ORDINANCE NO. 250599
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Sponsor: City Manager’s Office
Establishing Fund No. 3457, the Special Obligation Bond Series 2026B Projects Fund, in the records of the City of Kansas City; estimating revenue in the amount of $5,800,850.00 and appropriating the same in Fund 3457; authorizing a change order with Infrastructure Solutions, LLC, in the amount of $4,056,045.00 and a change order with Renaissance Infrastructure Consultants in the amount of $283,923.15 for the West Bottoms Phase I Project; and establishing this ordinance as having an accelerated effective date.
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WHEREAS, on December 15, 2022, the City Council adopted Ordinance No. 221064, authorizing the City Manager to enter into a Predevelopment Agreement with West Bottoms - Propco Master, LLC, for the development of approximately 21.85 acres in the West Bottoms Area (“the Project”); and
WHEREAS, on March 21, 2024, the City Council adopted Ordinance No. 240256, approving the recommendations of the Tax Increment Financing Commission as to the West Bottoms Tax Increment Financing Plan, approving the City's contribution of additional EATs generated in the Plan Area, directing the Director of Finance to develop a finance plan, and authorizing the City Manager to enter into a Redevelopment Agreement with the Kansas City TIF Commission for the redevelopment of public infrastructure improvements, including, without limitation, sanitary and storm sewers, utilities, sidewalks, and any other required or desirable infrastructure (collectively the “Public Improvements”) that will encourage the construction of approximately 108,000 square feet of office space, 108,300 square feet of retail space, 589 multifamily units which may include affordable units (the “Affordable Units”), and 40 hotel rooms; and
WHEREAS, on June 25, 2024, the General Services Department opened bids for Phase 1 infrastructure work in connection with the Project, which infrastructure includes new concrete pavement, curb, gutter, sidewalks, streetlighting, streetscapes, water main replacement, storm sewer separation, and Green Infrastructure for storm water detention and management (“the Phase 1a Public Improvements”); and
WHEREAS, Ordinance No. 240600 approved the First Amendment to the Plan which provides (1) modifications to the Budget of Redevelopment Project Costs, (2) modifications to the anticipated sources of funds, (3) modifications to the development schedule, and (4) the inclusion of all conforming changes within the Exhibits to the Redevelopment Plan that are in furtherance of the foregoing modifications (the “First Amendment”); and
WHEREAS, Ordinance No. 240581 established the West Bottoms Central Community Improvement District (“CID”), the petition for which contemplates a 1% sales tax of which up to 90% of the CID sales tax will be pledged to fund the Project; and
WHEREAS, Committee Substitute for Ordinance No. 240647 estimated revenue and appropriated the amount of $14,850,000.00 to fund Phase 1a Public Improvements and authorized a construction contract with Infrastructure Solutions, LLC; and
WHEREAS, Committee Substitute for Ordinance No. 250216 authorized, among other things, the issuance of the City’s Special Obligation Bonds, Series 2025B to finance $14.8 million of Phase 1a costs; and
WHEREAS, the City has determined that a portion of the work which was anticipated to be performed as part of a future bid package should be incorporated into the current contract (“Change Order 2 and Professional Services”);
WHEREAS, Committee Substitute for Ordinance 930066, as further amended, approved the Midtown Redevelopment Tax Increment Financing Plan. Following the final bond maturity, the City and other taxing districts received surplus revenues. City Council previously estimated and appropriated a portion of the City’s surplus revenues through Ordinance Nos. 221025, 230218, and 240044. The remaining surplus revenues total $823,891.00 of which $500,000.00 is to be utilized to reduce the borrowing.
WHEREAS, the cost of the Change Order 2 and Professional Services will be funded with surplus revenues from the Midtown Redevelopment Tax Increment Financing Plan and the issuance of special obligation bonds (“Bonds”) in Spring 2026 and the payment of scheduled debt service payments on the bonds will be made from economic activity taxes pursuant to the Tax Increment Financing Plan approved pursuant to Ordinance No. 240256, proceeds from Super-TIF revenues, proceeds of Community Improvement District sales taxes approved, and any legally available revenue source of the City, as needed, over a successive thirty (30) year period; NOW THEREFORE,
BE IT ORDAINED BY THE COUNCIL OF KANSAS CITY:
Section 1. That Fund No. 3457 is hereby established as the Special Obligation Series 2026B Project Fund in the records of the City of Kansas City, Missouri.
Section 2. That the revenue in the following account of Fund No. 3457, the Special Obligation Series 2026B Project Fund, is hereby estimated in the following amount:
AL-3457-120000-590000 Proceeds from Sale of Bond $5,300,850.00
AL-3457-120000-480560 Contribution TIF District 500,000.00
TOTAL $5,800,850.00
Section 3. That the sum of $5,800,850.00 is hereby appropriated from the Unappropriated Fund Balance of Fund No. 3457, the Special Obligation Series 2026B Project Fund to the following account:
AL-3457-898014-B-89008979 West Bottoms St Imp-SomeraRoad $5,800,850.00
Section 4. That the Director of Public Works is designated as requisitioning authority for Account No. AL-3457-898014-B-89008979.
Section 5. That the Director of Public Works is hereby authorized to execute, on behalf of the City, a change order in the amount of $4,056,045.00 with Infrastructure Solutions, LLC and a change order in the amount of $283,923.15 with Renaissance Infrastructure Consultants, for Project No. 89008979 West Bottoms Redevelopment Phase 1, a copy of which is on file with the Public Works Department, from funds hereby appropriated to the following accounts:
AL-3457-898014-B-89008979 West Bottoms St Imp-SomeraRoad $5,800,850.00
Section 6. That the City Council hereby declares its official intent to reimburse itself for certain expenditures made within sixty (60) days prior to or on and after the date of this Ordinance with respect to appropriations in Section 3 (“Appropriation”) with the proceeds of bonds expected to be issued by the City. The maximum principal amount of bonds expected to be issued for the Appropriation is not to exceed $5,300,850.00. This constitutes a declaration of official intent under Treasury Regulation 1.150-2.
Section 7. That the Director of Finance is hereby authorized to close project accounts, encumbrances, and retainage related to the accounts in Section 3 and return the unspent portion to the fund balance from which it came upon the earliest of: (i) Project’s completion, (ii) final maturity of financing, or (iii) five years after issuance.
Section 8. That this ordinance, relating to the design, repair, maintenance, or construction of a public improvement, is recognized as an ordinance with an accelerated effective date as provided by Section 503(a)(3)(D) of the City Charter and shall take effect in accordance with Section 503 of the City Charter.
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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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Tammy L. Queen
Director of Finance
Approved as to form:
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Dustin E. Johnson
Associate City Attorney