ORDINANCE NO. 120198
Authorizing execution of a First
Amendment to Contract No. 07064 between the City of Kansas City (“City”),
Beacon Hill Developers, LC (“Developer”) and the Economic Development
Corporation of Kansas City (“EDC”) for continued development of the Beacon Hill
Development and approval to submit the amendment as the primary development
agreement for the Beacon Hill Development.
WHEREAS, on or
about October 17, 2006, the three original parties, including the City, the
Beacon Hill Developers, and the Kansas City, Missouri Homesteading Authority
entered into a Development Contract (“Development Contract”) for the Beacon
Hill Redevelopment Area and have been acting in partnership under said Contract
for the last five and one-half years; and
WHEREAS, several
parcels of property in Beacon Hill are owned by the Housing and Economic
Development Financial Corporation (“HEDFC”), the City’s former subrecipient,
which is currently operating under the management of a court-appointed receiver
pursuant to a complaint filed by the City against HEDFC in the U.S. District
Court for the Western District of Missouri in Case No. 4:05-CV-00368-GAF; and
WHEREAS, on
January 6, 2011, the Court in the above referenced case issued an Order and
Directions for Termination of Receivership for the transfer and disposition of
HEDFC assets (“Termination Order”) which included direction for the City to
complete and execute a performance agreement pertaining to Beacon Hill; and
WHEREAS, it is
the desire of the City and the Developer to amend the October 17, 2006,
Development Contract in order to update the scope of services and to correlate
with the amended Chapter 353 Redevelopment Contract of March 30, 2010, between
the City and the Developer, which was approved by Committee Substitute for
Ordinance No. 090947; and
WHEREAS, in
order to implement the Termination Order, on May 24, 2011, the City entered
into the Re-Build Kansas City Neighborhoods Implementation, Loan Servicing and
Administration Contract with the EDC and its agencies: the Land Clearance for
Redevelopment Authority of Kansas City, Missouri, the EDC Charitable Fund and
the EDC Loan Corporation in order for the contractors to manage and maintain
the former assets of HEDFC, including the land in Beacon Hill; and
WHEREAS, EDC
desires to enter into this contract amendment for the primary purpose of
property management services, as it is currently performing pursuant to the
Re-Build Kansas City contract, replacing the Kansas City, Missouri Homestead
Authority; and
WHEREAS, the
City, Developer and EDC desire to enter into the contract amendment to
implement the redevelopment activities described herein; NOW, THEREFORE,
BE IT ORDAINED BY THE COUNCIL OF
KANSAS CITY:
Section 1. That
the City Manager, or his designee, is hereby authorized to enter into a First
Amendment to Contract No. 07064 with the Beacon Hill Developers, LC and the
Economic Development Corporation of Kansas City Development for continued
development of the Beacon Hill Development.
Section 2. That
the First Amendment, in substantial form, includes a revised scope of services
and development milestones for the following activities: Completion of
infrastructure improvements in the NW Quadrant by the City, development of
twenty- eight single family homes along Tracy Avenue by a subdeveloper selected
by the EDC and City, proposed development of a 250-unit graduate student
housing complex at 23rd and Troost, proposed development of a grocery store at
27th and Troost, continued development of housing throughout the Beacon Hill Development
as the market demands, and a revised development fee schedule based on project
accomplishments.
Section 3. That
this First Contract Amendment be submitted to the U.S. Department of Housing
and Urban Development (“HUD”) Region 7 Office for approval as the primary
development agreement for the Beacon Hill Development.
_____________________________________________
Approved as to
form and legality:
________________________________
Nicole Rowlette
Assistant City
Attorney