof or some other acceptable

alternative financing.

 

(2) Annual Reports to Director of Finance. Three (3) copies of a detailed financial report for the preceding year,

examined by a certified public accountant of the

corporation and containing a certificate concerning such

examination, which financial report shall disclose: (i)

the earnings of the corporation derived from the

Redevelopment Project, (ii) the disposition of any net

earnings in excess of those permitted by Section

36.19(b), (iii) the interest rate on income debentures,

bonds, notes or other evidences of debt of the

corporation, (iv) the cost to the corporation of the

Redevelopment Project, (v) the total income and expenses

to the corporation derived from or attributable to, the

Redevelopment Project, provided, however, that the

corporation, if requested by the City in writing, shall

at its own expense have an audit made of its books by an

independent auditing firm, and the findings of such audit

shall be made available to the Director of Finance of the

City, but such an audit shall not be requested by the

City nor required of the corporation more often than

every two (2) years.

 

(3) Names and addresses of occupants and businesses displaced by the corporation and specific relocation benefits

provided to each occupant and business as well as a

sample notice provided each occupant and business within

the past year.

 

(4) Legal description of property acquired and name in which property was acquired as required pursuant to Section

36.9.5 and legal description of property under

condemnation and the name of the condemnee.

 

(5) Addresses of all occupied residential buildings and structures owned or under the control of the corporation

and the status of compliance of such buildings and

structures with the provisions of Chapter 20, Property

Maintenance Code and Chapter 25, Nuisances.

 

(6) Status of the redevelopment project as to permits applied for, permits issued, certificates of occupancy issued and

any other appropriate documentation relevant to the

information as part of Section 36.7(b) through (f).

 

(c) Additional certifications. The corporation shall certify that the notices required by Section 36.6 and 36.6.1 have been given as therein provided.

 

(d) Filing. The certifications required by subparagraphs (b) and (c) herein shall be filed with the Director of Finance and the Director of City Development.

 

 

Section 36.7.8. Relocation Plan.

 

(a) Plan requirement: Every corporation which requests the power of eminent domain for any part of the project area shall submit a relocation plan as part of the development plan.

 

(b) Contents of plan: The relocation plan shall provide for the following:

 

(1) Payments to all displaced occupants and displaced

businesses in occupancy at least ninety (90) days

prior to the date said displaced occupant or said

displaced business is required by the corporation

to vacate the premises; and

 

(2) Program for identifying needs of displaced

occupants and displaced businesses with special

consideration given to income, age, size of family,

nature of business, availability of suitable

replacement facilities, and vacancy rates of

affordable facilities; and

 

(3) Program for referrals of displaced occupants and

displaced businesses with provisions for a minimum

of three (3) suitable referral sites, a minimum of

ninety (90) days' notice of referral sites for

handicapped displaced occupants and sixty (60)

days' notice of referral sites for all other

displaced occupants and displaced businesses, prior

to the date such displaced occupant or displaced

business is required to vacate the premises; and

arrangements for transportation to inspect referral

sites to be provided to displaced occupants

hereinafter identified as "designated occupants".

 

(4) Every displaced occupant and every displaced

business shall be given a ninety (90) day notice to

vacate; provided, however, that the corporation may

elect to reduce the notice time to sixty (60) days

if the corporation extends the relocation payments

and benefits set forth in subsections 36.7.8(d),

(e) and (f) below to any displaced occupant or

displaced business affected by said reduction in

time.

 

(c) Designated occupants: For purposes of this section, "designated occupants" shall mean handicapped displaced occupants and those displaced occupants who are sixty-five (65) years of age or older at the time of the notice to vacate or who have an income less than the average median income for the metropolitan area as certified annually by the Director of City Development based upon the standards established by the Department of Housing and Community Development.

 

(d) Payments to occupants: All displaced occupants eligible for payments under subsection (b)(1) of this section shall be provided with relocation payments based upon one of the following, at the option of the occupant:

 

(1) A five hundred dollar ($500.00) payment to be paid

at least thirty (30) days prior to the date the

occupant is required to vacate the premises; or

 

(2) Actual reasonable costs of relocation including

actual moving costs, utility deposits, key

deposits, storage of personal property up to one

month, utility transfer and connection fees, and

other initial rehousing deposits including first

and last month's rent and security deposit.

 

(e) Handicapped displaced occupant allowance: In addition to the payments provided in subsection (d) of this section, an additional relocation payment shall be provided to handicapped displaced occupants which shall equal the amount, if any, necessary to adapt a replacement dwelling to substantially conform with the accessibility and usability of such occupant's prior residence, such amount not to exceed four hundred dollars ($400.00).

 

(f) Payment to business: All displaced businesses eligible for payments under subsection (b)(1) of this section shall be provided with relocation payments based upon the following, at the option of the business:

 

(1) A one thousand five hundred dollar ($1,500.00)

payment to be paid at least thirty (30) days prior

to the date the business is required to vacate the

premises; or

 

(2) Actual costs of moving including costs for packing,

crating, disconnection, dismantling, reassembling

and installing all personal equipment and costs for

relettering signs and replacement stationery.

 

(g) Waiver of payments: Any occupant who is also the owner of the premises and any business may waive their relocation payments set out above as part of the negotiations for acquisition of the interest held by said occupant or business. Said waiver shall be on a form supplied by the Director of City Development and filed in his office.

 

(h) Notice of relocation benefits: All occupants and businesses eligible for relocation benefits under this section shall be notified in writing of the availability of such relocation payments and assistance, such notice to be given concurrent with the notice of referral sites required by subsection (b)(3) of this section.

 

(i) Persons bound by the plan: Any redevelopment corporation, its assigns or transferees, is required to comply with the provisions of this section and shall certify such compliance to the Director of City Development in accordance with section 36.7.5(d) above. No person shall be entitled to the tax abatement provisions of this chapter if said person has failed to comply with the relocation benefits provided herein.

 

(j) Minimum requirements: The requirements set out herein shall be considered minimum standards. In reviewing any plan proposed, the City Council shall determine the adequacy of the proposal and require additional elements to be provided therein.

 

(k) Amendment to development plan: A relocation plan in conformance with this section shall be submitted with an amendment to a development plan and shall be applicable to all occupants and businesses within the development area.

 

(l) Construction with other laws. Notwithstanding the foregoing, in the event that the provisions of the Uniform Relocation Act (42 USC 4601, et seq.) are applicable, relocation benefits pursuant to the Uniform Relocation Act shall be controlling and supersede the regulations stated in this section unless otherwise required by the specific development plan or contract.

 

Section 36.10. Prerequisites to amendment of plan.

 

The City Plan Commission shall review any amendment to a development plan, previously approved by ordinance, and make its recommendation accordingly to the City Council. No such amendment shall be reviewed by the Commission unless and until an application for amendment has been filed with the City Clerk by the corporation or its assignee containing those portions of the statements and information required by Section 36.7, relevant to the proposed amendment, and unless and until the Commission shall make the determinations required by Section 36.8 relevant to the proposed amendment. The notice and hearing requirements of Sections 36.6 and 36.6.1 shall also apply to the entire real property within the development project except for that portion of the real property within the redevelopment project for which a certificate of completion has been issued pursuant to this Chapter.

 

Section 36.11. Commission to check compliance, make reports, adopt rules and regulations.

 

(a) Investigation. It shall be the duty of the Commission, after a development plan has been approved by the City Council, to investigate and determine from time to time during construction of the redevelopment project, whether the corporation undertaking such development plan is fully complying with the provisions thereof, in the manner and at the times fixed therein for the performance of the various stages thereof.

 

(b) Reports. It shall also be the duty of the Commission to make reports from time to time during the construction of the redevelopment project, and at least once every two years to the City Council regarding each redevelopment project and the performance or compliance with each development plan, and also as to compliance with the provisions of this chapter by any corporation operating thereunder; however in the event that the plan has been amended within the two year time frame, no report need be forthcoming.

 

(c) Time extension. The City Council may, upon the recommendation of the Commission and for good cause shown, grant to the corporation operating under an approved development plan an extension of time in which to complete the redevelopment project, or any step or portion thereof.

 

(d) Recommendation of certification. When a corporation operating under an approved development plan shall have completed the redevelopment project or such portion thereof in accordance with the provisions of the development plan, in the manner and at the time fixed therein for the performance thereof, the Commission, upon the written request of such corporation, shall conduct an investigation, and if the Commission determines that the project or such portion thereof has been so completed, it shall recommend to the City Council that a certificate of full compliance be issued to such corporation for the project or portion thereof, and the City Council may authorize the Director of City Development to issue a certificate of compliance which shall be conclusive evidence of such compliance, except upon proof of fraud. The investigation and reports of the Commission required by subsections (a) and (b) of this section shall not be required or made subsequent to the date of issuance of such certificate

 

(e) Rules and regulations. The Commission shall also have power to make and adopt such rules and regulations necessary and proper to effectuate the purposes of this chapter.

 

 

Section 36.19. Financial restrictions on corporation.

 

(a) Obligations, interest thereon. No corporation whose development plan has been approved by the Council shall:

 

(1) Issue income debentures, bonds, notes or other

evidences of debt bearing or paying an interest

rate in excess of that permitted by state law.

 

(2) Pay any interest on its income debentures or

dividends on its stock, regardless of class or

preference, during any dividend year unless there

shall exist at the time of such payment no default

under any amortization requirements with respect to

its indebtedness, nor unless all accrued interest,

taxes and other public charges shall have been duly

paid or reserves set up for the payment thereof,

and adequate reserves provided for depreciation,

obsolescence and other proper reserves.

 

(b) Net earnings. The net earnings of a corporation whose development plan has been approved by the Council shall be limited to an amount not to exceed eight percent (8%) per annum of the cost to such corporation of the redevelopment project including the cost of the land or the balance of such total cost of the project as reduced by amortization payments; provided that the net earnings derived from any redevelopment project shall in no event exceed a sum equal to eight percent (8%) per annum upon the entire cost thereof. Such net earnings shall be computed after deducting from gross earnings the following:

 

(1) All reasonable costs and expenses of maintenance and operation.

 

(2) Amounts paid for taxes, assessing, insurance premiums and other similar charges.

 

(3) An annual amount sufficient to amortize the cost of the entire project at the end of the period, which shall be

not more than sixty years from the date of completion of

the project.

 

Section 36.24. Tax relief for redevelopment corporations.

 

(a) Full Exemption: The real property of a corporation acquired pursuant to this chapter shall not be subject to assessment of payment of general ad valorem taxes imposed by the city for a period not in excess of ten (10) years after the date upon which such corporation became owner of such real property, except to such extent and in such amount as may be imposed upon such real property during such period measured solely by the amount of the assessed valuation of the land, exclusive of improvements, acquired pursuant to this chapter and owned by such corporation, as was determined by the county assessor, for taxes due and payable thereon during the calendar year preceding the calendar year during which the corporation acquired title to such real property; and the amounts of such tax assessments shall not be increased by the assessor during such ten-year period so long as the real property is owned by a corporation and used in accordance with a development plan authorized by the Council.

 

(b) Property Already Exempt: In the event, however, that any such real property was tax exempt immediately prior to ownership by any such corporation, the Commission shall immediately request the County Assessor to promptly assess such land, exclusive of improvements, in accordance with the provisions of Section 353.110, Revised Statutes of Missouri. The amount of such assessed valuation so fixed by the County Assessor shall not be increased during the ten-year period next following the date upon which such corporation acquired ownership thereof, so long as such property is owned by such corporation and used in accordance with the development plan authorized and approved by the Council.

 

(c) Partial Exemption: For the next ensuing period not in excess of fifteen (15) years, ad valorem taxes upon such real property shall be measured by the assessed valuation thereof as determined by the County Assessor upon the basis of not to exceed fifty (50) percent of the true value of such real property from year to year during the period of fifteen (15) years, so long as such real property is owned by a corporation and used in accordance with an authorized development plan.

 

(d) Full Assessment: After such periods, totaling not more than twenty-five (25) years, such real property shall be subject to assessment and payment of all ad valorem taxes based on the full true value of the real property, and shall be owned and operated by the urban redevelopment corporation free from the conditions, restrictions and provisions of this chapter, the approving ordinance and any rule or regulation adopted pursuant to this chapter; provided that at any time after the completion of the redevelopment project as authorized by ordinance, the urban redevelopment corporation may elect to pay full taxes on the project, provided further that any contract between the city and the urban redevelopment corporation may provide that upon such election, the redevelopment corporation shall pay to the City a sum equivalent to the amount of general ad valorem taxes, not including interest or penalties, which would have been levied on the full value of the property from the date of completion of the project; and from that date such real property shall be owned and operated by the urban redevelopment corporation free from the conditions, restrictions and provisions of this chapter, the approving ordinance and any rule or regulation adopted pursuant to this chapter.

 

_____________________________________________

 

 

Approved as to form and legality:

 

 

 

____________________________________

Assistant City Attorney