ORDINANCE NO. 990251

Accepting the recommendations of the Tax Increment Financing Commission as to the Brush Creek Corridor Tax Increment Financing Plan; approving the Brush Creek Corridor Tax Increment Financing Plan; and designating a Redevelopment Area.

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"Act"), the City Council of Kansas City, Missouri, by Ordinance No. 54556 passed on November 24, 1982, and thereafter repealed and amended in certain respects by Committee Substitute to Ordinance No. 911076, as amended, passed on August 29, 1991, created the Tax Increment Financing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 Commission has been duly constituted and its members appointed; and, after all proper notice was given, the Commission met in public hearing and after receiving the comments of all interested persons and taxing districts, closed said public hearing on February 10, 1999 and on February 10, 1999 approved Resolution No. 2-2-99 (the "Resolution") recommending to the City Council the approval of the Brush Creek Corridor Tax Increment Financing Plan (the "Redevelopment Plan"); and

WHEREAS, the Redevelopment Plan is a comprehensive program intended to satisfy, reduce and/or eliminate those conditions, the existence of which qualified the Redevelopment Area as a Blighted area, and to enhance the tax base within the Redevelopment Area through the implementation of four (4) separate Redevelopment Projects and the adoption of tax increment financing in each of the areas selected for such Redevelopment Projects; NOW, THEREFORE,

BE IT ORDAINED BY THE COUNCIL OF KANSAS CITY:

Section 1. The recommendations of the Commission concerning the Redevelopment Plan as set forth in the Resolution attached hereto as Exhibit "A" are hereby accepted and the Redevelopment Plan, a copy of which is attached hereto as Exhibit "B," is hereby approved and adopted as valid and the Redevelopment Projects contained therein are hereby authorized.

Section 2. 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 3. The following-described area is hereby designated a Redevelopment Area under the Act (hereinafter referred to as the "Redevelopment Area");

In Kansas City, Missouri, parts of Section 34 and 27, Township 49, Range 33: Beginning at the intersection of the north line of Blue Parkway with the center line of Jackson Avenue, then north along said center line to the north line of 49th Street, then east along said north line to the center line of Elmwood Avenue, then south along said center line to the center line of Blue Parkway, then east along said center line to the center line of Lawn Avenue, then south along said center line to the northeast corner of Lot 24 Bluebanks, then west along the

north line of Lots 24 and 35 Bluebanks to the west line of vacated Elmwood Avenue, then south along said west line to the center line of 51st Street, then west along said center line to the center line of Jackson Avenue, then generally northwest to the center line of the vacated Mersington Avenue, then generally northeast to the north line of Blue Parkway, then east along Blue Parkway to the center line of Jackson and the point of beginning.

Section 4. In accordance with the recommendations of the Commission as set forth in the Resolution, the City Council hereby finds that:

A. The Redevelopment Area as a whole is a Blighted area and the following factors are hereby found to exist within the Redevelopment Area, to-wit:

1. The project area described in this plan has been declared blighted by the City of Kansas City, Missouri under the PIEA definition pursuant to Ordinance No. 920134, dated March 26, 1992.

2. Since the blight designation under Ordinance No. 920134, no new development has been completed on the proposed project site.

3. The proposed project site is generally littered with debris including old tires, trash, discarded equipment (resulting from unauthorized dumping) as well as masonry fragments and structural debris resulting from demolition.

4. There are numerous vacant structures on the proposed project site that constitute a risk to general health and safety.

5. Many of the structures on the proposed project site are significantly run down, characterized by broken windows and broken doors, as well as overgrown vegetation.

6. There are numerous old shallow basements and foundations on the proposed project site.

7. A pile of old cars at exist 4911 Kensington which presents a unsafe and unsanitary condition.

B. The Redevelopment Area has not been subject to growth and development through investment by private enterprise and would not reasonably be anticipated to be developed without the adoption of the Redevelopment Plan, and such fact is acknowledged by the Redeveloper in an affidavit included as Exhibit 14 to the Redevelopment Plan.

C. The Redevelopment Area currently is located within the Oak Park South Area Plan originally approved by the City Council on August 18, 1977, by Resolution No. 48098; the Blue Parkway Land Use and Development Plan approved by City Council on March 26, 1992, by Resolution No. 920132; and by the Brush Creek Corridor Land Use and Development Plan, and the Redevelopment Plan, conforms to such plans. The Redevelopment Plan also confoms to FOCUS, the comprehensive plan for the redevelopment of the City as a whole.

D. The areas selected for Redevelopment Projects include only those parcels of real property and improvements thereon which will be directly and substantially benefitted by the Redevelopment Project improvements.

E. The estimated dates of completion of the Redevelopment Projects and retirement of obligations incurred to finance redevelopment project costs have been stated in the Redevelopment Plan and are not more than 23 years from the adoption of any ordinance approving a Redevelopment Project within the Redevelopment Area.

F. The Redevelopment Plan includes a plan for relocation assistance for businesses and residences.

G. A cost benefit analysis showing the impact of the Redevelopment Plan on each taxing district which is at least partially within the boundaries of the Redevelopment Area has been prepared in accordance with the Act.

H. The Redevelopment Plan does not include the initial development or redevelopment of any gambling establishment.

Section 5. The Commission is authorized to issue obligations in one or more series of bonds secured by the Brush Creek Corridor Account of the Special Allocation Fund to finance Redevelopment Project Costs within the Redevelopment Area and, subject to any constitutional limitations, to acquire by purchase, donation, lease or eminent domain, own, convey, lease, mortgage, or dispose of, land or other property, real or personal, or rights or interests therein, and grant or acquire licenses, easements and options with respect thereto, all in the manner and at such price the Commission determines, to enter into such contracts and take all such further actions as are reasonably necessary to achieve the objectives of the Redevelopment Plan pursuant to the power delegated to it in Ordinance No. 54556. Any obligations issued to finance Redevelopment Project Costs shall contain a recital that they are issued pursuant to Sections 99.800 to 99.865, which recital shall be conclusive evidence of their validity and of the regularity of their issuance.

Section 6. Pursuant to the provisions of the Redevelopment Plan, the City Council approves the pledge of all funds that are deposited into the Brush Creek Corridor Account of the Special Allocation Fund to the payment of Redevelopment Project Costs within the Redevelopment Area and authorizes the Commission to pledge such funds on its behalf.

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Approved as to form and legality:

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Assistant City Attorney