COMMITTEE SUBSTITUTE FOR ORDINANCE NO. 051527

Receiving the recommendations of the Tax Increment Financing Commission as to the 811 Main Tax Increment Financing Plan; approving the 811 Main Tax Increment Financing Plan; and designating a Redevelopment Area; requesting the Commission to implement the Redevelopment Plan through a redevelopment contract.

WHEREAS, 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, 2991, created the Tax Increment Financing Commission of Kansas City, Missouri (the Commission); and

WHEREAS, the 811 Main Tax Increment Financing Plan (the Redevelopment Plan) was proposed to the Commission; and

WHEREAS, the Redevelopment Plan is a comprehensive program intended to reduce or eliminate blight and enhance and retain the tax base within the Redevelopment Area through the implementation of one Redevelopment Project and adoption of tax increment financing for such Redevelopment Project; and

WHEREAS, the Commission has been duly constituted and its members appointed; and, after all proper notice was given, the Commission met in public hearing and after receiving the comments of all interested persons and taxing districts with respect to the Redevelopment Plan, closed said public hearing on November 9, 2005, and, by majority vote, recommended to the City Council denial of the Redevelopment Plan; and

WHEREAS, having received the recommendation of the Commission and having considered the testimony on said Redevelopment Plan, the City Council has determined that it is proper to approve said Redevelopment Plan containing the proposal of Commerce Bank N.A. as the developer in order to retain jobs within Downtown Kansas City, remove the existing blight within the Redevelopment Area and renovate the 811 Main Street Building located within the Redevelopment Area; NOW, THEREFORE,

BE IT ORDAINED BY THE COUNCIL OF KANSAS CITY:

Section 1. The recommendation of the Commission concerning the Redevelopment Plan is hereby received and the 811 Main Tax Increment Financing Plan, a copy of which is attached as Exhibit A is hereby approved and adopted.

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 following described area is hereby designated as a Redevelopment Area:

ALL OF LOTS 41 TO 52, INCLUSIVE; ALL OF LOTS 62 TO 66, BOTH INCLUSIVE; AND THE NORTH-SOUTH ALLEY RUNNING FROM THE SOUTH LINE OF LOT 62 AS PROJECTED WEST TO THE NORTH LINE OF LOT 66, AS PROJECTED WEST, ROSS & SCARRITT'S ADDITION, A SUBDIVISION IN THE CITY OF KANSAS CITY, JACKSON COUNTY, MISSOURI, ACCORDING TO THE RECORDED PLAT THEREOF, BEING MORE PARTICULARLY DESCRIBED AS BEGINNING AT THE INTERSECTION OF THE SOUTH LINE OF EAST 8TH STREET WITH THE EAST LINE OF MAIN STREET; THENCE SOUTH ALONG SAID EAST LINE OF MAIN STREET 279.33 FEET TO THE NORTH LINE OF EAST 9TH STREET; THENCE EAST AND PARALLEL WITH THE NORTH LINE OF EAST 9TH STREET 117.85 FEET; THENCE NORTH AND PARALLEL WITH THE EAST LINE OF MAIN STREET 167.29 FEET; THENCE EAST AND PARALLEL WITH THE SOUTH LINE OF EAST 8TH STREET 130.37 FEET TO THE WEST LINE OF WALNUT STREET; THENCE NORTH ALONG SAID WEST LINE OF WALNUT STREET 120 FEET TO THE SOUTH LINE OF EAST 8TH STREET; THENCE WEST AND PARALLEL WITH THE SOUTH LINE OF THE EAST 8TH STREET 252.69 FEET TO THE POINT OF BEGINNING.

Section 4. The City Council hereby finds that:

(a) The Redevelopment Area as a whole is a blighted area, evidenced by unsanitary or unsafe conditions: deterioration of site improvements; existence of conditions that endanger life or property by fire or other causes; and declining property values.

(b) The Redevelopment Area has 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 Redevelopment Plan;

(c) The Redevelopment Plan conforms to FOCUS and the Downtown Land Use and Development Plan, together, the comprehensive plan for the development of the City as a whole;

(d) The area selected for the Redevelopment Project includes only those parcels of real property and improvements thereon which will be directly and substantially benefited by the Redevelopment Project improvements;

(e) The estimated date of completion of the Redevelopment Project and retirement of obligations incurred to finance the Redevelopment Project Costs, have been stated in the Redevelopment Plan, and are not more than 23 years from the adoption of any ordinance approving a Redevelopment Project within the Redevelopment Area;

(f) A plan has been developed for relocation assistance for businesses and residences;

(g) A cost-benefit analysis showing the impact of the Redevelopment Plan on each taxing district located at least partially within the boundaries of the Redevelopment Area has been prepared in accordance with the Act; and

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

Section 5. The City and/or the Commission is authorized to issue obligations in one or more series of bonds secured by the 811 Main Tax Increment Financing Plan 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 City and/or 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, as amended. Any obligations issued to finance Redevelopment Project Costs shall contain a recital that they are issued pursuant to Section 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, the City Council approves the pledge of all funds generated from the Redevelopment Project that are deposited into the 811 Main Tax Increment Financing Plan Account of the Special Allocation Fund to the payment of Redevelopment Project Costs within the Redevelopment Area and authorizes the Commission to pledge such funds on its behalf.

Section 7. That the City Council hereby requests that the Tax Increment Financing Commission of Kansas City, Missouri, take all necessary steps to enter into a redevelopment agreement for implementation of the Redevelopment Plan with the proposed developer.

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Approved as to form and legality:

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Heather A. Brown

Assistant City Attorney