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Legislation #: 140031 Introduction Date: 1/9/2014
Type: Ordinance Effective Date: none
Title: Enacting an economic development and incentives policy for the City and repealing Committee Substitute for Ordinance No. 070943.

Legislation History
1/9/2014 Filed by the Clerk's office
1/9/2014 Referred to Planning, Zoning & Economic Development Committee
1/15/2014 Hold On Agenda (1/22/2014)
1/22/2014 Hold On Agenda (1/29/2014)
1/29/2014 Hold On Agenda (2/5/2014)
2/5/2014 Do Pass as a Committee Substitute
2/6/2014 Assigned Third Read Calendar as Substituted
2/20/2014 Councilmember Ford (Second by Wagner) Move to Amend
2/20/2014 Passed as Substituted

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Enacting an economic development and incentives policy for the City and repealing Committee Substitute for Ordinance No. 070943.

WHEREAS, the City Council adopted Committee Substitute for Resolution No. 120836 expressing its support for the AdvanceKC Strategic Plan and the related underlying planning process; and

WHEREAS, the City Council passed Ordinance No. 120966 adopting the AdvanceKC Strategic Plan as the Economic Development Strategic Plan for the City of Kansas City and directing the City Manager to proceed with supporting the planning and development of the Implementation Phase of the project; and

WHEREAS, the Implementation Phase began with the adoption of Committee Substitute for Resolution No. 130274 which provides for a single point of entry for development projects through the Economic Development Corporation of Kansas City, Missouri (the “EDC”); and

WHEREAS, a sound economic development and incentive policy, in addition to providing for a single point of entry, must identify the policies and objectives supported by the City Council and to be applied by the EDC and City staff in advancing economic development projects; and

 WHEREAS, the City Council supports an economic development strategy that emphasizes active business retention while simultaneously stressing business attraction, all within a fiscally responsible manner; NOW, THEREFORE;


Section 1. That the Council hereby adopts the City’s Economic Development and Incentives Policy, which is attached hereto as Exhibit A.

Section 2. That the Council states that the policy enacted herein is an expression of intent of the City Council regarding the use of economic incentives and is not to be construed as granting any rights or expectations to any developer, agency, taxing jurisdiction, or citizen with regard to any particular project or process. Within the bounds of applicable law, the Council retains its full authority to use its best reasonable discretion in considering applications for public economic incentives.

Section 3. That the City Manager is directed to develop a scoring system for the purposes of determining the extent to which a particular project furthers the objectives of the City’s economic development and incentive policy and identifying the incentives to be offered.

Section 4. That Committee Substitute for Ordinance No. 070943 is hereby repealed.




Approved as to form and legality:




Brian T. Rabineau

Assistant City Attorney




City of Kansas City, Missouri

Economic Development & Incentives Policy


City Council Priority Statements


Projects should support the City Council’s priorities for economic development, support the objectives of the AdvanceKC Strategic Plan, and adhere to the appropriate State of Missouri statute(s) to be eligible for City incentives. Projects should strengthen the economy of the City of Kansas City, including preserving and enhancing the local tax base and providing opportunities for increased income for residents, especially in areas of high unemployment and underemployment through attraction, expansion and retention activities.


A.   Jobs-Based Project Priorities:


1.      Compete for quality jobs

a.       Retained jobs are as valuable as new jobs

b.      Focus on AdvanceKC Target Sectors

c.       Focus on jobs in growth sectors

d.      Focus on jobs for Kansas City residents

e.       Focus on companies that provide competitive wages for their industry

2.      Promote comprehensive opportunities for education, skill development and lifelong learning to preserve and enhance Kansas City’s workforce


B.   Site-Based Project Priorities:


1.      Provide incentives for real estate projects to encourage economic, social, and environmental sustainability

2.      Maintain and develop quality and workforce housing opportunities consistent with market needs of existing and prospective residents

3.      Support projects that benefit surrounding neighborhoods

4.      Support projects that are consistent with City Area Plans and the City’s Consolidated Plan

5.      Support early risk takers, especially in City Council priority development areas.

6.      Target areas of historic underinvestment

a.       Focus on areas of long term declining property values

b.      Encourage geographic equity of development patterns

7.      Support projects that increase density in the urban core with a greater emphasis within the streetcar corridors


C.   Fiscal Responsibility Policies:


1.      Promote good stewardship of the City’s resources

2.      Provide incentives for real estate projects only as necessary to fill the financial gap

3.      Support pay-as-you-go projects and discourage the use of City debt

4.      Super TIF should be used with great discretion and requires the support of a super majority (two-thirds) of the City Council, except when needed to access state incentives or to promote quality residential development

5.      Encourage retail projects that result in capture of net new consumer spending versus substitution of spending from other markets within KCMO

6.      Limit the use of incentives to reasonable and appropriate project expenses which have a public benefit and are essential to the successful completion of projects

7.      All projects should meet the “but for” test, either financially or competitively based or to address the City Council’s strategic priorities.

8.      Promote a positive fiscal impact on taxing jurisdictions in the use of incentives

9.      Direct earnings tax incentives are prohibited

10.  The City’s incentives should be used to maximize private investment

11.  Business types ineligible for incentives include: the sale of package liquor* or firearms*, pawn shops, short term loan establishments, gambling, blood/plasma centers, “adult-oriented” businesses, cigarette*/smoke shops and hookah lounges, scrap metal operations, tattoo/piercing parlors, and used car lots

* These business types are only ineligible when the indicated (*) product comprises more than 30% of retail sales or the sales display area (Example: A liquor store would be ineligible but a grocery store that sells liquor would be eligible)


D.   The City Council acknowledges that there may be projects (job or site-based) that do not meet these priorities and policies (non-compliant). The Economic Development Corporation may choose to recommend to the appropriate governing body incentives to the otherwise non-compliant projects with the approval of the Transactional Committee of the Economic Development Corporation, and, when appropriate, the City Council will be consulted.


E.    Example

1.      The Cerner project at the old Bannister Mall site is an example of an exceptional project due to the large number of jobs and redevelopment of a blighted and targeted area.


F.    Implementation Guidelines

1.      The Chapter 100 process may be expedited and must only follow state statute if a project is in a targeted sector and developed in a targeted area.

2.      A Greenfield shopping center project with sales tax going toward non-public improvements would not meet this policy.

3.      Establish specific performance standards and a process to regularly monitor compliance for each project receiving incentives

4.      With respect to job retention, retained jobs must be linked with the creation of jobs and investment to receive incentives.

*Additional guidelines and/or procedures will be developed by the Economic Development Corporation for City Council approval.