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Legislation #: 140873 Introduction Date: 10/16/2014
Type: Ordinance Effective Date: none
Sponsor: COUNCILMEMBER WAGNER AND COUNCILMEMBER SHARP
Title: Approving the use of a portion of the City of Kansas City, Missouri’s allocation of Qualified Energy Conservation Bonds issuance authority to provide financing to 310 W. 49th Street, Inc., for energy efficient improvements to the Wornall Plaza Condominiums and directing certain notifications concerning the project.

Legislation History
DateMinutesDescription
10/14/2014 Filed by the Clerk's office
10/16/2014 Referred to Finance, Governance & Ethics Committee
10/22/2014 Advance and Do Pass as a Committee Substitute, Debate
10/23/2014 Passed as Substituted

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140873.pdf Authenticated 244K Authenticated
140873 Fact Sheet.pdf Fact Sheet 25K Fact Sheet

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COMMITTEE SUBSTITUTE FOR ORDINANCE NO. 140873

 

Approving the use of a portion of the City of Kansas City, Missouri’s allocation of Qualified Energy Conservation Bonds issuance authority to provide financing to 310 W. 49th Street, Inc., for energy efficient improvements to the Wornall Plaza Condominiums and directing certain notifications concerning the project.

 

WHEREAS, Section 301(a) of the Tax Extenders and Alternative Minimum Tax Relief Act of 2008 added Section 54D (as amended by Section 1112 of the American Recovery and Reinvestment Act of 2009, “Section 54D”) to the Internal Revenue Code of 1986, as amended (the “Code”), to authorize states and political subdivisions to issue qualified energy conservation bonds (“QECBs”) for one or more Qualified Conservation Purposes (as defined in Section 54D); and

WHEREAS, among such Qualified Conservation Purposes are capital expenditures incurred for purposes of implementing green community programs (including the use of loans, grants, or other repayment mechanisms to implement such programs) (“Green Community Programs”); and

WHEREAS, the City has established a Green Community Program (the “Program”) to be financed in part with the proceeds of QECBs to be issued by the Missouri Clean Energy District (the “District”); and

WHEREAS, the aim of the Program is the reduction of fossil fuel consumption in the City so as to reduce the climate effects of greenhouse gas production, reduce energy costs of the City and City residents, increase the City's energy independence and provide an example for others to follow; and

WHEREAS, the District is empowered by Section 67.2800 to 67.2835, Missouri Revised Statutes (the “Act”) to finance energy efficiency improvements and renewable energy improvements as defined in the Act and to issue its bonds for the purpose of financing the costs of such improvements; and

WHEREAS, 310 W. 49th Street, Inc. (the “Borrower”) has applied to the District for a loan of $571,430.00, for the purpose of financing improvements to the Borrower’s major energy-consuming systems, including lighting, domestic water, building envelope, energy management controls and heating-ventilating-air-conditioning systems (the “Project”), all of which are eligible for financing under the Act, and the District is willing to provide such financing from the proceeds of QECBs utilizing a portion of the QECB issuance authority allocated to the City; and


WHEREAS, by Ordinance No. 140547 passed July 31, 2014, City Council did approve the transfer of the City’s QECB issuance authority to the District; and

WHEREAS, by Ordinance No. 140548 passed July 31, 2014, the City Council did establish its Program, describing the projects and programs authorized to be funded by the Program, and requiring City Council approval for all projects funded by the Program; and

WHEREAS, it is the City Council’s intent to authorize the District to allocate $571,430.00 of the City’s QECB issuance authority for the purpose of financing the Project; NOW, THEREFORE,

BE IT ORDAINED BY THE COUNCIL OF KANSAS CITY:

Section 1. The City hereby approves the Project as set forth in the descriptive material submitted to the City’s Office of Environmental Quality, subject to such changes as may be mutually agreed by the District and the Borrower so long as such changes do not violate any applicable zoning or other ordinance of the City or any environmental or other regulation of the United States or any agency of the United States or any other governmental body having jurisdiction and do not change the purpose or structure of the Project in any way which is adverse to the City or its residents. A copy of the Project and descriptive material, approved in substantial form, is on file in the City’s Office of Environmental Quality.

Section 2. The City hereby authorizes the District to issue QECBs in an amount not to exceed $571,430.00 of the total $4,670,389.00 of QECB issuance authority allocated to the City for the purposes of financing the Project.

Section 3. By accepting this Ordinance, the District agrees that it will certify to the City, promptly upon the issuance of QECBs as hereby authorized, (a) the date and amount of the QECBs so issued, (b) the terms, including interest rates and date or dates of maturity, of such QECBs, and (c) the correct legal name, address and taxpayer identification number of the Borrower.

Section 4. The District also agrees, by accepting this Ordinance, to notify the City as soon as is reasonably practicable after such information becomes available to the District of (a) any prepayment or payments in full of the whole or any portion of the QECBs, including by way of a refunding of such QECBs, and (b) any default by the Borrower with respect to such QECBs. The District also agrees to provide the City in a timely manner with such other or additional information as the City may reasonably request and to report to the City’s Office of Environmental Quality, contemporaneously with the report of its activities for a calendar year to the Missouri Department of Natural Resources, a description of each project within the City financed by the District during the preceding calendar year, whether such financing is to be repaid pursuant to a property assessed clean energy contract of some other source, which report shall contain all of the information required by Section 67.2810.3 of the Missouri Revised Statutes.

Section 5. Any and all such required notifications, notices, certifications or other communications due to the City, as contemplated under this ordinance, shall be delivered, in a manner prescribed by the City, to the City’s Chief Environmental Officer in the City Manager’s Office of Environmental Quality, 414 E. 12th Street, Suite 2404, Kansas City, Missouri 64106-2417, unless otherwise designated by the City.

_____________________________________________

 

Approved as to form and legality:

 

 

___________________________________

Matthew Gigliotti

Assistant City Attorney