COMMITTEE SUBSTITUTE FOR ORDINANCE NO. 120579

 

Authorizing the City Manager to execute the Eleventh Amendment to the Master Development Agreement with Kansas City Live, LLC, which provides for financial incentives and changes to parking obligations required for construction of approximately 300 residential units in the KC Live entertainment area; and authorizing the City Manager to execute the Second Amendment to City Parking Easement and Agreement.

 

WHEREAS, the City and Kansas City Live, LLC, (Developer) have entered into a Master Development Agreement dated April 27, 2004, which has been amended by the First Amendment to Development Agreement dated as of July 24, 2004, the Second Amendment to Development Agreement dated as of September 15, 2004, the Third Amendment of Development Agreement dated as of February 7, 2005, the Fourth Amendment of Development Agreement dated as of March 8, 2005, the Fifth Amendment of Development Agreement dated as of March 9, 2005, the Sixth Amendment of Master Development Agreement dated as of May 1, 2006, the Seventh Amendment of Master Development Agreement dated as of May 1, 2006, the Eighth Amendment of Master Development Agreement dated as of April 30, 2007, the Ninth Amendment of Master Development Agreement dated as of August 29, 2008, and the Tenth Amendment of Master Development Agreement dated as of February 17, 2009 (collectively, the Master Development Agreement); and

 

WHEREAS, the Developer has determined that it can construct, with an additional City financial subsidy of $5 million, approximately 300 residential units in the KC Live entertainment area by constructing a residential tower on Block 110 and/or converting the Midland Office Building on Block 109 to residential units; and

 

WHEREAS, one of the City’s priorities is the creation of additional downtown residential units since the addition of these residential units are critical to a vibrant downtown with a more diverse economic base, and additional residents support other City and private investments in the downtown area; and

 

WHEREAS, the Downtown Council advocates for the addition of 1,000 new residential units within the downtown area and supported the City’s decision to issue bonds which provided the funds to be utilized for this project; and

 

WHEREAS, the City desires dedicated parking spaces for its Sprint suite holders that are currently held by the Developer and the Developer is amenable to providing the City the right to these parking spaces during Sprint Center events; and

 

WHEREAS, additional changes will be required to parking allocations once the residential units are occupied so as to provide additional parking spaces for residential users; and

 

WHEREAS, the City and the Developer desire to amend the Master Development Agreement to provide a financial incentive for construction of additional residential units in the KC Live entertainment area and to change parking rights in certain KC Live parking garages; and

 

WHEREAS, the City and the Developer also desire to amend the City Parking Easement and Agreement to incorporate these changes; NOW, THEREFORE,

 

BE IT ORDAINED BY THE COUNCIL OF KANSAS CITY:

 

Section 1. That the City Manager is hereby authorized to execute the Eleventh Amendment to the Master Development Agreement with Kansas City Live, LLC, providing for an additional financial incentive, in an amount not to exceed $5 million, for the construction of downtown residential units, and for providing changes to parking rights in certain KC Live parking garages.

 

Section 2. That the City Manager is hereby authorized to execute the Second Agreement to City Parking Easement and Agreements and to take such further action, and execute such other documents, certificates and instruments, including any required agreements or documentation, as may be necessary or desirable to carry out and comply with the intent of this ordinance and to comply with and perform the duties of the City with respect to the Eleventh Amendment to the Master Development Agreement and to the Second Amendment to City Parking Easement and Agreement.

 

_____________________________________________

 

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.

 

 

___________________________________

Randall J. Landes

Director of Finance

 

Approved as to form and legality:

 

 

___________________________________

Cecilia Abbott

Assistant City Attorney