ORDINANCE NO. 080267

 

Authorizing the execution of certain termination and release documents in connection with the redemption of Taxable Lease Revenue Bonds (Municipal Auditorium and 13th & Wyandotte Projects), Series 1996) of the Land Clearance for Redevelopment Authority of Kansas City, Missouri

 

WHEREAS, the City Council of the City (the Council) previously approved a redevelopment plan (the Redevelopment Plan) for the redevelopment of a blighted area located in downtown Kansas City, Jackson County, Missouri. The Redevelopment Plan provided for the financing and construction of a redevelopment project within the Redevelopment Area, consisting of the financing and renovation of the existing hotel within the 13th and Wyandotte Hotel Redevelopment Project (the 13^th and Wyandotte Project); and

 

WHEREAS, pursuant to Ordinance No. 921438 and the Real Property Tax Increment Allocation Redevelopment Act, Sections 99.800 to 99.865, as amended, the City approved the Americana Hotel Tax Increment Financing Plan (the TIF Plan) which included the 13^th and Wyandotte Project; and

 

WHEREAS, pursuant to the TIF Plan, the Tax Increment Financing Commission of Kansas City, Missouri, and 13^th and Wyandotte Hotel, L.L.C., (the Developers Predecessor) predecessor in interest to Jordan Hotel Investments, L.L.C., entered into an agreement dated December 14, 1995, for the implementation of Project 1 of the TIF Plan, which contemplated the construction of the 13th and Wyandotte Project; and

 

WHEREAS, on April 6, 1995, the City Council, by Ordinance No. 921439, approved and adopted tax increment financing for the 13^th and Wyandotte Project; and

 

WHEREAS, the Land Clearance for Redevelopment Authority of Kansas City, Missouri (Authority) issued its Taxable Lease Revenue Bonds (Municipal Auditorium and 13^th & Wyandotte Projects), Series 1996 in the original principal amount of $15,110,000 of which $12,605,000 remain outstanding as of the date hereof (Bonds) pursuant to the provisions of Sections 99.300 to 99.715, inclusive, of the Revised Statutes of Missouri, as amended (the LCRA Statute) to assist in financing the 13th and Wyandotte Project, which Bonds are payable from TIF Revenues and other tax revenues and rental payments made by the City to the Authority; and

 

WHEREAS, the Authority and the City entered into the Financing Lease Agreement dated as of September 15, 1995, as amended by the First Supplemental Financing Lease Agreement dated April 1, 1996, (collectively the Financing Lease) to provide, among other things, for the lease of the 13^th and Wyandotte Project by the Authority to the City, in consideration of rental payments to be made by the City to the Authority sufficient to pay the principal of, redemption premium, if any, and the interest on the Series 1996 Bonds; and

 

WHEREAS, the Financing Lease also provides for the lease of the Muehlebach Project Site, as that term is defined in the Financing Lease, which is separate from the 13^th and Wyandotte Project; and

WHEREAS, in conjunction with the issuance of the Bonds, the Commission, the City, the Authority and Developers Predecessor entered into the Amended and Restated Cooperative Agreement for Project Financing dated as of April 1, 1996, as amended by the First Amendment to Amended and Restated Cooperative Agreement dated September 5, 2007 (the Amended and Restated Cooperative Agreement, as amended, shall hereinafter be referred to as the Cooperative Agreement);

 

WHEREAS, the City and Developers Predecessor entered into an Operating Lease Agreement dated as of April 1, 1996, (Operating Lease) in which the City leased the Hotel Property to Developers Predecessor; and

 

WHEREAS, the City, the Developers Predecessor and Authority entered into a Garage And Public Area Management Agreement dated November 18, 1997, (Garage Management Agreement) relating to a portion of the property (the Authority Property); and

 

WHEREAS, the City, Developers Predecessor and Authority entered into an Option/Put Agreement (the Option/Put Agreement) dated as of April 1, 1996, related to the Authority Property; and

 

WHEREAS, the rights, title and interest of Developers Predecessor under the Operating Lease have been assigned and the rights, duties and responsibilities thereunder assumed by Boykin Kansas City, L.L.C. (the Developer) pursuant to that certain Contribution Agreement dated August 18, 1997, and the City and the Authority consented to the respective assignment and assumption; and

 

WHEREAS, the Developer, the City and Jordan Hotel entered into that Assignment, Assumption And Consent To Transfer Of Developers Rights Under Operating Lease Agreement dated September 5, 2007, which document assigned all of Developers right, title and interest in the Operating Lease to Jordan Hotel; and

 

WHEREAS, pursuant to the Cooperative Agreement, the Authority and the City agreed to terminate the Financing Lease as it relates to the 13^th and Wyandotte Project, and the Operating Lease upon redemption of the Bonds, and the Authority agreed to transfer title to a portion of the Redevelopment Area owned by the Authority to Jordan Hotel in accordance with the Cooperative Agreement; and

 

WHEREAS, the City, the Authority and Jordan Hotel desire to terminate the Development Documents and release each other from all obligations contained therein upon the redemption of the Bonds; and

 

WHEREAS, the Bonds will be redeemed on April 15, 2008 (the Closing Date); NOW, THEREFORE,

 

BE IT ORDAINED BY THE COUNCIL OF KANSAS CITY:

 

Section 1. That the Director of Finance is hereby authorized to execute the following documents in connection with the redemption of the outstanding Bonds of the Authority:

 

a. Termination and Release Agreement for the Garage and Public Area Management Agreement and Option/Put Agreement by and among the Jordan Hotel, the Authority and the City.

b. Partial Termination and Release Agreement for the Financing Lease Agreement by and between the Authority and the City.

 

c. Termination and Release Agreement for the Operating Lease Agreement by and between the Jordan Hotel and the City.

 

Section 2. That the Director of Finance is hereby authorized and directed to execute all documents and take such actions as she may deem necessary or advisable in order to carry out and perform the purposes of this ordinance and to make ministerial alterations, changes or additions in the foregoing agreements, statements, instruments and other documents herein approved, authorized and confirmed which she may approve, and the execution or taking of such action shall be conclusive evidence of such necessity or advisability.

 

___________________________________________

 

Approved as to form and legality:

 

 

 

______________________________

Heather A. Brown

Assistant City Attorney