ORDINANCE NO. TMP-6967
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Sponsor: City Manager’s Office
Accepting the recommendations of the Central City Economic Development Tax Board for additional funding in the amount of $1,495,000.00 for the Jazz District III and Lineage Distribution projects; reducing an existing appropriation by $1,495,000.00; appropriating $1,495,000.00 from the Unappropriated Fund Balance; and authorizing the Manager of Procurement Services to execute the necessary documents to amend the funding agreements and expend up to $1,495,000.00 from funds appropriated in the Central City Economic Development Tax Fund.
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WHEREAS, Section 67.1305 of the Revised Statutes of Missouri authorizes the City to impose a retail sales tax not to exceed one-half of one percent if the imposition of such a retail sales tax is submitted to, then approved by, majority of the votes cast; and
WHEREAS, on April 4, 2017, pursuant to authority granted by Section 67.1304, RSMo, a majority of Kansas City, Missouri voters approved a new 1/8 of one percent retail sales tax for funding economic development projects within the area bounded by 9th Street on the north, Greogory Boulevard on the south, Paseo Boulevard on the west and Indiana Avenue on the east; and
WHEREAS, the developers of the Jazz District III and Lineage Distribution projects requested a public contribution and the Central City Economic Development Sales Tax Board recommends that funding be approved; and
WHEREAS, prior ordinances awarded CCED funds for the Jazz District III and Lineage Distribution projects; and
WHEREAS, the developers subsequently identified a need for additional funding due to increases in construction labor and construction costs; and
WHEREAS, the projects serve a predominantly public municipal purpose because, without limitation, completion of the projects (i) enhances the tax base of the Project Site; (ii) retains and generated jobs (iii) promotes economic development in the area of the City in which the Project Site is located, and promotes consideration of areas of the City that the City Council has determined to be blighted as a location for business operations; (iv) results in generation of tax revenues to the City from the conduct of business and other activities in the City that would not otherwise occur; (v) serves as a catalyst for additional investment in and further redevelopment and rehabilitation of the area of the City in which the Project Site is located; and (vi) furthers the City’s policy of encouraging economic stability and growth; and
WHEREAS, the City desires to encourage the developers to carry out the projects for the purpose of realizing these predominantly public purposes by entering into an agreement to contribute certain revenues in an amount needed to cause the project to be undertaken and attract the necessary private investment; and
WHEREAS, the contributions contemplated by the Funding Agreements are limited to those which have been determined to be needed for the purpose of ensuring that the projects proceed, and but for their contribution, the projects would not proceed to the detriment of public interest; and
WHEREAS, on May 28, 2026, the CCED Board voted to recommend an increase in funding for the for the Jazz District III and Lineage Distribution projects; NOW, THEREFORE,
BE IT ORDAINED BY THE COUNCIL OF KANSAS CITY:
Section 1. That the recommendations of the Central City Economic Development Tax Board that were issued May 28, 2026 are hereby accepted.
Section 2. That the following amount is hereby reduced from the Central City Economic Development Sales Tax Fund, Fund No. 2200, from the following account:
27-2200-555998-B-55BUDGET Budget Integration Account $1,495,000.00
Section 3. That the following amount is hereby appropriated from the Unappropriated Fund Balance of the Central City Economic Development Sales Tax Fund, Fund No. 2200, to the following accounts:
27-2200-555998-B-55JAZZDISTRICTA Jazz District III $ 500,000.00
27-2200-555998-B-55LINEAGE Lineage Distribution Center 995,000.00 TOTAL $1,495,000.00
Section 4. That the Manager of Procurement Services is authorized to execute the necessary documents to amend the aforementioned funding agreements and expend up to $1,495,000.00 from the funds appropriated in the Central City Economic Development Tax Fund herein.
Section 5. That the Manager of Procurement Services is authorized to execute the necessary documents to amend the aforementioned funding agreements and expend up to $1,495,000.00 from the funds appropriated in the Central City Economic Development Tax Fund herein.
Section 6. That the Director of the Housing and Community Development Department is designated requisitioning authority for Account No. 27-2200-555998.
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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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Brenton Silverly
Director of Finance
Approved as to form:
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Joseph A. Guarino
Senior Associate City Attorney