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Legislation #: 140823 Introduction Date: 10/2/2014
Type: Ordinance Effective Date: none
Sponsor: COUNCILMEMBER JAMES, JR.
Title: 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.

Legislation History
DateMinutesDescription
10/1/2014 Filed by the Clerk's office
10/2/2014 Referred to Planning, Zoning & Economic Development Committee
10/8/2014 Hold On Agenda (10/15/2014)
10/29/2014 Hold Off Agenda
10/15/2014 Hold Off Agenda
6/10/2015 Do Pass as a Committee Substitute
6/11/2015 Assigned Third Read Calendar as Substituted
6/18/2015 Councilmember Ford (Second by Wagner) Move to Amend
6/18/2015 Councilmember Ford (Second by Wagner) Move to Advance
6/18/2015 Passed as Substituted and Amended

View Attachments
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140823.pdf Authenticated 398K Authenticated
revised fact sheet.xlsx Fact Sheet 41K revised fact sheet
140823-Compared Version.pdf Compared Version 84K Compared Version
140823 Fact Sheet.pdf Fact Sheet 109K Fact Sheet

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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