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Legislation #: 170459 Introduction Date: 6/15/2017
Type: Ordinance Effective Date: none
Sponsor: None
Title: Approving real property tax abatement for improvements on a portion of real property located at 120 W. 12th Street within Enhanced Enterprise Zone 1, Kansas City, Missouri, and directing the City Clerk to provide a copy of this Ordinance to the Director of the Missouri Department of Economic Development.  

Legislation History
DateMinutesDescription
6/15/2017 Filed by the Clerk's office
6/15/2017 Referred to Planning, Zoning & Economic Development Committee
6/28/2017 Advance and Do Pass, Debate
6/29/2017 Passed

View Attachments
FileTypeSizeDescription
170459.pdf Authenticated 271K Authenticated
170459 Plan.pdf Plan 78K EEZ Resolution
170459 Fact Sheet.pdf Fact Sheet 392K Fact Sheet
EEZ ordinance (Spring Venture Group).docx Request for Ordinance 22K Spring Venture Group EEZ Ordinance Request

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ORDINANCE NO. 170459

 

Approving real property tax abatement for improvements on a portion of real property located at 120 W. 12th Street within Enhanced Enterprise Zone 1, Kansas City, Missouri, and directing the City Clerk to provide a copy of this Ordinance to the Director of the Missouri Department of Economic Development.  

 

WHEREAS, Section 135.963, RSMo, authorizes, upon governing body approval, up to twenty-five years of tax abatement for improvements made to real property within an Enhanced Enterprise Zone after the date of enterprise zone designation by the Missouri Department of Economic Development; and  

 

WHEREAS, on August 25, 2005, by Resolution No. 051066, the City Council designated pursuant to Section 135.960, RSMo, an enhanced enterprise zone program area known as Enhanced Enterprise Zone 1; and

 

WHEREAS, the City Council directed that improvements to real property within Enhanced Enterprise Zone 1 shall be exempt from assessment and payment of at least 50% of the ad valorem taxes on such improvements for a period of ten years, and shall be eligible for abatement of ad valorem taxes for rates and periods exceeding the 50% for 10 year abatement by passage of an ordinance or resolution by the City Council authorizing the abatement and establishing the terms of such abatement; and 

 

WHEREAS, on November 22, 2005, by Ordinance No. 051411, the City Council identified the types of business by NAICS sector names which would qualify for state and local incentives within Enhanced Enterprise Zone 1; and

 

WHEREAS, Spring Venture Group is an eligible enhanced business enterprise and has requested tax abatement for certain improvements to be made to real property located within Enhanced Enterprise Zone 1 at 120 W. 12th Street for use by the company; and  

 

WHEREAS, Spring Venture Group, once it has selected its preferred site, will lease and improve only a portion of the real property for its business operations such that the tax abatement will take into account the portion of the property allocable to Spring Venture Group in relation to the whole; and

 

WHEREAS, Spring Venture Group, application complies with the requirements of Section 135.963, RSMo, and the City’s ordinances and resolutions governing enhanced enterprise zones; and

 

WHEREAS, pursuant to Section 135.963.3, RSMo, the requisite public notices were timely and properly mailed and published, and the requisite public hearing was timely and properly held; NOW, THEREFORE, 

 

BE IT ORDAINED BY THE COUNCIL OF KANSAS CITY:  

 

Section 1. That pursuant to Section 135.963, RSMo, the City Council hereby approves the application for tax abatement by Spring Venture Group for improvements made after the date of Enhanced Enterprise Zone designation to the portion of the real property to be leased by Spring Venture Group and located in the Enhanced Enterprise Zone 1 at 120 W. 12th Street, Kansas City, Missouri (the “Spring Venture Site”).

 

Section 2. That the tax abatement granted herein shall, except as provided in Section 3 hereof, be 100 percent of the value of the improvements made to the Spring Venture Site, and the resulting tax obligation shall be calculated pursuant to Exhibit A, attached hereto and incorporated herein. The tax abatement shall continue for a period of 12 calendar years beginning in 2018, provided however, the tax abatement shall terminate no later than 25 years from August 19, 2005, the date the Enhanced Enterprise Zones were designated by the Missouri Department of Economic Development. Further, the abatement granted herein shall apply to all ad valorem taxes, imposed by all political subdivisions with the power to tax, on improvements made on the Spring Venture Site after August 19, 2005, subject to continued compliance with Section 135.963, RSMo, and the City’s ordinances and resolutions governing enhanced enterprise zones.  The affected political subdivisions are:

 

City - Kansas City 

Kansas City Missouri School District

Jackson County

Board of Disabled Services

Mental Health

Metropolitan Community College

Kansas City Public Library

State Blind Pension

 

Section 3. That the tax abatement granted herein shall not extend to any property categorized by the Jackson County Assessor as residential real property for ad valorem taxation purposes. Furthermore, and notwithstanding anything to the contrary in Section 2 hereof, in the event that Spring Venture Group shall not have reached a total employee headcount of at least five hundred fifty (550) jobs at the Spring Venture Site within five (5) years from the date the tax abatement shall have commenced, the tax abatement granted herein shall be reduced to 75 percent of the value of the improvements made to the Spring Venture Site for the duration of the remaining term of abatement, and the allocation methodology as provided in Exhibit A shall be supplanted with the allocation methodology as provided in Exhibit B, attached hereto and incorporated herein.

 

Section 4. That the City Clerk is hereby directed to deliver a copy of this ordinance to the State Director of Economic Development within thirty days following passage of this ordinance.

 

_____________________________________________

 

Approved as to form and legality:

 

 

_____________________________

Brian T. Rabineau

Assistant City Attorney

 

 

 

 


 

EXHIBIT A

 

o   The total square footage of the building occupied, in part, by Spring Venture Group will be as determined pursuant to Jackson County records (the “Total Square Footage”).

 

o   Spring Venture Group is proposing to lease a portion of the building commencing on January 1, 2018 and may periodically increase the square footage of its leasehold during the abatement term.

 

o   The 2017 appraised value of the building will be divided by the total square footage to establish the valuation per square foot. This square foot value shall control with respect to the square footage occupied by Spring Venture Group for the entirety of the tax abatement (the “Spring Venture Group Valuation”).

 

o   To calculate taxable value for the building during the term of the abatement:

 

§  Step #1: Square footage occupied by Spring Venture Group as of September 15 of each year shall be multiplied by the Spring Venture Group Valuation to determine the value attributable to the total portion of the building occupied by Spring Venture Group.

 

§  Step #2: The appraised value of the building in years 2018 and forward, as established by Jackson County, shall be divided by the Total Square Footage to determine the per square foot value of the building without abatement.

 

§  Step #3: The per square foot value determined in Step #2 will be multiplied by the square footage of the building not occupied by Spring Venture Group to determine total value applicable to the portion of the building not occupied by Spring Venture Group.

 

§  Step #4: The values determined in Step #1 and Step #3 will be added together to determine the total appraised value of the building.

 

§  Step #5: No later than September 15, the total appraised value for EEZ purposes as determined in Step #4 will be reported by Spring Venture Group to Jackson County.

 

§  Step #6: Jackson County will apply the applicable assessment rate and mill levy rate to the appraised value generated in Step #5 and issue its tax bill to the property owner.

 


 

EXHIBIT B

 

 

o   The total square footage of the building occupied, in part, by Spring Venture Group will be as determined pursuant to Jackson County records (the “Total Square Footage”).

 

o   Spring Venture Group is proposing to lease a portion of the building commencing on January 1, 2018 and may periodically increase the square footage of its leasehold during the abatement term.

 

o   The 2017 appraised value of the building will be divided by the total square footage to establish the valuation per square foot. This square foot value shall control with respect to seventy-five percent of the square footage occupied by Spring Venture Group for the remainder of the tax abatement (the “Spring Venture Group Valuation”).

 

o   To calculate taxable value for the building during the term of the abatement:

 

§  Step #1: The appraised value of the building in years 2018 and forward, as established by Jackson County, shall be divided by the Total Square Footage to determine the per square foot value of the building without abatement.

 

§  Step #2: Seventy-five percent of the square footage occupied by Spring Venture Group as of September 15 of each year shall be multiplied by the Spring Venture Group Valuation to determine the value attributable to the seventy-five percent of the portion of the building occupied by Spring Venture Group. The remaining twenty-five percent of the square footage occupied by Spring Venture Group as of September 15 of each year shall be multiplied by the per square foot value determined in Step #1 to determine the value attributable to the twenty-five percent of the portion of the building occupied by Spring Venture Group. The two sums shall thereafter be added to determine the value attributable to the total portion of the building occupied by Spring Venture Group.

 

§  Step #3: The per square foot value determined in Step #1 will be multiplied by the square footage of the building not occupied by Spring Venture Group to determine total value applicable to the portion of the building not occupied by Spring Venture Group.

 

§  Step #4: The values determined in Step #2 and Step #3 will be added together to determine the total appraised value of the building.

 

§  Step #5: No later than September 15, the total appraised value for EEZ purposes as determined in Step #4 will be reported by Spring Venture Group to Jackson County.

 

§  Step #6: Jackson County will apply the applicable assessment rate and mill levy rate to the appraised value generated in Step #5 and issue its tax bill to the property owner.