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Legislation #: 040890 Introduction Date: 7/29/2004
Type: Ordinance Effective Date: none
Sponsor: None
Title: Approving the issuance of Variable Rate Demand Taxable Revenue Bonds (909 Walnut Parking Facility Project) Series 2004, by the Tax Increment Financing Commission of Kansas City, Missouri, in an aggregate principal amount not to exceed $8,000,000.00, to provide funds to finance certain redevelopment project costs; and authorizing and approving certain documents and actions in connection with the issuance of such bonds

Legislation History
DateMinutesDescription
7/29/2004

Prepare to Introduce

7/29/2004

Referred Finance Committee

8/4/2004

Advance and Do Pass

8/5/2004

Passed


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ORDINANCE NO. 040890

 

Approving the issuance of Variable Rate Demand Taxable Revenue Bonds (909 Walnut Parking Facility Project) Series 2004, by the Tax Increment Financing Commission of Kansas City, Missouri, in an aggregate principal amount not to exceed $8,000,000.00, to provide funds to finance certain redevelopment project costs; and authorizing and approving certain documents and actions in connection with the issuance of such bonds

 

WHEREAS, the City of Kansas City, Missouri (the City), is a constitutional charter city and political subdivision duly organized and existing under the laws of the State of Missouri, and is authorized and empowered pursuant to the provisions of the Real Property Tax Increment Allocation Redevelopment Act, Sections 99.800 to 99.865 of the Revised Statutes of Missouri, as amended (the Act), to issue revenue bonds to provide funds to pay redevelopment project costs as defined in the Act; and

 

WHEREAS, a plan for redevelopment known as the Tower Properties Downtown Tax Increment Financing Plan (the Redevelopment Plan) for an area designated therein as the Redevelopment Area (the Redevelopment Area), was prepared and reviewed by the Tax Increment Financing Commission of Kansas City, Missouri (the Commission), and the Commission, on August 9, 1995, by Resolution 95-76, recommended that the City Council of the City (the City Council) approve the Redevelopment Plan and the City Council, by Committee Substitute for Ordinance No. 951469, approved the Redevelopment Plan on November 27, 1995; and

 

WHEREAS, on May 9, 2001, the Commission, by Resolution No. 5-1-01, recommended to the City Council that it approve Project H of the Original Plan, as amended (the Redevelopment Project), and adopt tax increment financing with respect thereto; and

 

WHEREAS, on May 31, 2001, the City Council, by Ordinance No. 951477, approved the Redevelopment Project and authorized tax increment financing for the Redevelopment Project in the Redevelopment Area; and

 

WHEREAS, on March 27, 2003, the City Council passed Committee Substitute for Ordinance No. 030256 which authorized the Third Amendment to the Redevelopment Plan and extended the boundaries of the Redevelopment Area for the Redevelopment Plan to encompass 929 Walnut and the property immediately north and adjacent to 929 Walnut; and

 

WHEREAS, on March 27, 2003, the City Council adopted Resolution No. 030371, authorizing the development and financing of a parking facility (the Parking Facility) as part of the Redevelopment Project through the issuance of revenue bonds; and

 

WHEREAS, on July 8, 2004, the City Council passed Ordinance No. 040739 which authorized the Fifth Amendment to the TIF Plan which revised the redevelopment project costs to be financed with tax increment financing for the Project; and

 

WHEREAS, the Commission and 911 E. Walnut, L.L.C. (the Redeveloper) have or will entered into a redevelopment agreement for the implementation of the Redevelopment Project (the Redevelopment Agreement); and

 

WHEREAS, the Redeveloper has requested that the Commission issue its Variable Rate Demand Taxable Revenue Bonds (909 Walnut Parking Facility Project) Series 2004, in a principal amount not to exceed $8,000,000.00 (the Bonds) and make the proceeds thereof available to the Redeveloper to assist in providing funds for the purpose of (a) acquiring, constructing and equipping


the Parking Facility, which shall be made available for use by the general public (b) funding capitalized interest on the Bonds and (c) paying costs related to the issuance of the Bonds, including fees associated with the provision of the Bond Insurance and the Liquidity Facility (as such terms are defined in the Indenture), all as permitted under the Act; and

 

WHEREAS, the City finds and determines that in order to finance the Project it is necessary and desirable to approve the issuance by the Commission of the Bonds; and

 

WHEREAS, the City further finds and determines that it is necessary and desirable in connection with the issuance of the Bonds that the City execute and deliver certain documents and that the City take certain other actions as herein provided; NOW, THEREFORE,

 

BE IT ORDAINED BY THE COUNCIL OF KANSAS CITY:

 

Section 1. Approval. The City hereby approves the issuance of the Bonds by the Commission in order to implement the Redevelopment Plan and finance the Parking Facility in accordance with the provisions of the Act. The City hereby finds and determines that the Bonds are being issued for a valid purpose under and in accordance with provisions of the Act.

 

Section 2. Authorization and Approval of Documents. The following documents are hereby approved in substantially the form presented to and reviewed by the City at this meeting (copies of which documents shall be filed in the records of the City), and the City is hereby authorized to execute and deliver each of such documents (the City Documents) with such changes therein as shall be approved by the officers of the City executing such documents, such officers signatures thereon being conclusive evidence of their approval and the Citys approval thereof:

 

(a) Financing Agreement dated as of the date set forth therein (the Financing Agreement) among the Commission, the City, the Redeveloper and Wells Fargo Bank, N.A., as bond trustee; and

 

(b) Bond Purchase Agreement dated as of the date of pricing of the Bonds, among the Commission, the City, the City, the Redeveloper and A.G. Edwards & Sons, Inc., the Underwriter for the Bonds.

 

In addition, on May 6, 2004, by Ordinance No. 040438, the City Council has approved the Cooperative Agreement among the City, the Commission and the Redeveloper.

Section 3. Annual Appropriation. The Citys Director of Finance or other officer of the City at any time charged with the responsibility of formulating budget proposal shall include in the budget proposals submitted to the City Council, in each Fiscal Year in which the Bonds shall be in effect, an appropriation for all payments required under the Bonds for the ensuing Fiscal Year; it being the intention of the City that the decisions to appropriate or not to appropriate to pay the Bonds shall be made solely by the City Council and not by any other official of the City. The City intends to appropriate funds to make debt service payments on the Bonds in accordance with the Indenture from all legally available revenue sources, including, but not limited to, tax increment revenues generated under the Redevelopment Plan. The City reasonably believes that legally available funds in an amount sufficient to make all debt service payments during each Fiscal Year can be obtained. The City further intends to do all things lawfully within its power to obtain and maintain funds from all legally available revenue sources from which the debt service payments may be made, including making provision for such debt service payments to the extent necessary in each proposed annual budget submitted for approval in accordance with applicable procedures of the City. The Citys Director of Finance is directed to do all things lawfully within his/her power to obtain and maintain funds from all legally available revenue sources from which the debt service payments may be paid, including making provision for such debt service payments to the extent necessary in each proposed annual budget submitted for approval or by supplemental appropriation in accordance with applicable procedures of the City. Notwithstanding the foregoing, the decision to budget and appropriate funds is to be made in accordance with the Citys normal procedures for such decisions.

Section 4. Costs of Issuance. In accordance with Second Committee Substitute for Resolution No. 020238, the City understands that the costs of issuance for the Bonds may exceed the 2.5% ceiling. The Director of Finance is hereby granted the authority to approve the final costs of issuance so long as they do not exceed the maximum amount approved by the Commission on July 14, 2004.

 

Section 5. Execution of City Documents. The Mayor, Director of City Development or Director of Finance is hereby authorized and directed to execute and deliver the City Documents for and on behalf of and as the act and deed of the City. The City Clerk or Deputy City Clerk is hereby authorized and directed to attest to the Bonds by manual or facsimile signature, to the City Documents and to such other documents, certificates and instruments as may be necessary or desirable to carry out and comply with the intent of this Ordinance.

 

Section 6. Bond Insurance and Liquidity Facility. The Mayor, Director of City Development or Director of Finance is hereby authorized to approve the terms of any agreement for bond insurance with the bond insurer and any agreement to provide liquidity while the Bonds bear interest at a Floating Rate, and with the advice of the Assistant City Attorney as to form thereof, is hereby authorized and directed to execute such agreements.

 

Section 7. Further Authority. The City shall, and the officers, agents and employees of the City are hereby authorized and directed to, take such further action, and execute such other documents, certificates and instruments, including, without limitation, any credit enhancement or security documents, or closing certificates, as may be necessary or desirable to carry out and comply with the intent of this Ordinance, and to carry out, comply with and perform the duties of the City with respect to the Bonds and the City Documents.

 

Section 8. Governing Law. This Ordinance shall be governed exclusively by and construed in accordance with the applicable laws of the State of Missouri.

 

Section 9. Effective Date. This Ordinance shall take effect and be in full force and effect ten days after its passage.

 

________________________________________________________

 

Approved as to form and legality:

 

 

_________________________________

Heather A. Brown

Assistant City Attorney