ࡱ> #` =bjbjmm i]5Hxxxx$t&t&t&P&\ 'W'((((***VWXWXWXWXWXWXW$Yh\r|W\3)"*\3\3|Wxx((9W666\3Nx8((VW6\3VW66KOCS(' 0Z,~t&4RHTW0WR\\5\S\S*,6./0-***|W|Wt6j***W\3\3\3\3$&d&xxxxxx COMMUNITY PROJECT/ZONING Ordinance Fact Sheet Ordinance Number Case No. 666-S Brief Title Approval Deadline Reason To consider approval of a Blight finding for the Hillside Redevelopment Corporation 353 Redevelopment Plan land Details Positions / Recommendations Specific Address About 150 acres generally located at the northwest quadrant of Hwy 350/Blue Parkway and the area between the eastbound and westbound lanes of Hwy 350/Blue Parkway, just east of the City of Raytown SponsorCouncilperson CircoReason for Project That the area be found to be a BLIGHTED AREA and that the declaration of blight is necessary and advisable to effectuate the public purposes set forth in Section 74-2. Programs, Departments, or Groups AffectedCouncil District(s): 5th (Circo, Reilly) Other districts: Raytown School District REPORT: On December 31, 2007, the Hillside Redevelopment Corporation filed three cases: 1) an area plan amendment for the Knobtown Land Use & Development Plan, 2) the Hillside 353 Development Plan and 3) a rezoning proposal for the 141 acre site to District URD (Urban redevelopment district). These three cases constitute an application to approve a 353 tax abatement project for 231 housing units and 223,600 square feet of commercial. Designating this project as a 353 would grant the property tax abatement for a period of up to 25 years. On February 8, 2008, the City Plan Commission continued these cases to a later date to allow time for the applicant to submit a comprehensive but for analysis. On September 20, 2007, with CS Ordinance No. 070943, the City Council passed the Economic Development Incentive Policy. This policy is to be used as a guideline for all proposed tax incented projects. One of the requirements of the policy is a But-For analysis for all tax incented cases. This section reads: But-For Standard for All Incentives: the City and all of its partner agencies use a standard, but-for test that includes both fiscal and social considerations, evaluates the projects attention to the Citys Policy Outcomes, and is broader than just a calculation of developer rate of return. The but-for analysis is used on every public investment decision. Applicants/ ProponentsHillside Redevelopment Corporation Aaron March White Goss Bowers March Schulte & Weisenfels, P.C. 4510 Belleview, Suite 300 Kansas City, MO 64111 Opponents Groups or individuals None known Basis of Opposition: Staff Recommendation  FORMCHECKBOX  For, with conditions  FORMCHECKBOX  Against Reason Against: Board or Commission RecommendationBy: City Plan Commission, 09/04/07, 7-0, Macy, Archie, Asjes, Myers, Graf, Abend and Krum  FORMCHECKBOX  Approval  FORMCHECKBOX  Approval, with conditions  FORMCHECKBOX  DenialCouncil Committee Actions FORMCHECKBOX  Do pass  FORMCHECKBOX  Do pass (as amended)  FORMCHECKBOX  Committee Sub.  FORMCHECKBOX  Without Recommendation  FORMCHECKBOX  Hold  FORMCHECKBOX  Do not pass  Discussion Policy / Program Impact Following the February 8, 2008 CPC meeting, the applicant contacted Economic Development Corporation (EDC) staff and contracted with EDC to provide the required but-for analysis. The site currently contains a quarrying operation. According to aerial photos, the quarry operation has been occurring on the site for about 18 years. The most recent City action to allow quarrying at this site was with Case No. 10626-A-4 on December 11, 2007, where the Board of Zoning Adjustment (BZA) approved a 6-month extension of Condition #2 for a conditional use permit to allow for continued quarrying. For all 353 cases, the City Plan Commission must make four determinations, a) determination as to blighted area, b) determination as to the development plan, c) determination as to financing, and d) determination as to tax abatement. The City Council is also then required to make a blight finding for the site, and this finding must be made based upon the condition of the site at the time of the Council hearing. The blight study is listed as Exhibit C in the 353 plan. Part of the blight analysis takes the position that two layers of limestone rock on the site are contributing to the blight of the site because they contribute to rugged topography with steep inclines. Policy or Program Change  FORMCHECKBOX  No  FORMCHECKBOX  YesOperational Impact Assessment  FinancesCost & Revenue Projections Including Indirect Costs Financial Impact Fund Source and Appropriation Account Costs Is it good for the children  FORMCHECKBOX  Yes  FORMCHECKBOX  No Project Start Date Plan filed: December 21, 2007 CPC date: March 4, 2008 Project Completion or Occupancy Date Fact Sheet Prepared by: Date: March 4, 2008 John Eckardt Planner Reviewed by: Date: March 4, 2008 Virginia L. Walsh, Manager Development Management Division Reference or Case Numbers: 666-S Since quarrying operations are continuing on the site, the applicants representative was concerned that the removal of the rock would also remove some of the blighting aspects of the site and perhaps jeopardize the blight finding by the City Council if the determination was continued to a later date. Due to this, Councilperson Circo recently introduced Ordinance No. 080173. Ordinance No. 080173, declares the area generally located at Missouri Highway 350 between Westridge Road and Noland Road to be a blighted area and its redevelopment necessary for the preservation of the public peace, prosperity, health, safety, morals and welfare. For all recent 353 projects the City Plan Commission has made the four determinations identified above a-d. Since the but-for analysis is still currently being addressed and the plan is not ready to move forward and since an ordinance has been introduced which requests a determination of blight, this staff report will only address Determination a) finding of blight. The City Law Department has given an opinion that blight can be found outside of the review of the remainder of the plan. Blighting Aspects: The blight study is listed as Exhibit C in the plan. The blight analysis was completed by Scott J. Belke, MAI, president of Belke Appraisal & Consulting Services, Inc. Mr. Belke states that after a careful study of all pertinent factors, it is my considered opinion that the proposed redevelopment area is a blight area according to the definition provided in Chapter 353 (Urban Redevelopment Corporations Law) of the Missouri Revised Statutes. According to the Missouri Revised Statutes blight is defined as: Blighted area, that portion of the city within which the legislative authority of such city determines that by reason of age, obsolescence, inadequate or outmoded design or physical deterioration, have become economic and social liabilities, and that such conditions are conducive to ill health, transmission of disease, crime or inability to pay reasonable taxes; (RSMo ch. 353.020 (2)) According to the blight study, the proposed redevelopment area comprises seventeen tax parcels encompassing 140.13 acres and improved with only 8,576 square feet of structures. All of these structures, except the residential office building, have no contributory value in the reuse of the site and will incur demolition costs. Other issues include the following: Lack of interior roadways Lack of access to six tax parcels Lack of water service Lack of sanitary sewer service Lack of natural gas service Inadequate storm sewer service Presence of an overhead electrical transmission line Presence of a buried natural gas pipeline Rugged topography with steep inclines Dumping and illegal dumping Abandoned quarry equipment Scarred terrain resulting from approximately 20 years of quarry operations Zoning of 99.8% of the proposed redevelopment area remains in RA, Agricultural District Dilapidated improvements or improvements with no contributory value that will need to be demolished Essentially stagnant assessment the past five years and economic underutilization resulting in a 2007 appraised value of $0.13 per square foot of land and a 2006 tax bill equating to $0.002 per square foot of land. Some details of the site according to the blight study are as follows. Location and Access The proposed redevelopment area comprises 107.80 acres generally located in the northwest quadrant of Missouri 350 Highway and Noland Road and 32.33 acres in the Missouri 350 Highway median located west of Noland Road to the Raytown city limit (Westridge Road). The redevelopment area is situated in the southeast periphery of Kansas City, Missouri. The city limit of Raytown, Missouri adjoins the west end of the redevelopment area while Lees Summit, Missouri is just over a mile to the southeast. Unity Village is also to the southeast. The area surrounding the interchange of Missouri 350 Highway (Blue Parkway) and Noland Road is also known as Knobtown. The following USGS topographic map indicates significant elevation changes within the proposed redevelopment area. Although some areas in the northwest quadrant of Noland Road and Missouri 350 Highway and in the Missouri 350 Highway median are level, the easterly portions are quite steep and wooded. Elevation losses in these areas are roundly 90 feet (median) to 140 feet (NWQ). Currently, the only utilities present within the proposed redevelopment area are electricity and a 1" copper water line running from Frost Road south to the office structure. An 8" water line is east of Noland Road. The south lane of Missouri 350 Highway carries 6" and 10" water lines. A deep buried 42" precast concrete transmission water line (untappable) runs south through the NWQ Tract from Frost Road to Missouri 350 Highway. The White Oak Force Main, a 24" sewer line, is in the east side of Noland Road. None of the properties along Noland Road are allowed to hook into this pressurized line. Other sewer lines are further east in the Little Blue River. It appears that the development adjoining the west-central portion of the redevelopment area (Frontier Motel, Jerrys Bar & Grill, Boan Air Conditioning, and PR International) within the Missouri 350 Highway median obtain water and sewer service from the City of Raytown, Missouri. It is likely the redevelopment area would have to connect to a sewer line at the south end of the KCIR raceway located east of Noland Road and north of Missouri 350 Highway. An overhead electrical transmission line runs north-south through the west perimeter of the NWQ Tract (in the west portion of Parcel #15 and the center of Parcel #12). A natural gas pipeline (6-inch) that previously ran diagonally across the proposed redevelopment area was moved at a cost of $187,000 to the owners and placed under the electrical transmission line. The gas line is currently owned by Sinclair and the line is not tappable. The proposed redevelopment area does not have natural gas service. Based upon historic aerial photographs of the proposed redevelopment area, quarry operations began on the NWQ Tract in 1989 (18 years ago). The quarrying is a typical surface operation wherein trees and foliage are stripped, overburden is removed and the Winterset limestone ledge is quarried. The limestone ledge has a thickness of 16 to 20 feet in this area. Reportedly, 500,000 tons of usable rock is removed from the site annually. The remaining inventory in the NWQ Tract is estimated by ownership at 3 years. After completion of Phase II quarrying in the NWQ Tract, the owner will begin quarrying the Median Tract. The estimate of rock in the median is 1.5 million tons that can be removed in 2 years. The quarrying operation in the median will also serve the purpose of lowering the median tract to a level close to grade with Missouri 350 Highway. Significant amounts of quarrying equipment are spread throughout the site. Most of this abandoned equipment existed on the site prior to current ownership. Included in the file is a memo from Edgar Jordan, Property and Relocation Services, that concludes, in reviewing the subject property presently under consideration, it is determined that the property is in a condition of blight as in the definition of a Blighted Area found in Section 74.4 of the City Code of General Ordinances. As per Section 74-13 of the Kansas City Code of General Ordinances, the City Plan Commission must make its determination/s for submittal to the City Council. The single determination for this finding is: (a) DETERMINATION AS A BLIGHTED AREA. The Redevelopment Coordinating Committee (RCC) met on February 25, 2008, to discuss this determination and make its recommendation for City Plan Commission ("CPC") and City Council review. RCC MOTION: That the area be found to be a blighted area. DISCUSSION: The Blight Study is Exhibit C in the Plan. See blight discussion above. The results of the independent study reach the conclusion that the area is blighted according to R.S.MO. Section 353.020, as well as Section 74-4 of the Kansas City Code. RECOMMENDATION AND CONDITIONS: At its regularly scheduled meeting on March 4, 2008, the City Plan Commission passed the following motion: A. That the area be found to be a BLIGHTED AREA and that the declaration of blight is necessary and advisable to effectuate the public purposes set forth in Section 74-2. The vote was 7-1. Voting Aye was Asjes, Myers, Archie, Cook, Graf, Macy and Krum. Voting Nay was Abend. 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