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Legislation #: 070123 Introduction Date: 2/1/2007
Type: Ordinance Effective Date: none
Sponsor: None
Title: Approving the issuance of Infrastructure Facilities Refunding Revenue Bonds (Kansas City, Missouri – Uptown Theater and Midtown Redevelopment Projects) Series 2007A, by the Industrial Development Authority of the City of Kansas City, Missouri, in an aggregate principal amount not to exceed $55,000,000.00, in one or more series, to provide funds to refund two prior series of bonds issued by the Missouri Development Finance Board to fund two redevelopment projects in the City; and authorizing and approving certain documents and actions in connection with the issuance of such bonds.

Legislation History
DateMinutesDescription
1/31/2007 Filed by the Clerk's office
2/1/2007 Referred to Finance and Audit Committee
2/7/2007 Advance and Do Pass, Debate
2/8/2007 Passed

View Attachments
FileTypeSizeDescription
070123.pdf Authenticated 246K Authenticated
fiscal notes-IDA ordinance v2.xls Fiscal Note 42K IDA 2007 A Fiscal Note
IDA 2007A bond ordinance fact sheet v6.xls Fact Sheet 50K IDA 2007A Fact Sheet

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ORDINANCE NO. 070123

 

Approving the issuance of Infrastructure Facilities Refunding Revenue Bonds (Kansas City, Missouri Uptown Theater and Midtown Redevelopment Projects) Series 2007A, by the Industrial Development Authority of the City of Kansas City, Missouri, in an aggregate principal amount not to exceed $55,000,000.00, in one or more series, to provide funds to refund two prior series of bonds issued by the Missouri Development Finance Board to fund two redevelopment projects in the City; and authorizing and approving certain documents and actions in connection with the issuance of such bonds.

 

WHEREAS, the City of Kansas City, Missouri (the City), by Ordinance No. 940715 passed by the City Council on June 16, 1994, approved the Uptown Tax Increment Financing Plan pursuant to the Real Property Tax Increment Financing Allocation Redevelopment Act, Sections 99.800 to 99.865, inclusive of the Revised Statutes of Missouri, as amended (the TIF Act) and the City has further amended the original Uptown Tax Increment Financing Plan pursuant to Ordinance No. 970083 passed on February 6, 1997 (collectively, the Uptown Redevelopment Plan); and

WHEREAS, the City, by Committee Substitute for Ordinance No. 930666 passed by the City Council on April 1, 1993, as amended by Ordinance No. 941127 passed on August 25, 1994, approved the Midtown Redevelopment Tax Increment Financing Plan pursuant to the TIF Act and the City has further amended the original Midtown Redevelopment Tax Increment Financing Plan pursuant to Ordinance No. 950731 passed on June 8, 1995 (collectively, the Midtown Redevelopment Plan); and

WHEREAS, the Missouri Development Finance Board (the Board) previously issued its Infrastructure Facilities Revenue Bonds (Kansas City, Missouri - Uptown Theater Redevelopment Project) Series 1998 in the original aggregate principal amount of $5,000,000.00 (the Series 1998 Uptown Bonds) to finance and refinance that certain redevelopment project authorized by the Uptown Redevelopment Plan (the Uptown Redevelopment Project) and its Infrastructure Facilities Revenue Bonds (Kansas City, Missouri - Midtown Redevelopment Project) Series 2000A in the original aggregate principal amount of $46,600,000.00 (the Series 2000A Midtown Bonds) to finance and refinance that certain redevelopment project authorized by the Midtown Redevelopment Plan (the Midtown Redevelopment Project and collectively the Projects); and

WHEREAS, the City has requested that The Industrial Development Authority of the City of Kansas City, Missouri (the Issuer) assist in the refunding of $3,885,000.00 outstanding principal amount of the Series 1998 Uptown Bonds and $42,340,000.00 outstanding principal amount of the Series 2000A Midtown Bonds (collectively, the Refunded Bonds) through the issuance of the Issuers Infrastructure Facilities Refunding Revenue Bonds (Kansas City, Missouri - Uptown Theater and Midtown Redevelopment Projects) Series 2007A, in such principal amount as may be determined upon the sale of such bonds (the Series 2007A Bonds); and

WHEREAS, the City finds and determines that in order to accomplish the refunding of the Refunded Bonds and thereby achieve cost savings to the City it is necessary and desirable to approve the issuance by the Issuer of the Bonds; and

 

WHEREAS, the City further finds and determines that it is necessary and desirable in connection with the issuance of the Bonds that the City execute and deliver certain documents and that the City take certain other actions as herein provided;

 

NOW THEREFORE, BE IT ORDAINED BY THE COUNCIL OF KANSAS CITY:

 

Section 1. Approval. The City hereby approves the issuance of the Bonds by the Issuer in order to provide funds to refund the Refunded Bonds. The City hereby finds and determines that the Bonds are being issued by the Issuer for a valid purpose under and in accordance with provisions of Chapter 349 of the Revised Statutes of Missouri, as amended.

 

Section 2. Authorization and Approval of Documents. The following documents are hereby approved in substantially the form presented to the City described herein (copies of which documents shall be filed in the official records of the City prior to the issuance of the Bonds), as shall be approved by the officers of the City executing such documents, such officers signatures thereon being conclusive evidence of their approval thereof), and the City is hereby authorized to execute and deliver each of such documents (the City Documents):

 

(a) Financing Agreement dated as of the date set forth therein (the Financing Agreement) among the Issuer, the City, and the Tax Increment Financing Commission of Kansas City, Missouri;

 

(b)               Bond Purchase Agreement dated as of the date of pricing of the Bonds, among the Issuer, the City and J.P. Morgan Securities Inc., on behalf of itself and the additional purchasers named therein;

 

(c)                Tax Compliance Agreement dated as of the date of delivery of the Bonds among the Issuer, the City and UMB Bank, N.A., as Trustee under the indenture authorizing the issuance of the Bonds;

 

(d)               Continuing Disclosure Agreement dated as of the date set forth therein;

 

(e)                Preliminary Official Statement;

 

(f)                 First Supplement to Escrow Agreement; and

 

(g)                First Amendment to Redevelopment District Tax Distribution Agreement.

 

Section 3. Annual Appropriation. The Citys Director of Finance or other officer of the City at any time charged with the responsibility of formulating budget proposal shall include in the budget proposals submitted to the City Council, in each Fiscal Year in which the Bonds shall be in effect, an appropriation for all payments required under the Bonds for the ensuing Fiscal Year; it being the intention of the City that the decisions to appropriate or not to appropriate to pay the Bonds shall be made solely by the City Council and not by any other official of the City. The City intends to appropriate funds to make debt service payments on the Bonds in accordance with the Indenture from all legally available revenue sources, including, but not limited to, tax increment revenues generated under the Uptown Redevelopment Plan and the Midtown Redevelopment Plan. The City reasonably believes that legally available funds in an amount sufficient to make all debt service payments during each Fiscal Year can be obtained. The City further intends to do all things lawfully within its power to obtain and maintain funds from all legally available revenue sources from which the debt service payments may be made, including making provision for such debt service payments to the extent necessary in each proposed annual budget submitted for approval in accordance with applicable procedures of the City. The Citys Director of Finance is directed to do all things lawfully within his/her power to obtain and maintain funds from all legally available revenue sources from which the debt service payments may be paid, including making provision for such debt service payments to the extent necessary in each proposed annual budget submitted for approval or by supplemental appropriation in accordance with applicable procedures of the City. Notwithstanding the foregoing, the decision to budget and appropriate funds is to be made in accordance with the Citys normal procedures for such decisions.

Section 4. Execution of City Documents. The Mayor, the City Manager, Director of City Development or Director of Finance is hereby authorized and directed to execute and deliver the City Documents for and on behalf of and as the act and deed of the City. The City Clerk or Deputy City Clerk is hereby authorized and directed to attest to the Bonds by manual or facsimile signature, to the City Documents and to such other documents, certificates and instruments as may be necessary or desirable to carry out and comply with the intent of this Ordinance. The Mayor, Director of City Development or Director of Finance is hereby authorized to deem final the information concerning the City contained in the Preliminary Official Statement to be prepared with respect to the Bonds for purposes of SEC Rule 15c2-12, as amended.

 

Section 5. Bond Insurance. The Mayor, the City Manager, the Director of City Development or Director of Finance is hereby authorized to negotiate and approve the terms of any agreement for bond insurance with the Bond Insurer and the Assistant City Attorney as to the form thereof, is hereby authorized and directed to execute such agreements.

 

Section 6. Selection of Co-Financial Advisors and Underwriters. The City is hereby authorized to employ the firms of First Southwest Company and Valds and Moreno, Inc., as co-financial advisors to the City in connection with this financing. J.P. Morgan Securities, Inc. will serve as book-running senior manager and Backstrom McCarley Berry & Co., LLC and Harveston Securities, Inc., will serve as co-managers.

Section 7. Further Authority. The City shall, and the officers, agents and employees of the City are hereby authorized and directed to, take such further action, and execute such other documents, certificates and instruments, including, without limitation, any credit enhancement or security documents, or closing certificates, as may be necessary or desirable to carry out and comply with the intent of this Ordinance, and to carry out, comply with and perform the duties of the City with respect to the Bonds and the City Documents.

 

Section 8. Governing Law. This Ordinance shall be governed exclusively by and construed in accordance with the applicable laws of the State of Missouri.

 

Section 9. Effective Date. This Ordinance shall take effect and be in full force and effect ten days after its passage.

 

___________________________________________

 

Approved as to form and legality:

 

 

__________________________

Heather A. Brown

Assistant City Attorney