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Legislation #: 040891 Introduction Date: 7/29/2004
Type: Ordinance Effective Date: none
Sponsor: None
Title: Approving a plan for industrial development for the purpose of carrying out an industrial development project including the improving, reconstructing and equipping of a facility and lease of the facility to Bayer CropScience, LP for an industrial chemical facility located at 8400 Hawthorne Road, Kansas City, Missouri.

Legislation History
DateMinutesDescription
7/29/2004

Prepare to Introduce

7/29/2004

Referred Finance Committee

8/4/2004

Referred Operations Committee

8/11/2004

Advance and Do Pass as a Committee Substitute

8/12/2004

Passed as Substituted


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COMMITTEE SUBSTITUTE FOR ORDINANCE NO. 040891

 

Approving a plan for industrial development for the purpose of carrying out an industrial development project including the improving, reconstructing and equipping of a facility and lease of the facility to Bayer CropScience, LP for an industrial chemical facility located at 8400 Hawthorne Road, Kansas City, Missouri.

 

WHEREAS, the City of Kansas City, Missouri, a constitutional charter city and municipal corporation of the State of Missouri (the "City") is authorized and empowered pursuant to Article VI, Section 27 of the Missouri Constitution, as amended, and Section Sections 100.010 through 100.200, inclusive, of the Revised Statutes of Missouri, as amended, and the Charter of Kansas City (collectively, the "Act") to issue revenue bonds for the purpose of carrying out certain projects for industrial development and to enter into a lease of facilities financed with the proceeds of such revenue bonds with any person, firm or corporation; and

 

WHEREAS, the City has engaged the Economic Development Corporation (EDC) to assist in the marketing, attraction, retention and expansion of existing business, and to attract new business to Kansas City, Missouri; and

 

WHEREAS, the City Council, pursuant to the Act, would issue and sell industrial revenue bonds in an amount not to exceed $40,000,000 ("Bonds"), whereby BCS CropScience, LP,, a Delaware limited partnership (BCS) would use the proceeds of such Bonds to physically improve, reconstruct and equip a chemical plant for purposes of producing a broad spectrum fungicide at 8400 Hawthorne Road (the Project); and

 

WHEREAS, according to its policy relating to the issuance of industrial development bonds (the Chapter 100 Policy), the City will permit fifty (50) percent tax abatement on real and personal property for a period of ten (10) years; and

 

WHEREAS, the Chapter 100 Policy requires that BCS make contract payments in lieu of taxes over a ten year period to the affected taxing jurisdictions ("PILOT Payments"), which PILOT Payments would normally be equal to fifty percent (50%) of the real and personal property taxes that would have been due for such period of ten (10) years as the result of the development of the Project; and

 

WHEREAS, the City desires to modify its Chapter 100 Policy as to this Project so that BCS would receive 100% tax abatement on the personal property and zero percent tax abatement on the real property for a period of ten years; and

 

WHEREAS, upon approval of the Bonds, BCS shall receive personal property tax abatement on the Project in an amount of one hundred percent (100%) of the personal property tax that would have been paid on the Project except for the approval of the Bonds and no tax abatement over the ten year period with respect to real property taxes; and

 

WHEREAS, the City, in Ordinance No. 040123, has previously authorized a preliminary agreement to allow the Project to proceed with the acquisition of equipment and materials on a tax exempt basis; NOW, THEREFORE,

 

BE IT ORDAINED BY THE COUNCIL OF KANSAS CITY:

 

Section 1. That the Council hereby finds and determines that the Project will promote the economic well-being and industrial development of Kansas City, Missouri, and the issuance of the Bonds to pay the costs of the Project will be in furtherance of the public purposes set forth in the Act


and the Project will promote the welfare of the City and its inhabitants.

 

Section 2. That the City Attorney, the Director of City Development and the Director of Revenue are authorized and directed to negotiate with the appropriate officials of BCS and, in consultation with the EDC, prepare the necessary documents for the issuance of the Bonds, the construction of the Project and the purchasing of equipment for the Project ("Bond Plan"), and any other documents, for final presentation to and approval by the Council.

 

Section 3. That the Council hereby deviates from its Chapter 100 Policy, as to this Project, so that BCS shall receive personal property tax abatement on the Project in an amount of one hundred (100%) percent of the personal property tax that would have been paid on the Project except for the approval of the Bonds, and no tax abatement on the real property.

 

Section 4. That the Bonds and the Bond Plan shall provide that BCS shall receive one hundred percent (100%) tax abatement over a ten year period with respect to personal property taxes.

 

Section 5. That Council reaffirms the authority granted to the Director of City Development in Ordinance No. 040123 to execute a preliminary agreement for the construction and acquisition and a sales tax exemption certificate in connection with the agreement to provide for the purchase of equipment for the Project. The agreement is approved in substantial form as the agreement on file with the Director of City Development.

 

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Approved as to form and legality:

 

 

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Heather A. Brown

Assistant City Attorney