ORDINANCE NO. 040706

Accepting the recommendations of the Tax Increment Financing Commission as to the Third Amendment to the Civic Mall Tax Increment Financing Plan, approving the Third Amendment to the Civic Mall Tax Increment Financing Plan and designating an Expanded Redevelopment Area.

WHEREAS, pursuant to the Real Property Tax Increment Allocation Redevelopment Act, Sections 99.800 to 99.865 of the Revised Statutes of Missouri, 1986, as amended (the "Act"), the City Council of Kansas City, Missouri, by Ordinance No. 54556 passed on November 24, 1982, and thereafter repealed and amended in certain respects by Committee Substitute to Ordinance No. 911076, as amended, passed on August 29, 1991, created the Tax Increment Financing Commission of Kansas City, Missouri (the "Commission"); and

WHEREAS, on December 8, 1994, the City of Kansas City, Missouri, adopted the Civic Mall Tax Increment Financing Plan by Ordinance No. 941589, which approved the Redevelopment Plan, found the area described therein ("Redevelopment Area") to qualify as a blighted area; and designated the Redevelopment Area as a Redevelopment Area pursuant to the Act; and

WHEREAS, on February 12, 1997, the Commission recommended adoption of the First Amendment to the Civic Mall Tax Increment Financing Plan (the "First Amendment") by way of Resolution No. 2-2-97 and on March 20, 1997, the Council adopted the First Amendment by Ordinance No. 970236; and

WHEREAS, on May 13, 1998, the Commission recommended adoption of the Second Amendment to the Civic Mall Tax Increment Financing Plan (the "Second Amendment") by adopting Resolution No. 5-1-98 and on July 23, 1998, the Council approved the Second Amendment by passage of Ordinance No. 980854; and

WHEREAS, a third amendment to the Redevelopment Plan (the Third Amendment) was proposed to the Commission; and

WHEREAS, the Commission has been duly constituted and its members appointed; and, after all proper notice was given, the Commission met in public hearing and after receiving the comments of all interested persons and taxing districts, closed said public hearing on June 9, 2004, and approved Resolution No. 06-07-04 (the "Resolution") recommending to the City Council the approval of the Third Amendment; and

WHEREAS, the intent of the Third Amendment is to expand the boundaries of the Redevelopment Area, as amended, to include additional area and include financial, construction and employment information for the 422 Admiral Project Area; NOW, THEREFORE,

BE IT ORDAINED BY THE COUNCIL OF KANSAS CITY:

Section 1. The recommendations of the Commission concerning the Third Amendment as set forth in the Resolution attached hereto as Exhibit "A" are hereby accepted and the Third Amendment, a copy of which is attached hereto as Exhibit "B", is hereby approved and adopted as valid and the Redevelopment Projects contained therein are hereby authorized.

Section 2. 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 3. The following-described area is hereby designated a Redevelopment Area:

The proposed Redevelopment Area has an irregular boundary generally encompassed by 6th Street Trafficway on the north, Interstate 70 (also know as the Midtown Freeway) on the east, 13th Street on the south and McGee Street on the west.

Beginning at the point of the intersection of the centerline of 13th Street and the centerline of McGee Street, thence north along the center line of McGee Street to the centerline of 11th Street; thence east along the centerline of 11th Street to the centerline of Oak Street; thence north along the centerline of Oak Street to the centerline of 10th Street; thence west along the centerline of 10th Street to the centerline of McGee Street; thence north along the centerline of McGee Street to the centerline of 8th Street; thence east along the centerline of 8th Street to the centerline of Oak Street; thence northeasterly along the centerline of Oak Street to the centerline of Admiral Boulevard; thence northeasterly along the centerline of Locust Street to the south right-of-way of 6th Street Trafficway to the west right-of-way line of Interstate 70 to the centerline of 11th Street; thence west along the centerline of 11th Street to the centerline of Charlotte Street; thence south along the centerline of Charlotte Street to the centerline of 12th Street; thence west along the centerline of Cherry Street to the centerline of 11th Street; thence west along the centerline of 11th Street to the centerline of Oak Street; thence south along the centerline of Oak Street to the centerline of 13th Street; thence west along the centerline of 13th Street to the point of beginning, now all included in a part of the City of Kansas City, Jackson County, Missouri.

BLOCK 13: An undivided 1/2 interest in Lots 15, 16, and 17, except parts thereof now in Locust Street and in Admiral Boulevard, Block 8, Rices Addition, a subdivision in Kansas City, Jackson County, Missouri, according to the recorded plat thereof and all of Lots 1-3 and the West 1/2 of vacated Locust Lane located east and of and adjacent, Keyes Subdivision, Kansas City, Jackson County, Missouri, according to the recorded plat thereof.

Section 4. In accordance with the recommendations of the Commission as set forth in the Resolution, the City Council hereby finds that:

(a) Good cause has been shown for amendment of the Redevelopment Plan, and that the findings of the Council in Ordinance Nos. 940159, 970236 and 980854 with respect to the Redevelopment Plan, as amended, are not affected by the Third Amendment and apply equally to said Third Amendment;

(b) The amended Redevelopment Area, as a whole, is a Blighted Area;

(c) The following factors are hereby found to exist in the Redevelopment Area, as amended, to-wit:

(i) No new construction has occurred in the 1980s or 1990s in the area defined by the Third Amendment. Overall the Redevelopment Area, as amended, has shown a steady decline since the 1960s.

(ii) Of the property added to the Redevelopment Area in connection with the Third Amendment, there are 13 new assessment parcels. Of these parcels, Seventy-Five Percent (a total of nine parcels) are either service parking lots or open space. Four of the assessment parcels contain five structures. One of these structures is a vacant twenty story apartment building.

(iii) The Redevelopment Area, as amended, contains signs of significant building deterioration. In particular the twenty story structure locating in the block bounded by 6th Street, Cherry Street, Admiral Boulevard and Holmes is in a severely deteriorating condition. The twenty story structure was originally built as a multifamily residential use but is now vacant except for vandals and homeless people occupying the structure. Numerous walls, windows and doors are missing. Vandalism remains an ongoing concern. Though the building appears to be structurally sound, the inability to keep the building boarded up and prevent vandalism and destruction by natural forces will lead to irreparable damage and harm to the structure.

(iv) All of the land area contained in the expansion to the Redevelopment Area, as described in the Third Amendment, is contained within the east side urban renewal area. As part of the urban renewal plan approval process this area was found to be blighted.

(d) The amended Redevelopment Area, as a whole, has not been subject to growth and development through investment by private enterprise and would not reasonably be anticipated to be developed without the adoption of the Redevelopment Plan and such fact is acknowledged in an affidavit included in the Redevelopment Plan, as amended, as Exhibit 17 thereto;

(e) The Redevelopment Area, as amended, includes only those parcels of real property directly and substantially benefitted by the proposed Redevelopment Projects;

(f) The Redevelopment Area, as amended, and the Third Amendment conforms to the plan for the redevelopment of the City as a whole.

(g) The estimated dates of completion of the respective Redevelopment Projects and retirement of obligations incurred to finance Redevelopment Project Costs, have been stated in the Redevelopment Plan and are not more than 23 years from the adoption of any ordinance approving a Redevelopment Project within the Redevelopment Area;

(h) A plan has been developed for relocation assistance for businesses and residences.

(i) A cost benefit analysis showing the economic impact of the Third Amendment on each taxing district at least partially within the boundaries of the Redevelopment Area has been prepared.

(j) The Redevelopment Plan, as amended, does not include the initial development or redevelopment of any gambling establishment.

Section 5. The Commission is authorized to issue obligations in one or more series of bonds secured by the Civic Mall Account of the Special Allocation Fund to finance Redevelopment Project Costs within the Redevelopment Area and, subject to any constitutional limitations, to acquire by purchase, donation, lease or eminent domain, own, convey, lease, mortgage, or dispose of, land or other property, real or personal, or rights or interests therein, and grant or acquire licenses, easements and options with respect thereto, all in the manner and at such price the Commission determines, to enter into such contracts and take all such further actions as are reasonably necessary to achieve the objectives of the Redevelopment Plan pursuant to the power delegated to it in Ordinance No. 54556. Any obligations issued to finance Redevelopment Project Costs shall contain a recital that they are issued pursuant to Sections 99.800 to 99.865, which recital shall be conclusive evidence of their validity and of the regularity of their issuance.

Section 6. Pursuant to the provisions of the Redevelopment Plan, the City Council approves the pledge of all funds that are deposited into the Civic Mall Account of the Special Allocation Fund to the payment of Redevelopment Project Costs within the Redevelopment Area and authorizes the Commission to pledge such funds on its behalf.

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Approved as to form and legality:

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Heather A. Brown

Assistant City Attorney