COMMITTEE
SUBSTITUTE FOR RESOLUTION NO. 180142
Expressing the concerns of the City Council regarding the
Master Development Agreement and subsequent amendments between the City of
Kansas City, Missouri and Kansas City Live, LLC, and directing the City Manager
to negotiate certain amendments to the Thirteenth Amendment of Master
Development Agreement and report back to the City Council.
WHEREAS, on April 27, 2004 the City of Kansas City entered
into a Master Development Agreement (“MDA”) with Kansas City Live, LLC for
redevelopment of the 1200 Main/South Loop Tax Increment Financing District (“District”)
in downtown Kansas City, Missouri; and
WHEREAS, said MDA has been amended twelve times with a
thirteenth amendment currently pending via Ordinance No. 180057; and
WHEREAS, the City Council believes that certain concerns should
be addressed, including, without limitation, the inclusion of affordable
housing in the residential towers and the limitation of any impacts to the
General Fund; NOW, THEREFORE,
BE IT RESOLVED BY THE COUNCIL OF KANSAS CITY:
Section 1. That the City Manager is hereby directed to engage
KC Live, LLC for the purpose of negotiating revisions to the proposed
Thirteenth Amendment of Master Development Agreement to address the following
issues:
● Not less
than fifteen percent (15%) of all existing units in One Light and Two Light,
and proposed future units in Three Light and any Four Light, shall be reserved
for rent by persons making not more than one hundred percent (100%) of HUD’s Median
Income calculations for Jackson County, Missouri, or the Midland Office
Building shall be developed as affordable housing prior to any Four Light,
which Four Light shall also include 15% affordable housing. Any future
affordable housing in the District will be developed in accordance with the
City’s affordable housing policies.
● A cap of
four (4) residential buildings for which the City would provide parking, i.e.,
incentives would terminate with what is anticipated to be known as “Four Light.”
● A date
certain by which Four Light is to commence construction, with an expiration of
any City obligation if such date is not achieved for any reason.
● Kansas
City Live, LLC, will be responsible for, at its expense, all future maintenance
and capital repairs. City will retain responsibility only for
structural repairs to the walls, roof, foundations
and floors as is necessary to the essential stability of the Block 110 and
Block 126 Garages.
● The creation
of a profit sharing mechanism that would provide for a percentage of net
parking garage revenues to be made available to the City for debt service of
existing and any future debt obligations with respect to the District.
● The
reduction of the proposed Parking Subsidy to an amount consistent with the
Parking Cost Cap as it presently exists in Section 6.9(a) of the MDA or such
amount as the City’s Director of Finance reasonably determines would result in
a financial commitment that can be serviced by the City without negatively
impacting the City’s General Fund, whichever is less.
Section 2. That the City Manager shall report back to the
City Council on the status of negotiations in a period not to exceed thirty
days.
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