COMMITTEE SUBSTITUTE FOR ORDINANCE NO. 120580

Authorizing the City Manager to execute a Development Agreement with Project Apple, LLC, that authorizes the issuance of Chapter 100 bonds in connection with an economic development effort; and expressing the Council’s support for a waiver to the City’s Chapter 100 Policy related to maximum abatement periods and minimum PILOT levels.

WHEREAS, the City has had conversations with a business that is relocating and bringing a minimum of 960 new jobs to Kansas City, Missouri, with an additional 200 new jobs possible within the first two years; and

WHEREAS, Chapter 100 bonds are required, as part of an overall incentive package being developed cooperatively with the State of Missouri to make the relocation financially desirable; and

WHEREAS, the City Council has previously established a policy for the review and approval of these projects, two component of which suggest a maximum abatement period of 10 years and a minimum PILOT level of 50%; and

WHEREAS, in this specific instance, the abatement period would be 23 years for real property and 15 years for personal property; and

WHEREAS, in this specific instance, any incremental increase in real property taxes resulting from any improvements would be abated in their entirety for 23 years with no PILOT payment, and the personal property taxes would be abated in their entirety for 15 years with a 50% PILOT payment commencing in the sixth year; and

WHEREAS, the Chapter 100 bonds and any accompanying tax abatement and sales tax exemption would necessarily be contingent on the City approving a Chapter 100 Plan; NOW, THEREFORE,

BE IT ORDAINED BY THE COUNCIL OF KANSAS CITY:

Section 1. That the City Manager is hereby authorized to execute a Development Agreement with Project Apple, LLC, that authorizes the issuance of Chapter 100 bonds upon the City Council’s subsequent approval of a Chapter 100 Plan.

Section 2.  That the City Council hereby waives the Chapter 100 Bond Policy related to maximum abatement periods and minimum PILOT levels.

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  Approved as to form and legality:

 

 

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Brian T. Rabineau

Assistant City Attorney