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Legislation #: 160047 Introduction Date: 1/14/2016
Type: Ordinance Effective Date: 1/29/2016
Sponsor: COUNCILMEMBER WAGNER AND MAYOR LUCAS
Title: Authorizing the Director of Public Works to accept an assignment of option to purchase and to enter into negotiations to complete the acquisition of the real property commonly known as the Royale Motel located at 600 Paseo Boulevard and execute all documentation to complete the purchase; renaming Fund 3433; estimating and appropriating $2,700,000.00 to cover costs; authorizing the Director of Public Works to expend funds not to exceed $2,700,000.00; authorizing the Director of Finance to close project accounts upon project completion; declaring the City’s intent to reimburse itself from bond proceeds for certain expenditures; designating requisitions authority; and recognizing an accelerated effective date.

Legislation History
DateMinutesDescription
1/14/2016 Filed by the Clerk's office
1/14/2016 Referred to Transportation & Infrastructure Committee
1/21/2016 Hold On Agenda (1/28/2016)
1/28/2016 Advance and Do Pass as a Committee Substitute, Debate
1/28/2016 Passed as Substituted

View Attachments
FileTypeSizeDescription
1600471.pdf Authenticated 189K Authenticated
160047 Fact Sheet.pdf Fact Sheet 90K 160047 Fact Sheet

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COMMITTEE SUBSTITUTE FOR ORDINANCE NO. 160047

 

Authorizing the Director of Public Works to accept an assignment of option to purchase and to enter into negotiations to complete the acquisition of the real property commonly known as the Royale Motel located at 600 Paseo Boulevard and execute all documentation to complete the purchase; renaming Fund 3433; estimating and appropriating $2,700,000.00 to cover costs; authorizing the Director of Public Works to expend funds not to exceed $2,700,000.00; authorizing the Director of Finance to close project accounts upon project completion; declaring the City’s intent to reimburse itself from bond proceeds for certain expenditures; designating requisitions authority; and recognizing an accelerated effective date.

 

BE IT ORDAINED BY THE COUNCIL OF KANSAS CITY:

 

Section 1. That the Director of Public Works is hereby authorized to enter into and accept an assignment of that certain Commercial Real Estate Sales Option Agreement, including the Rider which is part thereof, by and between DevRam, LLC (“Seller”), and Brinshore Development, LLC (“Option Holder”) last signed on March 10, 2015, as currently extended through January 31, 2016 (hereinafter referred to as “Option Agreement”), for real property located at 600 Paseo Boulevard, commonly known as the Royale Motel, and more specifically described as:

 

Lot 31 and the North 216 feet of Lot 36, Ranson Place, a subdivision in Kansas City, Jackson County, Missouri, except that part in streets or roadways (being Jackson County Tax Parcel Nos. 29-120-03-03-02-0-00-000 [building] and 29-120-03-03-01-0-00-000 [land])

 

Collectively referred to as “Property.”

 

Section 2. That the Director of Public Works is hereby authorized to enter into an agreement with the Option Holder to reimburse it the costs of obtaining and extending such Option Agreement, the due diligence costs for title work, appraisal and peer review of same, environmental assessments, survey work, relocation costs to comply with federal or state regulatory requirements, and to pay the Option Holder for its consulting services, which aggregate amount shall not exceed Three Hundred One Thousand Dollars ($301,000.00) and to receive the rights to rely upon any and all such due diligence documentation.

 

Section 3. That the Director of Public Works is hereby authorized to complete negotiations and execute documentation for the purchase of Property including all closing documentation contemplated by the Option Agreement, and the assignment of it, and as needed to otherwise acquire and demolish the Property either directly by the City or through the EDC Charitable Fund, a Missouri non-profit corporation (“EDCCF”), subject to the receipt of regulatory clearances from state and federal agencies, and shall coordinate those efforts with the Director of Economic Development, and the Director of Parks and Recreation.

 

Section 4. That the Director of Public Works is hereby authorized to facilitate either the direct purchase of the Property by the City, or to further assign the Option Agreement to the EDCCF, subject to the receipt of regulatory clearances from state and federal agencies, to enable either the City or the EDCCF to acquire, demolish and hold the Property pending completion of the construction plans and allocation of funds for the realignment and reconstruction of Paseo Boulevard and subsequent redevelopment to implement the CHOICE Neighborhoods Grant.

 

Section 5. That the Director of Public Works is hereby authorized, pending receipt of regulatory clearances from state and federal agencies, upon either the City or the EDCCF acquiring title to the Property to enter in an agreement for the demolition of the motel structure on the Property, including the abatement of all hazardous substances containing materials, as expeditiously as reasonably possible, with the understanding that if the EDCCF acquires title the demolition and abatement funding will be allocated to it to directly enter into such demolition contract and complete the demolition to reduce holding costs of the Property and to deter crime in and about the Property while plans are finalized for realignment of Paseo Boulevard.

 

Section 6. That the name of Fund 3433, the Series 2015B Special Obligation Bond Fund is hereby changed to the Series 2016A Special Obligation Bond Fund.

 

Section 7. That the revenue in the following account of Fund No. 3433, the Series 2016A Special Obligation Bond Fund, is hereby estimated in the following amount:

 

AL-3433-120000-590000 Proceeds from Bonds $2,700,000.00

 

Section 8. That the sum of $2,700,000.00 is hereby appropriated from the Un-appropriated Fund Balance of Fund No. 3433, the Series 2016A Special Obligation Bond Fund to the following account:

 

AL-3433-898044-B-89020218 Royale Motel Acquisition $2,700,000.00

 

Section 9. That the Director of Public Works is authorized to expend up to the sum of $2,700,000.00 from Account No. AL-3433-898044-B-89020218, to obtain the assignment of the Option Agreement and to satisfy the cost of the acquisition and demolition of said Property, and any relocation costs incurred to comply with federal or state regulatory requirements.

 

Section 10. That the Director of Public Works is hereby designated as the requisitioning authority for Account No. AL-3433-898044-B.

 

Section 11. That the Director of Finance is hereby authorized to close project accounts upon project completion and return the unspent portion of the appropriation to the Fund Balance from which it came.

 

Section 12. That the City hereby declares its official intent to reimburse itself for certain expenditures made within sixty (60) days prior to or on and after the date of this ordinance with respect to the Property with the proceeds of bonds expected to be issued by the City. The maximum principal amount of bonds expected to be issued for the Property is not to exceed $2,700,000.00. This constitutes a declaration of official intent under Treasury Regulation Section 1.150-2.

 

Section 13. That this ordinance is recognized as an ordinance with an accelerated effective date as provided by Section 503(a)(3)(C) of the City Charter in that it appropriates money, and shall take effect in accordance with that section.

_____________________________________________

 

I hereby certify that there is a balance, otherwise unencumbered, to the credit of the appropriation to which the foregoing expenditure is to be charged, and a cash balance, otherwise unencumbered, in the treasury, to the credit of the fund from which payment is to be made, each sufficient to meet the obligation hereby incurred.

 

 

______________________________

Randall J. Landes

Director of Finance

 

Approved as to form and legality:

 

 

______________________________

Amelia J. McIntyre

Assistant City Attorney