ORDINANCE NO. 260888
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Sponsor: Mayor Quinton Lucas
Approving the recommendations of the Tax Increment Financing Commission of Kansas City, Missouri as to the Downtown Stadium Tax Increment Financing Plan; directing the clerk to send a copy of this ordinance to Jackson County; amending Chapter 74, Code of Ordinances, "Economic Development Incentive Policies and Procedures" by enacting a new Section 74-13 entitled "Stadium Impact Area Policy"; and amending Chapter 50, Code of Ordinances, Offenses and Miscellaneous Provisions, by repealing and replacing Section 50-11.
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WHEREAS, Ordinance No. 260704 authorized the City Manager to enter into necessary agreements to support the development and operations of a new stadium, team offices, and supporting infrastructure (the “Project”) in the Washington Square Park/Crown Center area; and
WHEREAS, Ordinance No. 260704 and Ordinance No. 260339 directed the City Manager to apply for a TIF Plan in support of this Project; and
WHEREAS, the funding agreement approved by Ordinance No 260704 (the “Funding Agreement”) obligates the City to a commitment of Six-Hundred Million dollars ($600,000,000.00) in support of the Project (the “City Funding Commitment”); and
WHEREAS, the Tax Increment Financing Commission of Kansas City, Missouri (the “Commission”) was created 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”), and by Ordinance No. 54556 of the City Council of Kansas City, Missouri (the “City Council”), 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, by Ordinance No. 100089, as amended, passed on January 28, 2010, by Ordinance No. 130986, passed on December 19, 2013, by Committee Substitute for Ordinance No. 140823, as amended, passed on June 18, 2015, by Committee Substitute for Ordinance No. 230524, passed on June 22, 2023, and by Committee Substitute for Ordinance No. 240045 passed on March 21, 2024 (“Enabling Ordinances”); and
WHEREAS, the Downtown Stadium Tax Increment Financing Plan (the “Redevelopment Plan”) and the described Redevelopment Project within Redevelopment Project Area 1 (the “RPA 1 Redevelopment Project”) have been presented to the Commission for consideration; and
WHEREAS, the Redevelopment Plan was presented through the application of the City of Kansas City, Missouri (the "City") in that the Redevelopment Plan provides for a portion of the public financing for the Infrastructure Improvements necessary to support and attract future development and redevelopment of structures for a mix of uses, including but not limited to a baseball stadium and related facilities, retail, restaurant, entertainment, office, commercial, hotel, and residential (collectively, “Project Improvements”) within the Redevelopment Area; and
WHEREAS, the Infrastructure Improvements and Project Improvements are proposed to be constructed in an area generally bounded by Pershing Road and E. 22nd Street on the north, Main Street on the west, Gillham Road on the east and E. 27th Street on the south (the “Redevelopment Area”), and there are within the defined Redevelopment Area two (2) Redevelopment Project Areas; and
WHEREAS, after all proper notice was given, the Commission opened a public hearing regarding the Redevelopment Plan and the RPA 1 Redevelopment Project on August 12, 2026, which was continued to August 26, 2026 and September 9, 2026, at which time, after receiving the comments of all interested persons and taxing districts, and consideration of the evidence and testimony at the public hearing, the Commission approved Resolution No. ______ (the “Resolution”) making certain findings and recommending to the City Council the approval of the Redevelopment Plan, the designation of the Redevelopment Area, the designation of Redevelopment Project Area 1, and approval of the RPA 1 Redevelopment Project.
WHEREAS, the City will issue bonds or will work with a conduit issuer to issue bonds to raise funds for a portion of the City Funding Commitment (the “Downtown Stadium City Bonds”); and
WHEREAS, the Funding Agreement contemplates one of the sources of repayment for the Downtown Stadium City Bonds is new economic activity taxes generated within a Stadium Impact Area; and
WHEREAS, the City has previously adopted policies to provide support to economic development projects in addition to incentives authorized by the revised statutes of Missouri, including the policy adopted with Committee Substitute for Resolution 941748, as (further amended, and as supplemented by Committee Substitute for Resolution 990404 and a Business Retention policy adopted with Committee Substitute for Resolution 981201; and
WHEREAS, the City wishes to create a Stadium Impact Area Policy (the “Policy”) to govern the redirection of new economic activity taxes generated within the Stadium Impact Area; and
WHEREAS, the amounts due under the Stadium Impact Area Policy constitute current expenditures which are subject to annual appropriation by the City Council, and which shall not be construed as creating a general indebtedness of the City; NOW, THEREFORE,
BE IT ORDAINED BY THE COUNCIL OF KANSAS CITY:
Section 1. That the City Council hereby approves the recommendations of the Commission concerning the Redevelopment Plan as set forth in the Resolution.
Section 2. That all terms used in this ordinance, not otherwise defined herein, shall be construed as defined in Sections 99.800 to 99.865 of the Revised Statutes of Missouri, as amended (the “Act”).
Section 3. That the following described area is hereby designated the Redevelopment Area:
All that part of Section 8, Township 49 North, Range 33 West of the Fifth Principal Meridian, situate in the City of Kansas City, Jackson County, Missouri, being described as follows by Kellan M. Gregory, MO PLS #2011001372, of Olsson, MO CLS #000366, on June 18, 2026:
COMMENCING at the Southeast corner of the Southwest Quarter of said Section 8; thence South, along the East line of the Southwest Quarter of said Section 8, to the intersection with the centerline of E. 27th Street, as now established and also being the POINT OF BEGINNING; thence Westerly, along the centerline of said E. 27th Street, to the intersection with the centerline of Main Street, as now established; thence Northerly, along the centerline of said Main Street, to the intersection with the centerline of E. Pershing Road, as now established; thence Easterly, along the centerline of said E. Pershing Road, to the intersection with the centerline of McGee Street, as now established; thence Northerly, along the centerline of said McGee Street, to the intersection with the centerline of E. 22nd Street, as now established; thence Easterly, along the centerline of said E. 22nd Street, to the intersection with Gillham Road, as now established; thence Southerly, along the centerline of said Gillham Road, to the intersection with the centerline of said E. 27th Street; thence Westerly, along the centerline of said E. 27th Street, to the POINT OF BEGINNING.
EXCEPT for all that land lying inside the boundaries of the recorded plats of THE SAN FRANCISCO CONDOMINIUM, SANTA FE PLACE CONDOMINIUM, and 2555 GRAND BOULEVARD.
Section 4. That the City Council hereby finds that:
a) A portion of the Redevelopment Area, on the whole, qualifies as a Conservation Area, and the remainder of the Redevelopment Area, on the whole, qualifies as a Blighted Area, and the Redevelopment Area, on the whole, has not been subject to growth and development through investment by private enterprise and would not reasonably be anticipated to be developed without the adoption of tax increment financing;
b) The Redevelopment Plan includes a study prepared by a land use planner, urban planner, licensed architect, licensed commercial real estate appraiser, or licensed attorney, which includes a detailed description of the factors that qualify the Redevelopment Area and the RPA 1 Redevelopment Project pursuant to the Act and an affidavit attesting that the provisions of Section 99.810.1(1) have been met;
c) The Redevelopment Plan sets forth in writing a general description of the program to be undertaken to accomplish the objectives of the Redevelopment Plan and includes the estimated redevelopment project costs, the anticipated sources of funds to pay the costs, evidence of the commitments of finance the project costs, the anticipated type and term of the sources of funds to pay costs, the anticipated type and terms of the obligations to be issued, the most recent equalized assessed valuation of the property within the Redevelopment Area which is to be subjected to payments in lieu of taxes and economic activity taxes, an estimate as to the equalized assessed valuation after redevelopment, and the general land uses to apply in the Redevelopment Area;
d) The Redevelopment Plan conforms to the comprehensive plan for the development of the City as a whole, the KC Spirit Playbook, as well as the Greater Downtown Area Plan;
e) The Redevelopment Area includes only those parcels of real property which will be directly and substantially benefited by the Infrastructure Improvements and Project Improvements;
f) The estimated dates of completion of any Redevelopment Project and retirement of obligations incurred to finance Redevelopment Project Costs have been stated in the Redevelopment Plan, and are not more than twenty-three (23) years from the passage of any ordinance approving a Redevelopment Project within the Redevelopment Area;
g) A plan has been developed for relocation assistance for businesses and residences;
h) A cost-benefit analysis showing the economic impact of the Redevelopment Plan on each taxing district at least partially within the boundaries of the Redevelopment Area has been prepared in accordance with the Act; and
i) The Redevelopment Plan does not include the initial development or redevelopment of any gambling establishment.
Section 5. That the Commission is authorized to issue obligations in one or more series of bonds secured by the Special Allocation Fund(s) established in connection with Redevelopment Project Area 1 described in the Redevelopment Plan to finance Redevelopment Project Costs and, subject to any constitutional limitations, to acquire by purchase, donation, lease or eminent domain, own, convey, lease, mortgage, or dispose of land or other property, real or personal, or rights or interests therein, and grant or acquire licenses, easements and options with respect thereto, all in the manner and at such price the Commission determines, to enter into such contracts and undertake all such further actions as are reasonably necessary to achieve the objectives of the Redevelopment Plan, as amended, pursuant to the power delegated to it in the Enabling Ordinances. Any obligations issued to finance Redevelopment Project Costs shall contain a recital that they are issued pursuant to Sections 99.800 through 99.865, RSMo, which recital shall be conclusive evidence of their validity and of the regularity of their issuance.
Section 6. That pursuant to the provisions of the Redevelopment Plan, the City Council approves the pledge of all economic activity taxes generated within Redevelopment Project Area 1 that are deposited into the Special Allocation Fund established in connection with the RPA 1 Redevelopment Project to the payment of Redevelopment Project Costs and authorizes the Commission to pledge such funds on its behalf.
Section 7. That pursuant to the provisions of the Redevelopment Plan, the City Council approves the pledge of Additional City EATs (economic activity taxes) generated within Redevelopment Project Area 1 that are deposited into the Special Allocation Fund established in connection with the RPA 1 Redevelopment Project to the payment of Redevelopment Project Costs and authorizes the Commission to pledge such funds on its behalf.
Section 8. That the City Clerk shall send a copy of this ordinance to the County Clerk and County Commission of Jackson County, Missouri.
Section 9. That the City Council hereby agrees to provide additional funding for payment of certain certified redevelopment project costs identified by the TIF Plan, by committing, subject to annual appropriation and subject to actual collection, in addition to revenues available under the TIF Act, a defined portion of certain tax revenues realized by the City and generated in the Redevelopment Project Area 1 that are not otherwise captured by the TIF Act as more particularly described in the Tax Contribution and Distribution Agreement (the “Additional City EATs”), payable over a period not to exceed 30 years.
Section 10. That the City Manager is authorized to execute a Redevelopment Agreement, Cooperative Agreement and Tax Contribution and Disbursement Agreement with the Commission and other agreements necessary for the utilization of tax contributions of the payment of Redevelopment Project Costs. A copy of the agreements are attached hereto in substantial form.
Section 11. That Chapter 74, Code of Ordinances, Economic Development Incentive Policies and Procedures, is amended by enacting a new Section 74-15, Stadium Impact Area Policy, to govern the redirection of revenues in the Stadium Impact Area, to read as follows:
Section 74-15. Stadium Impact Area Policy.
(a) The following definitions shall apply to this section:
City-Supported Bonds means one or more series of bonds issued by the City or a conduit issuer which provide project proceeds for the Downtown Baseball Stadium Project, including the supporting infrastructure, which will include the Downtown Stadium Bonds and additional bonds which will be secured by the City’s annual appropriation pledge.
Downtown Stadium Bonds means one or more series of bonds issued by the City or a conduit issuer which provide project proceeds for the Downtown Baseball Stadium Project, and which will be secured by the pledge and assignment of certain revenues generated from the Downtown Stadium Redevelopment Tax Increment Financing Plan, as herein defined, state tax increment financing district, Stadium Impact Area, community improvement district, Parking Revenue, gaming revenues, and available restaurant taxes; and the City’s annual appropriation pledge.
Downtown Baseball Stadium Project means the new major league baseball stadium, team offices, and supporting infrastructure in the Washington Square Park/Crown Center area.
Parking Revenue means revenue collected by the City within the Stadium Impact Area from the sale of on-street parking on dates when a major event is held at the downtown stadium and other dates as determined by the Director of Public Works.
Policy means the Stadium Impact Area Policy established in the section.
Stadium Impact Area means the geographic area generally to the South of Truman Road and I-670 and North of 31st Street between State Line Road and Brooklyn Ave, but, excluding the area to the east of 71 which is north of the Kansas City Terminal Railroad, and including certain areas south of 31st Street. The City’s Director of Finance shall file with the City Clerk a map of the stadium impact area.
Stadium Impact Area Base Revenue means the amount of Stadium Impact Area Redirectable Taxes collected during the Stadium Impact Area Base Year.
Stadium Impact Area Base Revenue Adjustment means a calculation whereby the Stadium Impact Area Base Revenues are adjusted to be consistent with the frequency of the redirection. For example, if the Stadium Impact Area Redirected Revenues are redirected on a semi-annual basis, the Stadium Impact Area Base Revenue will be adjusted to equal one-half of the Stadium Impact Area Base Revenue for the first redirection. The final redirection will be calculated using the full Stadium Impact Area Base Revenue.
Stadium Impact Area Base Year means the calendar year 2025.
Stadium Impact Area Redirectable Taxes means the following City economic activity taxes generated within the Stadium Impact Area:
(1) 100% of the 6.00% quarterly license tax and 4.00% emergency license tax charged on the sale of electric energy and natural gas, collectively (the “Utility Gross Receipts Tax”), authorized in Sections 344, 345, and 369 of Chapter 40 or any successor.
(2) 50% of the 7.50% Hotel / Motel portion of the Convention and Tourism Tax authorized in sections 551 - 576 of Chapter 68 or any successor.
(3) 100% of the 2.00% Food & Beverage portion of the Convention and Tourism Tax authorized in sections 551 - 576 of Chapter 68 or any successor.
(4) 100% of the 1.00% Capital Improvement Sales Tax authorized in section 450 of Chapter 68 or any successor.
(5) 100% of the 1.00% Earnings Tax currently redirected within the Pershing Road Tax Increment Financing Plan approved by Ordinance No. 030401, and amended by ordinances 030847, 040564, 051322, 060406, and 081071, following the termination of the tax increment financing plan. Such termination will occur no later than 23 years following the adoption of tax increment financing for redevelopment project areas 1, 2, 3, 4, and 5, approved by Ordinances 030402, 030403, 030404, 030405, and 030406, respectively.
(6) 100% of the 0.50% Parks Sales Tax authorized in section 448 of Chapter 68 or any successor.
(7) 100% of the 0.25% Public Safety Sales Tax authorized in sections 447 and 447.5 of Chapter 68 or any successor.
Stadium Impact Area Redirected Revenue means the amount of Stadium Impact Area Revenue which exceeds the Stadium Impact Area Base Revenue.
Stadium Impact Area Redirection Term means the period of time beginning upon the issuance of the City-Supported Bonds and ending upon the final payment of the City-Supported Bonds, however, the final redirection will include taxes generated during the Term which are received after the end of the preceding calendar year, as is practicable.
Stadium Impact Area Revenue means the amount of Stadium Impact Area Redirected Revenue and Parking Revenue which are collected each year throughout the Stadium Impact Area Redirection Term.
Stadium Super TIF Revenues means the Additional City EATs, as defined and described in the Downtown Stadium Tax Increment Financing Plan.
Surplus Threshold means when the fund balance of the Downtown Stadium Fund equals the highest annual debt service payment in the final, combined Downtown Stadium Bonds debt service schedule.
TIF Revenues means tax revenues generated within Redevelopment Project Area 1 of the Downtown Stadium Redevelopment Tax Increment Financing Plan, which are subject to capture under the provisions of the plan. TIF revenues also include tax revenues generated within other redevelopment project areas to the extent the provisions of the TIF plan makes these revenues available for repaying the Downtown Stadium Bonds.
(b) Authority: Purpose. The City’s adoption of the Policy provides public funds to the Downtown Baseball Stadium Project, which eliminates blight and constructs a publicly owned asset. Both activities constitute a public purpose. For any Stadium Impact Area Redirectable Taxes which voters approved to be spent on specific purposes, the City finds that providing funding for the Downtown Baseball Stadium Project is consistent with such purposes.
(c) Downtown Stadium Fund: Fund No. 5410, the Downtown Stadium Fund, is hereby established in the records of the City of Kansas City, Missouri. Such fund shall consist of revenues generated from the Downtown Stadium Tax Increment Financing District, State Tax Increment Financing District, approved Community Improvement District revenues, and Stadium Impact Area Revenue, as well as other revenues available to the Project. Revenues deposited in the fund shall be used to meet the annual debt service requirements on the Downtown Stadium Bonds.
(d) Parking Revenue: Revenue collected from the sale of on-street parking within the Stadium Impact Area on game days and other dates determined by the Director of Public Works shall be included in the Stadium Impact Area Revenue.
(1) Other dates may include, but are not limited to, special events at the downtown stadium
(2) On street parking may be subject to event parking pricing authorized in section 70-604.
(3) This section shall not apply to revenue collected in City-owned parking garages within the Stadium Impact Area. Revenue collected in City-owned parking garages shall not be redirected as Stadium Impact Area Revenue.
(e) Payment of Redirected Revenues. Throughout the Stadium Impact Area Redirection Term, he City Manager shall cause the Stadium Impact Area Revenue to be paid in accordance with the bond covenants for the City-Supported Bonds, along with the TIF Revenues, associate state supplemental TIF financing, Community Improvement District sales tax, Parking Revenue, gaming revenues, and available restaurant taxes.
(f) Excess revenue generated: In the event the Stadium Impact Area Revenue collected exceeds the amount needed to support debt service for each year of the Stadium Impact Area Redirection Term, the additional revenues shall remain in the Downtown Stadium Fund until the fund balance meets the Surplus Threshold.
(1) Such fund balance shall be made available to support debt service payments in the event collected Stadium Impact Area Revenue is insufficient for debt service payments.
(2) Once the fund balance exceeds the Surplus Threshold, the amount of Stadium Impact Area Revenue which exceeds the Surplus Threshold shall be proportionally allocated back to the fund(s) from which the Stadium Impact Area Revenue was redirected.
(3) Upon repayment of the City-Supported Bonds, any remaining fund balance in the Downtown Stadium Fund shall be proportionally allocated back to the fund(s) from which the Stadium Impact Area Revenue was redirected to replenish reserves in those fund(s) and/or support one-time expenditures.
(g) Expansion to Stadium Impact Area: The City Manager may submit to City Council proposed expansions to the Stadium Impact Redirection Area or the Stadium Impact Area Redirectable Taxes, which may be lawfully used for such purposes, in the event additional revenues are needed to meet annual debt service payments for the Downtown Stadium City Bonds. Such area will be known as a stadium impact area expansion.
(1) In the event a stadium impact area expansion is approved by City Council, the base year for the expansion shall be the year prior to the approval by City Council.
(2) The Stadium Impact Area and Stadium Redirectable Taxes shall not be reduced until Downtown Stadium Bonds have been fully repaid. Excess revenue collections shall be deposited as outlined in subsection e of this section.
(3) The City’s Director of Finance shall file an updated map of the Stadium Impact Area adopted by City Council with the City Clerk.
(h) Existing Development Incentives in the Stadium Impact Area: Any taxes required to be redirected pursuant to a tax increment financing plan approved prior to October 1, 2026, or pursuant to a contractual agreement with the City executed prior to October 1, 2026, shall not be included in the Stadium Impact Area Redirectable Taxes until the existing tax increment financing has expired or the relevant agreement is terminated.
(i) New Development Incentives in the Stadium Impact Area: The adoption of this ordinance does not prevent a proposed development within the Stadium Impact Area from requesting City incentives.
(1) Properties in the Stadium Impact Area may follow the normal application process to receive City incentives.
(2) Stadium Impact Area Redirectable Taxes collected from a property awarded a City incentive shall be committed as Stadium Impact Area Revenue unless otherwise required by law or specifically designated by City Council.
(3) If a property within the Stadium Impact Area is approved for a City incentive, such incentive shall not reduce the Stadium Impact Area Redirected Revenue collected throughout the Stadium Impact Area Redirection Term
(j) Reporting: The Director of Finance shall report annually on the total amount of Stadium Impact Area Revenue collected under this section and include an estimated forecast of revenues as part of the City’s five-year forecast and annual budget.
(k) Tax Sunsets and Reauthorizations: The Stadium Impact Area Redirectable Taxes includes taxes which are subject to voter reauthorization. Prior to the expiration of those taxes, the Director of Finance shall prepare ordinances reauthorizing those taxes and submit them to City Council for approval as required by law.
(l) Tenant Reporting: The Director of Finance shall request Economic Activity Tax Reporting from entities operating within the Stadium Impact Area. The Director of Finance will provide a secure method for reporting the information and will adhere to all applicable rules related to proper handling of taxpayer information. Failure of any person to provide the reporting shall be an ordinance violation, as provided in Code Section 50-11.
Section 12. That Chapter 50, Code of Ordinances, Offenses and Miscellaneous Provisions, is hereby amended by repealing Section 50-11, and enacting in lieu thereof a new section entitled “Compliance with tax increment financing and stadium impact area reporting,” to read as follows:
Sec. 50-11. Compliance with tax increment redevelopment area reporting and Stadium
Impact Area reporting.
(a) Any person who is the owner or tenant of any business located within a tax increment redevelopment area as defined in Section 99.805(11), RSMo, or within the Stadium Impact Area as defined in Code Section 74-15, and who fails or refuses to provide the information specified below within 30 days after written request for such information from the city shall be deemed guilty of an ordinance violation:
(1) Sales taxes - Missouri Integrated Tax System number and location code for business address;
(2) Earnings/profits taxes - federal identification number, and number of employees working in the tax increment redevelopment area and percentage of each employee's work performed within the tax increment redevelopment area;
(3) Utility taxes - photocopies of utility bills for period specified in the notice.
(b) The person responsible for the provision of the information required in subsection (a) is:
(1) In the case of a sole proprietorship, the sole proprietor;
(2) In the case of a partnership, the general or managing partner;
(3) In the case of a corporation, any officer of the corporation, the executive director or the person in charge of the office.
(c) Any person convicted of a violation shall be punished by a fine of not less than $100.00 but not more than $500.00. Every day that a violation continues shall be considered a separate offense, for which the violator may be arrested, tried and convicted without further notice.
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Approved as to form:
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Emalea Kohler
Associate City Attorney