ORDINANCE NO. 221025
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Sponsor: City Manager’s Office
Estimating revenue in the General Fund in the amount of $3,500,000.00 from the Midtown Tax Increment Financing Plan and appropriating same to support the Armour Troost mixed-use redevelopment project.
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WHEREAS, the Midtown Redevelopment Tax Increment Financing Plan (the “Midtown TIF”) was approved by the City Council upon recommendation of the Tax Increment Financing Commission of Kansas City, Missouri (the “Commission”) and pursuant to the Real Property Tax Increment Allocation and Redevelopment Act, Section 99.800 to 99.865, as amended, (the “TIF Act”) by passage of Committee Substitute for Ordinance No. 930666, as amended by Ordinance No. 941127, and has since been amended three times by Ordinance No. 950731 and Committee Substitutes for Ordinance Nos. 991390 and 001466; and
WHEREAS, Ordinance No. 170132 authorized the City to issue its Special Obligation Refunding Bonds (Midtown Redevelopment Project), Series 2017D (the “Series 2017D Bonds” or the “Bonds”) in the original aggregate principal amount of $16,185,000 pursuant to a Trust Indenture dated as of March 1, 2017 (the “Indenture”) by and between the City and UMB Bank, N.A. (the “Trustee”) to provide funds (a) to refund the outstanding Series 2007A Bonds maturing in years 2018 through 2022 (the “Refunded Bonds”) and (b) to pay certain costs related to the issuance of the Bonds; and
WHEREAS, the Trustee forwarded $11,328,394.83 of excess revenues to the Commission following the final bond maturity date of April 1, 2022; and
WHEREAS, the Commission distributed $7,788,399.19 of surplus incremental revenues from the Midtown TIF to the City; and
WHEREAS, the Commission distributed $2,120,559.72 of surplus payments in-lieu of taxes (PILOTs) from the Midtown TIF to the Jackson County Collector (the “Collector”) to distribute to the affected taxing jurisdictions, and of which $376,326.99 was distributed to the City; and
WHEREAS, the Commission distributed $2,268,378.79 of surplus incremental revenues from the Midtown TIF, which were deposited in the TIF Special Allocation Fund following the final bond maturity date, to the City for a total of $10,433,105.00 in surplus revenues; and
WHEREAS, Committee Substitute for Ordinance No. 180514 authorized the City Manager to enter into a funding agreement with the Planned Industrial Expansion Authority of Kansas City, Missouri (“PIEA”) in an amount not to exceed $3,500,000.00 for blight remediation in the Armour-Gilham PIEA Planning Area (the “Authorized Agreement”; and
WHEREAS, the Authorized Agreement was drafted and distributed to the parties, but was not executed; and
WHEREAS, the City now desires to execute the Authorized Agreement to provide the previously approved support for the Armour Troost mixed-use residential and commercial redevelopment project (the “Project”); NOW, THEREFORE,
BE IT ORDAINED BY THE COUNCIL OF KANSAS CITY:
Section 1. That the revenue in the following account of the General Fund, No. 1000, is hereby estimated in the following amount:
23-1000-120000-480560 Contr-TIF District $3,500,000.00
Section 2. That the sum of $3,500,000.00 is hereby appropriated from the Unappropriated Fund Balance of the General Fund to the following account in the General Fund:
23-1000-642102-610700 Midtown Housing Contributions $3,500,000.00
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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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Tammy L. Queen
Director of Finance
Approved as to form:
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Emalea K. Black
Associate City Attorney