ORDINANCE NO. 020650

Accepting the recommendations of the Tax Increment Financing Commission as to the First Amendment to the Tower Properties Tax Increment Financing Plan; approving the First Amendment to the Tower Properties Tax Increment Financing Plan; designating an expanded redevelopment area; and authorizing additional projects.

WHEREAS, the City Council of Kansas City, Missouri, by Ordinance No. 54556 passed on November 24, 1982, created the Tax Increment Financing Commission of Kansas City, Missouri (the "Commission") and by Ordinance No. 911076, modified the composition of the Commission in accordance with State law; and

WHEREAS, on August 9, 1995, the Commission adopted its resolution approving a plan entitled "Tower Properties Tax Increment Financing Plan" (the "Redevelopment Plan"), calling for redevelopment of an area generally bounded by Central Street on the West, 6th Street Trafficway on the north, Walnut Street on the east and 8th Street on the south, except between Delaware and Walnut where the boundary extends to 10th Street, and recommending to the City Council that the City Council approve the Redevelopment Plan; and

WHEREAS, on November 27, 1995, the City Council passed Committee Substitute for Ordinance No. 951469, wherein the City Council approved the Redevelopment Plan, designated the area described therein as a Redevelopment Project Area and adopted tax increment financing; and

WHEREAS, the Redevelopment Plan and Committee Substitute for Ordinance No. 951469 contemplate the implementation of the Redevelopment Plan through 8 separate projects and the adoption of Tax Increment Financing for each project; and

WHEREAS, on February 27, 1997, after all proper notice was given, the Commission met in public hearing and after receiving the comments of all interested persons and taxing districts affected by an amendment to the Redevelopment Plan, adopted its resolution recommending to the City Council the approval of a first amendment to the Redevelopment Plan (the "First Amendment) which provides for the acquisition of certain property through eminent domain; NOW, THEREFORE,

BE IT ORDAINED BY THE COUNCIL OF KANSAS CITY:

Section 1. The recommendation of the Commission concerning the First Amendment to the Tower Properties Redevelopment Plan as set forth in the resolution attached hereto as Exhibit "A" is hereby accepted, and the First Amendment attached hereto as Exhibit B is hereby approved.

Section 2. All terms used in this ordinance shall be construed as defined in Sections 99.800 to 99.865 of the Revised Statutes of Missouri, as amended (the "Act").

Section 3. The City Council hereby finds that:

(a) The Redevelopment Area as a whole is a blighted area, as evidenced by insanitary and unsafe conditions, vacant and underutilized properties, obsolescence, deterioration of site improvements, lack of maintenance and lack of redevelopment activities.

(b) The areas selected for Redevelopment Projects include only those parcels of real property and improvements thereon which will be directly and substantially benefitted by the Redevelopment Project Improvements.

(c) The Redevelopment Area as a whole and each Redevelopment Project Area have not been subject to growth and development through investment by private enterprise and would not reasonably be anticipated to be developed without the adoption of the First Amendment.

(d) The First Amendment as a whole and each Redevelopment Project conform to the comprehensive plan for the development of the City as a whole.

(e) The estimated dates of completion of the Redevelopment Projects and retirement of obligations incurred to finance Redevelopment Project Costs have been stated in the First Amendment and are not more than 23 years from the adoption of any ordinance approving a Redevelopment Project within the Redevelopment Area.

(f) The First Amendment includes a plan for relocation assistance for businesses and residences.

(g) A cost-benefit analysis showing the impact of the First Amendment on each taxing district which is at least partially within the boundaries of the Redevelopment Area has been prepared in accordance with the Act.

(h) The First Amendment does not include the initial development or redevelopment of any gambling establishment.

Section 3. The First Amendment is hereby approved and the projects sets forth therein are hereby authorized.

Section 4. The First Amendment does not alter the boundaries of the Redevelopment Area legally described in the original Redevelopment Plan.

Section 5. The Commission is authorized to issue obligations in one or more series of bonds secured by the Tower Properties TIF Account of the Special Allocation Fund to finance Redevelopment Project Costs within the Redevelopment Area and, subject to any constitutional limitations, to acquire by purchase, donation, lease or eminent domain, own, convey, lease, mortgage, or dispose of land or other property, real or personal, or rights or interests therein, and grant or acquire licenses, easements and options with respect thereto, all in the manner and at such price the Commission determines, to enter into such contracts and take all such further actions as are reasonably necessary to achieve the objectives of the Redevelopment Plan pursuant to the power delegated to it in Ordinance No. 54556. Any obligations issued to finance Redevelopment Project Costs shall contain a recital that they are issued pursuant to Sections 99.800 to 99.865, which recital shall be conclusive evidence of their validity and of the regularity of their issuance.

Section 6. Pursuant to the provisions of the Redevelopment Plan, as amended, the City Council approves the pledge and authorizes the Commission to pledge all funds generated from the Redevelopment Plan, which are deposited into the Tower Properties Account of the Special Allocation Fund to the payment of Redevelopment Project Costs and Redevelopment Costs within the Redevelopment Area and each of the Redevelopment Project Areas.

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Approved as to form and legality:

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Assistant City Attorney