ORDINANCE NO. 250713
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Sponsor: Councilperson Crispin Rea
Authorizing the City Manager to enter into a Cooperative Agreement with the Kansas City EDC Loan Corporation (the “EDCLC”) to provide funding for a multifamily project at 9th and Central; estimating City Surplus Tax Increment Financing (TIF) revenue in the amount of $2,800,000.00 in the General Fund; appropriating $2,800,000.00 from the Unappropriated Fund Balance of the General Fund; designating requisitioning authority; and recognizing this ordinance as having an accelerated effective date.
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WHEREAS, EDC Loan Corporation (“EDCLC”) is a nonprofit corporation specializing in the origination and underwriting loans for development projects in Kansas City; and
WHEREAS, the City is supportive of the mixed-use development including mixed-income housing and renovation of historic properties in the downtown loop; and
WHEREAS, 9th and Central, LLC (“Developer”) is working to redevelop two vacant historic office buildings at 9th and Central to create 192 units with 49% of units being committed to serve residents at 30%-80% area median income, amenity space, and non-profit commercial office space (“Project”); and
WHEREAS, the Project serves a public purpose through its creation of affordable mixed-income housing, renovation of historic buildings, and non-profit commercial office space; and
WHEREAS, the Developer is requesting a 15-year loan of $2,800,000.00 to secure the property and complete the Project; and
WHEREAS, the EDLC is uniquely positioned to provide much needed gap financing to unlock this impactful Project;
WHEREAS, the City Council desires to use City Surplus Tax Increment Financing (TIF) revenue pursuant to Section 2-1972, Code of Ordinances, to provide assistance to the Project; and
WHEREAS, the 1200 Main TIF Plan (Projects 4, 5, and 6) has been approved for termination by the TIF Commission but is pending City Council approval; and
WHEREAS, the Chouteau TIF Plan (Projects 3 and 4) has been noticed for termination by the TIF Commission and is subject to City Council approval of the termination; and
WHEREAS, receipt of City Surplus TIF Revenue is dependent upon the aforementioned actions by the TIF Commission and City Council; NOW, THEREFORE,
BE IT ORDAINED BY THE COUNCIL OF KANSAS CITY:
Section 1. That the City Manager is authorized to execute a cooperative agreement with the EDCLC to provide for the funding and administration of the Project. The Agreement in substantial form is attached hereto and on file with the City Manager’s Office.
Section 2. That the revenue in the following account of the General Fund, No. 1000, is estimated in the following amount:
26-1000-120000-480560-10_9THCENTRAL Contr TIF District -
Midtown $ 323,891.20
26-1000-120000-480560-10_9THCENTRAL Contr TIF District -
Summit 302,742.33
26-1000-120000-480560-10_9THCENTRAL Contr TIF District -
1200 Main 1,684,066.47
26-1000-120000-480560-10_9THCENTRAL Contr TIF District -
Chouteau 489,300.00
TOTAL $2,800,000.00
Section 3. That the sum of $ 2,800,000.00 is hereby appropriated from the Unappropriated Fund Balance of the General Fund to the following account:
26-1000-105013-B-10_9THCENTRAL 9th and Central $2,800,000.00
Section 4. That the City Manager is designated as the requisitioning authority for Account No. 26-1000-105013-B-10_9THCENTRAL.
Section 5. That this Ordinance is recognized as an ordinance with an accelerated effective date as provided by Section 503 (a)(3)(C) of the City Charter in that it appropriates money and shall take effect in accordance with that section.
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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.
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William Choi
Interim Director of Finance
Approved as to form:
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Emalea Kohler
Associate City Attorney