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Legislation #: 200986 Introduction Date: 11/12/2020
Type: Ordinance Effective Date: 2/19/2021
Sponsor: COUNCILMEMBERS FOWLER, HALL, LOAR AND O'NEILL
Title: Estimating and appropriating $1,430,000.00 in the Capital Improvements Sales Tax Fund from the 19th Amendment of the KCI Corridor Tax Increment Financing plan for land acquisition; reducing revenue estimates and appropriations in the Special Obligation Series 2021A Bond Fund; establishing Fund No. 3444; estimating revenue and appropriating bond proceeds for the purpose of constructing the North Sports Complex; authorizing the City Manager to execute a $18,130,000.00 cooperative agreement with Sporting Fields Northland, LLC (“SFN”) for the design, construction, maintenance and operation of the North Sports Complex; authorizing the City Manager to execute other related agreements; authorizing the Director of Public Works to execute a $150,000.000 agreement for project management services; authorizing the City Manager to negotiate a revenue sharing clause under this cooperative agreement; authorizing the City Manager to negotiate an amendment to City’s cooperative agreement regarding operating and maintenance shortfalls at Swope Soccer Village; authorizing the Director of Finance to close project accounts upon completion; and recognizing this ordinance as having an accelerated effective date.

Legislation History
DateMinutesDescription
11/12/2020 Filed by the Clerk's office
11/12/2020 Referred to Transportation, Infrastructure and Operations Comm
12/1/2020 Hold On Agenda (12/9/2020)
12/9/2020 Hold On Agenda (1/6/2021)
1/6/2021 Hold On Agenda (1/13/2021)
1/13/2021 Hold On Agenda (1/20/2021)
1/27/2021 Hold On Agenda (2/3/2021)
2/10/2021 Hold On Agenda (2/17/2021)
2/17/2021 Advance as a Committee Substitute without recommendation
2/18/2021 Councilmember Bunch (Second by Shields) Move to Amend
2/18/2021 Failed
2/18/2021 Councilmember Shields (Second by Parks-Shaw) Move to Amend
2/18/2021 Failed
2/18/2021 Councilmember McManus (Second by Fowler) Move to Amend
2/18/2021 Councilmember McManus (Second by Fowler) Move to Advance
2/18/2021 Passed as Substituted and Amended

View Attachments
FileTypeSizeDescription
200986.pdf Authenticated 256K Authenticated Ordinance
Public Testimony 200986-Michael Fealey.pdf Other 14K Public Testimony-Michael Fealey
Public Testimony 200986-Edward Taylor.pdf Other 134K Public Testimony-Edward Taylor
Public Testimony 200986-Carla Killen.pdf Other 124K Public Testimony-Carla Killen
Public Testimony 200986-Amy Freeberg.pdf Other 118K Public Testimony-Amy Feeberg
Public Testimony 200986-Derrick Robison.pdf Other 126K Public Testimony-Derrick Robison
Northland Sporting Complex PPT Presentation (910429xA006D).pptx Other 6200K Northland Sports Complex PP
Public Testimony 200986-Michaela Wilmore.pdf Other 59K Public Testimoy-Michaela Wilmore
Public Testimony 200986-Coach Ben Keefe.pdf Other 169K Public Testimony-Ben Keefe
Public Testimony 2000986-Devon Pasley.pdf Other 124K Public Testimony-Devon Pasley
CS 200986 Fiscal Note.pdf Fiscal Note 129K Fiscal Note
CS 200986 Fact Sheet.pdf Fact Sheet 147K Fact Sheet
Public Testimony 200986-Justin Barton.pdf Other 415K Public Testimony 200986-Justin Barton

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COMMITTEE SUBSTITUTE FOR ORDINANCE NO. 200986

 

Estimating and appropriating $1,430,000.00 in the Capital Improvements Sales Tax Fund from the 19th Amendment of the KCI Corridor Tax Increment Financing plan for land acquisition; reducing revenue estimates and appropriations in the Special Obligation Series 2021A Bond Fund; establishing Fund No. 3444; estimating revenue and appropriating bond proceeds for the purpose of constructing the North Sports Complex; authorizing the City Manager to execute a $18,130,000.00 cooperative agreement with Sporting Fields Northland, LLC (“SFN”) for the design, construction, maintenance and operation of the North Sports Complex; authorizing the City Manager to execute other related agreements; authorizing the Director of Public Works to execute a $150,000.000 agreement for project management services; authorizing the City Manager to negotiate a revenue sharing clause under this cooperative agreement; authorizing the City Manager to negotiate an amendment to City’s cooperative agreement regarding operating and maintenance shortfalls at Swope Soccer Village; authorizing the Director of Finance to close project accounts upon completion; and recognizing this ordinance as having an accelerated effective date.

 

WHEREAS, Resolution No. 190192 directed the City Manager to investigate potential sources of funding for the development of a new Northland youth soccer/multisport field complex and the City Manager has identified the source of funds to proceed with the development of a new 12- field sports complex; and

 

WHEREAS, Committee Substitute for Ordinance No. 190485, As Amended, directed the City Manager to issue a Request for Information and a Request for Proposals/Qualifications for the design, construction, operation and maintenance of a new 12-field sports complex in the City’s Northland; and

 

WHEREAS, the City issued a Request for Information and a Request for Proposals/Qualifications for the design, construction, operation and maintenance of the Northland soccer complex and the City received two responses and selected Sporting Fields Northland, LLC. for the Project; and

 

WHEREAS, Section 5 of Committee Substitute for Ordinance No. 190485, As Amended, stated that prior to the execution of a contract with a selected developer, the City Manager is directed to present to Council a financing plan identifying the specific sources of funding; and

 

WHEREAS, Committee Substitute for Ordinance No. 200094, As Amended, approved the plan of finance to include $1,000,000.00 from 2nd district PIAC committed over a term of four years, $17,000,000.00 from the KCI Corridor Tax Increment Financing Plan, and an amount not to exceed $25,000,000.00 from City Special Obligation Bonds, Series 2021A; and

 

WHEREAS, Ordinance No. 200462 established the Twin Creeks Village West Community Improvement District (the “CID”) that provides that fifty percent (50%) of the CID revenue actually collected will be distributed as directed by the City as reimbursable CID costs for Sports Complex Turf Replacement to be held and maintained for the future replacement of the turf for the soccer fields and an agreement between the City and the CID will formalize the distribution of revenue from the CID; and

 

WHEREAS, Committee Substitute for Ordinance No. 200596 approved an MPD Development Plan that serves as a preliminary plat for a mixed use development, including commercial, residential, civic, office, school and recreational (multi-purpose athletic sports complex) uses; and

 

WHEREAS, the City Council accepted the Nineteenth Amendment to the KCI Corridor Tax Increment Financing Plan pursuant to Ordinance No. 200204. Included in that plan amendment is the allocation of $17,000,000.00 for construction of the North Sports Complex, of which the Tax Increment Financing Commission will contribute $1,430,000.00 toward land acquisition for the project site as provided for in the Funding Agreement between the TIF Commission and the City as authorized herein; and

 

WHEREAS, the Second District has already allocated $470,000.00 in the Platte Purchase Multisport CP project in fiscal year 2020-21 appropriations to cover a portion of the commitment; and

 

WHEREAS, since the passage of Ordinance No. 200094, As Amended, the scope of the project has been reduced to the development of a new 10- field sports complex for a total cost of $36 million, reducing the City’s obligation to $19 million to be funded with a combination of Special Obligation Bonds to be issued in Fiscal Year 2021-22 in the approximate amount of $16,530,000 and cash appropriations from the Capital Improvements Sales Tax in FY2020-21 (in-district - $470,000), FY2021-22 (citywide - $1,000,000 and in-district - $1,000,000) totaling $2,470,000; and

 

WHEREAS, the Taxable Special Obligation Bonds will be secured by the City’s annual appropriation pledge with Capital Improvements Sales Taxes from expiring TIF’s in Platte and Clay Counties as the source of repayment plus an additional commitment from the Second District for an annual allocation of Second District In-District PIAC funds in the amount of $1,000,000.00 for two years beginning in Fiscal Year 2022-23 pursuant to the attached Plan of Finance for the Project; and

 

WHEREAS, the City desires to enter into this Agreement with SFN to construct, maintain, and operate a sports complex and facilities on the Premises, on behalf, and for the benefit of, the City in accordance with the terms and conditions contained in this Agreement and with an effective date of May 1, 2021; and

 

WHEREAS, SFN and/or its agent shall contract for the design and construction of the Sports Complex Improvements and SFN will pay for said design and construction services with funds received from City; and

 

WHEREAS, SFN or its contractors shall have full and complete authority, to select all subcontractors and service providers necessary for fulfillment of its obligations under this Agreement; and

 

WHEREAS, SFN and its contractors agree to comply with the City’s Affirmative Action Policy, 1% for Art Program, MBE/WBE, Workforce Policy, ADA, Prevailing Wage, Three-Party Payment and Performance Bonds, Certification of Costs and Reimbursement Policy; and

 

WHEREAS, the City’s Fairness in Construction Board set goals of 10% MBE and 5% WBE participation for the Northland Soccer Project; and

 

WHEREAS, all monies derived from the operation of the North Sports Complex, including without limitation any licenses, leases, concessions or user fees, retail sales, tickets and admission fees, shall be retained by SFN and used to, among other things, defray North Sports Complex operating and maintenance expenses; and

 

WHEREAS, SFN is granted the exclusive right to sell sponsorships, advertising and other marketing assets at the North Sports Complex and revenues derived from sponsorships related to the North Sports Complex shall be retained by SFN; NOW, THEREFORE,

 

BE IT ORDAINED BY THE COUNCIL OF KANSAS CITY:

 

Section 1. That revenue in the amount of $1,430,000.00 is hereby estimated in the following account in the Capital Improvement Sales Tax Fund:

 

21-3090-890001-485380-89023021 Reimbursement from TIF

Commission $1,430,000.00

 

Section 2. That the sum of $1,430,000.00 is appropriated from the Unappropriated Fund Balance of the Capital Improvement Sales Tax Fund to the following account:

 

21-3090-895912-B-89023021 Platte Purchase Multisport

Complex Land Acquisition $1,430,000.00

 

Section 3. That the revenue in the following account of the Special Obligation Series 2021A Fund is hereby reduced by the following amount:

 

AL-3441-120000-590000 Bond Proceeds $25,200,000.00

 

 

Section 4. That the sum of $25,200,000.00 in appropriations in the Special Obligation Series 2021A Fund is hereby reduced in the following accounts:

 

AL-3441-108042-B-70204958 Kansas City North Sports

Complex $25,000,000.00

AL-3441-129620-B Costs of Issuance 200,000.00

TOTAL $25,200,000.00

 

Section 5. Establishing Fund No. 3444, the Taxable Special Obligation Series 2022 Bond Fund on the books and the records of the City of Kansas City, Missouri.

 

Section 6. That the revenue in the following account of the Taxable Special Obligation Series 2022 Bond Fund is hereby estimated in the following amount:

 

AL-3444-120000-590000 Bond Proceeds $16,530,000.00

 

Section 7. That the sum of $16,530,000.00 is hereby appropriated from the Unappropriated Fund Balance of the Taxable Special Obligation Series 2022 Bond Fund to the following accounts:

 

AL-3444-898042-E-89023021 Platte Purchase Multisport

Complex $15,660,000.00

AL-3444-898042-E-89023021 Project Management 150,000.00

AL-3444-898042-E-89023021 Land Acquisition 720,000.00

TOTAL $16,530,000.00

 

Section 8. Authorizing the City Manager to execute a $18,130,000.00 cooperative agreement with Sporting Fields Northland, LLC (“SFN”) for the design, construction, maintenance and operation of the North Sports Complex payable from funds appropriated or to be appropriated in the following accounts:

 

21-3090-898204-B-89023021 $ 470,000.00

22-3090-898204-B-89023021 1,000,000.00 (in-district)

22-3090-898042-B-89023021 1,000,000.00 (Citywide)

AL-3444-898042-E-89023021 15,660,000.00 (bond proceeds)

TOTAL $18,130,000.00

 

Section 9. That the Director of Public Works is authorized to execute a contract not to exceed $150,000.00 for project management services related to the design, construction, maintenance and operation of the North Sports Complex payable from Account No. AL-3444-898042-E-89023021.

 

Section 10. That the Director of Public Works is hereby designated as requisitioning authority for Account Nos. 21-3090-895912, 21-3090-898204, 22-3090-898204, 22-3090-898042, and AL-3444-898042.

 

Section 11. That the City Council shall approve any amendments to this agreement that increase or decrease the amount of funding and/or scope of services.

 

Section 12. Authorizing the City Manager to execute an agreement between the City and the Tax Increment Financing Commission for the purpose of funding a portion of the land acquisition for the project site in the amount of $1,430,000.00.

 

Section 13. Authorizing the City Manager to execute an agreement between the City and the Twin Creeks Village West Community Improvement District for the purpose of providing 50% of the anticipated CID sales tax for future capital maintenance of the project, including, but not limited to, turf/field replacement.

 

Section 14. That the Director of Finance is hereby authorized to close project accounts, encumbrances and retainage related to the accounts in Sections 8 and 9, and return the unspent portion to the fund balance from which it came upon the earliest of: (i) Project’s completion; (ii) final maturity of financing, or (iii) five years after issuance.

 

Section 15. Authorizing the City Manager to negotiate with SFN a profit sharing clause under this Cooperative Agreement consistent with mutually acceptable revenue sharing models for athletic sports complexes of this size and nature.

 

Section 16. Authorizing the City Manager to negotiate an amendment to the Cooperative Agreement with Soccer Village Properties to mitigate or eliminate the City’s operating and maintenance shortfall and to extend the management agreement associated with the Soccer Village at Swope Park. Such amendment must be completed prior to provision of the sales tax exemption on construction materials to SFN or assigns, pursuant to Exhibit C-3 Design Build General Conditions, Article 6.08 Legal Requirements, Paragraph M, entitled “Missouri Sales Tax Exemption.”

 

Section 17. That this ordinance, appropriating money, is recognized as an ordinance with an accelerated effective date as provided by Section 503(a)(3)(C) of the City Charter and shall take effect in accordance with Section 503 of the 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.

 

 

___________________________________

Tammy L. Queen

Director of Finance

 

Approved as to form and legality:

 

 

___________________________________

Mark P. Jones

Assistant City Attorney