ORDINANCE NO. 250439
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Sponsor: Councilmember Darrell Curls
Finding that the Starlight Theatre Project would be a benefit to the City and State of Missouri; authorizing the City Manager to work with Starlight Theatre to assist in the preparation of an application to the Missouri Development Finance Board (“MDFB”); authorizing an application to the MDFB for the authorization of state tax credits in an amount not to exceed $3 million to facilitate improvements at Starlight Theatre in Kansas City, Missouri; and authorizing the City Manager to execute a tax credit agreement with the MDFB for the Starlight Theatre Project.
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WHEREAS, the Starlight Theatre is managed by the Starlight Theatre Association of Kansas City, MO (“Association”); and
WHEREAS, the Association is undertaking the fundraising, financing, and management of capital improvements (“Starlight Theatre Project”), including improved access for Theatre patrons, the construction of a new production bridge, addition of a canopy covering 3,000 seats, and renovations of the kitchen, concession spaces, and restrooms; and
WHEREAS, the Starlight Theatre is a major tourist attraction, gathering patrons representing 85 percent of all zip codes within Missouri by providing access to premier entertainment, children’s educational programs, special performances for school aged children, and technical training opportunities; and
WHEREAS, the Starlight Theatre Project will have a substantial benefit to both the City of Kansas City and the State of Missouri by increasing patrons from 320,000 to 394,000 annually; and
WHEREAS, the Starlight Theatre Project is estimated to increase the total direct and indirect economic output of the Theatre from $78.1 million to $91.4 million annually within the State of Missouri upon completion of the Project; and
WHEREAS, the Starlight Theatre Project is estimated to increase the total direct and indirect economic output of the Theatre from $42.6 million to $50.0 million annually within the City of Kansas City upon completion of the project; and
WHEREAS, the City Council has expressed support for the Starlight Theatre Project through passage of Ordinance 240477, which provided a $3.5 million bridge loan to the Starlight Theatre Project to commence Phase I construction; and
WHEREAS, the passage of Ordinance 240499 provided an additional sales tax redirection to the Starlight Theatre Project from taxes generated by the economic activity at Starlight Theatre to assist in repayment of the bridge loan; and
WHEREAS, $3 million in contribution tax credits from the MDFB would generate up to $6 million in additional funds for the Starlight Theatre Project and is necessary to complete the project; NOW THEREFORE
BE IT ORDAINED BY THE COUNCIL OF KANSAS CITY:
Section 1. The Starlight Theatre Project will benefit both the City and the State of Missouri by enhancing the theatre experience for patrons by creating a state-of-the-art experience through improving patron accessibility, the construction of a new production bridge, a 3,000-seat canopy, and newly renovated kitchen, concession, and restroom spaces.
Section 2. The Starlight Theatre Project will benefit the City and the State of Missouri through substantial increased economic output from the Theatre, generating additional jobs, tourism, economic activity, and tax revenue.
Section 3. The City Manager is authorized to work with the Starlight Theatre Association of Kansas City, MO on the preparation of an application to the Missouri Development Finance Board (“MDFB”) through the State Tax Credit for Contribution Program.
Section 4. The City Manager is authorized to file an application with the MDFB in an amount not to exceed $3 million for financing of the Starlight Theatre Project through the State Tax Credit for Contribution Program.
Section 5. The City Manager is authorized to negotiate and execute a tax credit agreement with the Missouri Development Finance Board in connection with the issuance of state tax credits, if the City's application is approved.
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Approved as to form:
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Emalea Black
Associate City Attorney