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Legislation #: 130776 Introduction Date: 10/3/2013
Type: Ordinance Effective Date: none
Sponsor: COUNCILMEMBERS JAMES, JR., CIRCO, SHARP AND TAYLOR
Title: Approving additional tax increment financing for the Bannister _ I-435 Tax Increment Financing Plan and authorizing the Director of Finance to enter into a Financing Agreement.

Legislation History
DateMinutesDescription
10/3/2013 Filed by the Clerk's office
10/3/2013 Referred to Planning, Zoning & Economic Development Committee
10/9/2013 Advance and Do Pass as a Committee Substitute, Debate
10/10/2013 Passed as Substituted

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fact sheet.pdf Fact Sheet 19K Fact Sheet
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COMMITTEE SUBSTITUTE FOR ORDINANCE NO. 130776

Approving additional tax increment financing for the Bannister & I-435 Tax Increment Financing Plan and authorizing the Director of Finance to enter into a Financing Agreement.

WHEREAS, the Bannister & I-435 Tax Increment Financing Plan (the “TIF Plan”) was approved by the City Council of the City (the “City Council”) with passage of Ordinance No. 130737; and

WHEREAS, the TIF Plan designated a redevelopment area (the “Redevelopment Area”) within the meaning of the Real Property Tax Increment Allocation Redevelopment Act, Sections 99.800 to 99.865 (the “Act”); and

WHEREAS, the TIF Plan provides for the development of an approximately 4,470,000 square foot mixed-use office campus completed in fourteen phases, as well as certain off-site infrastructure improvements, consisting of approximately 3,785,000 square feet of office space, an approximately 75,000 square foot day care facility, approximately 249,000 square feet of retail space, approximately 121,000 square feet of space for a hotel, approximately 240,000 square feet of data center space, and all necessary infrastructure and appurtenances (collectively referred to as the “Project Improvements”), and for the reimbursement of certain costs; and

WHEREAS, the TIF Plan is a comprehensive program intended to eliminate blighting conditions and enhance the tax base within the Redevelopment Area through, inter alia, the implementation of the Project Improvements within the Redevelopment Area; and

WHEREAS, the Commission and Cerner Property Development, Inc. (the “Redeveloper”), will enter into an agreement (the “Redevelopment Agreement”), which provides, inter alia, for the implementation of the Project Improvements and for the reimbursement of certain redevelopment project costs, as identified by the TIF Plan, that have been incurred by the Redeveloper and certified, pursuant to the Redevelopment Agreement, by the Commission (the “Certified Costs”); and

WHEREAS, the City Council desires to provide additional financing for Certified Costs related to the implementation of the Project Improvements by committing, subject to actual appropriation and collection, in addition to the revenues available under the Act, the total additional revenue from taxes which are imposed by the City and generated by economic activities within the Redevelopment Area, which are not subject to capture, in accordance with the Act, and would otherwise be deposited into the City’s general municipal funds to be used for payment of Two Hundred Eighty-Eight Million Six Hundred Thirty-Two Thousand Six Hundred Fifty-Eight Dollars ($288,632,658) in Certified Costs, as set forth in the agreement authorized herein (the “Financing Agreement”); and

WHEREAS, the City Council further desires to provide additional financing for certain initiatives of the neighborhoods and school district impacted by the Redevelopment Area, including Two Million Dollars ($2,000,000) to be utilized to finance a Neighborhood Improvement and Infrastructure Plan and Six Million Dollars ($6,000,000) to be utilized to finance the Hickman Mills Education, Professional Studies and Innovation Program; and

WHEREAS, the Financing Agreement will provide for the establishment of advisory committees which will provide advice to the City regarding the use and disbursement of revenue on deposit for the neighborhood plan and education program; NOW, THEREFORE;

  BE IT ORDAINED BY THE COUNCIL OF KANSAS CITY:

Section 1. That the Council hereby agrees to provide additional financing for the TIF Plan by committing, subject to annual appropriation and subject to actual collection, in addition to the revenues available under the Act, the balance of the taxes generated by economic activities within the Redevelopment Area, which are not subject to capture in accordance with the Act and would otherwise be deposited into the City’s general municipal funds, or an amount equivalent thereto, to be used for repayment of Two Hundred Eighty-Eight Million Six Hundred Thirty-Two Thousand Six Hundred Fifty-Eight Dollars ($288,632,658) in Certified Costs as set forth in the Financing Agreement.

Section 2. That the Council hereby agrees to provide additional financing for the Neighborhood Improvement and Infrastructure Plan and the Hickman Mills Education, Professional Studies and Innovation Program by committing, subject to annual appropriation and subject to actual collection, in addition to the revenues available under the Act, the balance of the taxes generated by economic activities within the Redevelopment Area, which are not subject to capture in accordance with the Act and would otherwise be deposited into the City’s general municipal funds, or an amount equivalent thereto, to be used for payment of Eight Million Dollars ($8,000,000) in costs as set forth in the Financing Agreement, Two Million Dollars ($2,000,000) of which shall be allocated to finance a Neighborhood Improvement and Infrastructure Plan and Six Million Dollars ($6,000,000) of which shall be allocated to finance the Hickman Mills Education, Professional Studies and Innovation Program; and

Section 3. That the advisory committee established to advise the City on the use of the Two Million Dollars ($2,000,000) allocated to finance the Neighborhood Improvement and Infrastructure Plan shall include seven (7) members, each member being appointed by the Mayor and each of which shall serve until replaced by the Mayor. The appointments shall include one representative each from the South Kansas City Alliance, the Southern Communities Coalition, the Fairlane Homes Association, the Hillcrest Heights Neighborhood Association, and such other organizations as the Mayor may deem appropriate. The organizations specifically listed herein may elect to submit one or more names for consideration to the Mayor, provided however that those individuals to be appointed shall be determined by the Mayor. The Mayor may make, but shall not be required to make, the appointments from those names submitted to him and may require that one or more alternate candidates be submitted for his consideration.

 

Section 4. That the advisory committee established to advise the City on the use of the Six Million Dollars ($6,000,000) allocated to finance the Hickman Mills Education, Professional Studies and Innovation Program shall include three members, consisting of (i) a representative of the Hickman Mills C-1 School District, (ii) a representative of Cerner Corporation, or if Cerner or an affiliate of Cerner is not the occupant of the largest portion of the office space located within the Redevelopment Area, then a representative of the entity which is the occupant of the largest portion of the office space located within the Redevelopment Area, and (iii) a City Council member for the City Council District in which the Redevelopment Area is located. Each member shall be appointed by the Mayor and shall serve until replaced by the Mayor. Hickman Mills C-1 School District and Cerner Corporation, or such other entity as may be entitled to be represented on the advisory committee in lieu of Cerner Corporation, may elect to submit one or more names for consideration to the Mayor, provided however that those individuals to be appointed shall be determined by the Mayor. The Mayor may make, but shall not be required to make, the appointments from those names submitted to him and may require that one or more alternate candidates be submitted for his consideration.

Section 5. That the Director of Finance is authorized to enter into a Financing Agreement providing for the additional financing described herein, in such form as is approved by the Director of Finance.

______________________________________________

Approved as to form and legality:

 

 

____________________________

Brian T. Rabineau

Assistant City Attorney