ORDINANCE NO. 220430
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Reducing an appropriation in the amount of $3,600,000.00 in the Central City Economic Development Fund; appropriating $3,600.000.00 from the Unappropriated Fund Balance in the Central City Economic Development Sales Tax Fund; and authorizing the Director of the Housing and Community Development Department to negotiate and execute a Funding Agreement with Promise Place, LLC in the amount of $3,600,000.00 for the purpose of constructing an affordable housing development located at 4423 Olive Street.
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WHEREAS, Promise Place, LLC (“Developer”) has proposed to construct the Promise Place, a residential facility which includes 101 residential units to be located in Ivanhoe neighborhood along 44th Street and 45th Street between Olive Street and Wabash Avenue (the “Project Site”); and
WHEREAS, Developers proposal will provide 101 units of affordable housing for families with incomes between 30% - 60% of AMI; and
WHEREAS, development will include one, two- and three-bedroom units, a community room, leasing office, and fitness center; and
WHEREAS, the Developer’s proposal contemplates a financing package that includes Central City Economic Development Sales Tax Funds; and
WHEREAS, the Developer requested a public contribution of $3,600,000.00 and the Central City Economic Development Sales Tax Board has recommended that funding be approved in the amount of $3,600,000.00; and
WHEREAS, the project serves a predominantly public municipal purpose because, without limitation, completion of the project (i) enhances the tax base of the Project Site; (ii) retains and generates 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 Developer to carry out the project 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 Agreement are limited to those which have been determined to be needed for the purpose of ensuring that the project proceeds, and but for their contribution, the project would not proceed, to the detriment of the public interest; NOW, THEREFORE,
BE IT ORDAINED BY THE COUNCIL OF KANSAS CITY:
Section 1. That the appropriation in the following account of the Central City Economic Development Sales Tax Fund, Fund No. 2200, is hereby reduced by the following amount:
23-2200-552047-B Contractual Services $3,600,000.00
Section 2. 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 account:
23-2200-555998-B-619080-55PROMPLCE Promise Place $3,600,000.00
Section 3. That the Director of the Housing and Community Development Department is hereby authorized to execute a Funding Agreement with Promise Place, LLC for the purposes contemplated herein in an amount not to exceed $3,600,000.00, to be paid from funds previously appropriated to Account No. 23-2200-555998-B-619080-55PROMPLCE in the Central City Economic Development Sales Tax Fund.
Section 4. That the City Manager is directed to negotiate a funding agreement that: 1) provides for compliance with any applicable provisions of the Missouri Prevailing Wage Law and any applicable provisions of the City’s Contracting Program Requirements set out in Article IV, Chapter 3, Code of Ordinances, including, but not limited to, the provisions concerning affirmative action, Minority and Women’s Business Enterprises and the Small Local Business Enterprises program; and 2) requires the disclosure of total project funding sources and projected costs and periodic reporting of project progress.
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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 and legality:
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Joseph Guarino
Assistant City Attorney