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Legislation #: 980273 Introduction Date: 3/12/1998
Type: Resolution Effective Date: 4/5/1998
Sponsor: COUNCILMEMBER ZCLEAVER(OLD)
Title: Reaffirming the intent of the Council to consider the provision of 100% tax abatement over twenty-five years under Chapter 353 for low income housing projects; expressing the Council´s support for the concept of the extension of 100% tax abatement for up to twenty-five years in order to encourage commercial projects in certain areas for the purpose of providing jobs and positive economic impacts within those areas and directing the City Manager to develop recommendations for the eligible areas and the specific criteria to be used in evaluating requests for up to 100% abatement within sixty days; and expressing the Council´s intent to provide additional funds for community policing to areas which establish businesses creating an additional 100 jobs or more to the areas.

Legislation History
DateMinutesDescription
3/12/1998

Prepare to Introduce

3/12/1998

Referred Planning, Zoning & Economic Development Committee

3/18/1998

Hold On Agenda

3/25/1998

Immediate Adoption Second Committee Substitute

3/26/1998

Adopted as Substituted and Amended

3/26/1998

Amended


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SECOND COMMITTEE SUBSTITUTE FOR RESOLUTION NO. 980273,

AS AMENDED

 

Reaffirming the intent of the Council to consider the provision of 100% tax abatement over twenty-five years under Chapter 353 for low income housing projects; expressing the Councils support for the concept of the extension of 100% tax abatement for up to twenty-five years in order to encourage commercial projects in certain areas for the purpose of providing jobs and positive economic impacts within those areas and directing the City Manager to develop recommendations for the eligible areas and the specific criteria to be used in evaluating requests for up to 100% abatement within sixty days; and expressing the Councils intent to provide additional funds for community policing to areas which establish businesses creating an additional 100 jobs or more to the areas.

 

WHEREAS, Chapter 353, Revised Statutes of Missouri (RSMo), authorizes cities, including Kansas City, to approve development plans submitted by private redevelopment corporations and to grant such corporations the power of eminent domain and limited tax abatement; and

 

WHEREAS, Section 353.110, RSMo 1994, which specifically sets forth the nature of the tax abatement to be granted, permits the City Council to authorize 100% tax abatement on the value of the improvements located on the property not to exceed twenty-five (25) years and provides discretion to the Council in the determination of the requirement of payments in lieu of taxes (PILOTS) over the period of time in which a property receives 100% abatement on the improvements; and

 

WHEREAS, on August 13, 1987, the Council adopted Committee Substitute for Resolution No. 61320, As Amended, which expressed the intent of the Council to limit consideration of 100% tax abatement over twenty-five years to redevelopment projects for housing to be occupied by low income families which clearly demonstrate that such abatement is economically necessary for the project; and

 

WHEREAS, the Council has approved limited tax abatement (usually being 100% tax abatement for the first ten years and 50% tax abatement for the next fifteen years) to approximately 107 projects over the last fifty years; and

 

WHEREAS, an analysis of the locations of the approved commercial projects for Chapter 353 tax abatement reveals that few of the projects are located within economically depressed

areas; and

 

WHEREAS, it is the Councils desire and intent to provide as many economic incentives which are available to economically depressed areas in order bring jobs and economic growth to the these areas, to eliminate poverty and unemployment and to eliminate the economic and social distress which exists within these areas; and

 


WHEREAS, one of the economic incentives which the Council can provide is to extend 100% tax abatement over twenty-five years without the requirement of PILOTS to commercial projects which are located within certain economically depressed areas, demonstrate economic need for the abatement and demonstrate the addition of jobs and economic growth to the area; and

 

WHEREAS, the Council desires that the City Manager evaluate and make recommendations concerning the areas within the City which may be eligible for the consideration of up to 100% tax abatement for commercial projects based upon criteria such as the Enhanced Enterprise Community area, the definitions of a distressed community contained in House Bill No. 1656 and Senate Bill No. 911 now pending in the Missouri legislature and the recommendations of FOCUS and others as may be appropriate and further the Council desires that the City Manager develop recommendations for specific criteria to be used in evaluating requests for up to 100% abatement; NOW, THEREFORE,

 

BE IT RESOLVED BY THE COUNCIL OF KANSAS CITY:

 

Section 1. That the Council hereby reaffirms its intent to consider the granting of up to 100% tax abatement over a period not to exceed twenty-five years as allowed under Section 353.110, RSMo 1994, to redevelopment projects for housing to be occupied exclusively by low income families, as that term is defined by the U.S. Department of Housing and Urban Development, provided that the granting of the tax abatement for the low income housing development projects shall be based on a clear demonstration of the economic assistance being necessary.

 

Section 2. That the Council hereby expresses its support for the concept of the extension of up to 100% tax abatement over a period not to exceed twenty-five years to commercial redevelopment projects located in certain economically depressed areas. The City Manager is hereby directed to evaluate and to make recommendations regarding the eligibility of economically depressed areas within the City based upon criteria such as, but not limited to, the boundaries of the Enhanced Enterprise Community area, the definitions of a distressed community contained in House Bill No. 1656 and Senate Bill No. 911 and the recommendations of FOCUS and to report to the Council concerning his recommendations as to the eligible areas within sixty (60) days after passage of this Resolution. The City Manager is further directed that his recommendations shall include specific criteria to be used in evaluating requests for up to 100% abatement which may include, but not be limited to, that the request for the additional tax abatement for the commercial project shall be based on a clear demonstration of the economic assistance being necessary, that the economic assistance will bring jobs to the area and positive economic growth, and that the redevelopment corporation agrees that 30% of its employees will be residents of the eligible area. Commercial redevelopment projects shall include, but not be limited to, office, warehouse and industrial projects. As a part of these economic incentives, the Council may determine that payments in lieu of taxes are not required in order to encourage the development of commercial projects to the eligible area. That the Council invites participation of the Kansas City, Missouri School District during the process of development of the policy of said Resolution.

Section 3. That the Council further expresses its intent to provide additional funds for community policing to areas within these areas which establish businesses which create an additional 100 jobs or more to these areas. This funding will be made available for each increment of 100 additional jobs created.

 

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