RESOLUTION NO. 260885
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Sponsor(s): Mayor Pro Tem Ryana Parks-Shaw and Councilmember Darrell Curls
RESOLUTION - Directing the City Manager to identify up to $15,000,000.00 from City funds to allocate to the 63rd & Prospect Development; and directing the City Manager to negotiate a cooperative agreement, funding disbursement agreement, and other related agreements with Southpointe, LLC, to prepare development plans, to continue site preparation, pre-development activities, and construction of infrastructure in connection with the redevelopment of certain real property located in an area generally located at 63rd and Prospect.
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WHEREAS, Committee Substitute for Ordinance No. 210566 authorized the City Manager to execute a development agreement with the Tax Increment Financing Commission of Kansas City (“TIF”) and UA KC Southpointe, LLC, for the sale and development of mixed use, commercial, residential and community improvements (the “Project”) of certain real property located in Kansas City, Missouri in an area that is generally bounded by 59th Street on the north, 63rd Street on the south, Bruce R. Watkins Highway on the east and Brooklyn Avenue on the west as more fully described by the schematic phasing plan attached hereto as Exhibit A, and incorporated herein, which development is known as the 63rd & Prospect Development (the “Development Area”); and
WHEREAS, City, TIF, and UA KC Southpointe, LLC entered into a Development Agreement on February 4, 2022, as amended by the First Amendment dated July 31, 2023 and the Second Amendment dated December 21, 2023 (the “Development Agreement”); and
WHEREAS, UA KC Southpointe, LLC assigned certain interests to Southpointe, LLC; and
WHEREAS, pursuant to the Development Agreement, Southpointe, LLC, exercised its option to purchase certain areas of the Development Area referred to as “Subdivision 1-A”; and
WHEREAS, City entered into a ground lease agreement with TIF on February 29, 2012, for portions of the Development Area not owned by the City for the purpose of redeveloping the same; and
WHEREAS, portions of the Subject Property are owned by the City and others are owned by TIF; and
WHEREAS, the City and Southpointe, LLC, with TIF's consent, entered into a License Agreement on April 23, 2025, authorizing Southpointe, LLC, to conduct certain grading and site preparation activities; and
WHEREAS, City, TIF, and Southpointe, LLC, seek to enter into an Amended and Restated Development Agreement adjusting certain project timelines originally set forth in Committee Substitute for Ordinance No. 210566; and
WHEREAS, the City has previously allocated funds for the Project in the amount of $5,000,000.00 (the “Development Funds”) as set forth in Amendment E to Ordinance No. 250175 approved by the City Council on March 20, 2025, to assist in the completion of eligible work within the Development Area; and
WHEREAS, Committee Substitute for Ordinance No. 250381 authorized the City Manager to negotiate and execute a cooperative agreement, disbursement agreement, and other related agreements with Southpointe Development, LLC, to facilitate site preparation activities in connection with the redevelopment of certain real property located in an area generally located at 63rd and Prospect; authorizing the use of $4,500,000.00 previously appropriated from the General Fund; authorizing the use of $500,000.00 previously appropriated from the Development Services Fund; and authorizing the City Manager to negotiate and execute an Amended and Restated Development Agreement with Southpointe Development, LLC; and
WHEREAS, the City and Developer desire for all or a portion of the Development Funds to be deposited with a disbursing agent with expenditure oversight by the City as set forth in the disbursing agreement; NOW THEREFORE,
BE IT RESOLVED BY THE COUNCIL OF KANSAS CITY:
Section 1. That the City Manager is hereby directed to identify up to $15,000,000.00 from City funds, and upon allocation, to be transferred in accordance with the cooperative agreement and funding disbursement agreement with Southpointe, LLC, to utilize for the project.
Section 2. That the City Manager, or his designee, is directed to negotiate a cooperative agreement, disbursement agreement, and other related agreements necessary for the transfer of funds to Southpointe, LLC, and a third-party disbursement agent for site preparation and pre-development activities, development plans, and construction of infrastructure in connection with the redevelopment of certain real property located at 63rd and Prospect to be executed upon identification and appropriation of funds.
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