COMMITTEE
SUBSTITUTE FOR ORDINANCE NO. 151006
Authorizing the City Manager to execute an Amended
and Restated Allonge to a certain Promissory Note previously issued by the City to the National Association of
Basketball Coaches Foundation, Inc.
WHEREAS,
Ordinance No. 070466 authorized the City Manager to execute a promissory note
in the amount of $1,170,000.00 to the NABC for improvements to the College
Basketball Experience and Hall of Fame (the “CBE”) located in the Sprint Center;
and
WHEREAS, on May
7, 2007, the City and NABC entered into a Promissory Note in the amount of
$1,170,000.00 (“Promissory Note”); and
WHEREAS, on
November 8, 2012, the City Council, by Committee Substitute for Ordinance No.
120961, authorized a restructuring of the terms of the Promissory by the
execution of an Allonge to Promissory Note; and
WHEREAS, the National Association of Basketball Coaches Foundation, Inc.
(“NABC”) and City entered in an Allonge to Promissory Note (“Original
Allonge”) providing for deferment of all interest due until the end of the loan
and extending the term of the note for seven years until December 31, 2024;
WHEREAS, NABC
desires to further restructure the terms of payment of the Promissory Note as
amended by the Original Allonge; and
WHEREAS, further restructuring
of the Promissory Note enables the NABC to make necessary and ongoing capital
expenditures at the CBE that include technology upgrades, exhibit upgrades and
development of new exhibits that will increase the relevance and excitement of
the CBE; and
WHEREAS, such
improvements will mutually benefit the City and the City desires to see such
improvements occur; NOW, THEREFORE,
BE IT ORDAINED
BY THE COUNCIL OF KANSAS CITY:
Section 1. That
the Director of Convention and Entertainment Facilities is hereby authorized to
execute an Amended and Restated Allonge to that Promissory Note entered into on
May 7, 2007, between the City and NABC, to:
1. Defer the payment due the City on December 31,
2015, and restructure the amortization schedule such that the principal is
repaid by December 31, 2031.
2. Allow NABC to pay the total amount of deferred interest due at the
end of the loan of $314,106.92 in 8 annual installments starting December 31,
2031; and
3. Extend the term of the note for 14 years
ending on December 31, 2038.
Section
2. That the Amended and Restated Allonge to Promissory Note is approved in a
form substantially similar to the attached hereto.
_______________________________________________
Approved as to
form and legality:
________________________________
Brian T. Rabineau
Assistant City
Attorney