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Legislation #: 971443 Introduction Date: 10/2/1997
Type: Ordinance Effective Date: none
Sponsor: COUNCILMEMBER GLOVER
Title: Approving the issuance of two series of Infrastructure Facilities Revenue Bonds by the Missouri Development Finance Board in an aggregate principal amount not to exceed $8,500,000.00 for the Uptown Theater project; approving and authorizing the City to enter into certain documents; and authorizing the City to take certain other actions in connection therewith.

Legislation History
DateMinutesDescription
10/2/1997

Referred Planning, Zoning & Economic Development Committee

10/2/1997

Referred Planning, Zoning & Economic Development Committee

10/8/1997

Hold On Agenda

10/15/1997

Advance and Do Pass as a Committee Substitute

10/16/1997

Passed


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COMMITTEE SUBSTITUTE FOR ORDINANCE NO. 971443

 

Approving the issuance of two series of Infrastructure Facilities Revenue Bonds by the Missouri Development Finance Board in an aggregate principal amount not to exceed $8,500,000.00 for the Uptown Theater project; approving and authorizing the City to enter into certain documents; and authorizing the City to take certain other actions in connection therewith.

 

WHEREAS, the Land Clearance for Redevelopment Authority of Kansas City, Missouri (the "Authority") was created under the Land Clearance for Redevelopment Authority Law, Sections 99.300 to 99.715, inclusive, of the Revised Statutes of Missouri, as amended ("LCRA Law"), and by Committee Substitute for Ordinance No.16120 of the City Council of Kansas City, Missouri, passed on November 21, 1952; and

 

WHEREAS, the Authority adopted the Uptown Theater Urban Renewal Plan for the purpose of removing blight from the Uptown Theater Urban Renewal Area; and

 

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("TIF Act"), and by Ordinance No. 54556 of the City Council of Kansas City, Missouri, passed on November 24, 1982, and repealed and amended by Committee Substitute for Ordinance No. 911076, passed by the City Council of Kansas City, Missouri on August 29, 1991; and

 

WHEREAS, the City of Kansas City, Missouri ("City"), by Ordinance No. 970715, passed by the City Council on June 16, 1994, approved the Uptown Tax Increment Financing Plan pursuant to the TIF Act and the City has further amended the original Uptown Tax Increment Financing Plan pursuant to Ordinance No. 970083, passed on February 6, 1997 (the "Redevelopment Plan"); and

 

WHEREAS, the City, by Ordinance No. 940715, and Committee Substitute for Ordinance No. 970083, approved the Redevelopment Projects described therein; and

 

WHEREAS, the Commission and UGA, LLC, a Missouri limited liability company, as the developer under the Redevelopment Plan ("Developer"), have entered into an Agreement dated April 5, 1995, and Developer and Commission expect to enter into an additional agreement amending the same (as amended and supplemented from time to time, the "Redevelopment Agreement"); and

 

WHEREAS, the Missouri Development Finance Board ("Board") is authorized and empowered under the Missouri Development Finance Board Act, Sections 100.250 to 100.297, inclusive, of the Revised Statutes of Missouri, as amended ("MDFB Act"), to issue revenue bonds for the purpose of providing funds to finance and refinance the costs of certain "projects" as defined in the MDFB Act and to pay certain costs related to the issuance of such revenue bonds; and

 

WHEREAS, the Board is authorized by the MDFB Act to enter into agreements with the City and the Commission to provide funds to pay the costs of the projects; and

 

WHEREAS, the City, the Commission and the Authority have requested that the Board issue its Infrastructure Facilities Revenue Bonds in two series in an aggregate principal amount not to exceed $8,500,000.00 and its Bonds for the purpose of providing funds to finance certain Redevelopment Costs (as defined in the herein authorized Financing Agreement) and pay certain costs related to the issuance of the Bonds, all as more fully defined and described hereinafter; and

 

WHEREAS, after a competitive selection process, the City has selected the firm of A.G. Edwards & Sons, Inc. and The Knight Group to act as financial advisor to the City in regard to the projects; and

 

WHEREAS, the City Council further finds and determines that in order to accomplish the foregoing it is necessary and desirable in connection with the issuance of the bonds that the City enter into certain documents and agreements, copies of which documents and agreements are identified, and that the City take certain other actions and approve the execution of certain other documents as herein provided; NOW, THEREFORE,

 

BE IT ORDAINED BY THE COUNCIL OF KANSAS CITY:

 

Section 1. Approval of Issuance of Bonds. In order to obtain funds to finance the Redevelopment Costs, the City Council hereby approves the issuance and sale by the Board of the bonds in an aggregate principal amount not to exceed $8,500,000.00, to mature in varying principal amounts prior to and with a final maturity not later than the year 2025.

 

Section 2. Authorization of Documents. The Director of Finance is hereby authorized to enter into the following documents (the "City Documents"), in substantially the forms attached hereto and made a part hereof, with such minor changes therein as shall be approved by the officers of the City executing such documents, such officers' signatures thereon being conclusive evidence of their approval thereof (it being understood that the Board may determine that each Series of the Bonds should have separate documentation in which case the City will be requested to execute two separate, but substantially similar copies of each of the following documents, and as used herein references to a singular copy of such documents shall be deemed to refer to such two separate copies):

 

(a) Financing Agreement dated as of October 1, 1997 ("Financing Agreement"),

among the Board, the Commission, the Authority and the City.

 

(b) Tax Credit Enhancement Agreement dated as of October 1, 1997 ("Tax Credit

Agreement") between the Board and the City.

 

(c) Purchase Contract dated as of the date to be set forth herein ("Purchase

Contract"), among the Board, the Commission, the City, the Authority and the Developer.

 

(d) Cooperative Agreement dated of the date to be set forth therein ("Cooperative

Agreement"), among the Commission, the City, the Authority and the Developer.

 

(e) Financial Advisory Agreement dated of the date to be set forth therein between the City and A.G. Edwards & Sons, Inc. and The Knight Group.

 

Section 3. Annual Appropriation. The City's Director of Finance or other officer of the City at any time charged with the responsibility of formulating budget proposals shall include in the budget proposals submitted to the City Council, in each Fiscal Year in which the Financing Agreement shall be in effect, an appropriation for all payments required under the Financing Agreement for the ensuing Fiscal Year; it being the intention of the City that the decision to appropriate or not to appropriate under the Financing Agreement shall be made solely by the City Council and not by any other official of the City. The City intends to budget or appropriate funds to make Loan Payments (as defined in the Financing Agreement) and to pay the Loan Payments in accordance with the Financing Agreement from all legally available revenue sources, including, but not limited to, tax increment revenues generated under the Redevelopment Plan. The City reasonably believes that legally available funds in an amount sufficient to make all Loan Payments during each Fiscal Year can be obtained. The City further intends to do all things lawfully within its power to obtain and maintain funds from all legally available revenue sources from which the Loan Payments may be made, including making provision for such Loan Payments to the extent necessary in each proposed annual budget submitted for approval in accordance with applicable procedures of the City and to exhaust all available reviews and appeals in the event such portion of the budget is not approved. The City's Director of Finance is directed to do all things lawfully within her power to obtain and maintain funds from all legally available revenue sources from which the Loan Payments may be paid, including making provisions for such Loan Payments to the extent necessary in each proposed annual budget submitted for approval or by supplemental appropriation in accordance with applicable procedures of the City and to exhaust all available reviews and appeals in the event such portion of the budget or supplemental appropriation is not approved. Notwithstanding the foregoing, the decision to budget and appropriate funds is to be made in accordance with the City's normal procedures for such decisions.

 

Section 4. Execution of City Documents. The Director of Finance is hereby authorized and directed to execute and deliver the Financing Agreement, the Tax Credit Agreement, the Purchase Contract and Cooperative Agreement on behalf of the City. The Director of Finance is hereby authorized and directed to execute and deliver such other documents, certificates and instruments as may be necessary or desirable to carry out and comply with the intent of this Ordinance for and on behalf of and as the act and deed of the City. The City Clerk is hereby authorized and directed to attest to each of said documents and to record the same as appropriate, and to execute or attest to such other documents, certificates and instruments as may be necessary or desirable to carry out and comply with the intent of this Ordinance. It is understood and agreed that the board may determine that each Series of the Bonds should have separate documentation in which case the City will be requested to execute two separate, but substantially similar copies of each of the documents described in Section 2 above or Section 5 below, and as used herein references to a singular copy of such documents shall be deemed to refer to such two separate copies.

 

Section 5. Further Authority. The City shall, and the officers, agents and employees of the City are hereby authorized and directed to, take such further action, and execute such other documents, certificates and instruments, including any required agreements or documentation, as may be necessary or desirable to carry out and comply with the intent of this Ordinance and to comply with and perform the duties of the City with respect to the Financing Agreement, the Tax Credit Agreement, the Purchase Contract and Cooperative Agreement.

 

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Approved as to form and legality:

 

 

 

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Assistant City Attorney