ORDINANCE NO. 040154

Accepting the recommendations of the Tax Increment Financing Commission as to the 1200 Main/South Loop Tax Increment Financing Plan; approving the 1200 Main/South Loop Tax Increment Financing Plan; and designating a Redevelopment Area.

WHEREAS, the City Council of Kansas City, Missouri by Ordinance No. 54556 passed on November 24, 1982 and thereafter amended in certain respects by Committee Substitute for Ordinance No. 911076, as amended, passed on August 29, 1991, created the Tax Increment Financing Commission of Kansas City, Missouri (the "Commission"); and

WHEREAS, the 1200 Main/South Loop Tax Increment Financing Plan (the Redevelopment Plan) was proposed to the Commission; and

WHEREAS, the Commission has been duly constituted and its members appointed; and, after all proper notice was given, the Commission met in public hearing and after receiving the comments of all interested persons and taxing districts with respect to the Redevelopment Plan, closed said public hearing on January 14, 2004, adopted its Resolution No. 01-10-04 (the Resolution) recommending to the City Council the approval of the Plan (the "Redevelopment Plan"); and

WHEREAS, the Redevelopment Plan is a comprehensive program intended to reduce or eliminate blight and enhance the tax base within the Redevelopment Area through the implementation of 7 separate Redevelopment Projects and the adoption of tax increment financing for each of the areas selected for such Redevelopment Projects; NOW, THEREFORE,

BE IT ORDAINED BY THE COUNCIL OF KANSAS CITY:

Section 1. The recommendation of the Commission concerning the Redevelopment Plan as set forth in the Resolution attached hereto as Exhibit "A", is hereby accepted and the Redevelopment Plan, a copy of which is attached hereto as Exhibit "B", is hereby approved and adopted.

Section 2. All terms used in this ordinance shall be construed as defined in Sections 99.800 to 99.865 of the Revised Statutes of Missouri, as amended (the "Act").

Section 3. The following described area is hereby designated a Redevelopment Area:

Beginning at the point of intersection of the westerly prolongation of the northern boundary of Lot 1, E & A Subdivision with the centerline of the right-of-way of Baltimore Avenue; thence south along the centerline of the right-of-way of Baltimore Avenue to its intersection with the westerly prolongation of the southern boundary of Lot 1, E & A Subdivision; thence east along the southern boundary of Lot 1, E & A Subdivision to its intersection with the centerline of the public alley lying west of Lot 2, E & A Subdivision; thence south along the centerline of the public alley lying west of Lot 2, E & A Subdivision to its intersection with the westerly prolongation

of the southern boundary of Lot 2, E & A Subdivision; thence east along the southern boundary of Lot 2, E & A Subdivision, to the point of intersection of the easterly prolongation of the southern boundary of Lot 2, E & A Subdivision with the centerline of the right-of-way of Main Street; thence south along the centerline of the right-of-way of Main Street to its intersection with the centerline of the right-of-way of 12th Street; thence west along the centerline of the right-of-way of 12th Street to its intersection with the centerline of the right-of-way of Baltimore Avenue; thence south along the centerline of the right-of-way of Baltimore Avenue to its intersection with the centerline of the right-of-way of U.S. Interstate Highway Route No. 35 (Truman Road); thence east along the centerline of the right-of-way of Interstate Highway Route No.35 (Truman Road) to its intersection with the centerline of the right-of-way of Grand Street; thence north along the centerline of the right-of-way of Grand Street to its intersection with the centerline of the right of way with 13th Street; thence west along the centerline of the right-of-way of 13th Street to its intersection with the centerline of the right-of-way of Walnut Street; thence north along the centerline of the right-of-way of Walnut Street to its intersection with the easterly prolongation of a line 11.75 feet south of the north line of Lot 47, Block 4, McGees Addition and parallel with the south line of the right-of-way of 12th Street; thence west along said line to a point 77 feet west of the west line of the right-of-way of Walnut Street; thence south parallel with the west line of the right-of-way of Walnut Street 8.25 feet; thence west parallel with the south line of the right-of-way of 12th Street to the centerline of a public alley lying east of and adjacent to Lots 55 through 63, inclusive, Block 4, McGees Addition and lying west of and adjacent to Lots 46 through 54, inclusive, Block 4, McGees Addition; thence north along the centerline of said public alley to its intersection with the centerline of the right-of-way of 12th Street; thence east along the centerline of the right-of-way of 12th Street to its intersection with the centerline of the right-of-way of Walnut Street; thence north along the centerline of the right-of-way of Walnut Street to its intersection with the centerline of the right-of-way of Petticoat Lane, also know as 11th Street; thence west along the centerline of the right-of-way of Petticoat Lane (11th Street) to its intersection with the centerline of the right-of-way of Main Street; thence north along the centerline of the right-of-way of Main Street to the easterly prolongation of the northern boundary of Lot 1, E & A Subdivision; thence west along the northern boundary of Lot 1, E & A Subdivision to its point of intersection with the centerline of the north-south public alley lying east of Lot 4, Block 10, Ashburns Addition; thence north along the centerline of the north-south public alley lying east of Lot 4, Block 10, Ashburns Addition to its intersection with the centerline of the east-west public alley lying north of Lot 1, E & A Subdivision; thence west along the centerline of the east-west public alley lying north of Lot 1, E & A Subdivision to its intersection with the centerline of the right-of-way of Baltimore Avenue to the point of beginning. Area is being defined using the centerline of the right-of-way of streets, alleys, and lanes as now established.

Section 4. In accordance with the recommendations of the Commission as set forth in the Resolution, the City Council hereby finds that:

(a) The Redevelopment Area as a whole is a blighted area, 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 Redevelopment Plan;

(c) The Redevelopment Plan 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 benefitted 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 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 Redevelopment Plan on each taxing district at least partially within the boundaries of the Redevelopment Area has been prepared in accordance with the Act; and

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

Section 5. The City and/or the Commission is authorized to issue obligations in one or more series of bonds secured by the1200 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 City and/or 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 in Ordinance No. 54556. Any obligations issued to finance Redevelopment Project Costs shall contain a recital that they are issued pursuant to Sections 99.800 to 99.865, which recital shall be conclusive evidence of their validity and of the regularity of their issuance.

Section 6. Pursuant to the provisions of the Redevelopment Plan, the City Council approves the pledge of all funds generated from Redevelopment Projects that are deposited into the1200 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.

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Approved as to form and legality:

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Heather A. Brown

Assistant City Attorney