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[COMMITTEE SUBSTITUTE FOR] ORDINANCE NO. 231038
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Sponsor: Mayor Quinton Lucas
Committee Substitute
Authorizing the City Manager to negotiate and execute an agreement with the Department of Housing and Urban Development for the acquisition, sale, and development of property referred to as Parade Park Homes; authorizing the City Manager to accept deeds, without warranties or covenants of title, from the Department of Housing and Urban Development for the same; authorizing the City Manager to negotiate and execute sale and development agreements with Flaherty & Collins Properties or an affiliated entity for the sale and redevelopment of such parcels; and authorizing the City Manager to execute a deed and related documents to complete the transfer of the real property while reserving easements, as necessary, for any existing or planned City owned sewer, storm water, and water line infrastructure on said property, subject to the terms of the executed development agreement.
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WHEREAS, the Secretary of the Department of Housing and Urban Development (“HUD”) is prepared to foreclose upon the properties known as Parade Park Homes, generally located at 1701 Woodland Avenue, 1501 Woodland Avenue, 1801 E. 15th Terrace, 1560 Garfield Avenue, 1519 Garfield Avenue, 2020 E 17th Street, 1756 Michigan Avenue, and 1727 Michigan Avenue in March of 2024; and
WHEREAS, HUD has requested assistance from the City in selecting a developer for Parade Park Homes; and
WHEREAS, the City issued a Request for Proposals on October 27, 2023, soliciting proposals for the purchase and development of Parade Park Homes, and received four submissions; and
WHEREAS, the City’s selection committee recommended the project submitted by Flaherty & Collins Properties (“Developer”); and
WHEREAS, the City’s acquisition and subsequent transfer is contingent upon HUD’s acquisition of Parade Park Homes by way of foreclosure sale; and
WHEREAS, due to the imminence of the foreclosure sale, prompt City action will be required if the City is to participate in shaping the future of Parade Park Homes; and
WHEREAS, any conveyance by HUD would be subject to certain equity participation requirements, which would be reflected in the Deed and assumed by Developer or any subsequent purchasers; NOW, THEREFORE,
BE IT ORDAINED BY THE COUNCIL OF KANSAS CITY:
Section 1. That the City Manager is hereby authorized to negotiate and execute a purchase and sale agreement with the Department of Housing and Urban Development for the properties located at 1701 Woodland Avenue, 1501 Woodland Avenue, 1801 E. 15th Terrace, 1560 Garfield Avenue, 1519 Garfield Avenue, 2020 E 17th Street, 1756 Michigan Avenue, and 1727 Michigan Avenue, hereinafter referred to as the “Properties” and legally described as follows:
Tract 1: Tracts A and B, Parade Plaza Resurvey, a subdivision in Kansas City, Jackson County, Missouri, according to the recorded plat thereof, recorded October 17, 1960 in the Office of the Recorder of Deeds of Jackson County, Missouri, in Book 31 page 76.
Tract 2: Tracts F and G, Parade Plaza Resurvey, a subdivision in Kansas City, Jackson County, Missouri, according to the recorded plat thereof, recorded October 17, 1960 in the Office of the Recorder of Deeds of Jackson County, Missouri, in Book 31 page 76.
Tract 3: Tracts C, D, H and all that part of Tract E lying East of Woodland Avenue as now established by Ordinance No. 29022, Parade Plaza Resurvey, a subdivision in Kansas City, Jackson County, Missouri, according to the recorded plat thereof, recorded October 17, 1960 in the Office of the Recorder of Deeds of Jackson County, Missouri, in Book 31 page 76.
Section 2. That, in the event HUD acquires title to the Properties, the City Manager is hereby authorized to purchase for a nominal amount and accept deed(s) to the Properties on behalf of the City.
Section 3. That the City Manager is hereby authorized to negotiate and execute sale and development agreements with Flaherty & Collins Properties or an affiliated entity for the sale and redevelopment of the Properties, inclusive of a community benefits agreement regarding the project that shall address local hiring and union participation, climate resiliency, home ownership, and maintaining the project’s historical value and significance to Kansas City, with such conveyance being contingent upon HUD’s acquisition and subsequent transfer to the City. .
Section 4. That the City Manager is hereby authorized to execute a deed and related documents to complete the transfer of the Properties while reserving easements, as necessary, for any existing or planned City-owned sewer, storm water, and water line infrastructure on the Properties, subject to the terms of the executed development agreement.
Section 5. That the City Manager must notify Council, in writing, within 48 hours if and why negotiations for the above contracts cease to occur. In such event, the City Manager shall reconvene the RFP Selection Committee to reevaluate prior applicants.
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Approved as to form:
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Abigail Judah
Assistant City Attorney