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Legislation #: 130886 Introduction Date: 11/7/2013
Type: Ordinance Effective Date: none
Sponsor: COUNCILMEMBER MARCASON
Title: Approving additional tax increment financing for the 9th _ Central Tax Increment Financing Plan and authorizing the Director of Finance to enter into one or more agreements in furtherance of such purpose.

Legislation History
DateMinutesDescription
11/7/2013 Filed by the Clerk's office
11/7/2013 Referred to Planning, Zoning & Economic Development Committee
11/20/2013 Hold On Agenda (11/25/2013)
11/25/2013 Advance and Do Pass as a Committee Substitute, Debate
11/26/2013 Passed as Substituted

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COMMITTEE SUBSTITUTE FOR ORDINANCE NO. 130886

Approving additional tax increment financing for the 9th & Central Tax Increment Financing Plan and authorizing the Director of Finance to enter into one or more agreements in furtherance of such purpose.

WHEREAS, the 9th & Central Tax Increment Financing Plan (the “TIF Plan”) was approved by the City Council of the City (the “City Council”) with passage of Ordinance No. 130829; 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 redevelopment of the existing historic Savoy Hotel and restaurant into a boutique hotel containing approximately 120 rooms, including a restaurant, event space, contemporary art museum, complimentary retail space, and certain related site improvements (collectively referred to as the “Project Improvements”), and for the reimbursement of certain costs; and

WHEREAS, Lots 1, 2, 3, 4, 5, 6 and 7, Block 3 (the "Mary E. Lee Trust Property"), Ashburn's Addition, a Subdivision in Kansas City, Jackson County, Missouri is within the Redevelopment Area (as hereinafter defined), is currently owned by Mary E. Lee, as Trustee of the Mary E. Lee Trust Under the Declaration of Trust Agreement dated May 27, 1992, and is under contract to be sold to Redeveloper (as hereinafter defined); and

WHEREAS, Lots 18, 19, 20, 21 and 22, Block 3 (the "NACC Property"), Ashburn's Addition, a Subdivision in Kansas City, Jackson County, Missouri is within the Redevelopment Area, is currently owned by Ninth and Central Corporation, a Missouri corporation, and is under contract to be sold to Redeveloper; 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 Tax Increment Financing Commission of Kansas City, Missouri (the “Commission”) and 21c Kansas City, LLC, a Missouri limited liability company (the “Redeveloper”), will enter into an agreement (the “Redevelopment Agreement”), which shall provide, 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 and the Convention and Visitors Bureau of Greater Kansas City, Inc. d/b/a the Kansas City Convention and Visitors Association (“CVA”) desire 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 or appropriated and paid to the CVA pursuant to Section 68-553, Code of Ordinances, to be used for payment of certain Certified Costs, which are currently estimated to be $18,753,062; NOW, THEREFORE;

BE IT ORDAINED BY THE COUNCIL OF KANSAS CITY:

Section 1. That the Council hereby agrees to provide additional financing for certain redevelopment project costs identified by 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 certain Certified Costs.

Section 2. That the Director of Finance is authorized to enter into one or more agreements with the Commission, Redeveloper, CVA, or such combination of parties as shall be required for the purposes of providing for the additional financing described herein. Any such agreement shall be in such form as is approved by the Director of Finance.

Section 3. That the provisions of this Ordinance shall not become effective until each of the Mary E. Lee Trust Property and the NACC Property have been conveyed by deed recorded with the Jackson County Recorder of Deeds.

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Approved as to form and legality:

 

 

____________________________

Brian T. Rabineau

Assistant City Attorney