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Legislation #: 180986 Introduction Date: 12/13/2018
Type: Ordinance Effective Date: 12/21/2018
Sponsor: COUNCILMEMBER REED
Title: Authorizing the Director of City Planning and Development to make a loan in the amount of $217,000.00 for environmental remediation and interior demolition to facilitate completion of environmental remediation subject to certain enumerated preconditions appropriating $217,000.00 in the Kansas City Brownfields Revolving Loan Fund, and recognizing this ordinance as having an accelerated effective date.

Legislation History
DateMinutesDescription
12/13/2018 Filed by the Clerk's office
12/13/2018 Referred to Finance and Governance Committee
12/19/2018 Advance and Do Pass as a Committee Substitute, Debate
12/20/2018 Passed as Substituted

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COMMITTEE SUBSTITUTE FOR ORDINANCE NO. 180986

 

Authorizing the Director of City Planning and Development to make a loan in the amount of $217,000.00 for environmental remediation and interior demolition to facilitate completion of environmental remediation subject to certain enumerated preconditions appropriating $217,000.00 in the Kansas City Brownfields Revolving Loan Fund, and recognizing this ordinance as having an accelerated effective date.

 

WHEREAS, the 18th and Vine Historic District is a valuable part of the City’s cultural fabric and the City remains committed to its preservation and enhancement; and

 

WHEREAS, the City Council strongly supports ongoing efforts to make the 18th and Vine Historic District a successful commercial and residential destination and attraction, with the infusion of bond proceeds, private investments, and tax incentives; and

 

WHEREAS, on July 14, 2016, the Council passed Ordinance No. 160431, As Amended, (hereinafter “Initial Ordinance”) wherein the Council approved certain projects and funding for a series of “Phase One” improvements in the 18th and Vine Historic District as described in Exhibit A of such Ordinance No. 160431 and appropriated $7,000,000.00 to fund those “Phase One” improvements; and

 

  WHEREAS, one of the listed “Phase One” improvements is the “the transfer to City/Parks Department, as previously proposed, and at north side, construct entrance, to include lobby, elevator and stair tower. By Council action, the 1824 The Paseo property will be transferred from the Negro Leagues Baseball Museum to the City, with an operation agreement between the City and the NLBM with respect to the space utilized by the NLBM within the facility, which such other within the facility being managed by the property management firm selected in accordance with the processes established in this ordinance”; and

 

WHEREAS, the Initial Ordinance provided that the City would not expend any bond proceeds authorized herein in support of any project until such time as a combination of private and public funding shall have been committed in an amount sufficient to complete such project; and

 

  WHEREAS, in the Initial Ordinance the City Council recognized that subsequent phases are equally essential to the economic vitality of the 18th and Vine Historic District, and therefore expresses its intention that the City commit itself to taking all reasonable steps necessary to pursue and utilize appropriate federal, state and local financial resources, in combination with private funding, in an amount sufficient to fund such future improvements to the 18th and Vine Historic District; and

 

WHEREAS, the title owner of the properties commonly described as 1810, 1824 and 1832 The Paseo as legally described below (“Site”) is the Negro Leagues Baseball Museum, Inc., a duly organized and existing Missouri nonprofit corporation (“Museum”); and

 

WHEREAS, the Museum has undertaken with the cooperation of the City the renovation of the former YMCA location, and commencement of operations of the John “Buck” O’Neil Education and Research Center on the first floor of such Site; and

 

WHEREAS, the Museum is engaged in completing certain environmental activities consisting of the abatement of asbestos containing materials, lead-based paint and other hazardous substances within the existing structure on the Site, and the abatement of mold and conditions conducive to the growth of mold within building materials damaged by the rupture of a water line discovered on June 22, 2018; and  

 

WHEREAS, a Brownfields Revolving Loan Fund (RLF) Program has been established by the City of Kansas City, Missouri (the “City”), and the U.S. Environmental Protection Agency (EPA) has awarded Brownfields RLF grant funds to the City in the amount of $3,500,108.00, and the City has entered into federal cooperative agreement No. BF-97700901 with EPA (EPA Grant); and

 

WHEREAS, the City has authorized the maximum grant allowable for the remediation under the City’s RLF Program, and there is a projected shortfall between the costs of the remaining needed environmental remediation and the remaining available Brownfields grant funds, such shortfall and the associated interior demolition needed to facilitate the completion of the environmental remediation being an approximate amount of $217,000.00; and

 

WHEREAS, the EPA grant allows the City to issue RLF loans to the extent such loans are in compliance with the requirements of the EPA Grant and the EPA–approved work plan for the EPA Grant, and these requirements include EPA approval of loan documents, EPA approval of a quality assurance project plan (QAPP), EPA verification of borrower and site eligibility, review and approval of the loan application by the Brownfields Commission, financial analysis of the loan application by the EDC Loan Corporation, and other requirements; and

 

WHEREAS, subject to certain preconditions enumerated herein, the City is willing to issue a loan to the Museum through the RLF Program for the amount of the projected shortfall of $217,000 provided that all the requirements of the EPA Grant and work plan are met; NOW, THEREFORE,

 

BE IT ORDAINED BY THE COUNCIL OF KANSAS CITY:

Section 1. Subject to the preconditions enumerated in Section 2, that the Director of the City Planning and Development Department, or his designee, is hereby authorized to make a loan including possibly the Brownfields Revolving Loan Fund in the amount of $217,000.00 for environmental remediation and further interior demolition and environmental remediation costs incurred by the Museum. The loan funds expenditures shall be documented by the Museum providing supporting evidence of the remediation and renovation expenditures by the Museum or on their behalf, including mechanic’s lien waivers from the contractors and subcontractors, sufficient in form and extent to enable any subsequent owner to obtain an owner’s title policy with mechanic’s lien coverage. Such documentation of remediation and renovation expenditures shall include those costs incurred through the Brownfields grant program beyond the $217,000.00 currently authorized to be advanced as a loan for interior demolition and remediation. Further, such loan documentation shall include a deed of trust to secure such loan upon certain parcels of real property commonly known as 1810, 1824 and 1832 The Paseo, Kansas City, Missouri, and legally described below as:

 

TRACT 1: Lots 84, 85, 86, 87, and 88, inclusive, subject to that part thereof in Paseo Boulevard, Block 4, Armfield's Addition, a subdivision in Kansas City, Jackson County, Missouri, and Lot 2, subject to that part thereof in Paseo Boulevard, Brent's Addition, a subdivision in Kansas City, Jackson County, Missouri. Together with the east one-half of the vacated north/south alley lying west of and adjacent said lots, vacated by Ordinance No. 070523 and as recorded as Document No. 2007E0141826.

 

TRACT 2: All of Lots 4, 6, and 8, subject to that part of said lots now in Paseo Boulevard, Brent's Addition, a subdivision in Kansas City, Jackson County, Missouri. together with the east one-half of the vacated north/south alley lying west of and adjacent said lots, vacated by Ordinance No. 070523 and as recorded as Document No. 2007E0141826.

 

TRACT 3: Lots 81, 82 and 83, Block 4, except that part taken for Paseo, H. W. Armfield's Addition, a subdivision in Kansas City, Jackson County, Missouri. together with i) the east one-half of the vacated north/south alley lying west of and adjacent said lots, and ii) the south one-half of the vacated east/west alley lying north of said Lot 81 and iii) the south one-half said east/west alley lying north of the east one-half of the vacated north/south alley in said Block 4, vacated by Ordinance No. 070523 and as recorded as Document No. 2007E0141826.

 

Such Tracts 1, 2 and 3 are collectively referred to as the “Site.”

 

Section 2. The following preconditions of the RLF Loan shall be met before the loan is authorized and issued by the City:

 

A.                Borrower and site eligibility for the RLF loan are confirmed by EPA.

B.                 Loan documents are approved by EPA.

C.                 The loan application is reviewed and approved by the Brownfields Commission.

D.                A financial analysis of the borrower and loan project is performed by the EDC Loan Corporation, or City staff designated as the Fund Manager for purposes of this loan, which analysis concludes that the loan complies with prudent lending practices as described in the Kansas City RLF Program Guidelines.

E.                 A Quality Assurance Project Plan is approved by EPA.

F.                  EPA concurrence that the requirement of public notice and comment on an Analysis of Brownfield Cleanup Alternatives (ABCA) has been met through recent public notice and comment on the revised ABCA concerning the RLF subgrant to the Museum.

Section 3. That the Director of City Planning and Development Department, or his designee, is hereby authorized to negotiate and execute all loan documents related to the Site for the $217,000.00 loan from the Brownfields Revolving Loan Fund.

 

Section 4. Section 2. That the amount of $217,000.00 is appropriated from the Unappropriated Fund Balance of the Brownfields Revolving Fund to the following account:

 

19-2550-645020-B-G64BRLF Brownfield Revolving Loan Fund $217,000.00 

 

Section 5. That the Director of City Planning and Development is designated as requisitioning authority for Account No. 19-2550-645020-B-G64BRLF.

Section 5. That this ordinance, relating to the appropriating money, is recognized as an ordinance with an accelerated effective date as provided by Section 503(a)(3) of the City Charter and shall take effect in accordance with Section 503, City Charter.

______________________________________________

 

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:

 

______________________________

Amelia McIntyre

Associate City Attorney