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Legislation #: 961433 Introduction Date: 11/14/1996
Type: Ordinance Effective Date: 12/1/1996
Sponsor: None
Title: Approving the issuance of Variable Rate Demand Infrastructure Facilities Revenue Bonds in a principal amount not to exceed $19,500,000.00 (Kansas City, Missouri - Midtown Redevelopment Project), Series 1996, by the Missouri Development Finance Board; approving and authorizing the City to enter into certain documents; and authorizing the City to take certain other actions in connection therewith and directing the City Clerk to file the Cooperative Agreement.

Legislation History
DateMinutesDescription
11/14/1996

Prepare to Introduce

11/14/1996

Referred Finance & Administration Committee

11/20/1996

Advance and Do Pass as a Committee Substitute

11/21/1996

Passed


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COMMITTEE SUBSTITUTE FOR ORDINANCE NO. 961433

 

Approving the issuance of Variable Rate Demand Infrastructure Facilities Revenue Bonds in a principal amount not to exceed $19,500,000.00 (Kansas City, Missouri - Midtown Redevelopment Project), Series 1996, by the Missouri Development Finance Board; approving and authorizing the City to enter into certain documents; and authorizing the City to take certain other actions in connection therewith and directing the City Clerk to file the Cooperative Agreement.

 

WHEREAS, the Tax Increment Financing Commission of Kansas City, Missouri ("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("TIF Act"), and by Ordinance No. 54556 of the City Council of Kansas City, Missouri, adopted on November 24, 1982, and repealed and amended by Committee Substitute for Ordinance No. 911076 adopted by the City Council of Kansas City, Missouri on August 29, 1991; and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 of Kansas City, Missouri ("City"), by Committee Substitute for Ordinance No. 930066 passed by the City Council on 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 City, by Committee Substitute for Ordinance No. 930064 passed by the City Council on 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 Committee Substitute for Ordinance No. 930065 passed by the City Council on 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 by the City Council on June 8, 1995, amended the legal description of the 40th and Mill Redevelopment Project and adopted tax increment financing in the amended area described therein to become effective at a future date; and

 

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

 

WHEREAS, the Commission and Midtown Redevelopment Corporation, a Missouri corporation, as the developer under the Redevelopment Plan ("Developer"), have entered into an Agreement dated October 13, 1994 (as amended and supplemented from time to time, the "Redevelopment Agreement"); and

 

WHEREAS, the Missouri Development Finance Board ("Board") is authorized and empowered under the Missouri Development Finance Board Act, Sections 100.250 to 100.297, inclusive, of the Revised Statutes of Missouri, as amended ("MDFB Act"), to issue revenue bonds for the purpose of providing funds to finance and refinance the costs of certain "projects" as defined in the MDFB Act and to pay certain costs related to the issuance of such revenue bonds; and

 

WHEREAS, the Board is authorized by the MDFB Act to enter into agreements with the City and the Commission to provide funds to pay the costs of projects; and

 

WHEREAS, the City and the Commission have requested that the Board issue its Variable Rate Demand Infrastructure Facilities Revenue Bonds (Kansas City, Missouri - Midtown Redevelopment Project) Series 1996 in an aggregate principal amount not to exceed $19,500,000 ("Bonds") for the purpose of providing funds to finance certain Redevelopment Costs (as defined in the herein authorized Financing Agreement) and pay certain costs related to the issuance of the Bonds, all as more fully defined and described hereinafter; and

 

WHEREAS, the City Council further finds and determines that in order to accomplish the foregoing it is necessary and desirable in connection with the issuance of the Bonds that the City enter into certain documents and agreements and that the City take certain other actions and approve the execution of certain other documents as herein provided; NOW, THEREFORE,

 

BE IT ORDAINED BY THE COUNCIL OF KANSAS CITY;

 

Section 1. In order to obtain funds to finance the Redevelopment Costs, the City Council hereby approves the issuance and sale by the Board of the Bonds in a principal amount not to exceed $19,500,000, to mature in varying principal amounts prior to and with a final maturity not later than the year 2019.

 

Section 2. The Director of Finance is hereby authorized to enter into the following documents (the "City Documents"), in substantially the forms attached hereto and made a part hereof and on file with the Director of Finance, with such minor changes therein as shall be approved by the officers of the City executing such documents, such officers' signatures thereon being conclusive evidence of their approval thereof:

 

(a) Letter of Credit and Reimbursement Agreement dated as of December 1, 1996

(the "Reimbursement Agreement"), among the City, the Commission and The Sumitomo Trust and Banking Company, Limited, acting through its New York Branch ("Letter of Credit Bank").

 

(b) Financing Agreement dated as of December 1, 1996 ("Financing Agreement"),

among the Board, the Commission and the City.

 

(c) Tax Credit Enhancement Agreement dated as of December 1, 1996 ("Tax

Credit Agreement") between the Board and the City.

 

(d) Remarketing Agreement dated as of December 1, 1996 ("Remarketing Agreement") between the City and Fahenstock & Co.

 

(e) Purchase Contract dated as of the date to be set forth therein ("Purchase

Contract"), among the Board, the Commission, the City and Fahenstock & Co.

 

(f) Cooperative Agreement, dated as of December 1, 1996 ("Cooperative

Agreement") between the City and the Commission.

 

Section 3. The City's Director of Finance or other officer of the City at any time charged with the responsibility of formulating budget proposals shall include in the budget proposals submitted to the City Council, in each Fiscal Year in which the Financing Agreement shall be in effect, an appropriation for all payments required under the Financing Agreement for the ensuing Fiscal Year; it being the intention of the City that the decision to appropriate or not to appropriate under the Financing Agreement shall be made solely by the City Council and not by any other official of the City. The City intends to appropriate funds to make Loan Payments (as defined in the Financing Agreement) and to pay the Loan Payments in accordance with the Financing Agreement from all legally available revenue sources, including, but not limited to, tax increment revenues generated under the Redevelopment Plan. The City reasonably believes that legally available funds in an amount sufficient to make all Loan Payments during each Fiscal Year can be obtained. The City further intends to do all things lawfully within its power to obtain and maintain funds from all legally available revenue sources from which the Loan Payments may be made, including making provision for such Loan Payments to the extent necessary in each proposed annual budget submitted for approval in accordance with applicable procedures of the City and to exhaust all available reviews and appeals in the event such portion of the budget is not approved. The City's Director of Finance is directed to do all things lawfully within her power to obtain and maintain funds from all legally available revenue sources from which the Loan Payments may be paid, including making provision for such Loan Payments to the extent necessary in each proposed annual budget submitted for approval or by supplemental appropriation in accordance with applicable procedures of the City and to exhaust all available reviews and appeals in the event such portion of the budget or supplemental appropriation is not approved. Notwithstanding the foregoing, the decision to budget and appropriate funds is to be made in accordance with the City's normal procedures for such decisions.

 

Section 4. The Director of Finance is hereby authorized and directed to execute and deliver the Reimbursement Agreement, the Financing Agreement, the Tax Credit Agreement, the Remarketing Agreement, the Purchase Contract and the Cooperative Agreement on behalf of the City. The Director of Finance is hereby authorized and directed to execute and deliver such other documents, certificates and instruments as may be necessary or desirable to carry out and comply with the intent of this Ordinance for and on behalf of and as the act and deed of the City. The City Clerk is hereby authorized and directed to attest to each of said documents and to record the same as appropriate, and to execute or attest to such other documents, certificates and instruments as may be necessary or desirable to carry out and comply with the intent of this Ordinance.

 

Section 5. The City shall, and the officers, agents and employees of the City are hereby authorized and directed to, take such further action, and execute such other documents, certificates and instruments, including any required agreements or documentation, as may be necessary or desirable to carry out and comply with the intent of this Ordinance and to comply with and perform the duties of the City with respect to the Reimbursement Agreement, the Financing Agreement, the Tax Credit Agreement, the Remarketing Agreement and the Purchase Contract.

 

Section 6. That the City Clerk is hereby directed to record a copy of the Cooperative Agreement, together with a copy of this ordinance, in the office of the Department of Records of Jackson County, Missouri, and to file a copy with the Secretary of State of Missouri.

 

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Approved as to form and legality:

 

 

 

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City Attorney