ORDINANCE NO. 070466

Authorizing the City Manager to execute a development and participation agreement with the National Association of Basketball Coaches Foundation, Inc.; authorizing the execution of certain other documents and actions related to the development and operation of the College Basketball Hall of Fame and the Fan Experience Interactive Event at the Downtown Arena; and repealing Ordinance No. 051294.

WHEREAS, the National Association of Basketball Coaches Foundation, Inc. (NABC) and the City of Kansas City, Missouri (City) entered into a Lease Agreement dated November 22, 2000, in which the parties agreed to make certain expenditures and take certain actions respecting the construction of (a) the College Basketball Hall of Fame, (b) the Fan Experience Interactive Event, and (c) a retail shop (collectively NABC Facilities) to be located in the Citys Municipal Auditorium; and

WHEREAS, because the Citys decision to construct and develop the Downtown Arena offered an opportunity for the City and NABC to construct and develop these NABC Facilities in the Downtown Arena rather than in Municipal Auditorium, the City and NABC now desire to terminate this original Lease Agreement and enter into a new agreement or agreements for the location of these NABC Facilities in the Downtown Arena; and

WHEREAS, after the Councils passage of Ordinance No. 051294 on November 3, 2005 approving an earlier version of a development agreement between NABC and the City, modifications of certain material terms of that earlier development agreement were negotiated before it was executed requiring its resubmission to Council at this time for approval; and

WHEREAS, the parties desire to enter into a Development and Participation Agreement and certain other related agreements and documents detailing the terms of the development and operation of the NABC facilities; NOW, THEREFORE,

BE IT ORDAINED BY THE COUNCIL OF KANSAS CITY:

Section 1. That the City Manager, or his designee, is hereby authorized to execute on behalf of the City the NABC Development and Participation Agreement with NABC in substantial form as that on file in the Office of the City Manager and for which all City financial obligations thereunder shall be paid from funds previously appropriated in Account No. 80-0528-36-6-IDA KC (Arena) 05C-D License Fee Surplus.

Section 2. That the City Manager, or his designee, is hereby authorized to execute on behalf of the City the Collateral Assignment of Operating Agreement and Development Agreement and Security Agreement between the City, NABC and the Anschutz Kansas City Arena, LLC in substantial form as that on file in the Office of the City Manager.

Section 3. That the City Manager, or his designee, is hereby authorized to execute on behalf of the City the License and Operating Agreement between the City, NABC and the Anschutz Kansas City Arena, LLC in substantial form as that on file in the Office of the City Manager.

Section 4. That the City Manager, or his designee, is hereby authorized to execute on behalf of the City the Promissory Note between the City and the NABC in substantial form as that on file in the Office of the City Manager.

Section 5. That the City Manager is hereby authorized to execute, on behalf of the City, such documents, certificates and instruments as may be necessary of desirable to carry out and comply with the intent of this ordinance and to implement the transactions contemplated under any and all of the documents specifically described in this ordinance.

Section 6. That Ordinance No. 051294 is hereby repealed.

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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.

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Debra R. Hnsvark

Director of Finance

Approved as to form and legality:

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Galen P. Beaufort

City Attorney