COMMITTEE SUBSTITUTE
FOR ORDINANCE NO. 140823, AS AMENDED
Amending Chapter 74, Code of
Ordinances, by repealing and reenacting Section 74-57,
Delegation of Authority, for the purpose of requiring that development
agreements contain a provision allowing the assignment to and assumption by
City of certain rights, duties, interests and obligations of the Tax Increment
Financing Commission of Kansas City, Missouri; enacting new Sections 74-62,
Administrative Costs, and 74-63, Special Allocation Fund, for the purposes of
addressing administrative costs to be reimbursed and the housing of the special
allocation fund within the City; and estimating and appropriating $250,000 for
the purposes of funding the existing accounting and financial reporting
services through the end of the current fiscal year.
WHEREAS,
pursuant to the Real Property Tax Increment Allocation Redevelopment Act,
Sections 99.800 to 99.865 of the Revised Statutes of Missouri, as amended (the
“Act”), the City Council of Kansas City, Missouri by Ordinance No. 54556 passed
on November 24, 1982, and thereafter amended in certain respects by Committee Substitute
for Ordinance No. 911076, As Amended, passed on August 29, 1991, Ordinance No.
100089, As Amended, passed on January 28, 2010, and Ordinance No. 130986,
passed on December 19, 2013, created the Tax Increment Financing Commission of
Kansas City, Missouri (the "Commission"); and
WHEREAS, the
City has delegated to the Commission all powers delegable under the Act, except
the powers to grant final approval of plans, projects and designation of
redevelopment areas, which powers are reserved to the City Council; and
WHEREAS, the
delegation to the Commission includes the right to enter into development
agreements, however denominated, and amendments thereto, containing such terms
as the Commission shall determine proper; and
WHEREAS, the
City desires to ensure that such development agreements, however denominated,
allow for the City to assume, at its election, in whole or in part, the rights,
duties, interests and obligations of the Commission thereunder; and
WHEREAS, the Act
provides that the City Council has the authority to determine the
administrative costs to be charged against projects based upon a recommendation
of the Commission, and the City deems it advisable to establish such costs
consistent with the recommendation and practices of the Commission; and
WHEREAS, the
City is presently working with the Commission and the Economic Development
Corporation of Kansas City, Missouri (the “EDC”) to transfer to the City the
responsibility for providing certain accounting and financial reporting
services, and the City deems it advisable that the special allocation fund be
housed within the City consistent with the City’s obligation to provide
financial oversight; NOW, THEREFORE,
BE IT ORDAINED BY THE
COUNCIL OF KANSAS CITY:
Section 1. That
Section 74-57, Delegation of Authority, is hereby repealed in its entirety and
a new section of like number and subject matter is enacted in lieu thereof, to
read as follows:
Section 74-57. Delegation of
authority.
That the council
hereby authorizes and approves the exercise of all of the powers delegable
under the Real Property Tax Increment Allocation Redevelopment Act and in
particular the powers enumerated in RSMo § 99.820.1, which relate to specific
plans, projects or amendments, (except final approval of plans, projects and
designation of redevelopment areas, which is reserved to the council) by the
commission comprised of the city representatives and the county
representatives, school district representatives, and taxing districts
representative within their specific jurisdictions. The council hereby further
authorizes and approves the exercise of all of the powers delegable under the
Real Property Tax Increment Allocation Redevelopment Act and in particular the
powers enumerated in RSMo § 99.820.1, which do not relate to specific plans and
projects (except final approval of plans, projects and designation of
redevelopment areas, which is reserved to the council) by the commission
comprised as set forth below in section 74-58 of this ordinance.
Notwithstanding anything to the contrary herein, any development agreement,
however denominated, or amendment thereto, executed by the commission comprised
of the city representatives and the county representatives, school district
representatives, and taxing districts representative within their specific
jurisdictions after the effective date of Committee Substitute for Ordinance
No. 140823, shall contain therein a provision allowing such commission to
assign and the City to assume, at the City’s sole election, in whole or in such
parts as the City shall elect, the rights, duties, interests and obligations of
the commission thereunder, and such commission shall execute such documentation
as may reasonably be required for such purposes. The failure of any
development agreement, however denominated, to incorporate the requirements of
this section shall not preclude any assignment or assumption as the
requirements of this section shall be deemed incorporated by operation of law
and shall supplant any provision to the contrary.
Section 2. That
Section 74-57 as herein revised shall not be construed in a manner that would
deny the commission comprised of the city representatives and the county
representatives, school district representatives, and taxing districts
representative within their specific jurisdictions the ability to assign, and
the City the right to assume, any rights, duties, interests and obligations of
such commission under any development agreement, however denominated, presently
existing.
Section 3. That a
new Section 74-62, Administrative Costs, is hereby enacted, to read as follows:
Section 74-62.
Administrative Costs.
The
commission comprised of the city representatives and the county
representatives, school district representatives, and taxing districts
representative within their specific jurisdictions has, in accordance with
Section 99.820.1(14), RSMo, recommended to the City Council that certain costs
incurred by the City and other officials, including but not limited to such
commission and the Economic Development Corporation of Kansas City, Missouri,
each of which provides services related to the administration of redevelopment
projects, should be reimbursed in an amount equal to five (5%) of the Payment
in Lieu of Taxes (“PILOTS”) and Economic Activity Taxes (“EATS”) paid into the
Special Allocation Fund (collectively, the “Standard Reimbursement”), and the
City Council hereby determines such charges to be necessary, reasonable and
appropriate. The powers granted to such commission
as codified in Section 74-57, Code of Ordinances, to
enter into any development agreement with a developer for the implementation of
any plan, project, or amendment to either, shall be subject to and conditioned
upon such redevelopment agreement including a term allowing for the Standard
Reimbursement. Notwithstanding the foregoing, such commission may, from
time-to-time, recommend that a lesser amount is appropriate with regards to one
or more specific projects, and the City Council shall consider such
recommendation and may determine, with respect to such one or more specific
projects, that recoupment in an amount less than the Standard Reimbursement is
appropriate, and in such event, the power granted to such commission to enter into any development agreement with a developer
for the implementation of any plan, project, or amendment to either, shall be
subject to and conditioned upon such development agreement including a term
allowing for such reduced reimbursement as the City Council may have determined
to approve by ordinance.
Section 4. That a
new Section 74-63, Special Allocation Fund, is hereby enacted, to read as
follows:
Section 74-63. Special
Allocation Fund.
In the event that the
City shall have received the funds residing within each special allocation fund
established and existing pursuant to the terms of the Real Property Tax
Increment Allocation Redevelopment Act as contemplated by Committee Substitute
for Resolution No. 140826, then upon such occurrence, and, notwithstanding
anything to the contrary in Section 74-57, any special allocation fund
established and existing pursuant to the terms of the Real Property Tax Increment
Allocation Redevelopment Act shall thereafter be maintained solely by the City
of Kansas City, Missouri.
Section 5. That
consistent with Committee Substitute for Resolution No. 140826, the City calls
upon the Commission and the EDC, as may be applicable, to grant all necessary
approvals and execute all necessary documents required for purposes of
transferring the funds residing within each special allocation fund established
and existing pursuant to the terms of the Act to the City of Kansas City,
Missouri.
Section 6. That
revenue in the following account is estimated in the following amount:
16-1000-120000-485380 Contribution from TIF
Commission $250,000.00
Section 7. That the
sum of $250,000.00 is appropriated from the Unappropriated Fund Balance of the
General Fund to the following accounts:
16-1000-121050-B Accounts
$250,000.00
_____________________________________________
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:
___________________________________
Brian
T. Rabineau
Assistant City Attorney