ORDINANCE NO. 260983
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Sponsor: Director of City Planning and Development Department
Amending Chapter 74, Code of Ordinances, Economic Development Incentive Policies and Procedures Code, by repealing and replacing Section 74-302 to establish a policy for the acceptance of partial tax parcels within the boundaries of a community improvement district and to require petitions that seek to amend or add property to a community improvement district to estimate the revenue to be used for public benefits; repealing and replacing Section 74-304 to modify the date City staff presents its annual CID report; and providing for a delayed effective date.
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WHEREAS, this ordinance codifies the policy for the acceptance of partial tax parcels within the boundaries of a community improvement district (“CID”) established by Committee Substitute for Resolution No. 260719; and
WHEREAS, this ordinance requires a petition to amend or add property to a CID, describe and estimate the revenue to be used for benefits to the public as currently required of a petition to establish a CID per Section 74-302(a)(3) of the Code of Ordinances; and
WHEREAS, this ordinance modifies the date the City presents its annual CID report; NOW, THEREFORE,
BE IT ORDAINED BY THE COUNCIL OF KANSAS CITY:
Section 1. That Chapter 74, Article VII, Code of Ordinances, Economic Development Incentive Policies and Procedures Code, is hereby amended by repealing Section 74-302 and enacting in lieu thereof a new section of like number and subject matter to read as follows:
Sec. 74-302. Requirements to establish or amend a CID.
(a) Petition. The petition to establish, amend or add property to a CID shall:
(1) Inform the property owners of the right to initiate a petition to terminate the proposed CID as provided by RSMo 67.1481.
(2) Provide that the city auditor shall have the right to examine or audit the records of the CID and shall require that the CID make such records available to the city auditor within ten days after a written request for the same is made.
(3) Estimate the revenue to be used for benefits to the public and describe such benefits.
(b) Term. CIDs shall be limited to a term of 20 years. However, if the petition provides that CID revenues will be used to fund capital improvements, blight removal, or both, the term may be up to 27 years.
(c) Blight determination. Any CID requesting a finding of blight or relying on a prior determination of blight for the purposes of exercising the additional powers under RSMo 67.1461.2 shall submit with its petition:
(1) A blight study, outlining the blighting factors and conditions, which blight study shall have been completed no more than five years prior to the date upon which the petition is submitted to the city clerk, and which shall identify, to the extent reasonably deemed possible by the consultant doing the blight study, the owner(s) of the property at such time as the blighting factors and conditions might reasonably have been determined to first occur and remain unabated;
(2) Information on the maintenance of the property including, among other things, any capital maintenance outlays, during the five years preceding the submission of the petition;
(3) Either:
a. Official documentation notarized by the county wherein the CID is proposed to be located, denoting the total assessed valuation of each parcel located within the proposed CID for each of the five immediately preceding tax years; or
b. Documentation denoting the total assessed valuation of each parcel located within the proposed CID for each of the five immediately preceding tax years, accompanied by:
1. A notarized affidavit attesting to the date and source of such documentation; and
2. Evidence demonstrating that reasonable efforts were made to obtain the official notarized documentation required under subsection (i), and that the county declined or failed to provide such notarization;
(4) A construction budget, with respect to any proposed physical improvements, that is structured to address and remediate the cited blighting factors and conditions identified in the submitted blight study. Such budget shall specify which expenditures are associated with exterior improvements, public improvements, or other improvements; and
(5) A time schedule clearly setting forth timelines for commencement and completion of remediation of cited blighting factors or conditions.
(d) City manager execution. The city manager shall not execute any petition on behalf of the city as a property owner unless authorized by the city council.
(e) Cooperative agreement. Each CID shall enter into a cooperative agreement with the city that addresses, among other things, requirements of this article and state statute. If the CID is established as a political subdivision and takes title to any real property, whether by purchase, gift, grant, bequest, devise or otherwise, the agreement shall address, or shall be amended to address, whether and to what extent the CID shall be required to make payments in lieu of taxes.
(f) Partial parcels. If any part of a proposed CID boundary contains less than an entire parcel, then either:
(1) 100% of the property owners within the proposed CID shall have executed the petition to establish the CID; or
(2) The property owners having signed the petition collectively own more than 50% of the assessed value of the property located within the boundaries of the proposed CID, as determined by reasonable proration of assessed value of the entire parcel to the portion to be included in the CID boundaries.
Section 2. That this amendment to Section 74-302 shall not apply to any proposed CID that has submitted its petition to the City Clerk prior to the effective date of this ordinance. Such petitions shall be governed by the City ordinances in effect on the date of submission.
Section 3. That Chapter 74, Article VII, Code of Ordinances, Economic Development Incentive Policies and Procedures Code, is hereby amended by repealing Section 74-302 and enacting in lieu thereof a new section of like number and subject matter to read as follows:
Sec. 74-304. Reporting requirements.
(a) Annual reports and proposed annual budgets submitted to the city as required by section 67.1471, RSMo., shall, among other things, provide a detailed breakdown of the CID revenue used or to be used toward public infrastructure improvements, exterior improvements, interior improvements, and other improvements and services.
(1) Annual reports shall also include the name, term start and expiration dates, and contact information of each current board member to be entered into the city's board and commissions electronic database.
(2) Annual reports shall also include a copy of any bylaws adopted during the applicable fiscal year, including revisions to existing bylaws.
(b) The city clerk shall notify the city council by communications to be included on the city council's agenda each time a CID files its proposed annual budget and annual report with the city clerk.
(c) City staff shall submit to the city council, or through one of its committees, on or around December 1 of each year a report indicating the degree of compliance of all CIDs related to their submission of proposed annual budgets and annual reports within the time limits required by section 67.1471, RSMo., whether the work performed conformed to previously submitted budgets, and whether the CID adhered to the terms of its cooperative agreement with the city. At the time of this report's presentation, a representative of each CID will be given the opportunity to provide a brief report on its activities.
Section 4. That this ordinance shall take effect forty-five (45) days after its adoption.
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Approved as to form:
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Eluard Alegre
Associate City Attorney