RESOLUTION NO. 090713
Designating a recovery zone
pursuant to the American Recovery and Reinvestment Tax Act of 2009 for the
purpose of issuing Recovery Zone Economic Development Bonds and Recovery Zone
Facility bonds.
WHEREAS, the City of
Kansas City, Missouri, (the City) has received an allocation of the National
Recovery Zone Economic Development Bonds limitation in the amount of $15,293,000.00
and an allocation of the National Recovery Zone Facility Bonds limitation in
the amount of $10,195,000.00 pursuant to the American Recovery and Reinvestment
Tax Act of 2009, codified in Title 26 of the United States Code and Internal
Revenue Service, Notice 2009-50, issued on June 12, 2009 (collectively, the Allocations); and
WHEREAS, the City
understands that the Allocations are to be used for the issuance of Recovery
Zone Economic Development Bonds and Recovery Zone Facility Bonds pursuant to
Section 1400U-2 or 1400U-3, respectively, of the Internal Revenue Code of 1986,
as amended, such bonds referred to collectively as Recovery Zone Bonds; and
WHEREAS, the City
understands that Recovery Zone Bonds are to be issued with respect to or to
finance certain expenditures located in or attributable to an area within the
jurisdiction of the City that the City determines has a significant level of
one or more of the following factors: poverty, unemployment, home foreclosures,
or general distress (such factors referred to herein as the Distress
Factors); and
WHEREAS, the Council
has designated numerous areas of the City as redevelopment areas pursuant to
the Real Property Tax Increment Allocation Redevelopment Act, the Land
Clearance for Redevelopment Authority Law, The Planned Industrial Expansion
Law, The Urban Redevelopment Corporations Law, Sections 135.200 to 135.256,
relating to enterprise zones, and the Council has general knowledge and
recognition of the significant poverty, unemployment, rate of home foreclosures
and general distress in the City of Kansas City; and
WHEREAS, the City has
determined that the Distress Factors have been caused by one or more of the Underlying
Conditions of Distress described in Section 1 hereof; and
WHEREAS, the City
desires to designate the area described in Section 3 as a Recovery Zone to
provide for the possible issuance of Recovery Zone Bonds (such area being
referred to herein as the Recovery Zone); NOW, THEREFORE,
BE IT RESOLVED BY
THE COUNCIL OF KANSAS CITY:
Section 1. Underlying
Conditions of Distress. The Council hereby finds and determines that the
Recovery Zone identified in Section 3 suffers from one or more of the following
conditions (each an Underlying Condition of Distress):
(a)
The Recovery Zone has experienced significant increases in unemployment during
the calendar years 2008 and 2009.
(b)
The Recovery Zone has experienced significant increases in home foreclosures
and business failures during the calendar years 2008 and 2009.
(c) The
Recovery Zone suffers from significant poverty.
(d) Within the entire Recovery Zone there is a significant number of buildings and improvements
which, by reason of dilapidation, deterioration, age or obsolescence, illegal
use of individual structures, presence of structures below minimum code standards,
abandonment, excessive vacancies, inadequate provision for ventilation, light,
air sanitation, utilities or open spaces, high density of population and
overcrowding of buildings, overcrowding of land, the existence of conditions
which endanger life or property by fire and other causes, excessive land
coverage, deleterious land use or layout, depreciation of physical maintenance,
and lack of community planning, or any combination of such factors, is
conducive to ill health, transmission of disease, infant mortality, juvenile
delinquency and crime or constitutes an economic or social liability and is
detrimental to the public health, safety, morals, or welfare of the Recovery
Zone.
(e)
There are substantial real properties on which there is a vacant structure and
on which real property taxes have been delinquent for one year or more and
orders have been issued by the Recovery Zone's fire official, building official
or health official, and there has been no compliance with those orders within
the prescribed time given by such official or within ninety days, whichever is
longer, or the owner has declared in writing to the building official that the
property is abandoned or there has been a determination by the City that the
vacant structure contributes to housing blight.
(f) The Recovery Zone has
generally suffered from declining population or an increase in property tax
delinquency.
(g)
The Recovery Zone has suffered from a material decline (using historical
numbers) in retail sales.
(h)
The Recovery Zone has experienced a decline in property tax or sales tax
revenues, resulting in budget cuts and an ensuing reduction in governmental
services provided by the City within the Recovery Zone since 2008.
(i) The Recovery Zone has experienced economic distress by
reason of the closure or realignment of a military installation pursuant to the
Defense Base Closure and Realignment Act of 1990.
(j) A significant portion of the Recovery Zone has been
designated as an empowerment zone or renewal community before February 17,
2009.
Section 2. Distress
Factors. The Council hereby finds and determines that, as a result of the
Underlying Conditions of Distress, the Recovery Zone has experienced a
significant level of one or more of the Distress Factors (i.e. poverty,
unemployment, home foreclosures, or general distress).
Section 3.
Designation of Recovery Zone. Based upon the findings and determinations
of the Underlying Conditions of Distress and the resulting Distress Factors,
the Council hereby designates the entire area within the jurisdictional
boundaries of the City as the Recovery Zone for the City.
Section 4.
Further Action. The Director of Finance is authorized and directed (a) to
take all necessary steps to indentify appropriate projects for which the
issuance of bonds will further the goals established for Recovery Zone Bonds in
order to cure the Distress Factors within the Recovery Zone; to identify other
economic development incentives and programs which may be available under
Federal or Missouri laws for such projects which will further the goals established
for Recovery Zone Bonds, (b) to send the notice of intent to issue recovery
zone bonds to the Missouri Department of Economic Development and (c) to work
with the Missouri Department of Economic Development to plan for the issuance
of Recovery Zone Bonds for identified projects.
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