ORDINANCE NO. 000904

Approving and designating Plaza East Project IV of the Brush Creek Corridor Tax Increment Financing Plan, as amended, a Redevelopment Project and adopting tax increment financing therein.

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Act"), the City Council of Kansas City, Missouri by Ordinance No. 54556, passed on November 24, 1982, and thereafter repealed and amended in certain respects by Committee Substitute to Ordinance No. 911076, as amended, passed on August 29, 1991, created the Tax Increment Financing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, the Brush Creek Corridor Tax Increment Financing Plan (the "Plan") was approved by the Commission and approved by the Council on March 11, 1999, by Ordinance No. 990251 ("the Ordinance"); and

WHEREAS, on June 8, 2000, the Council passed Committee Substitute for Ordinance No. 000606, which approved the First Amendment to the Brush Creek Corridor Tax Increment Financing Plan and designated the area described therein as a conservation area; and

WHEREAS, the Plan, as amended, contemplates the implementation of the Plan through a series of separate Redevelopment Projects and the adoption of tax increment financing in each of the areas selected for such Redevelopment Project, 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 the Plaza East Project IV, legally described as follows:

Beginning at the southeast corner of the intersection of 48th Street and Tracy Avenue and follows the Tracy Avenue right-of-way south to the Brush Creek channel, then extending along the edge of Brush Creek in a northeasterly direction to the back property line of parcels on the east side of Virginia Avenue, then straight north to the southern boundary of Phase I of the Plaza Eats TIF Project, then west to the Virginia Avenue right-of-way, and then southwesterly at an angle to the point of beginning at Tracy Avenue and 48th Street, Kansas City, Jackson County, Missouri.

is approved and designated as the Plaza East Project IV (hereinafter referred to as the "Redevelopment Project Area"). The Redevelopment Project Area includes only those parcels of real property and improvements thereon which will be directly and substantially benefitted by the Redevelopment Project improvements therein.

Section 3. Tax increment allocation financing is hereby adopted for taxable real property in the above-described area selected for the Redevelopment Project Area. After the total equalized assessed valuation of the taxable real property in the Redevelopment Project Area exceeds the certified total initial equalized assessed valuation of the taxable real property in the Redevelopment Project 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, penalties and interest 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 or real property in the area selected for the Redevelopment Project Area 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 the Redevelopment Project Area, and any applicable penalty and interest 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 60 days of the due date will be deemed delinquent and assessed a penalty of 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, penalties and interest which are imposed by the City or taxing districts, and which are generated by economic activities within the area selected for the Redevelopment Project Area 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 personal property taxes, taxes imposed on sales of charges for sleeping rooms paid by transient guests of hotels and motels, taxes levied pursuant to Section 70.500 RSMo, taxes levied pursuant to Section 94.660 RSMo licenses, fees or special assessments and personal property taxes, other than payments in lieu of taxes and penalties and interest thereon, shall be allocated to, and paid by the local political subdivision 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.

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Approved as to form and legality:

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Assistant City Attorney