ORDINANCE NO. 250498
title
Sponsor: Director of Housing and Community Development Department
Authorizing the Manager of Procurement Services to execute a Central City Economic Development (CCED) $1,189,822.00 funding agreement with Linvista Flats, LLC, for renovation of fourteen (14) residential units at 1601-1603 Linwood Boulevard; and authorizing the Director of the Housing and Community Development Department to expend up to $1,189,822.00 of previously appropriated Central City Economic Development Fund.
body
WHEREAS, Section 67.1305 of the Revised Statuses of Missouri authorizes the City to impose a retail sales tax not to exceed one-half of one percent if the imposition of such a retail sales tax is submitted to, and then approved by, a majority of votes cast; and
WHEREAS, on April 4, 2017, pursuant to authority granted by Section 67.1304, RSMo, a majority of Kansas City, Missouri voters approved a new 1/8 of one percent retail sales tax for funding economic development projects within the area bounded by 9th Street on the north, Gregory Boulevard on the south, Paseo Boulevard on the west and Indiana Avenue on the east; and
WHEREAS, the project serves a predominantly public municipal purpose because, without limitation, completion of the project (i) enhances the tax base of the Project Site; (ii) retains and generates jobs; (iii) promotes economic development in the area of the City in which the Project Site is located, and promotes consideration of areas of the City that the City Council has determined to be blighted as a location for business operations; (iv) results in generation of tax revenues to the City from the conduct of business and other activities in the City that would otherwise occur; (v) serves as a catalyst for additional investment in and further redevelopment and rehabilitation of the area of the City in which the Project Site is located; and (vi) furthers the City’s policy of encouraging economic stability and growth; and
WHEREAS, the City desires to encourage the Developer to carry out the project for the purpose of realizing these predominantly public purposes by entering into an agreement to contribute certain revenues in an amount needed to cause the project to be undertaken and attract the necessary private investment; and
WHEREAS, on August 15, 2024, the City Council passed Ordinance No. 240620 which accepted the Board’s recommendation to negotiate and execute a Funding Agreement with Linvista Flats, LLC in the amount of $1,189,822.00 for the purpose of renovation of 14 residential units to be located at 1601-1603 Linwood Boulevard in Kansas City, expenses to be paid from funds previously appropriated to Account No. 25-2200-555998-619080-55LINVISTA, the Central City Economic Development Sales Tax fund.
WHEREAS, previously appropriated funds from the Central City Economic Development Fund, in the amount of $1,189,822.00 were unexpended; and
WHEREAS, November 2024, the residential building known as Linvista Flats Historic Colonnades, located 1603 Linwood Boulevard, was rendered uninhabitable as a result of significant fire damage; and
WHEREAS, the structural integrity of the building was compromised by the fire, resulting in a reduction of the total number of habitable residential units to eight (8); and
WHEREAS, this ordinance is required due to the change of scope necessitated by the fire; NOW, THEREFORE,
BE IT ORDAINED BY THE COUNCIL OF KANSAS CITY:
Section 1. That the Manager of Procurement Services is authorized to execute a Central City Economic Development funding agreement with Linvista Flats, LLC, using previously appropriated funds in the amount of $1,189,822.00 from the Central City Economic Development Sales Tax Fund.
Section 2. That the Director of Housing and Community Development is authorized to expend up to $1,189,822.00 from the Central City Economic Development Sales Tax Fund.
Section 3. That this contract must comply with: the Missouri Prevailing Wage Law, the City’s Contracting Program Requirements set out in Article IV, Chapter 3, Code of Ordinances (including, but not limited to, the provisions concerning affirmative action, Minority and Women’s Business Enterprises and Small Local Business Enterprises program).
Section 4. The Funding Agreement shall prohibit the use of any CCED sales tax funding for the repayment of any preexisting debt or repayment for services or work performed to the execution of the funding agreement and must require the disclosure of total project sources and projected costs and periodic reporting of project progress.
end
______________________________________________________
I hereby certify that there is a balance, otherwise unencumbered, to the credit of the appropriation to which the foregoing expenditure is to be charged, and a cash balance, otherwise unencumbered, in the treasury, to the credit of the fund from which payment is to be made, each sufficient to meet the obligation hereby incurred.
______________________________
Tammy L. Queen
Director of Finance
Approved as to form:
______________________________
Joseph A. Guarino
Senior Associate City Attorney