ORDINANCE NO. 250598
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Sponsor: Director of Housing and Community Development Department
Accepting the recommendation of the Central City Economic Development (CCED) Tax Board to increase funding for two projects in the amount of $771,680.00; reducing an existing appropriation by $771,680.00 and appropriating $771,680.00 from the Unappropriated Fund Balance in the Central City Economic Development; and authorizing the Manager of Procurement Services to execute necessary documents to amend the funding agreements and expend up to $771,680.00 from the funds appropriated in the Central City Economic Development fund.
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WHEREAS, Section 67.1305 of the Revised Statuses of Missouri authorizes the City to impose a retail sales tax not to exceed one-half of one percent if the imposition of such a retail sales tax is submitted to, and then approved by, a majority of the votes cast; and
WHEREAS, on April 4, 2017, pursuant to authority granted by Section 67.1304, RSMo, a majority of Kansas City, Missouri voters approved a new 1/8 of one percent retail sales tax for funding economic development projects within the area bounded by 9th Street on the north, Gregory Boulevard on the south, Paseo Boulevard on the west and Indiana Avenue on the east; and
WHEREAS, the developers requested a public contribution and the Central City Economic Development Sales Tax Board recommended that funding be approved; and
WHEREAS, the Developer’s subsequently identified a need for additional funding due to increases in construction labor and construction material; and
WHEREAS, the project serves a predominantly public municipal purpose because, without limitation, completion of the project (i) enhances the tax base of the Project Site; (ii) retains and generates jobs; (iii) promotes economic development in the area of the City in which the Project Site is located, and promotes consideration of areas of the City that the City Council has determined to be blighted as a location for business operations; (iv) results in generation of tax revenues to the City from the conduct of business and other activities in the City that would not otherwise occur; (v) serves as a catalyst for additional investment in and further redevelopment and rehabilitation of the area of the City in which the Project Site is located; and (vi) furthers the City's policy of encouraging economic stability and growth; and
WHEREAS, the City desires to encourage the developers to carry out the project for the purpose of realizing these predominantly public purposes by entering into an agreement to contribute certain revenues in an amount needed to cause the project to be undertaken and attract the necessary private investment; and
WHEREAS, the contributions contemplated by the Funding Agreement are limited to those which have been determined to be needed for the purpose of ensuring that the project proceeds, and but for their contribution, the project would not proceed, to the detriment of the public interest; and
WHEREAS, om May 13, 2025, the CCED Board voted to recommend an increase in funding for certain projects; NOW, THEREFORE
BE IT ORDAINED BY THE COUNCIL OF KANSAS CITY:
Section 1. That the recommendations of Central City Economic Development Tax Board issued on May 13, 2025 to increase funding for the Developing Seeds of Luv and Essential Families Building projects are hereby accepted.
Section 2. That the following amount is hereby reduced from the Central City Economic Development Sales Tax Fund, Fund No. 2200, from the following account:
26-2200-555998-B-55BUDGET Budget Integration Account $771,680.00
Section 3. That the following amounts are hereby appropriated from the Unappropriated Fund Balance of the Central City Economic Development Sales Tax Fund, Fund No. 2200, to the following accounts:
26-2200-555998-619080-55DEVSEEDS Developing Seeds of Luv $210,942.00
26-2200-555998-619080-55ESSENFAM Essential Families Building 560,738.00
TOTAL $771,680.00
Section 4. That the Manager of Procurement Services is authorized to execute the necessary documents to amend the aforementioned funding agreements and expend up to $771,680.00 from the funds appropriated in the Central City Economic Development Tax Fund herein.
Section 5. That the Director of the Housing and Community Development Department is designated requisitioning authority for Account No. 26-2200-555998.
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The City has no financial obligation under both this Ordinance and Contract until the Manager of Procurement Services issues a purchase order which shall be signed by the City’s Director of Finance certifying there is a balance, otherwise unencumbered, to the credit of the appropriation to which the expenditure is to be charged, and a cash balance, otherwise unencumbered, in the treasury, to the credit of the fund from which payment will be made, each sufficient to meet the obligated incurred in the purchase order.
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Tammy L. Queen
Director of Finance
Approved as to form:
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Joseph A. Guarino
Senior Associate City Attorney