ORDINANCE NO. 250971
title
Sponsor: Councilmember Crispin Rea
Estimating revenue in the amount of $6,945,750.00 in the Special Obligation Bond Series 2026B Projects Fund, No. 3457; and appropriating the same in Fund No. 3457; authorizing a construction contract with Infrastructure Solutions, LLC, with a total value of $5,577,711.00 for the West Bottoms Phase 1a Tranche 2 Project; designating requisitioning authorities; declaring the intent of the City to reimburse itself from the bond proceeds for certain expenditures; authorizing the Director of Finance to close project accounts upon completion; and establishing this ordinance as having an accelerated effective date.
body
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 as to the West Bottoms Tax Increment Financing 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 Kansas City TIF 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”);
WHEREAS, Committee Substitute for Ordinance No. 250216 authorized, among other things, the issuance of the City’s Special Obligation Bonds, Series 2026B to finance $14,800,000.00 of Phase 1a costs; and
WHEREAS, Ordinance No. 250599 estimated revenue and appropriated the amount of $5,300,850.00 to funds 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, on September 30, 2025, the General Services Department opened bids for Phase 1a Tranche 2 infrastructure work in connection with the Project, which infrastructure includes public gathering open space and other amenities (the “Bid Package 2”); and
WHEREAS, Ordinance No. _____ 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, the cost of the Bid Package 2 and Professional Services 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, 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; NOW, THEREFORE,
BE IT ORDAINED BY THE COUNCIL OF KANSAS CITY:
Section 1. That the revenue in the following account of Fund No. 3457, the Special Obligation Series 2026B Project Fund, is hereby increased in the following amount:
AL-3457-120000-59000 Bond Proceeds $6,945,750.00
Section 2. That the sum of $6,945,750.00 is hereby appropriated from the Unappropriated Fund Balance of Fund No. 3457, the Special Obligation Series 2026B Project Fund to the following account:
AL-3457-898014-B-89008983 West Bottoms Public Infrastructure $6,580,750.00
AL-3457-107710-B-89008983 West Bottoms Public Infrastructure 365,000.00
TOTAL $6,945,750.00
Section 3. That the Director of Public Works is hereby authorized to execute, on behalf of the City, a construction contract in the amount of $5,577,711.00 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 accounts:
AL-3457-898014-B-89008983 West Bottoms Public Infrastructure $5,577,711.00
Section 4. Authorizing the City Manager to negotiate and execute an amended reimbursement agreement with the PIEA for reimbursement of design professional services associated with all phases of design of the West Bottoms Infrastructure Project.
Section 5. That the City Manager, subject to the execution of the agreement authorized in Section 4 herein, is hereby authorized to expend funds in the amount of $365,000.00 for Project No. 89008983 West Bottoms Redevelopment Phase II from funds appropriated herein in Account No. AL-3457-107710-610300-89008983
Section 6. That the City Council hereby declares its official intent to reimburse itself for certain expenditures made within sixty (60) days prior to or on and after the date of this Ordinance with respect to appropriations in Section 3 (“Appropriation”) with the proceeds of bonds expected to be issued by the City. The maximum principal amount of bonds expected to be issued for the Appropriation is not to exceed $6,945,750.00. This constitutes a declaration of official intent under Treasury Regulation 1.150-2.
Section 7. That the Director of Finance is hereby authorized to close project accounts, encumbrances, and retainage related to the accounts in Section 2 and return the unspent portion to the fund balance from which it came upon the earliest of: (i) Project’s completion; (ii) final maturity of financing, or (iii) five years after issuance.
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.
end
______________________________________________________
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.
___________________________________
William Choi
Interim Director of Finance
Approved as to form:
___________________________________
Emalea Kohler
Associate City Attorney