ORDINANCE NO. 260357
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Sponsor: City Manager’s Office
Authorizing a change order with Infrastructure Solutions, LLC, in the amount of $732,659.00 for the West Bottoms Bid Package 2, Change Order 1; reducing an appropriation in the West Bottoms Street Improvement account and appropriating a like transfer to the West Bottoms Public Infrastructure account; authorizing the Director of General Services to execute a five-year lease with four options to renew for five years each with West Bottoms Central Community Improvement District for the operation of a kiosk concession stand located at 1020 Santa Fe Street, Kansas City, Missouri 64101; authorizing the City Manager to enter into a Second Amendment to the Redevelopment Agreement, Tax Contribution Agreement, and Cooperative Agreement with the TIF Commission; 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 24, 2024, the City Council adopted Ordinance No. 240256, approving the recommendations of the Tax Increment Financing Commission (the “Commission”) as to the West Bottoms Tax Increment Financing Plan (the “Redevelopment 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 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, 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, 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, Committee Substitute for Ordinance No. 250216 authorized, among other things, the issuance of the City’s Special Obligation Bonds, Series 2025B to finance $14,800,000.00 of Phase 1a costs; and
WHEREAS, Ordinance No. 250599 estimated revenue and appropriated the amount of $5,800,850.00 to fund Change Order 2 and Professional Services, which infrastructure includes streetlights and lighting energy efficiency; sidewalks, crosswalks, and lighting for added pedestrian safety (the “Change Order 2 and Professional Services”); and
WHEREAS, Ordinance No. 250970 approved the Second Amendment to the Plan which provides (1) modifications to the Budget of Redevelopment Project Costs, and (2) the inclusion of all conforming changes within the Exhibits to the Plan that are in furtherance of the foregoing modifications (the “Second Amendment”); and
WHEREAS, Ordinance No. 250971 estimated revenue and appropriated the amount of $6,945,750.00 to fund the West Bottoms Phase 1a Tranche 2 Project, which infrastructure includes public gathering open space and other amenities (the “Bid Package 2”); and
WHEREAS, Ordinance No. 260238 authorized, among other things, the issuance of the City’s Special Obligation Bonds, Series 2026B to finance $12,246,600.00 of the cost of Change Order 2 for Bid Package 1 along with the Bid Package 2 costs; and
WHEREAS, the City has determined that a portion of the work which had previously not been finalized should be incorporated into the current contract (the “Change Order 1 to Bid Package 2”); and
WHEREAS, the cost of the Change Order 1 to Bid Package 2 will be funded with the issuance of special obligation bonds (“Bonds”) in Spring 2026 and the payment of scheduled debt service payments on the bonds will be made by proceeds of economic activity taxes pursuant to the Tax Increment Financing Plan approved pursuant to Ordinance No. 240256, and amended by Ordinance No. 240600 and Ordinance No. 250970, proceeds from additional EATs revenues, proceeds of Community Improvement District sales taxes approved and annual appropriation of monies from general municipal revenues over a successive thirty (30) year period; and
WHEREAS, pursuant to Section 3-201 of the City Code of Ordinances, the City Council must approve all leases of City property with a term longer than one year; NOW, THEREFORE,
BE IT ORDAINED BY THE COUNCIL OF KANSAS CITY:
Section 1. That the appropriation in the following account of the Special Obligation Series 2026B Project Fund, No. 3457, is hereby reduced by the following amount:
AL-3457-898014-B-89008979 West Bottoms Street Improvements $732,659.00
Section 2. That the appropriation in the following account of the Special Obligation Series 2026B Project Fund, No. 3457 is hereby increased by the following amount:
AL-3457-898014-B-89008983 West Bottoms Public Infrastructure $732,659.00
Section 3. That the Director of Public Works is hereby authorized to execute, on behalf of the City, a change order in the amount of $732,659.00 with Infrastructure Solutions, LLC, for Project No. 89008983 Somera Road West Bottoms Redevelopment Phase II, a copy of which is on file with the Public Works Department, from funds hereby and previously appropriated to the following account:
AL-3457-898014-B-89008983 West Bottoms Public Infrastructure $732,659.00
Section 4. That the Director of the General Services Department is authorized to execute a five (5) year lease agreement with four (4) options to renew for five (5) years each, attached hereto in substantial form, with West Bottoms Central Community Improvement District for the operation of a kiosk concession stand.
Section 5. That the City Manager is authorized to execute a Second Amendment to the Redevelopment Agreement between the City and the Commission to effectuate the Redevelopment Plan, as amended. A copy of the Second Amendment to the Redevelopment Agreement is attached hereto in substantial form.
Section 6. That the City Manager or Director of Finance is authorized to execute a Cooperative Agreement and Tax Contribution Agreement between the City and the Commission to effectuate payment and reimbursement of the costs of the public improvements.
Section 7. That the Mayor, City Manager, and Director of Finance are authorized to execute all such other documents, certificates, and instruments as may be necessary to carry out and comply with the intent of this ordinance and comply with and perform the duties of the City with respect to this Ordinance, the Cooperative Agreement, and the Tax Contribution Agreement.
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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William Choi
Interim Director of Finance
Approved as to form:
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Emalea Kohler
Associate City Attorney