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Legislation #: 140530 Introduction Date: 7/10/2014
Type: Ordinance Effective Date: none
Sponsor: None
Title: Accepting the recommendations of the Tax Increment Financing Commission as to the Eighth Amendment to the 1200 Main/South Loop Tax Increment Financing Plan; approving the Eighth Amendment to the 1200 Main/South Loop Tax Increment Financing Plan; authorizing the execution of various agreements related to the implementation of the Eighth Amendment to the 1200 Main/South Loop Tax Increment Financing Plan; and directing the City Clerk to transmit copies of this ordinance.

Legislation History
DateMinutesDescription
7/8/2014 Filed by the Clerk's office
7/10/2014 Referred to PZ&E and Finance & Governance
7/16/2014 Do Pass
7/17/2014 Assigned to Third Read Calendar
7/24/2014 Councilmember Ford (Second by Wagner) Move To Hold On Docket
7/24/2014 Held on Docket (7/31/2014)
7/31/2014 Councilmember Ford (Second by Wagner) Move To Hold On Docket
7/31/2014 Held on Docket (8/14/2014)
8/14/2014 Councilmember Ford (Second by Wagner) Move to Amend
8/14/2014 Passed as Amended

View Attachments
FileTypeSizeDescription
140530.pdf Authenticated 408K Authenticated
140530 Fact Sheet.pdf Fact Sheet 197K Fact Sheet
1200 MainSouth Loop TIF Plan - 8th Amendment).pdf TIF Plan 15451K 1200 Main/South Loop TIF Plan - 8th Amendment
1200 Main-South Loop TIF - 8th Amendment - staff report (00169344xA7821).pdf Staff Report 263K 1200 Main/South Loop TIF Plan - 8th Amendment
1200 Main-South Loop TIF Plan - 8th Amendment - Request For (1200 Main-South Loop TIF Plan - 8th Amendment - Request For Ordinance (00169338xA7821)xA7821).docx Request for Ordinance 20K 1200 Main/South Loop TIF Plan - 8th Amendment

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ORDINANCE NO. 140530, AS AMENDED

 

Accepting the recommendations of the Tax Increment Financing Commission as to the Eighth Amendment to the 1200 Main/South Loop Tax Increment Financing Plan; approving the Eighth Amendment to the 1200 Main/South Loop Tax Increment Financing Plan; authorizing the execution of various agreements related to the implementation of the Eighth Amendment to the 1200 Main/South Loop Tax Increment Financing Plan; and directing the City Clerk to transmit copies of this ordinance.

WHEREAS, the City Council created the Tax Increment Financing Commission of Kansas City, Missouri (the “Commission”) pursuant to the Real Property Tax Increment Allocation Redevelopment Act, Sections 99.800 to 99.865 of the Revised Statutes of Missouri (the “Act”); and

 

WHEREAS, the City Council accepted the recommendations of the Commission, approved the 1200 Main/South Loop Tax Increment Financing Plan (the "Plan") and designated a Redevelopment Area by passage of Committee Substitute for Ordinance No. 040154; and 

 

WHEREAS, the Plan has previously been amended seven times; and

 

WHEREAS, an eighth amendment to the Plan (“Eighth Amendment”) was proposed to the Commission and the Commission, having been duly constituted and its members appointed, after proper notice was given, met in public hearing, and after receiving the comments of all interested persons and taxing districts, closed the public hearing and recommended that the City Council approve the Eighth Amendment; and 

 

WHEREAS, the Eighth Amendment recommended by the Commission proposes to (i) expand the boundaries of the Redevelopment Area to include Phase 2 of Redevelopment Project Area 3 (Hotel President), (ii) modify the legal description for Redevelopment Project Area 3, (iii) provide for the construction of a 475 stall parking garage, along with approximately 52 residential units and 6,700 square feet of commercial retail space, in Phase 2 of Redevelopment Project Area 3, (iv) update specific objectives for improvements in Phase 2 of Redevelopment Project Area 3, (v) update estimated Redevelopment Project Costs related to Phase 2 of Redevelopment Project Area 3, (vi) update the development schedule for Phase 2 of Redevelopment Project Area 3, (vii) update projections for TIF Revenues within Redevelopment Project Area 3, (viii) update the sources of funds for the financing of Phase 2 of Redevelopment Project Area 3, (ix) update the cost/benefit analysis of Phase 2 of Redevelopment Project Area 3, (x) update the blight study for Phase 2 of Redevelopment Project Area 3, (xi) and make other supplements or amendments to the Exhibits described above, and was approved by the Commission on June 11, 2014; and

 

WHEREAS, the City Council desires to make certain modifications to the Eighth Amendment, which shall include certain revisions the Budget of Redevelopment Project Costs and the Sources of Funds to pay such Redevelopment Project Costs (the “Eighth Amendment Modifications”); and

 

WHEREAS, notice of the Eighth Amendment Modifications was provided in accordance with the Act, and the Eighth Amendment, along with the Eighth Amendment Modifications, were made available for the public to review prior to the passage of this Ordinance No. 140530, As Amended; NOW, THEREFORE,

 

BE IT ORDAINED BY THE COUNCIL OF KANSAS CITY:

 

Section 1. That the recommendation of the Commission concerning the Eighth Amendment are hereby accepted and the Eighth Amendment, along with the Eighth Amendment Modifications (as described in the recitals above), is hereby approved and adopted as valid.

 

Section 2. All terms used in this ordinance, not otherwise defined herein shall be construed as defined in the Act.

 

Section 3. That the City Council hereby finds that good cause has been shown for the amendment of the Plan and that the findings of the City Council with regard to each of the previous amendments are not affected by the Eighth Amendment and apply equally to the Eighth Amendment.

 

Section 4. That in accordance with the recommendations of the Commission, the City Council hereby finds that:

 

(a)  The Redevelopment Area as a whole is an economic development area, as defined in Section 99.805(5) of the Act, has not been subject to growth and development through investment by private enterprise, and would not reasonably be anticipated to be developed without the adoption of the Redevelopment Plan. The area is blighted and with defective or inadequate street layout; unsanitary or unsafe conditions including broken glass, trash, damaged awnings, exposed wiring, broken windows, possible contaminated drums, and conditions conducive to vermin); deterioration of site improvements (physical or functional); improper subdivision or obsolete platting and existence of conditions that endanger life or property by fire or other causes (including a history of vandalism, trespassing and fires, broken glass, mold, decaying floors and rusting structural beams) as evidenced by excess vacancies, age of buildings (75% of the buildings in the Redevelopment Area are over 65 years old), lack of parking, inability of the buildings within the Redevelopment Area to pay reasonable taxes and declining property values.

 

(b) The Redevelopment Area has not been subject to growth and development through investment by private enterprise and would not reasonably be anticipated to be developed without the adoption of the Eighth Amendment.

 

(c) The Eighth Amendment conforms to FOCUS and Downtown Land Use and Development Plan, together, the comprehensive plan for the development of the City as a whole.

 

(d) The areas selected for Redevelopment Projects include only those parcels of real property and improvements thereon which will be directly and substantially benefited by the Redevelopment Project improvements.

 

(e) The estimated dates of completion of the respective Redevelopment Projects and retirement of obligations incurred to finance Redevelopment Project Costs, have been stated in the Redevelopment Plan and the Eighth Amendment, and are not more than 23 years from the adoption of any ordinance approving a Redevelopment Project within the Redevelopment Area.

 

(f) A plan has been developed for relocation assistance for businesses and residences.

 

(g) A cost-benefit analysis showing the impact of the Eighth Amendment on each taxing district at least partially within the boundaries of the Redevelopment Area has been prepared in accordance with the Act.

 

(h) The Eighth Amendment does not include the initial development or redevelopment of any gambling establishment.

 

(i) A blight study has been completed and the findings of such study satisfy the requirements provided under subdivision (1) of Section 99.805, RSMo.

 

Section 5. That the Commission is authorized to issue obligations in one or more series of bonds secured by the 1200 Main/South Loop Tax Increment Financing Plan Account of the Special Allocation Fund to finance Redevelopment Project Costs within the Redevelopment Area and subject to any constitutional limitations, to acquire by purchase, donation, lease or eminent domain, own, convey, lease, mortgage, or dispose of, land or other property, real or personal, or rights or interests therein, and grant or acquire licenses, easements and options with respect thereto, all in the manner and at such price the Commission determines, to enter into such contracts and take all such further actions as are reasonably necessary to achieve the objectives of the Redevelopment Plan pursuant to the power delegated to it. Any obligations issued to finance Redevelopment Project Costs shall contain a recital that they are issued pursuant to Sections 99.800 to 99.865 of the Act, which recital shall be conclusive evidence of their validity and of the regularity of their issuance.

 

Section 6. That the City Council approves the pledge of all funds that are deposited into the 1200 Main/South Loop Account of the Special Allocation Fund to the payment of Redevelopment Project Costs within the Redevelopment Area and authorizes the Commission to pledge such funds on its behalf. 

 

Section 7. That the powers granted to the Commission as codified in Sections 74-51 to 74-61, Code of Ordinances, to enter into a Redevelopment Agreement with a developer for the implementation of the Eight Amendment, including the Eighth Amendment Modifications, to the 1200 Main/South Loop Tax Increment Financing Plan shall be subject to and conditioned upon such Redevelopment Agreement including the following conditions precedent to its effectiveness:

 

(a)    The execution of a Funding Agreement between the City and the Commission, in a form acceptable to the Director of Finance;

 

(b)   The execution of a Parking Agreement between the developer (or one or more of its affiliates) and the President Development Group, Inc. and President Hotel, LC, in a form acceptable to the Director of Finance;

 

(c) The execution of a Contribution Agreement between the Commission, the County of Jackson County, Missouri and the developer (or one or more of its affiliates);

 

(d) The execution of an Amended and Restated Cooperative Agreement among the City, President Development Group, Inc. and President Hotel, LC, in a form acceptable to the Director of Finance;

 

(e) The receipt of a performance guaranty in a form acceptable to the Director of Finance; and

 

(f) A provision that no amendment to the Redevelopment Agreement that affects items (a) (e) of this Section 7 shall be deemed effective unless and until the City, by resolution, consents to such amendment. 

 

Section 8. That the Director of Finance is authorized to execute, without further City Council approval, any agreement the execution of which is listed as a condition precedent to the effectiveness of the Redevelopment Agreement as set forth in Section 7.

 

Section 9. That the City Clerk shall send a copy of this ordinance to the County Clerk and County Executive of Jackson County, Missouri.

 

_____________________________________________

 

Approved as to form and legality:

 

 

______________________________

Brian Rabineau

Assistant City Attorney