COMMITTEE SUBSTITUTE FOR ORDINANCE NO. 991390

Accepting the recommendations of the Tax Increment Financing Commission as to the Second Amendment to the Midtown Redevelopment Tax Increment Financing Plan; approving the Second Amendment to the Midtown Redevelopment Tax Increment Financing Plan; amending Committee Substitute for Ordinance No. 930066, as further amended, and as amended by Ordinance No. 941127, by repealing Sections 7 and 9 and enacting new similar sections.

WHEREAS, pursuant to the Real Property Tax Increment Allocation Redevelopment Act, Sections 99.800 to 99.865 of the Revised Statutes of Missouri, 1986, as amended (the "Act"), the City Council of Kansas City, Missouri, by Ordinance No. 54556, passed on November 24, 1982, and thereafter repealed and amended in certain respects by Committee Substitute to Ordinance No. 911076, as amended, passed on August 29, 1991, created the Tax Increment Financing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 Council adopted the Midtown Redevelopment Tax Increment Financing Plan (the "Plan") and designated the area therein (the Redevelopment Area) as a Redevelopment Area and found it to be blighted by Committee Substitute for Ordinance No. 930066, as further amended, on April 1, 1993, and thereafter amended in certain respects by Ordinance No. 941127, passed on August 25, 1994 (the Ordinance); and

WHEREAS, on October 25, 1994, the Commission notified the City Clerk that it had reached the requisite agreement with the designated Redeveloper; and

WHEREAS, the First Amendment to the Plan was approved by the Commission and passed by the City Council on June 8, 1995, by Ordinance No. 950731; and

WHEREAS, the Project Improvements contemplated for the 40th & Mill Project of the Plan have been completed; but, because of unfavorable individual economic circumstances, the major tenants contemplated for the Linwood Corridor Project were forced to rescind their agreements and substitute major tenants have now been identified; and

WHEREAS, a further amendment to the Plan entitled "The Second Amendment to the Midtown Redevelopment Tax Increment Financing Plan" ("the Second Amendment") has been approved by the Commission, which has recommended approval by the City Council; and

WHEREAS, the Second Amendment makes certain changes to the Plan relating to the Linwood Corridor Project regarding the Site Plan, Estimated Redevelopment Project Costs, Estimated Payments in Lieu of Taxes and Economic Activity Taxes to reflect the changed circumstances and changes the eminent domain provisions to conform to statutory changes; and

WHEREAS, the Second Amendment does not alter the exterior boundaries of the Redevelopment Area of the Plan, affect the general land uses established by the Plan, nor change the general nature of the redevelopment projects; the Second Amendment does not affect any of the findings made by the City Council when approving the Plan; the areas selected for Redevelopment Projects in the Second Amendment include only those parcels of real property and improvements

thereon which will be substantially benefitted by the Redevelopment Project improvements; the Second Amendment does not provide for the initial establishment or redevelopment of any gambling institution; and

WHEREAS, the Ordinance provided for an effective date conditioned upon certain occurrences in Section 7 and a deadline for the submission of a complete housing component in Section 9, both of which, in order to reflect the changed circumstances, should be repealed and new sections enacted in their stead; NOW, THEREFORE,

BE IT ORDAINED BY THE COUNCIL OF KANSAS CITY:

Section 1. The recommendations of the Commission concerning the Second Amendment as set forth in the Resolution attached hereto as Exhibit "A" are hereby accepted and the Second Amendment, a copy of which is attached hereto as Exhibit "B", is hereby approved and adopted as valid.

Section 2. The Commission is authorized to issue obligations in one or more series of bonds secured by the Midtown Redevelopment Tax Increment 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 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; provided that no such obligations shall be issued until an amended agreement satisfactory to the Commission shall have been executed by the Commission and Developer which shall provide for, inter alia, sharing of excess returns and sale proceeds based upon the relative ratio of public and private funding, a mechanism for Commission or City to obtain control of the Project Improvements in the event either anchor ceases doing business, a competitively-bid budget, shared responsibility for budget overages, and incentives for Developer to produce budget savings.

Section 3. Pursuant to the provisions of the Redevelopment Plan, the City Council approves the pledge of all funds that are deposited into the Account of the Midtown Redevelopment Tax Increment Plan 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.

Section 4. That Committee Substitute for Ordinance No. 930066, as further amended, and as amended by Ordinance No. 941127 is hereby amended by repealing Section 7 and enacting a new section 7 in its place to read as follows:

Section 7. This Ordinance shall not become effective until the latter of the following: expiration of ten (10) days after the date the Council approves this Ordinance or the date on which the Tax Increment Financing Commission files notice for the City Clerk that the Tax Increment Financing Commission has entered into an agreement with the designated redeveloper.

Section 5. That Committee Substitute for Ordinance No. 930066, as further amended, and as amended by Ordinance No. 941127 is hereby amended by repealing Section 9 and enacting in its place a new section 9 to read as follows:

Section 9. That the Commission shall, no later than May 1, 2000, recommend an amendment to the Plan for City Council approval which will provide for a complete housing plan provided that the Commission shall provide a progress report on the housing plan to the Planning, Zoning and Economic Development Committee of the City Council by March 30, 2000. The elements of the housing component shall include the agreement by the City Council to annually appropriate one hundred percent (100%) of all taxes in excess of statutory economic activity taxes generated by economic activities within the Redevelopment Area not required to service obligations or repay redevelopment costs for benefit of the housing component, the selection and prioritization process and all other necessary administrative details, including identification of the agency to administer the housing plan. No expenditures under the housing component portion shall be made until approval of a housing component plan has been approved by the City Council. The Commission shall commence this process no later than January 15, 2000, which shall allow for input and comment from a broad spectrum of neighborhood and other interested groups and individuals.

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Approved as to form and legality:

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Assistant City Attorney