ORDINANCE NO. 250416
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Sponsor: City Manager’s Office
Accepting and approving the recommendation of the Kansas City Tax Increment Financing Commission, as to the termination of the Grand Reserve Tax Increment Financing Plan and the termination of the designation of Redevelopment Project Area 1; declaring as surplus those funds within the special allocation fund established in connection with such Redevelopment Project Area 1; authorizing the City Manager to enter into a Termination and Mutual Release Agreement related to the Sales Tax Contribution Agreement; and directing the City Clerk to send copies of this ordinance to Jackson County.
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WHEREAS, pursuant to the Real Property Tax Increment Allocation Redevelopment Act, Sections 99.800 to 99.865 of the Revised Statutes of Missouri, as amended (the “Act”), the City Council of Kansas City, Missouri (the “City Council”) by Ordinance No. 54556 passed on November 24, 1982, and thereafter amended in certain respects by Committee Substitute for Ordinance No. 911076, as amended, passed on August 29, 1991, Ordinance No. 100089, as amended, passed on January 28, 2010, and Ordinance No. 130986, passed on December 19, 2013, Committee Substitute for Ordinance No. 140823, as amended on, June 18, 2015 and Committee Substitute for Ordinance No. 230524, passed on June 22, 2023, created the Kansas City Tax Increment Financing Commission (the “Commission”); and
WHEREAS, on May 12, 2016, the City Council passed Committee Substitute for Ordinance No. 160163, which accepted the recommendations of the Commission and approved the Grand Reserve Tax Increment Financing Plan (the “Redevelopment Plan”), designated the Redevelopment Area described therein to be a Conservation Area (the “Redevelopment Area”) and the Redevelopment Project Area 1 described therein (the “Redevelopment Project Area”), and authorized a Sales Tax Contribution Agreement; and
WHEREAS, the Redevelopment Plan and Sales Tax Contribution Agreement were amended by Committee Substitute for Ordinance No. 200265 on May 14, 2020; and
WHEREAS, no revenues have been redirected pursuant to the Redevelopment Plan or the Sales Tax Contribution Agreement due to lack of development and economic activity within the Redevelopment Project Area; and
WHEREAS, Committee Substitute for Ordinance No. 160163 also authorized an Industrial Development Plan for Grand Reserve for the renovation, construction, furnishing , and equipping of the 21-story former Federal Reserve Bank of Kansas City building, located at 925 Grand Street, along with other associated improvements (the “Industrial Development Project”), pursuant to Article VI, Section 27(b) of the Missouri Constitution, as amended, and Sections 100.010 to 100.200, inclusive, of the Revised Statutes of Missouri, as amended, and the City of Kansas City Charter (collectively, the "Chapter 100 Act"); and
WHEREAS, Committee Substitute for Ordinance No. 160163 authorized the City to enter into a lease and issue taxable industrial revenue bonds to effectuate the Industrial Development Project, and to execute additional documents as would be necessary to carry out the Industrial Development Project; and
WHEREAS, the lease contemplated by Committee Substitute for Ordinance No. 160163 was never executed and the taxable industrial revenue bonds authorized by Committee Substitute for Ordinance No. 160163 were never issued; and
WHEREAS, the property owner has requested the City and the Commission terminate the Redevelopment Plan, Sales Tax Contribution Agreement, and the Industrial Development Plan; and
WHEREAS, the Commission has been duly constituted and its members appointed pursuant to Section 99.820.2 of the Act; 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 with respect to the Redevelopment Plan, closed said public hearing on March 12, 2025, and adopted its Resolution No. 3-1-25 (the “Resolution”) recommending to the City Council the termination of the Redevelopment Plan and the termination of the designation of Redevelopment Project Area descried therein and by Committee Substitute for Ordinance No. 160163, which shall require that all funds on deposit in the Special Allocation Fund(s) established in connection with such Redevelopment Project Area be declared surplus and distributed to the affected taxing districts, in accordance with the Act, and
WHEREAS, the Commission, as duly constituted pursuant Section 74-58 of the City’s Code of Ordinances, approved the Termination and Mutual Release of Redevelopment Agreement, Funding Agreement, and Sales Tax Contribution Agreement among Delta Quad Holdings, LLC, the City, and the Commission; NOW THEREFORE,
BE IT ORDAINED BY THE COUNCIL OF KANSAS CITY:
Section 1. That the recommendations of the Commission concerning the termination of the Grand Reserve Tax Increment Financing Plan, as set forth in Resolution No. 3-1-25, are hereby accepted, and the Grand Reserve Tax Increment Financing Plan is hereby terminated.
Section 2. That the recommendations of the Commission concerning the termination of the designation of Redevelopment Project Area 1 described by the Grand Reserve Tax Increment Financing Plan and Committee Substitute for Ordinance No. 160163, as set forth in Resolution No. 3-1-25 are hereby accepted, and the designation of such Redevelopment Project Area is hereby terminated.
Section 3. That all funds within any Special Allocation Fund established in connection with such Redevelopment Project Area are hereby declared as surplus and shall be distributed in accordance with the Act and the provisions of this ordinance.
Section 4. That following the distribution of the surplus funds, the Special Allocation Fund for the Redevelopment Project Area of the Grand Reserve Tax Increment Financing Plan shall be dissolved.
Section 5. That the City Manager is authorized to enter into a Termination and Mutual Release of Redevelopment Agreement, Funding Agreement and Sales Tax Contribution Agreement with the Commission and Delta Quad Holdings, LLC. The Termination and Mutual Release of Redevelopment Agreement, Funding Agreement and Sales Tax Contribution Agreement is approved in substantial form to that which is attached hereto.
Section 6. That the City Clerk is hereby directed to send copies of this ordinance to Jackson County.
Section 7. That the Industrial Development Plan for Grand Reserve as approved by Committee Substitute for Ordinance No. 160163 is hereby revoked.
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Approved as to form:
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Emalea Black
Associate City Attorney