KC Skyline

City Clerk Web Search

Search the Ordinances:

Legislation #: 040218 Introduction Date: 2/26/2004
Type: Ordinance Effective Date: none
Sponsor: COUNCILMEMBER SCHUMACHER
Title: Approving a plan for industrial development for the purpose of carrying out an industrial development project including the construction and equipping of a facility and lease of the facility to KMBC-TV for an office building with broadcasting facilities at 6455 Winchester Drive; authorizing the execution of a Tax Distribution Agreement and an agreement to allow the project to proceed on a tax-exempt basis.

Legislation History
DateMinutesDescription
2/26/2004

Prepare to Introduce

2/26/2004

Referred Planning, Zoning & Economic Development Committee

3/3/2004

Do Pass as a Second Committee Substitute

3/4/2004

Assigned to Third Read Calendar

3/11/2004

Pass Second Committee Substitute As Amended


View Attachments
FileTypeSizeDescription
No attachment(s) found

Printer Friendly Version

SECOND COMMITTEE SUBSTITUTE FOR ORDINANCE NO. 040218

 

Approving a plan for industrial development for the purpose of carrying out an industrial development project including the construction and equipping of a facility and lease of the facility to KMBC-TV for an office building with broadcasting facilities at 6455 Winchester Drive; authorizing the execution of a Tax Distribution Agreement and an agreement to allow the project to proceed on a tax-exempt basis.

 

WHEREAS, the City of Kansas City, Missouri, a constitutional charter city and municipal corporation of the State of Missouri (the "City") is authorized and empowered pursuant to Article VI, Section 27 of the Missouri Constitution, as amended, and Sections 100.010 through 100.200, inclusive, of the Revised Statutes of Missouri, as amended, and the City of Kansas City Charter (collectively, the "Act") to issue revenue bonds for the purpose of carrying out certain projects for industrial development and to enter into a lease of facilities financed with the proceeds of such revenue bonds with any person, firm or corporation; and

 

WHEREAS, the City has engaged the Economic Development Corporation (EDC) to assist in the marketing, attraction, retention and expansion of existing business, and to attract new business to Kansas City, Missouri; and

 

WHEREAS, the City Council, pursuant to the Act, would issue and sell industrial revenue bonds in an amount not to exceed $18,000,000.00 ("Bonds"), whereby Hearst-Argyle Stations, Inc., a Nevada Corporation (KMBC) would use the proceeds of such Bonds to construct and equip an office building and broadcasting facilities at 6455 Winchester Avenue (the Project); and

 

WHEREAS, the Project is located wholly within the Winchester Office Center Tax Increment Financing Project (the TIF Project) and is governed by that certain Winchester Office Center Tax Increment Financing Plan approved by Ordinance No. 911435 on December 19, 1991, as amended by that certain Tax Increment Financing Contract between the Tax Increment Financing Commission (TIF Commission) and the Developer dated May 21,1992, as amended (the TIF Contract); and

 

WHEREAS, the Act provides for fifty (50) percent tax abatement on real and personal property for a period of ten (10) years; and

 

WHEREAS, the Councils policy on Chapter 100 financings, as set forth in Committee Substitute for Resolution No. 000250 (the Policy) requires that KMBC make contract payments in lieu of taxes over a ten year period to the affected taxing jurisdictions ("Contract Payments"), which Contract Payments would normally be equal to fifty percent (50%) of the real and personal property taxes that would have been due for such period of ten (10) years as the result of the development of the Project; and

 

WHEREAS, the obligations of the parties to the TIF Contract respecting the TIF Project conflict with the Policy and make application of the Policy impracticable for the Project; and


WHEREAS, the City desires to waive the application of the Policy as to this Project so that KMBC may tender its Contract Payments to the TIF Commission for payment to the taxing jurisdictions and increase such Contract Payments to an amount equal to sixty (60) percent of the real property tax increment that would have been paid on the Project except for the approval of the Bonds; and

 

WHEREAS, upon approval of the Bonds, KMBC shall receive real property tax abatement on the Project in an amount of forty percent (40%) of the real property tax that would have been paid on the Project except for the approval of the Bonds and fifty percent (50%) tax abatement over the ten year period with respect to personal property taxes; and

 

WHEREAS, the City desires to waive the application of the Policy as to this Project to support the Contract Payments modification as provided above so long as the TIF Commission pays the Raytown School District (the District) an amount equal to twenty (20) percent of the Contract Payments; and

 

WHEREAS, the TIF Commission has approved a Tax Revenue Distribution Agreement, contingent upon approval by the City Council, which provides for the payment of the Contract Payments by KMBC to the TIF Commission and which provides that (i) ten percent of such Contribution shall be paid to the District for use by the District to defray capital expenditures of the District and (ii) the remaining portion of the Contribution shall be available to reimburse the TIF Project developer for its certified costs incurred in making improvements to the Project and to the TIF Project; and

 

WHEREAS, the City desires to direct the Director of Finance to execute such Tax Revenue Distribution Agreement, the form of which is attached as Exhibit A; and

 

WHEREAS, the City desires to authorize an agreement to allow the Project to proceed with the acquisition of equipment and materials on a tax exempt basis, the form of which is attached as Exhibit B; NOW, THEREFORE,

 

BE IT ORDAINED BY THE COUNCIL OF KANSAS CITY:

 

Section 1. That the Council hereby finds and determines that the Project will promote the economic well-being and industrial development of Kansas City, Missouri, and the issuance of the Bonds to pay the costs of the Project will be in furtherance of the public purposes set forth in the Act and the Project will promote the welfare of the City and its inhabitants and hereby approves the industrial development plan of Hearst-Argyle Stations, Inc., a Nevada Corporation (KMBC) to construct and equip an office building and broadcasting facilities at 6455 Winchester Avenue.

 

Section 2. That the Director of Finance is authorized to execute the Tax Revenue Distribution Agreement, by and among the developer of the TIF Project, the Raytown School District and KMBC, in substantial form as Exhibit A to this ordinance.

 

Section 3. That the Director of City Development is authorized to execute, on behalf of the City, a preliminary agreement for the construction and acquisition and a sales tax certificate in connection with the agreement to provide for the purchase of equipment for the Project set forth on Exhibit B. The agreement is in approved in substantial form as the agreement on file with the Director of City Development

 

Section 4. That the City Attorney, the Director of City Development and the Director of Finance are authorized and directed to negotiate with the appropriate officials of KMBC and, in consultation with the EDC, prepare the necessary documents for the issuance of the Bonds, the construction of the Project and the purchasing of equipment for the Project ("Bond Plan"), and any other documents, for final presentation to and approval by the Council.

 

Section 5. That the Council hereby waives the application of its Policy as to this Project, to increase the Contract Payments to be made by KMBC in connection with the Bonds to an amount equal to sixty (60) percent of the real property tax increment that would have been paid on the Project except for the approval of the Bonds, so that KMBC shall receive real property tax abatement on the Project in an amount of forty percent (40%) of the real property tax that would have been paid on the Project except for the approval of the Bonds, so long as the TIF Commission pays the Raytown School District an amount equal to twenty (20) percent of the Contract Payments.

 

Section 6. That the Bonds and the Bond Plan shall provide that KMBC shall receive fifty percent (50%) tax abatement over a ten year period with respect to personal property taxes. .

____________________________________________

 

I hereby certify that as required by Chapter 100, RSMo., as amended, all public notices have been given and public hearings held, as required by law.

 

 

__________________________________

Secretary, City Plan Commission

 

Approved as to form and legality:

 

 

__________________________________

Heather A. Brown

Assistant City Attorney