COMMITTEE SUBSTITUTE FOR ORDINANCE NO. 970378

Approving and designating Project 4 (Hotel) of the Country Club Plaza Tax Increment Financing Plan as a Redevelopment Project and adopting tax increment financing therein.

WHEREAS, the City Council of Kansas City, Missouri by Ordinance No. 54556 passed on November 24, 1982, and thereafter amended in certain respects by Ordinance No. 911076 passed on August 29, 1991, created the Tax Increment Financing Commission of Kansas City, Missouri (the "Commission"); and

WHEREAS, on April 17, 1997, the City Council passed Ordinance No. 970374, which approved the Country Club Plaza Tax Increment Financing Plan ("Redevelopment Plan") and designated the Redevelopment Area as a conservation area; and

WHEREAS, the Redevelopment Plan and Ordinance contemplate the implementation of the Redevelopment Plan through nine separate Redevelopment Projects and the adoption of tax increment financing in each of the areas selected for such Redevelopment Projects; NOW, THEREFORE,

BE IT ORDAINED BY THE COUNCIL OF KANSAS CITY:

Section 1. All terms used in this ordinance shall be construed as defined in Sections 99.800 to 99.865 of the Revised Statutes of Missouri, as amended.

Section 2. The area selected for Project 4 (Hotel), legally described as follows:

Lot 93, except the West 10 feet thereof, measured at right angles to the West line of said Lot, and the West 39 feet of Lot 94, LA SOLANA, a subdivision in Kansas City, Jackson County, Missouri, according to the recorded plat thereof. The East 11 feet of Lot 94, all of Lot 95, and the West 12, feet of Lot 96, LA SOLANA, a subdivision in Kansas City, Jackson County, Missouri, according to the recorded plat thereof. The East 38 feet of Lot 96, and the West 35 feet of Lot 97, LA SOLANA, a subdivision in Kansas City, Jackson County, Missouri, according to the recorded plat thereof. Lot 99, except the East 5 feet thereof, all of Lot 98, and the East 15 feet of Lot 97, LA SOLANA, a subdivision in Kansas City, Jackson County, Missouri, according to the recorded plat thereof. The East 5 feet of Lot 99, and all of Lot 100, LA SOLANA, a subdivision in Kansas City, Jackson County, Missouri, according to the recorded plat thereof. The South 66-2/3 feet of the North 250 feet of Lot 24, except the East 30 feet in Broadway, HOME PLACE, a subdivision in Kansas City, Jackson County, Missouri, according to the recorded plat thereof. Also described as follows: Beginning at the Southwest corner of Lot 93 of LA SOLANA, a subdivision in Kansas City, Jackson County, Missouri, according to the recorded plat thereof, being also a point on the North right-of-way line of 46th Street Terrace, as now established; thence North along the West line of said Lot 93 and along the East right-of-way line of Pennsylvania Avenue, as now established, a distance of 121.22 feet, more or less to a point on the North line of said Lot 93; thence East along the North line of said Lots 93 through 100, inclusive, a distance of 409.08 feet, more or less to the Northeast corner of said Lot 100 of said LA SOLANA; thence South along the East line of said Lot 100 and along the West line of Lot 24 of HOME PLACE, a subdivision, according to the recorded plat thereof, a distance of 63.55 feet, more or less to the Northwest corner of the South 66-2/3 feet of said Lot 24; thence East along the North line of said South 66-2/3 feet, a distance of 89.21 feet, more or less to a point on the East line of said Lot 24, being also a point on the West right-of-way line of Broadway, as now established; thence South along said East line and said West right-of-way line, a distance of 66.67 feet, more or less to the Southeast corner of said Lot 24; thence West along the South line of said Lot 24 and along the South line of Lots 100 and 99 and along the North right-of-way line of said 46th Terrace, a distance of 150 feet, more or less to a point of intersection with the Northerly prolongation of the West line of TOWNSEND PLACE CONDOMINIUM, a condominium subdivision, according to the recorded plat thereof; thence South along said Northerly prolongation, 50 feet to a point on the South right-of-way line of said 46th Terrace, being also the Northwest corner of said TOWNSEND PLACE CONDOMINIUM; thence East along said South right-of-way line, a distance of 337.99 feet more or less to a point of intersection with the East right-of-way line of said Pennsylvania Avenue; thence North along the northerly prolongation of said East right-of-way line, 50 feet to a point on the North right-of-way line of said Pennsylvania Avenue, being also a point on the South line of Lot 93 of said LA SOLANA; thence West along the South line of said Lot 93 and along said North right-of-way line, 10 feet, more or less to the Point of Beginning.

is approved and designated as Project 4 (Hotel).

Section 3. Tax increment allocation financing is hereby adopted for taxable real property in the above described area selected for Project 4 (Hotel). After the total equalized assessed valuation of the taxable real property in Project 4 (Hotel) exceeds the certified total initial equalized assessed valuation of the taxable real property in such area, the ad valorem taxes, and payment in lieu of taxes, if any, arising from the levies upon the taxable real property in such project by taxing districts and tax rates determined in the manner provided in subsection 2 of Section 99.855 each year after the effective date of the ordinance until redevelopment costs have been paid shall be divided as follows:

1. That portion of taxes levied upon each taxable lot, block, tract or parcel of real property which is attributable to the initial equalized assessed value of each such taxable lot, block, tract or parcel of real property in the area selected for Project 4 (Hotel) shall be allocated to and, when collected, shall be paid by the Jackson County Collector and the City Treasurer to the respective affected taxing districts in the manner required by law in the absence of the adoption of tax increment allocation financing;

2. Payments in lieu of taxes attributable to the increase in the current equalized assessed valuation of each taxable lot, block, tract or parcel of real property in the area selected for Project 4 (Hotel) over and above the initial equalized assessed value of each such unit of property shall be allocated to and, when collected, shall be paid to the City Treasurer who shall deposit such payment in lieu of taxes into a special fund called the "Special Allocation Fund" of the City for the purpose of paying Redevelopment Project Costs and obligations incurred in the payment thereof. Any payments in lieu of taxes which are not paid within sixty (60) days of the due date shall be deemed delinquent and shall be assessed a penalty of one percent (1%) per month.

Section 4 .In addition to the payments in lieu of taxes described in subsection 2 of Section 3 above, 50% of the total additional revenue from taxes which are imposed by the City or taxing districts, and which are generated by economic activities within the area selected for Project 4 (Hotel) over the amount of such taxes generated by economic activities within such area in the calendar year prior to the adoption of this ordinance, while tax increment financing remains in effect, but excluding taxes imposed on sales or charges for sleeping rooms paid by transient guests of hotels and motels, licenses, fees or special assessments and personal property taxes, other than payments in lieu of taxes, shall be allocated to, and paid by the collecting officer to the City Treasurer or other designated financial officer of the City, who shall deposit such funds in a separate segregated account within the Special Allocation Fund.

Section 5. The area selected for Project 4 (Hotel) includes only those parcels of real property and improvements thereon which will be substantially benefited by the proposed redevelopment project improvements.

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Approved as to form and legality:

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Heather A. Brown

Assistant City Attorney