ORDINANCE NO. 260027
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Sponsors: Mayor Pro Tem Ryana Parks-Shaw and Councilperson Darrell Curls
Authorizing the City Manager or his designee to negotiate and execute a Predevelopment Funding Agreement with United Believers Community Baptist Church in the amount of $2,400,000.00 for predevelopment activities associated with a proposed workforce and attainable housing development project adjacent to its church located at 11101 US 71 Hwy., Kansas City, Missouri; appropriating $2,400,000.00 from the Shared Success Fund; designating requisitioning authority; authorizing the City Manager or his designee to negotiate and execute amendments and related agreements; directing the City Manager to report back to Council; and recognizing this ordinance as having an accelerated effective date.
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WHEREAS, the City Council has identified the need for workforce and attainable housing as a critical priority for Kansas City residents, particularly those households earning between sixty percent (60%) and one hundred twenty percent (120%) of the Area Median Income; and
WHEREAS, United Believers Community Baptist Church (the "Developer") is a Missouri nonprofit corporation and faith-based community organization with a demonstrated commitment to community development and improving the quality of life for residents within the Fifth District of Kansas City, Missouri; and
WHEREAS, the Developer has proposed a workforce and attainable housing development project adjacent to the Developer’s property located at 11101 US 71 Hwy., Kansas City, Missouri (the "Project") that will create affordable housing opportunities for working families and individuals in Kansas City; and
WHEREAS, predevelopment funding is essential to advance the Project through critical early-stage activities including, but not limited to, site acquisition and control, architectural and engineering design services, environmental assessments, market studies, financial feasibility analysis, legal services, and other preliminary planning activities; and
WHEREAS, the City Council finds that providing predevelopment funding to the Developer will advance the City's housing policy goals and address the critical need for workforce and attainable housing in Kansas City; and
WHEREAS, the City Council desires to support community-based development that creates housing opportunities for Kansas City's workforce and promotes neighborhood stability and revitalization; NOW, THEREFORE,
BE IT ORDAINED BY THE COUNCIL OF KANSAS CITY:
Section 1 Section 1. That the City Manager or his designee is hereby authorized to negotiate and execute a Predevelopment Funding Agreement (the "Agreement") with United Believers Community Baptist Church for predevelopment activities associated with the proposed workforce and attainable housing development project, in an amount not to exceed $2,400,000.00 that shall contain the following terms:
(a) The predevelopment funding authorized herein may be used for the following eligible activities: (1) site acquisition, options, and site control activities; (2) architectural and engineering design services; (3) environmental assessments and remediation planning; (4) market studies and financial feasibility analyses; (5) legal services related to project development; (6) survey and title work; (7) permitting and entitlement fees; and (8) other predevelopment costs as approved by the City Manager by an amendment to the Agreement as consistent with the purposes of this ordinance.
(b) The Project shall comply with all affordability requirements of the Affordable Housing Trust Fund as set forth in Section 2-1693, including but not limited to: (1) a minimum affordability period of thirty (30) years from the date of project completion; (2) Targeting households at or below one hundred twenty percent (120%) of the Area Median Income for workforce housing units; (3) Recordation of a restrictive covenant ensuring long-term affordability.
(c) The Developer shall comply with the requirements of Section 3-421 through 3-500 regarding Minority-Owned and Women-Owned Business Enterprise (M/WBE) participation. M/WBE participation goals shall be established for each contract related to the Project, based on the size of the project and dollar amount of the contract, among other considerations.
(d) Participation in a construction employment program shall be required for any construction or redevelopment activities that require more than eight hundred (800) construction labor hours and have an estimated cost over Three Hundred Thousand Dollars ($300,000.00), unless a waiver is granted by the appropriate City authority.
(e) The Project shall commence within one (1) year of the date the funding agreement is fully executed. For purposes of this section, "commencement" shall mean the initiation of substantive predevelopment activities as demonstrated through documentation provided to the Director of Housing and Community Development.
(f) The Developer shall provide quarterly progress reports to the City Manager or his designee and the City Council detailing: (1) expenditure of predevelopment funds; (2) progress toward project milestones; (3) M/WBE participation and compliance; (4) any anticipated changes to project scope or timeline.
(g) In the event the Project does not proceed to construction within thirty-six (36) months of the execution of the Agreement, or if the Developer fails to meet the affordability requirements, the Developer shall repay to the City all predevelopment funds disbursed, unless the City Manager determines, in writing, that extenuating circumstances warrant an extension or modification of this requirement.
(h) The Project shall comply with all affordability requirements of the Affordable Housing Trust Fund as set forth in Section 2-1693, including but not limited to: (1) a minimum affordability period of thirty (30) years from the date of project completion; (2) targeting households at or below one hundred twenty percent (120%) of the Area Median Income for workforce housing units; and (3) Recordation of a restrictive covenant ensuring long-term affordability.
(i) In the event the Project does not proceed to construction within thirty-six (36) months of the execution of the Agreement, or if the Developer fails to meet the affordability requirements, the Developer shall repay to the City all predevelopment funds disbursed, unless the City Manager determines, in writing, that extenuating circumstances warrant an extension or modification of this requirement.
(j) The Agreement shall also include, at a minimum, the following provisions: (1) detailed scope of predevelopment activities; (2) Project timeline and milestones; (3) disbursement schedule and documentation requirements; (4) affordability covenants and enforcement mechanisms; (5) M/WBE and workforce participation requirements; (6) reporting and monitoring requirements; (7) default provisions and remedies; (8) indemnification and insurance requirements.
Section 2. That the sum of $2,400,000.00 is hereby appropriated from the Unappropriated Fund Balance of the Shared Success Fund to the following account:
26-2590-101523-B United Believers Community Baptist Church $2,400,000.00
Section 3. The City Manager or his designee is hereby designated as the requisitioning authority for the expenditure of funds appropriated by this Ordinance.
Section 4. That the City Manager or his designee is hereby authorized to negotiate and execute amendments to the Agreement and related documents with Developer and/or disbursement agents as is necessary to carry out the purposes of this ordinance.
Section 5. The City Manager or his designee shall notify the City Council within ten (10) business days of the execution of the Agreement and shall provide a copy of the executed Agreement to the City Clerk for the public record.
Section 6. That this ordinance, appropriating money, is recognized as an ordinance with an accelerated effective date as provided by Section 503(a)(3)(C) of the City Charter and shall take effect in accordance with that section.
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Approved as to form:
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Abigail Judah
Assistant City Attorney