KC Skyline

City Clerk Web Search

Search the Ordinances:

Legislation #: 051482 Introduction Date: 12/1/2005
Type: Ordinance Effective Date: none
Sponsor: COUNCILMEMBER GLOVER
Title: Authorizing the Director of City Development to enter into an agreement on behalf of Kansas City, Missouri with the Tax Increment Financing Commission of Kansas City, Missouri and the Community Development Corporation of Kansas City, Missouri to provide funding for reimbursement of certain development costs within the Midtown Marketplace Tax Increment Financing Plan; and estimating and appropriating $176,700 from the fund balance of the Super-TIF Midtown Fund to provide the necessary funds to execute the agreement.

Legislation History
DateMinutesDescription
12/1/2005 Filed by the Clerk's office
12/1/2005 Referred to Finance Committee
12/14/2005 Advance and Do Pass, Debate
12/15/2005 Passed

View Attachments
FileTypeSizeDescription
051482.pdf Authenticated 179K Authenticated
fact sheet.xls Advertise Notice 60K fact sheet

Printer Friendly Version

ORDINANCE NO. 051482

 

Authorizing the Director of City Development to enter into an agreement on behalf of Kansas City, Missouri with the Tax Increment Financing Commission of Kansas City, Missouri and the Community Development Corporation of Kansas City, Missouri to provide funding for reimbursement of certain development costs within the Midtown Marketplace Tax Increment Financing Plan; and estimating and appropriating $176,700 from the fund balance of the Super-TIF Midtown Fund to provide the necessary funds to execute the agreement.

 

WHEREAS, the Tax Increment Financing Commission of Kansas City, Missouri (the TIF Commission) was created under the Real Property Tax Increment Financing Allocation Redevelopment Act, Sections 99.800 to 99.865, inclusive, of the Revised Statutes of Missouri, as amended (TIF Act), and by Ordinance No. 54556 of the City Council of Kansas City, Missouri, adopted on November 24, 1982, and repealed and amended by Committee Substitute for Ordinance No. 911076 adopted by the City Council of Kansas City, Missouri on August 29, 1991; and

 

WHEREAS, the City, by Committee Substitute for Ordinance No. 930066 passed April 1, 1993, as amended by Ordinance No. 941127 passed on August 25, 1994, approved the Midtown Redevelopment Tax Increment Financing Plan pursuant to the TIF Act and the City has further amended the original Midtown Redevelopment Tax Increment Financing Plan pursuant to Ordinance No. 950731 passed on June 8, 1995 (collectively, the Redevelopment Plan); and

 

WHEREAS, the Commission is authorized and empowered under the TIF Act to provide funds to pay the costs of redevelopment projects as defined in the TIF Act; and

 

WHEREAS, the City, by Committee Substitute for Ordinance No. 930065 passed October 27, 1994, approved the 40th and Mill Project (as described in Exhibit 1 of the Redevelopment Plan) and adopted tax increment financing in the area described therein to become effective at a future date; and

 

WHEREAS, the City, by Ordinance No. 950729 passed June 8, 1995, amended the legal description of the 40th and Mill Project and adopted tax increment financing in the amended area described therein to become effective at a future date; and

 

WHEREAS, tax increment financing became effective for the 40th and Mill Project by notice from the Commission to the City dated July 25, 1995 and received by the City Clerk on August 14, 1995; and

 

WHEREAS, the City, by Committee Substitute for Ordinance No. 930064 passed October 27, 1994, approved the Linwood Corridor Project (as described in Exhibit 1 of the Redevelopment Plan) and adopted tax increment financing in the area described therein to become effective at a future date; and

 

WHEREAS, the City, by Ordinance No. 950730 passed June 8, 1995, amended the legal description of the Linwood Corridor Project and adopted tax increment financing in the amended area described therein to become effective at a future date; and

 

WHEREAS, the City and the Commission requested the Missouri Development Finance Boards (the Board) assistance in the financing and refinancing of the remaining portion of the Redevelopment Project (the Redevelopment Project) through the issuance of the Boards Infrastructure Facilities Revenue Bonds (City of Kansas City, Missouri - Midtown Redevelopment Project) Series 2000A in the original aggregate principal amount of not to exceed $48,000,000.00 (the Series 2000A Bonds), the proceeds of which Series 2000A Bonds were applied to finance and refinance the Redevelopment Project; and

 

WHEREAS, the Community Development Corporation of Kansas City (CDCKC) has incurred approximately $1.3 million of project costs through development of Lot 3, within the Redevelopment Project area; and

 

WHEREAS, the City Council desires to provide financial assistance in the amount of $167,700 to offset a portion of CDCKCs development costs (CDCKCs Development Costs); and

 

WHEREAS, the bond documents for the Series 2000 A Bonds included a Tax Credit Enhancement Agreement between the City and the Board, which governs the use of incremental revenues deposited in excess of annual debt service into an Excess Redevelopment Project Revenue Fund (the Fund); and

 

WHEREAS, an annual allocation of accumulated monies within the Fund provides funding for both the Midtown Housing Program and a Supplemental Debt Service Reserve account held on the Citys books within the Super-TIF Midtown Fund; and

 

WHEREAS, the current balance of the Citys Supplemental Debt Service Reserve Account is currently estimated in excess of $2.3 million; and

 

WHEREAS, new businesses constructed on Lot 3 within the Redevelopment Project area will add additional incremental revenues to the Redevelopment Projects aggregate annual revenue stream, which are projected over time to repay the proposed $167,700 advance from the Citys Supplemental Reserve; and

 

WHEREAS, the most efficient means to certify and pay CDCKCs Development Costs is through a cooperative agreement between the City, TIF Commission and CDCKC; and

 

WHEREAS, the City has consulted with the executive director of the Board, who concurs with the reimbursement of these costs in this manner; and

 

WHEREAS, TIF Commission expenses under the provisions of the agreement are estimated to cost $9,000 for services including: cost certification, but for analysis, staff and legal time; NOW THEREFORE,

 

BE IT ORDAINED BY THE COUNCIL OF KANSAS CITY:

 

Section 1. That the Director of City Development is authorized on behalf of Kansas City, Missouri to enter into an agreement with the TIF Commission and the Community Development Corporation of Kansas City providing for the reimbursement of certain development costs totaling $167,700 for improvements to Lot 3 within the Redevelopment Project Area, which is approved in substantial form as the agreement attached hereto as Exhibit A and TIF Commission expenses of $9,000.

 

Section 2. That the sum of $176,700 is hereby appropriated from the Unappropriated Fund Balance of the Super TIF Midtown Fund to the following account:

 

06-5180-642160-B CDCKC Development Costs $176,700.00

 

Section 3. That the Director of the City Development Department is hereby designated as requisitioning authority for Account No. 06-5180-642160.

 

_____________________________________________

 

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.

 

 

___________________________________

Debra R. Hinsvark

Director of Finance

 

Approved as to form and legality:

 

 

___________________________________

Heather A. Brown

Assistant City Attorney