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Legislation #: 070502 Introduction Date: 4/19/2007
Type: Ordinance Effective Date: none
Sponsor: None
Title: Accepting the recommendations of the Tax Increment Financing Commission as to the Fifth Amendment to the 1200 Main/South Loop Tax Increment Financing Plan; and approving the Fifth Amendment to the 1200 Main/South Loop Tax Increment Financing Plan.

Legislation History
DateMinutesDescription
4/20/2007 Filed by the Clerk's office
4/19/2007 Referred to Planning, Zoning & Economic Development Committee
4/25/2007 Advance and Do Pass, Debate
4/26/2007 Passed

View Attachments
FileTypeSizeDescription
070502.pdf Authenticated 275K Authenticated
1200 Main-South Loop Ordinance Legal Description (00081145).DOC Legal Description 26K Legal Description 5th Amendment of 1200 Main/South Loop TIF Plan
1200 Main-South Loop 5th Amnd Ordinance Fact Sheet (00081133).XLS Fact Sheet 37K Ordinance Fact Sheet 5th Amendment of 1200 Main/South Loop TIF Plan
1200 Main-South Loop 5th Amnd Project Ordinance Request (00081129).DOC Fact Sheet 23K Request for Ordinance 5th Amendment of 1200 Main/South Loop TIF Plan

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ORDINANCE NO. 070502

 

Accepting the recommendations of the Tax Increment Financing Commission as to the Fifth Amendment to the 1200 Main/South Loop Tax Increment Financing Plan; and approving the Fifth Amendment to the 1200 Main/South Loop Tax Increment Financing Plan.

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 Commission, having been duly constituted and its members appointed and, after all proper notice was given, 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, recommending to the City Council the approval of the 1200 Main/South Loop Tax Increment Financing Plan (the "Plan") and the Council accepted the recommendations of the Commission and approved the Plan by passage of Committee Substitute for Ordinance No. 040154; and

 

WHEREAS, the Commission, having been duly constituted and its members appointed and, after all proper notice was given, met in public hearing and after receiving the comments of all interested persons and taxing districts with respect to the First Amendment to the Plan, closed said public hearing on June 9, 2004, and adopted its Resolution No. 06-16-04 recommending to the City Council the approval of the First Amendment which increased the estimated redevelopment project costs and reimbursable project costs relating to Project 3A, the President Hotel Project, and the Council accepted and approved the First Amendment by passage of Ordinance No. 040738 on July 8, 2004; and

 

WHEREAS, the Commission, having been duly constituted and its members appointed and, after all proper notice was given, met in public hearing and after receiving the comments of all interested persons and taxing districts with respect to the Second Amendment to the Plan, closed said public hearing on June 9, 2004, and adopted its Resolution No. 10-21-04 recommending to the City Council the approval of the Second Amendment which (i) expanded the boundaries of the redevelopment area; (ii) added Projects 8, 9, 10 and 11 (iii) provided for the construction of a 18,000 to 20,000 seat multipurpose arena; and (iv) provided for the renovation of theaters within the redevelopment area and the acquisition, development, construction, rehabilitation and improvement of office space, parking garages, public improvements, streetscape, park development, retail development, as well as all necessary public infrastructure, appurtenances and utilities, and the Council accepted and approved the Second Amendment by passage of Ordinance No. 041244 on November 9, 2004; and

 

WHEREAS, the Commission, having been duly constituted and its members appointed and, after all proper notice was given, met in public hearing and after receiving the comments of all interested persons and taxing districts with respect to the Third Amendment to the Plan, closed said public hearing on August 10, 2005, and adopted its Resolution No. 8-30-05 recommending to the City Council the approval of the Third Amendment provides for the increase in Project 1-Entertainment Districts total Redevelopment Project Costs from $183,539,639 to $283,556,158 and decreasing the TIF reimbursable project costs from $141,914,639 to $130,396,172, and the Council accepted and approved the Third Amendment by passage of Ordinance No. 051060 on March 30, 2006; and

 

WHEREAS, the Commission, having been duly constituted and its members appointed and, after all proper notice was given, met in public hearing and after receiving the comments of all interested persons and taxing districts with respect to the Fourth Amendment to the Plan, closed said public hearing on November 9, 2005, and adopted its Resolution No. 11-06-05 recommending to the City Council the approval of the Fourth Amendment to provide for (i) the expansion of boundaries of the Redevelopment Area, as described by the Plan, to include the parcel at McGees Add w 43 ft of s 24 ft Lot 25 Blk 2, (ii) Project 12 which is the construction of a mixed use project which shall include 270,000 square feet of office, hotel or residential uses and 50,000 square feet of retail use, (iii) the construction of 1,300 space garage, (iv) certain modifications to the budget of Redevelopment Project Costs, (v) updated employment and construction projections, (vi) an updated cost/benefit analysis, and (vii) an update to the blight study, and the Council accepted and approved the Fourth Amendment by passage of Ordinance No. 051415 on July 20, 2006; and

 

WHEREAS, the Fifth Amendment to the Redevelopment Plan was proposed to the Commission; and 

 

WHEREAS, the Commission, having been duly constituted and its members appointed and, after all proper notice was given, met in public hearing and after receiving the comments of all interested persons and taxing districts with respect to the Fifth Amendment, closed said public hearing on March 14, 2007, and adopted its Resolution No. 03-08-07 (the Resolution) recommending to the City Council the approval of the Fifth Amendment; and

 

WHEREAS, the Fifth Amendment proposes to provide for (i) the expansion of boundaries of the Redevelopment Area, as described by the Plan, to include the parcels between the center line of I-35/Truman Road and the southern edge of I-35/Truman Road; (ii) a legal description of Redevelopment Project Area 1B; (iii) the construction of approximately 240 residential units in Redevelopment Project Area 1B; (iv) certain modifications to the budget of Redevelopment Project Costs; and (v) update construction projections; 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 a number of 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 Fifth Amendment as set forth in the Resolution attached hereto as Exhibit "A", is hereby accepted and the Fifth Amendment, 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. In accordance with the recommendations of the Commission as set forth in the Resolution, the City Council hereby finds that:

(a)  Good cause has been shown for amendment of the Redevelopment Plan, and that the findings of the City Council in Committee Substitute for Ordinance No. 040154, Ordinance No. 040738, Ordinance No. 041244, Ordinance No. 051060 and Ordinance No. 051415 with respect to the Redevelopment Plan are not affected by the Fifth Amendment and apply equally to the Fifth Amendment;

 

 (b)  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.

 

(c) 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 Fifth Amendment.

 

(d) The Fifth Amendment conforms to FOCUS and Downtown Land Use and Development Plan, together, the comprehensive plan for the development of the City as a whole;

 

(e) The areas selected for Redevelopment Projects include only those parcels of real property and improvements thereon which will be directly and substantially benefited by the Redevelopment Project improvements;

 

(f) 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 the Fifth Amendment, and are not more than 23 years from the adoption of any ordinance approving a Redevelopment Project within the Redevelopment Area;

 

(g) A plan has been developed for relocation assistance for businesses and residences;

 

(h) A cost-benefit analysis showing the impact of the Fifth Amendment on each taxing district at least partially within the boundaries of the Redevelopment Area has been prepared in accordance with the Act; and

 

(i) The Fifth Amendment 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 the 1200 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 the 1200 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.

 

_____________________________________________

 

Approved as to form and legality:

 

 

______________________________

Heather A. Brown

Assistant City Attorney