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Legislation #: 031051 Introduction Date: 9/18/2003
Type: Ordinance Effective Date: 10/19/2003
Sponsor: COUNCILMEMBER FAIRFIELD AND COUNCILMEMBER COOPER
Title: Authorizing the termination of the Assessment Agreement in connection with the I- 29/Barry Road/M- 152 Highway/North Congress Transportation Development District and the I- 29/Barry Road/M- 152 Highway/North Congress Transportation Development District II; authorizing an amended Cooperative Agreement and authorizing the City to take certain other actions in connection therewith.

Legislation History
DateMinutesDescription
9/17/2003

Prepare to Introduce

9/18/2003

Referred Planning, Zoning & Economic Development Committee

9/24/2003

Referred Finance Committee

10/1/2003

Do Pass as a Second Committee Substitute

10/2/2003

Assigned to Third Read Calendar

10/9/2003

Passed As Second Substitute


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SECOND COMMITTEE SUBSTITUTE FOR ORDINANCE NO. 031051

 

Authorizing the termination of the Assessment Agreement in connection with the I-29/Barry Road/M-152 Highway/North Congress Transportation Development District and the I-29/Barry Road/M-152 Highway/North Congress Transportation Development District II; authorizing an amended Cooperative Agreement and authorizing the City to take certain other actions in connection therewith.

 

WHEREAS, the City of Kansas City, Missouri, a constitutional charter city and municipal corporation of the State of Missouri (the "City") is authorized to enter into agreements for its municipal purposes; and

 

WHEREAS, the City entered into an Intergovernmental Cooperative Agreement dated October 3, 2001 (the Original Cooperative Agreement) with the I-29/Barry Road/M-152 Highway/North Congress Transportation Development District (District I) in connection with certain transportation improvements; and

 

WHEREAS, subsequent to the Original Cooperative Agreement the I-29/Barry Road/M-152 Highway/North Congress Transportation Development District II was formed (District II) for the purpose of financing certain transportation improvements; and

 

WHEREAS, the City entered into an Amendment to Intergovernmental Cooperative Agreement effective June 10, 2003 (the Amendment, and the Amendment with the Original Cooperative Agreement hereinafter referred to as the Agreement) with District I and District II in connection with certain transportation improvements; and

 

WHEREAS, the City entered into an Assessment Agreement dated October 3, 2001 with Earthstone, Inc., Leural, Inc. and Copihue, Inc. (the Assessment Agreement); and

 

WHEREAS, the Kansas City Municipal Assistance Corporation has issued two series of bonds (the "KCMAC Bonds") from which a portion of the proceeds were used to finance road improvements within District I and District II (the "KCMAC TDD Projects"); and

 

WHEREAS, the Agreement and the Assessment Agreement provided the Citys General Fund with additional security in the form of a special assessment lien for the first series of bonds and a letter of credit for the second series of bonds in the event that TDD sales taxes generated within the Districts were insufficient to pay the Districts allocable share of debt service on KCMAC Bonds; and

 

WHEREAS, District II proposes to issue transportation revenue bonds (the TDD Bonds) to finance certain transportation improvements to benefit District I and District II; and

 

WHEREAS, in the interests of intergovernmental and regional cooperation the City has agreed to terminate the Assessment Agreement and any obligation under the Cooperative Agreement for the District to impose special assessments in order to make such security available instead to


Platte County, Missouri (the County); and

 

WHEREAS, the County has agreed to assist in the sale of up to $25,000,000.00 in TDD Bonds for the District by pledging its annual appropriation pursuant to Resolution No. 03-24 approved on August 29, 2003; and

 

WHEREAS, Zona Rosa Development, L.L.C., Earthstone, Inc., Leural, Inc. and Copihue, Inc. agree to petition the Circuit Court of Platte County to establish a new special assessment property tax lien to fully secure the Countys general fund to the extent TDD sales taxes are insufficient to pay debt service on the proposed TDD Bonds; and

 

WHEREAS, the District and the City desire to amend the Cooperative Agreements in connection with the issuance of the TDD Bonds; NOW, THEREFORE,

 

BE IT ORDAINED BY THE COUNCIL OF KANSAS CITY:

 

Section 1. The City Council hereby approves the termination of the Assessment Agreement in order to make the Citys special assessment lien on the first series of KCMAC Bonds available to the County for protection of the Countys general fund in association with the Countys annual appropriation pledge to back up to $25,000,000.00 of TDD Bonds and authorizes and directs the necessary City officers to execute and deliver any necessary documents to accomplish such termination.

 

Section 2. The City Council hereby approves a Second Amendment to Intergovernmental Cooperative Agreement (the "Second Amendment") with District I and District II that includes provisions that provide: that the TDD Revenues (as defined in the Agreement) shall be used first to pay administrative costs as defined in the Agreement; second, to pay on a parity basis debt service on all TDD Bonds and the Districts Allocable share of payment on the City Bonds (as defined in the Agreement; and third, to reimburse on a parity basis the County and the City for any appropriations if necessary, and fourth, to pay on a subordinate basis for other transportation purposes, (b) that the Districts' obligation to use TDD Revenues, if the CIP Tax (as defined in the Agreement) is not renewed, contained in Section 5.1(c)(1) of the Agreement shall be removed and (c) the Developer Guaranty and the Letter of Credit required by Section 5.1(c)(3) and 5.1(c)(4) of the Agreement shall be required to cover the net annual debt service on both the first and second series of KCMAC Bonds allocable to the KCMAC TDD Projects; and authorizes and directs the necessary City officers to execute and deliver the Amendment.

 

Section 3. The approvals in Sections 1 and 2 of this ordinance are subject to:

 

(a) The agreement of Zona Rosa Development, L.L.C., Earthstone, Inc., Leural, Inc. and Copihue, Inc. to petition the Circuit Court of Platte County to a establish a special assessment property tax lien to fully secure the Countys general fund to the extent TDD sales taxes are insufficient to pay debt service on up to $25,000,000.00 in TDD Bonds.

 

(b) The agreement by District II that any TDD Bonds issued in excess of the $25,000,000.00 par amount of bonds proposed to be issued by District II to finance certain transportation improvements to benefit Districts I and II will be subordinate to the aforementioned priority of TDD revenues described in Section 3 herein.

 

(c) The agreement by Districts I and II to pay for any additional costs to the City related to the substitution of the Citys security for its KCMAC bonds including payment for any consent of the bond insurer, including legal fees. This ordinance is conditioned upon receiving any required consent from the bond insurer in advance of its passage by the City Council.

 

Section 4. The Director of Finance or the Director of City Development is hereby authorized and directed to execute and deliver within 30 days of the adoption of this Ordinance a Cooperative Agreement Amendment and 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.

 

Section 5. 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.

 

Section 6. This Ordinance shall take effect and be in full force ten (10) days after its passage.

 

_____________________________________________

 

Approved as to form and legality:

 

 

___________________________________

Heather A. Brown

Assistant City Attorney