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.
____________________________________
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