ORDINANCE NO. 190581

Authorizing the Director of the General Services Department to execute a Lease by and between Alliance Against Assault and Abuse, a Missouri nonprofit corporation, as the Landlord, and the City, as the Tenant, for those certain premises and parking in and upon the building commonly known as 4400 East Blue Parkway and implement those undertakings; authorizing such Director to negotiate and execute a Consent to Assignment and Termination of the existing Lease between the City and HRB Deployment & Support, LLC, for other space within same building; and recognizing an accelerated effective date.

WHEREAS, the City Council passed the Second Committee Substitute for Ordinance No. 170753 on May 24, 2018, authorizing the City to enter into a lease for the purpose of locating the operations of the Neighborhoods and Housing Services Department (“NHSD”) in space at 4400 East Blue Parkway, Kansas City, Missouri (the “Building”); and

WHEREAS, the City entered into that certain Lease dated September 5, 2018, with HRB Deployment & Support, LLC (“Existing Landlord”), for an initial lease term through June 30, 2033 for 59,642 square feet of floor area in the Building, which consists of approximately 84,282 square feet, and certain fenced parking for 94 vehicles (“Existing Lease”), for NHSD’s operational use, but which Existing Lease excluded the 24,640 square feet of warehouse space that is used by an affiliate of the Existing Landlord (“Warehouse Space”); and

WHEREAS, the City and the Existing Landlord entered into that certain First Amendment to Lease dated September 27, 2018 (“First Amendment”), confirming (i) the satisfaction of certain conditions precedent in the Existing Lease, and affirming that the initial lease term was through September 30, 2033, and (ii) the Existing Lease was subject to that certain Declaration of Easements and Restrictions executed by CBKC Commercial, L.L.C. dated September 4, 2018, and recorded September 5, 2018, with the Recorder as Document No. 2018E0077434 (“Declaration”); provided, the City specifically acknowledged that nothing in such Declaration would be deemed to: (A) abrogate, diminish or nullify the City’s separate rights and obligations as the governing body with zoning and other regulatory jurisdiction over the property, including without limitation, the City retains any and all rights to review and approve development plans and building plans and specifications for conformity and compliance with any and all applicable provisions of the City’s zoning code and building and fire codes; or (B) impose any obligation upon the City as Tenant either its capacity as a tenant, or as the governing municipality, to enforce the particular provisions contained in Section 5.1 (c)(i) or (iv) of the Declaration to the extent that such enforcement would unconstitutionally infringe on rights held by others pursuant to the First Amendment of the United States Constitution; and

WHEREAS, on December 6, 2018, the City Council passed the Second Committee Substitute for Resolution No. 180801 which directed the City Manager to negotiate with the Child Protection Center (“CPC”) and the Metropolitan Organization to Counter Sexual Assault (“MOCSA”) related to their acquisition and rehabilitation of the Building as a part of a possible co-location with the Police Department of the City of Kansas City, Missouri (“KCPD”) and work with the CPC and MOCSA to negotiate the termination of the Existing Lease; and

WHEREAS, CPC and MOCSA formed the Alliance Against Assault and Abuse, a Missouri nonprofit corporation (“Alliance”) for the purpose of locating, developing and managing a facility for CPC and MOCSA, fundraising for such entities, and otherwise providing support services; and

WHEREAS, the Alliance entered into an agreement with the Existing Landlord to purchase the Building and underlying land commonly known as 4400 East Blue Parkway, which has a contemplated closing date of December 9, 2019; and

WHEREAS, the Alliance desires to acquire the Building for occupancy by CPC, MOCSA, KCPD and other providers of related services, which will necessitate the assignment of the Existing Lease from the Existing Landlord to the Alliance, and the advance agreement by the City to terminate the Existing Lease effective no later than December 31, 2020, and a re-location of NHSD’s operational offices prior to such termination; and

WHEREAS, the Alliance will renovate that certain 12,030 square foot portion of the Warehouse Space, at its expense, for the use and to the specifications of KCPD, which renovation is projected to be at a cost of approximately $2,000,000.00, to provide for KCPD’s use as a facility with a separate entrance, a sally port, holding cells, interrogation rooms, and secured parking for at least 72 vehicles, for an initial term of five years, with two further successive renewal terms of five years each (“Term”), subject to available appropriations, and further subject to the City’s ability to terminate for convenience with ninety days’ notice, which lease agreement is to be on a rent-free basis, but allocating to the premises leased for the use of KCPD: (a) the operational expenses for KCPD’s 12,030 square feet of exclusive space in the Building initially computed for the first year of the Term on $11.00 per square foot for an amount of $132,330.00; (b) KCPD’s pro rata expense of the common area of the Building (which pro rata share is deemed to be 14.27%) for maintenance and services, which common areas include the cafeteria/break area, training/conference rooms, entrances, stairways, lobbies, corridors, elevators, dock, sidewalks and other building spaces generally accessible to all tenants, which services include, but are not limited to, security, janitorial services, trash removal, lighting, electricity, repairs, cleaning and maintenance, landscaping, exterior cleaning and lighting and snow removal, which for the first year of the Term shall be an annualized amount of $40,745.00, and (c) KCPD’s pro rata contribution toward a capital reserve fund for the first year of the Term in an annualized amount of $13,287.00; with the aggregate of subparts a, b and c being incurred in the annualized pro rata amount of $186,973.00, subject to an annual adjustment during the Term the lesser of 3% per annum or the consumer price index (Midwest Consumer Price Index for All Urban Consumers (CPI-U) for all items) having occurred since the last preceding adjustment, as published by the United States Department of Labor, Bureau of Labor Statistics, with a designated reference date of 1982-84 that =100, incurred subject to the availability of City appropriation for such expenses; and

WHEREAS, the City proposes to enter into the KCPD Lease directly with the Alliance, concerning the lease of approximately 12,030 square feet of space in the Building, along with the parking areas and other improvements (the “KCPD Premises”) commencing not earlier than May 1, 2021 (unless otherwise mutually agreed by the parties), on the condition that the Existing Lease is assigned and assumed by the Alliance and remains in effect, but is terminated on such date specified by the City, but no later than December 31, 2020; NOW, THEREFORE,

BE IT ORDAINED BY THE COUNCIL OF KANSAS CITY:

Section 1. That the Director of the Department of General Services (“Director”) is hereby authorized to further negotiate and execute a direct lease between the City of Kansas City, Missouri and the Alliance for the lease of the KCPD Premises being approximately 12,030 square feet of space in the Building and the associated parking and other improvements thereon, for an initial five year term beginning no earlier than May 1, 2021 (unless otherwise mutually agreed between the parties) through the date which is five (5) years following the commencement date of such lease, with two (2) additional terms of five (5) years each in accordance with the terms and provisions of the Lease substantially in the form of Exhibit A attached hereto (“KCPD Lease”), with the final signed form of the KCPD Lease to be maintained on file with the Director, with certain conditions precedent specified therein including an amendment of the Declaration to allow for such use by KCPD.

Section 2. That the amount of $740,000.00 is hereby appropriated from the Unappropriated Fund Balance of the Capital Improvements Fund to the following account, for the acquiring through purchase or lease of alternative space or renovation of existing space located elsewhere under the control of the City for NHSD’s operations and moving costs of NHSD employees from the structure at 4400 East Blue Parkway and the installation of IT related appurtenances for connectivity to City’s central servers and support services, which amount is preliminary only pending identification of such alternative space:

19-3090-078025-______ NHSD Relocation $740,000.00

Section 3. That the Director of General Services is hereby designated as requisitioning authority for Account No. 19-3090-078025.

Section 4. That the Director of General Services is hereby authorized to further negotiate and execute a Consent to Assignment and Termination of the Existing Lease to extinguish the City’s obligations under the Existing Lease at such date specified by the City, but not later than December 31, 2020, substantially in the form of Exhibit B attached hereto (Consent to Assignment and Termination), with the final signed form of such Consent to Assignment and Termination to be maintained on file with the Director.

Section 5. That the amount of ______________ is hereby appropriated from the ___________________Fund to the following account for the acquisition through purchase or lease of moveable furniture, fixtures and equipment that have no permanent connection to the Building, to be used within the KCPD Premises:

XX-XXXX-XXXXXX-_____________ Fund Name $_____________.00

Section 6. That the City Manager is authorized for the fiscal year commencing May 1, 2021, and each fiscal year thereafter that the City remains a party to the KCPD Lease, to allocate the pro rata occupancy costs under the KCPD Lease within the budget submitted for approval by the City Council; provided, the KCPD Lease will include language that it is subject to annual appropriations and further subject to the City’s ability to terminate for convenience with ninety days’ notice.

Section 7. That this ordinance is recognized as having an accelerated effective date within the provisions of Section 503(a)(3)(C) of the City Charter in that it appropriates money, and shall take effect in accordance with that section.

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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.

______________________________

Randall J. Landes

Director of Finance

Approved as to form and legality:

______________________________

Amelia McIntyre

Associate City Attorney