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Legislation #: 961542 Introduction Date: 11/28/1996
Type: Resolution Effective Date: 12/23/1996
Sponsor: None
Title: Expressing the intent of the City to enter into an annual appropriation lease to provide credit enhancement for bonds to be issued by the Land Clearance for Redevelopment Authority of Kansas City, Missouri, in the aggregate principal amount not to exceed $3,500,000.00, the proceeds of which will be used to finance a portion of the cost of constructing a parking project ("Facility") near the Uptown Theater in Kansas City, Missouri; and authorizing certain other actions in connection therewith.

Legislation History
DateMinutesDescription
11/26/1996

Prepare to Introduce

11/26/1996

Referred Planning, Zoning & Economic Development Committee

12/4/1996

Hold On Agenda

12/18/1996

Hold On Agenda

12/23/1996

Immediate Adoption as a Committee Substitute

12/23/1996

Adopted as Substituted


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COMMITTEE SUBSTITUTE FOR RESOLUTION NO. 961542

 

Expressing the intent of the City to enter into an annual appropriation lease to provide credit enhancement for bonds to be issued by the Land Clearance for Redevelopment Authority of Kansas City, Missouri, in the aggregate principal amount not to exceed $3,500,000.00, the proceeds of which will be used to finance a portion of the cost of constructing a parking project ("Facility") near the Uptown Theater in Kansas City, Missouri; and authorizing certain other actions in connection therewith.

 

WHEREAS, the Land Clearance for Redevelopment Authority of Kansas City, Missouri ("LCRA") is authorized and empowered under the Land Clearance for Redevelopment Authority Law, Sections 99.300 to 99.715, RSMo, (the "LCRA Act"), to issue its revenue bonds for any of its corporate purposes, including to provide funds to purchase, construct and improve any "urban renewal projects" (as defined in the LCRA Act); and

 

WHEREAS, the Board of Commissioners of LCRA has adopted an inducement resolution and it is anticipated that it will adopt a resolution authorizing LCRA to issue its Land Clearance for Redevelopment Authority of Kansas City, Missouri, Taxable Lease Revenue Bonds (Uptown Theater Parking Project) Series 1996 (the "Bonds"), for the purpose of aiding in the financing of the Facility as an urban renewal project; and

 

WHEREAS, the proceeds from the Bonds will provide funds to (i) pay a portion of the costs and expenses to acquire the property (the "Project Site") and to construct and renovate the Facility (collectively the "Project); (ii) fund the debt service fund; (iii) fund the capitalized interest fund; and (iv) pay costs of issuance; and

 

WHEREAS, LCRA will lease to the City of Kansas City, Missouri ("City") the Project Site and the Facility pursuant to a lease (the "City Lease"), under which the City will make payments to pay the principal of and interest on the Bonds as the same become due (with credit for tax increment financing ("TIF") revenues, if any, received from the Project), for any fiscal year and to the extent for which the City has appropriated funds to make such payments; and

 

WHEREAS, the City will sublease the Project Site and the Facility to UGA, Inc., or a related entity ("UGA") pursuant to an operating lease (the "Operating Lease"), under which UGA is required to make payments to pay the principal of and interest on the Bonds as the same become due (with credit for TIF revenues, if any, received from the Project) and operate the Facility; and

 

WHEREAS, LCRA and UGA will enter into a development agreement pursuant to which UGA will be required to construct the Facility and purchase the Project Site and the Facility when the Bonds are fully paid; and

 

WHEREAS, LCRA, the City, the TIF Commission and UGA propose to enter into a cooperative agreement (the "Cooperative Agreement") with respect to the Project; and WHEREAS, the Director of City Development and the Director of Finance have reviewed the Project and the proposed financing and have reported their findings to the City Council; NOW, THEREFORE,

 

BE IT RESOLVED BY THE COUNCIL OF KANSAS CITY:

 

Section 1. The City Council desires that the Project be completed and that LCRA and the TIF Commission, their staff, legal counsel and other professional consultants, take action necessary to issue the Bonds in an amount not to exceed $3,500,000.00 to finance the Project.

 

Section 2. The City desires to provide credit enhancement, by entering into the City Lease, Operating Lease, Cooperative Agreement and other necessary and incidental documents, for the Bonds.

 

Section 3. The City Manager is authorized, empowered and directed on behalf of and in the name of the City to proceed with the necessary negotiations and preparation of the City Lease, Operating Lease and other necessary and incidental documents relating to the Project and the issuance of the Bonds, and to take or cause to be taken in the name of the City all such other and further actions deemed necessary or desirable in order to effectuate the intent of this resolution, all subject to final approval of the City Council by ordinance.

 

Section 4. As a condition precedent to the issuance of the Bonds, UGA must demonstrate to City that financing has been obtained for the Uptown Theater renovation.

 

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