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Legislation #: 130667 Introduction Date: 9/5/2013
Type: Ordinance Effective Date: none
Sponsor: COUNCILMEMBER FORD
Title: Authorizing the execution of a Third Amendment to Funding and Acquisition Agreement between City, Tax Increment Financing Commission of Kansas City, Missouri, Planned Industrial Expansion Authority of Kansas City, Missouri, East Village, LLC, and Swope Community Builders; and authorizing the execution of a Second Amendment to Lease Agreement and Third Amendment to Lease Agreement between the City and Swope Community Builders.

Legislation History
DateMinutesDescription
9/3/2013 Filed by the Clerk's office
9/5/2013 Referred to Planning, Zoning & Economic Development Committee
9/11/2013 Advance and Do Pass, Debate
9/12/2013 Passed

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ORDINANCE NO. 130667

 

Authorizing the execution of a Third Amendment to Funding and Acquisition Agreement between City, Tax Increment Financing Commission of Kansas City, Missouri, Planned Industrial Expansion Authority of Kansas City, Missouri, East Village, LLC, and Swope Community Builders; and authorizing the execution of a Second Amendment to Lease Agreement and Third Amendment to Lease Agreement between the City and Swope Community Builders.

 

WHEREAS, City, Tax Increment Financing Commission of Kansas City, Missouri, Planned Industrial Expansion Authority of Kansas City, Missouri, East Village, LLC, and Swope Community Builders are parties to that certain Funding and Acquisition Agreement, dated as of August 25, 2010, as amended by that First Amendment to Funding and Acquisition Agreement, dated as of July 1, 2011, and that Second Amendment to Funding and Acquisition Agreement, dated as of September 9, 2012, such agreement as amended being referred to herein as the “Funding Agreement”; and

 

WHEREAS, City and Swope Community Builders are parties to that certain Lease Agreement, dated as of September 13, 2010, as amended by that First Amendment to Lease Agreement, dated as of May 9, 2011, such agreement as amended being referred to herein as the “Lease”; and

 

WHEREAS, pursuant to the Lease, Swope Community Builders leased from City those certain properties referred to therein as "Block 65E" and "Block 66"; and

 

WHEREAS, pursuant to the terms of the Lease, Swope Community Builders had the option to purchase Block 65E and/or Block 66; and

 

WHEREAS, Swope Community Builders has exercised its option to purchase, and has acquired, Block 65E; and

 

WHEREAS, pursuant to the terms of the Funding Agreement, East Village, LLC has certain rights to acquire those certain properties referred to therein as "Block 100", "Partial Block 49" and "Partial Block 82"; and

 

WHEREAS, in furtherance of the redevelopment of the Redevelopment Area (as that term is defined in the Funding Agreement), the parties to the Funding Agreement have agreed to add Block 100, Partial Block 49 and Partial Block 82 to the Premises (as defined in the Lease) so that the scope of Swope Community Builder’s leasehold estate and option to purchase under the Lease shall also include Block 100, Partial Block 49 and Partial Block 82; and

 


WHEREAS, in furtherance of the redevelopment of the Redevelopment Area (as that term is defined in the Funding Agreement), the parties to the Lease have agreed to modify the terms of the Lease to include Block 100, Partial Block 49 and Partial Block 82 within Swope Community Builder’s leasehold estate and option to purchase, and to modify the terms of the existing option to purchase relative to Block 66; and

 

WHEREAS, City previously issued a variable rate promissory note to finance the acquisition of certain parcels, the principal balance of which is currently being used, and shall continue to be used following the execution of the Second Amendment to Lease Agreement, to measure the base rental payments due City from Swope Community Builders; and

 

WHEREAS, City is pursuing a fixed rate refunding of the promissory note, such that the mechanism for determining the base rent due from Swope Community Builders will necessarily have to be modified at a future date should such refunding occur; and

 

WHEREAS, City anticipates that the fixed rate refunding will not occur until the fall of 2013 or thereafter; and

 

WHEREAS, the Second Amendment to Lease Agreement must be approved and executed before that time so that the development projects currently contemplated may proceed; and

 

WHEREAS, City and Swope Community Builders anticipate executing a Third Amendment to Lease Agreement at a future date for the purpose of restructuring the process by which base rent shall be determined; and

 

WHEREAS, further amendments to the Funding Agreement and the Lease are required to incorporate the changes which have been agreed to as recited herein; NOW, THEREFORE,

 

  BE IT ORDAINED BY THE COUNCIL OF KANSAS CITY:

 

Section 1. That the City Manager is authorized to execute a Third Amendment to Funding and Acquisition Agreement between City, Tax Increment Financing Commission of Kansas City, Missouri, Planned Industrial Expansion Authority of Kansas City, Missouri, East Village, LLC, and Swope Community Builders. The amendment is on file, in substantial form, in the office of the Director of City Development.

 

Section 2. That the City Manager is authorized to execute a Second Amendment to Lease Agreement between City and Swope Community Builders. The amendment is on file, in substantial form, in the office of the Director of City Development.

 


Section 3. That the City Manager is authorized to execute a Third Amendment to Lease Agreement between City and Swope Community Builders, for the purposes recited herein, without further City Council approval. The amendment shall be in a form reasonably acceptable to the City Manager.

 

____________________________________________

 

Approved as to form and legality:

  

 

___________________________________

Brian T. Rabineau

Assistant City Attorney