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Legislation #: 100031 Introduction Date: 1/7/2010
Type: Ordinance Effective Date: 2/14/2010
Sponsor: COUNCILMEMBER SHARP AND COUNCILMEMBER JOLLY
Title: Authorizing a development agreement among the Planned Industrial Expansion Authority of Kansas City, Missouri, CenterPoint Zimmer LLC, the Industrial Development Authority of the City of Kansas City, Missouri, and the City for the development of a campus for the National Nuclear Security Agency; estimating revenue in the amount of $20,750,000.00; and appropriating it and authorizing its expenditure for the Botts Road Project.

Legislation History
DateMinutesDescription
1/7/2010 Filed by the Clerk's office
1/7/2010 Referred to Transportation and Infrastructure Committee
1/14/2010 Do Pass as a Committee Substitute
1/14/2010 Assigned Third Read Calendar as Substituted
1/21/2010 Councilmember Riley Move To Hold On Docket
1/21/2010 Held on Docket (1/28/2010)
1/28/2010 Councilmember Riley Move To Hold On Docket
1/28/2010 Held on Docket (2/4/2010)
2/4/2010 Passed as Substituted

View Attachments
FileTypeSizeDescription
Exhibit 0K exhibits a-n on file in the city clerk's office
100031agrmt kc-piea-ida-centerpoint.pdf Other 1144K develop agreement/PIEA/KC/CENTERPOINT/IDA on file
100031ltrs.pdf Other 114K exhibit letters Mayor Funkhouser
http://kansascity.granicus.com/ViewSearchResults.php?view_id=2&keywords=100031 Video Link 0K http://kansascity.granicus.com/ViewSearchResults.php?view_id=2&keywords=100031
100031.pdf Authenticated 206K AUTHENTICATED
100031 cs to org ord-com.doc Advertise Notice 36K compared version-comm sub to original ord
fact sheet.xls Advertise Notice 60K revised fact sheet
100031FactSheet.xls Fact Sheet 53K Fact Sheet
approp admin.xls Advertise Notice 35K approp & admin

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COMMITTEE SUBSTITUTE FOR ORDINANCE NO. 100031

 

Authorizing a development agreement among the Planned Industrial Expansion Authority of Kansas City, Missouri, CenterPoint Zimmer LLC, the Industrial Development Authority of the City of Kansas City, Missouri, and the City for the development of a campus for the National Nuclear Security Agency; estimating revenue in the amount of $20,750,000.00; and appropriating it and authorizing its expenditure for the Botts Road Project.

WHEREAS, the City Council (the “Council”), on October 16, 2008, passed Ordinance No. 080913, which declared approximately 186 acres generally located at the northwest corner of Missouri Hwy 150 and Botts Road (“Project Area”) to be a blighted and unsanitary area, pursuant to the 150 Highway & Botts Road PIEA General Development Plan dated July 1, 2008, revised September 2, 2008, as further revised from time to time approved by the Planned Industrial Development Authority of Kansas City, Missouri (“PIEA”) pursuant to the PIEA’s Resolution 1338 adopted July 11, 2008; and

WHEREAS, the U.S. General Services Administration, an agency of the United States of America (“GSA”) has obtained approval of the Congress of the United States of America for development of the Project Area (the “Project”) as a campus for the National Nuclear Security Agency; and

WHEREAS, the development of the Project will require the planning, design and construction of certain public infrastructure described herein within and in the vicinity of the Project Area (the “Infrastructure Improvements”); and

WHEREAS, after a competitive bidding process, the GSA selected CenterPoint-Zimmer, LLC (the “Developer”) to construct and develop the Project and the Developer, submitted to the PIEA a Proposal (the “Proposal”) to develop the Project Area, and the PIEA approved Resolution No. 1358 (“Resolution”) on June 19, 2009, expressing the intent of the PIEA to accept the Proposal subject to the review and approval of the Proposal by the City Council of the City; and

WHEREAS, the Resolution requires that the PIEA (1) prepare a definitive development agreement regarding the Project Area to implement the Proposal and (2) administer the development agreement after it is approved by the parties thereto; and

WHEREAS, the PIEA will also provide a tax exemption certificate to the Developer permitting property tax abatement on the real property on which the Project will be located as provided by Section 100.570, RSMo., and Sections 353.110 and 353.150(4), RSMo., and the Developer will make, or cause to be made, payments in lieu of taxes during the term of such tax abatement, and a portion of such payments in lieu of taxes will be used to pay off the bonds to be issued by the Industrial Development Authority of the City of Kansas City, Missouri (“IDA ”); and

WHEREAS, in order to finance a portion of the Infrastructure Improvements, it is anticipated that the IDA will issue one or more series of non-recourse bonds, notes or other securities in an amount not to exceed $45,000,000.00 as authorized by Chapter 349, RSMo (the “IDA Infrastructure Bonds”) and loan the net proceeds of the IDA Infrastructure Bonds to PIEA which will make the funds available for the Infrastructure Improvements; and

WHEREAS, in order to finance a portion of the Project, it is anticipated that the IDA will issue one or more series of non-recourse bonds, notes or other securities in an amount not to exceed $705,000,000.00 (the “IDA Project Bonds”). The net proceeds of the IDA Project Bonds will be loaned to the PIEA which will make the funds available to the Developer to finance the cost of constructing and developing the Project; and

WHEREAS, in accordance with the Proposal, the Developer will convey, or cause to be conveyed, fee simple title to the Project to the PIEA and the PIEA will Lease the Project back to the Developer and the Developer will in turn sublease the Project to the GSA (the “GSA Sublease”). The Base Rent and PILOT Payments paid by the GSA pursuant to the GSA Sublease shall be used to retire the bonded indebtedness evidenced by the IDA Project Bonds and the IDA Infrastructure Bonds, respectively; and

WHEREAS, the Council on June 25, 2009, passed Committee Substitute for Ordinance No. 090474, approving the rezoning of the Project Area to Urban Redevelopment District; and

WHEREAS, the Council, on July 23, 2009, passed Ordinance No. 090569, approving the plat of NNSA National Security Campus; and

WHEREAS, the City is partnering with the Missouri Department of Transportation (“MODOT”) to facilitate the construction of certain of the Infrastructure Improvements. MODOT has approved a Cost Share Application of the City to match a City contribution of up to $10,000,000 (the “MODOT Contribution”). The City intends to make in kind and cash contributions of up to $10,000,000 to maximize the MODOT Contribution. Some of the net proceeds of the IDA Infrastructure Bonds may be used for the purpose of financing the Infrastructure Improvements to be contracted for by MODOT; and

WHEREAS, the City has agreed to work cooperatively with the Developer to obtain other funding sources and incentives that may be available to support the Project and the Infrastructure Improvements, such as for example, making an application for Contribution Tax Credits to the Missouri Development Finance Board; and

WHEREAS, the Project will consist of 1.5 million rentable square feet of manufacturing, laboratory, office and warehouse space, in a gold rated LEED green campus and provide an estimated 150 jobs in the design and construction administration effort as well as an estimated 850-900 jobs in the construction trades; and

WHEREAS, the construction of the Project will cause the retention of a minimum of 2000 permanent jobs in Kansas City as well as provide approximately $45 million in much needed infrastructure improvements; and

WHEREAS, the City, the Developer, the IDA and the PIEA desire to enter into the development agreement to outline the terms of the ownership, use and financing of the Project; NOW, THEREFORE,

BE IT ORDAINED BY COUNCIL OF KANSAS CITY:

Section 1. That the City Manager is hereby authorized to execute the development agreement, on behalf of the City, among the Planned Industrial Expansion Authority of Kansas City, Missouri, CenterPoint Zimmer LLC, the Industrial Development Authority of the City of Kansas City, Missouri, and the City for the development of a campus for the National Nuclear Security Agency, in substantial form as that attached to this ordinance.

Section 2. That the revenue the in the following account of the Capital Improvements Fund is hereby estimated in the following amount:

 

10-3090-120000-481385 Contribution from PIEA for Botts

Road $20,750,000.00

 

Section 3. That the sum of $20,750,000.00 is hereby appropriated from the Unappropriated Fund Balance of the Capital Improvements Fund to the following account in the Capital Improvements Fund:

 

10-3090-898016-B-89008137 Botts Road $20,750,000.00

 

Section 4. That the Director of Public Works is hereby designated as requisitioning authority on Account No. 10-3090-898016 and is authorized to expend an additional $20,869,000.00 for an total of $21,887,000.00 from funds appropriated to Account No. 10-3090-898016-B as and for consideration in the agreement with Missouri Highways and Transportation Commission authorized by Ordinance No. 090985.

 

_____________________________________________

 

Approved as to form and legality:

 

 

___________________________________

Heather A. Brown

Assistant City Attorney