COMMITTEE SUBSTITUTE FOR ORDINANCE NO. 110966

Authorizing the City Manager to execute a Development Agreement with New Directions Behavioral Health, LLC, that authorizes the issuance of Chapter 100 bonds in connection with an economic development effort; and waiving the City’s Chapter 100 Policy component suggesting a minimum bond issuance of $10 million.

  WHEREAS, the City has had conversations with New Directions Behavioral Health, LLC, a company that is relocating and bringing approximately 200 new jobs to Kansas City, Missouri; and

WHEREAS, Chapter 100 bonds are required, as part of an overall incentive package being developed cooperatively with the State of Missouri, to make the relocation financially desirable to the company; and

WHEREAS, the City Council has previously established a policy for the review and approval of these projects, one component of which suggests a minimum bond issuance size of $10 million; and

WHEREAS, in this specific instance, the projected Chapter 100 bond issuance is going to be less than $10 million, requiring the City Council to waive this component of its Chapter 100 policy; and

WHEREAS, the Chapter 100 bonds and any accompanying tax abatement and sales tax exemption would necessarily be contingent on the City approving a Chapter 100 Plan; NOW, THEREFORE,

BE IT ORDAINED BY THE COUNCIL OF KANSAS CITY:

Section 1. That the City Manager is hereby authorized to execute a Development Agreement with New Directions Behavioral Health, LLC, that authorizes the issuance of Chapter 100 bonds upon the City Council’s subsequent approval of a Chapter 100 Plan, with said agreement approved in substantial form as that on file in the City Attorney’s Office.

Section 2.  That the City Council hereby waives the Chapter 100 Bond Policy related to minimum bond issuance amounts for this project.

_____________________________________________

Approved as to form and legality:

________________________________

Cecilia Abbott

Assistant City Attorney