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Legislation #: 140534 Introduction Date: 7/10/2014
Type: Ordinance Effective Date: none
Sponsor: None
Title: Approving a Kansas City Brownfields Revolving Loan Fund program loan application in an amount not to exceed $280,000.00 for the Faxon School Apartments, LLC, authorizing the Director of City Development to execute the necessary loan documents and authorizing further acts.

Legislation History
DateMinutesDescription
7/9/2014 Filed by the Clerk's office
7/10/2014 Referred to Planning, Zoning & Economic Development Committee
7/16/2014 Do Pass as a Committee Substitute
7/17/2014 Assigned Third Read Calendar as Substituted
7/24/2014 Passed

View Attachments
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140534.pdf Authenticated 197K Authenticated
140534 Fiscal Note.pdf Fiscal Note 16K FIscal Note
140534 Fact Sheet.pdf Fact Sheet 26K Fact Sheet

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COMMITTEE SUBSTITUTE FOR ORDINANCE NO. 140534

 

Approving a Kansas City Brownfields Revolving Loan Fund program loan application in an amount not to exceed $280,000.00 for the Faxon School Apartments, LLC, authorizing the Director of City Development to execute the necessary loan documents and authorizing further acts.

 

WHEREAS, a Brownfields Revolving Loan Fund (RLF) program has been established by the City of Kansas City, Missouri (City) and the U.S. Environmental Protection Agency (EPA) has awarded the City federal grant funds in the amount of $1,609,348.00 to capitalize the RLF under Federal Cooperative Agreement No. BF-97700901, including amendments thereto (EPA Cooperative Agreement), and the City has entered into a cooperative agreement with the EDC Loan Corporation of Kansas City, Missouri (EDLC) to administer RLF program loans; and

 

WHEREAS, the primary objective of the Kansas City RLF program is to provide alternative financing through low-interest loans and subgrants to fund cleanup actions on brownfield sites in the City that will lead to successful redevelopments and ancillary social and economic benefits to affected communities; and

 

WHEREAS, on June 10, 2013, the City’s Brownfields Commission adopted Resolution No. 003-013 recommending approval of the application of the Faxon School Apartments, LLC (“Faxon”) for a loan in the amount of $280,000.00 from the RLF program to abate asbestos containing materials and other hazardous substances from the former Faxon Elementary School (the “Project”), located at 3710 Paseo Boulevard, Kansas City, Missouri, subject to certain preconditions; and

 

WHEREAS, the first precondition, that the environmental impairments have been properly identified by applicant and can be appropriately managed has been met by the delivery of a Phase I environmental site assessment dated October 11, 2013; a Lead-Based Paint Survey dated July 10, 2013; an Asbestos Inspection Report dated July 9, 2013 and a Phase I addendum letter dated July 9, 2013 that indicates that no Phase II ESA is recommended; and

WHEREAS, the second precondition, that the applicant enroll the site into the Missouri Brownfields Voluntary Cleanup Program, enter into a Letter Agreement and deposit the fees required by the Missouri Department of Natural Resources to oversee the site response action has been satisfied by applicant; and

 

WHEREAS, the third precondition, that EPA provide confirmation that the federal requirements for borrower eligibility, site eligibility and the use of funds for the remediation of the subject property has substantially been met by the City’s transmittal of a completed site eligibility determination request to EPA on May 20, 2014; and

 

WHEREAS, pursuant to the fourth precondition, EDLC has reviewed all available financial information submitted by Faxon and provided a basic financial evaluation of the loan applicant and Project satisfactory to the City and the City’s Brownfields Commission; and

 

WHEREAS, Faxon has submitted financial information sufficient to indicate a source of funds to satisfy the twenty percent (20%) cost share requirement for the RLF loan, in an amount exceeding $56,000.00; and

 

WHEREAS, there remains an unobligated fund balance of $280,000.00 in the Brownfields RLF Grant account for loan assistance; and

 

WHEREAS, the City Brownfields Program in the Department of City Development shall continue to work with EPA and Faxon to ensure that the Project loan will comply with all applicable EPA and state requirements and will be ultimately funded only upon verified compliance with such requirements; NOW, THEREFORE,

 

BE IT ORDAINED BY THE COUNCIL OF KANSAS CITY:

 

Section 1. That the application of Faxon for a loan from the City in an amount not to exceed $280,000.00 for the Project is hereby approved and funded from funds previously appropriated in Account No. 15-2550-645020-B-G64BRLF, EPA-Brownfields Revolving Loan Fund, contingent on the full satisfaction of precondition three.

 

Section 2. That the Director of City Development is authorized to execute with Faxon the necessary loan documents to memorialize, issue and secure a loan, all in accordance with the terms and conditions of the City’s EPA Cooperative Agreement governing the RLF, upon full satisfaction of precondition three. A copy of the loan documents, approved in substantial form, is on file with the City Development Department.

 

Section 3. The Director of City Development is authorized to take such necessary further acts related to the loan documents, all consistent with this ordinance.

 

_____________________________________________

 

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:

 

 

___________________________________

Matthew Gigliotti

Assistant City Attorney