KC Skyline

City Clerk Web Search

Search the Ordinances:

Legislation #: 190793 Introduction Date: 9/19/2019
Type: Ordinance Effective Date: none
Sponsor: MAYOR LUCAS
Title: Establishing a 10-year term limit for property tax abatements offered for jobs relocating from certain Kansas counties to the City.

Legislation History
DateMinutesDescription
9/19/2019 Filed by the Clerk's office
9/19/2019 Referred to Neighborhood Planning and Development Committee
9/25/2019 Hold On Agenda (10/9/2019)
10/9/2019 Hold On Agenda (11/6/2019)
11/6/2019 Hold On Agenda (11/13/2019)
11/13/2019 Hold On Agenda (12/4/2019)
12/4/2019 Hold On Agenda (1/15/2020)
12/18/2019 Advance and Do Pass, Debate
12/19/2019 Held on Docket (1/9/2020)
1/9/2020 Held on Docket (1/16/2020)
1/16/2020 Held on Docket (1/30/2020)
1/30/2020 Councilmember McManus (Second by Hall) Move to Amend
1/30/2020 Councilmember McManus (Second by Hall) Move to Advance
1/30/2020 Passed as Amended

View Attachments
FileTypeSizeDescription
190793. As Amended.pdf Authenticated 152K Authenticated Ordinance
190793 Compared Version.docx Compared Version 24K Compared Version

Printer Friendly Version

ORDINANCE NO. 190793, AS AMENDED

 

Establishing a 10-year term limit for property tax abatements offered for jobs relocating from certain Kansas counties to the City.

 

WHEREAS, pursuant to the Land Clearance for Redevelopment Authority Law, Sections 99.300 to 99.660 of the Revised Statutes of Missouri, as amended, the City Council of Kansas City, Missouri by Ordinance No. 16120 passed on November 21, 1952, created the Land Clearance for Redevelopment Authority of Kansas City, Missouri (the “LCRA”); and

 

WHEREAS, pursuant to the Planned Industrial Expansion Law, Sections 100.300 to 100.620 of the Revised Statutes of Missouri, as amended, the City Council of Kansas City, Missouri by Ordinance No. 34677 passed on February 9, 1968, created the Planned Industrial Expansion Authority of Kansas City, Missouri (the “PIEA”); and

 

WHEREAS, pursuant to the provisions of Chapter 68 of the Revised Statues of Missouri, as amended, the City Council of Kansas City, Missouri by Resolution No. 47523 adopted on February 11, 1977, created the Kansas City, Missouri Port Authority (“PortKC”); and

 

WHEREAS, pursuant to the provisions of Sections 135.950 to 135.973 of the Revised Statutes of Missouri, as amended, and the provisions of Resolution No. 050844 adopted by the City Council on July 28, 2005 Enhanced Enterprise Zones (EEZ) have been authorized and established in Kansas City; and

 

WHEREAS, pursuant to the Real Property Tax Increment Allocation Redevelopment Act, Sections 99.800 to 99.865 of the Revised Statutes of Missouri, as amended, the City Council of Kansas City, Missouri by Ordinance No. 54556 passed on November 24, 1982, and thereafter amended in certain respects by Committee Substitute for Ordinance No. 911076, As Amended, passed on August 29, 1991, Ordinance No. 100089, As Amended, passed on January 28, 2010, Ordinance No. 130986, passed on December 19, 2013, and Committee Substitute for Ordinance No. 140823, As Amended, passed on June 18, 2015, created the Tax Increment Financing Commission of Kansas City, Missouri (the "TIF Commission"); and

 

WHEREAS, pursuant to the provisions of Sections 100.010 to 100.200 of the Revised Statutes of Missouri, as amended, and the provisions of Committee Substitute for Resolution No. 041033 adopted on September 16, 2004, the City Council of Kansas City, Missouri is authorized to approve the issuance of revenue bonds for the purpose of promoting industrial development through, among other things, the abatement of real property taxes; and

 

WHEREAS, pursuant to Committee Substitute for Resolution No. 121013 adopted on December 20, 2012 and Committee Substitute for Resolution No. 130297 adopted on April 25, 2013, the City Council of Kansas City, Missouri expressed its support for and authorized the use of sale-leasebacks by certain economic development entities as a mechanism for abating, among other things, real property taxes; and

 

WHEREAS, pursuant to Urban Redevelopment Corporations Law, Sections 353.010 to 353.190 of the Revised Statutes of Missouri, as amended, the City Council of Kansas City, Missouri is authorized to promote urban renewal through the abatement of real property taxes and has, by Committee Substitute for Ordinance No. 140306, passed on May 1, 2014, created the Kansas City Chapter 353 Advisory Board and vested it with certain powers in furtherance of such urban renewal efforts; and

 

WHEREAS, the City is empowered, directly or through one or more of the aforementioned agencies, to offer public incentives for economic development projects in the form of, among other things, a capture of payments in lieu of taxes or abatement or exemption, in whole or in part, of real property taxes; and

 

WHEREAS, AdvanceKC, the City’s adopted economic development and incentives policy, encourages the use of incentives only as necessary to fill financial gaps, and limits them to reasonable and appropriate project expenses which have a public benefit and which are essential to the successful completion of projects which are desired by the City’s governing body, and which provide a positive fiscal impact on taxing jurisdictions; and

 

WHEREAS, the City contracts with the Economic Development Corporation of Kansas City, Missouri (the “EDC”) for purposes of managing the City’s economic development projects and providing varying levels of support to each of the aforementioned agencies, among others; and

 

WHEREAS, in Resolution 160383, the City Council enacted guidelines on the use of abated and exempted real property taxes in funding economic development projects; and

 

WHEREAS, the state of Missouri has enacted legislation limiting economic development incentives available for jobs relocating from the Kansas counties of Johnson, Miami, or Wyandotte (“Kansas Border Counties”) to the Missouri counties of Cass, Clay, Jackson, or Platte (“Missouri Border Counties”); and

 

WHEREAS, the Governor of Missouri signed Missouri Senate Bill 182 on or about June 11, 2019, to prohibit tax abatements and other incentives from being offered to companies to relocate from Kansas Border Counties to Missouri Border Counties or Missouri Border Counties to Kansas Border Counties if Kansas signed a reciprocal agreement; and

 

WHEREAS, the Governor of Kansas issued Executive Order No 19-09 on or about August 2, 2019, which offers reciprocal limitations on economic development incentives for jobs relocating from Kansas Border Counties to Missouri Border Counties; and

 

WHEREAS, Kansas City supports the efforts of Missouri and Kansas to foster economic development opportunities that create new jobs in the Kansas City metropolitan area; and

 

WHEREAS, Kansas City recognizes the need for economic development to occur in distressed census tracts on both sides of the state line, and encourages regional adoption of a commonly shared goal of encouraging development in these areas; and

 

WHEREAS, the City intends to participate in a Regional Committee on Economic Mobility consisting of representatives from the states of Missouri and Kansas, as well as elected officials from Kansas and Missouri Border Counties and municipalities within those Border Counties, to develop a regionally shared definition of distressed areas where extraordinary incentives may be permitted; NOW THEREFORE,

 

BE IT ORDAINED BY THE COUNCIL OF KANSAS CITY:

 

Section 1. That the City Council shall not approve any tax increment financing plan, property tax capture and redirection, or abatement or exemption in a development plan, redevelopment plan, or substantial modification thereto, offered for the relocation of any existing job from the Kansas Border Counties to Kansas City that is to be in effect for more than 10 calendar years after the calendar year in which the tax abatement begins.

 

Section 2. That this ordinance shall apply prospectively only and shall not be construed in a manner as to impair any tax abatement or any transaction authorized by the City, any agency referenced herein, or any other public entity, prior to the effective date thereof. Furthermore, it is the City Council’s intention that the provisions of this ordinance not be imposed upon any previously approved project with defined abatement levels, or amendments or extensions of any existing project agreements or any economic incentives for a specific project currently in effect; provided, however, that if any amendment or extension substantially expands the area within which any existing project agreements are applicable or any economic incentives currently in effect are available, the provisions of this ordinance shall be applicable to the area of expansion.

 

_____________________________________________

 

Approved as to form and legality:

 

 

___________________________________

Katherine Chandler

Assistant City Attorney