ORDINANCE NO. 260743
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Sponsor: Councilmember Ryana Parks-Shaw
Authorizing the Director of Parks and Recreation to enter into an Amended and Restated Funding Agreement with the Starlight Theatre Association of Kansas City, Inc., and its affiliates and assigns for the reimbursement of certain funds provided by the City to cover a portion of the costs required to make improvements to the existing Starlight Theatre at Swope Parkway and 63rd Street; amending certain material terms of the Funding Agreement authorized by Committee Substitute for Ordinance No. 240477 to permit the remaining City Bridge Funds to be used for Phase II of the Starlight Improvement Project; maintaining the original aggregate City Bridge Funds limitation of $3,500,000.00; and approving a revised repayment schedule.
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WHEREAS, Starlight Theatre Association of Kansas City, Inc., and its affiliates and assigns (the “Association”) has proposed improvements to the existing Starlight Theatre on the southeast corner of Swope Parkway and 63rd Street (the “Starlight Improvement Project”); and
WHEREAS, the Starlight Improvement Project is being undertaken in two phases, with Phase I consisting of the completion of site work, construction of two new towers and footings to support a canopy structure, and the procurement and fabrication of the light bridge and canopy, and Phase II consisting of the installation of the light bridge and canopy; and
WHEREAS, Committee Substitute for Ordinance No. 240477 authorized the Director of Parks and Recreation to execute a Funding Agreement with the Association and appropriated $3,500,000.00 from the Parks Sales Tax Fund to be used for Phase I of the Starlight Improvement Project only in the event of a shortfall in fundraising by the Association, subject to the material terms set forth therein; and
WHEREAS, the City and the Association entered into that certain Funding Agreement made as of December 10, 2024 (the “Original Agreement”) pursuant to Committee Substitute for Ordinance No. 240477; and
WHEREAS, as of June 18, 2026, the City had provided $668,516.00 in City Bridge Funds under the Original Agreement, the Association had repaid $133,703.20 to the City, and $2,831,484.00 of the aggregate City Bridge Funds remained available for disbursement, subject to the terms and conditions of the Funding Agreement; and
WHEREAS, the Association anticipates a Shortfall in available capital from Fundraising for certain Phase II Project Costs and desires to use the remaining City Bridge Funds for such Phase II Project Costs; and
WHEREAS, the City and the Association desire to amend and restate the Original Agreement to permit the remaining City Bridge Funds to be used for Project Costs for Phase II, subject to the same $3,500,000.00 aggregate limitation and the other terms and conditions set forth in the Amended and Restated Funding Agreement, and to update the repayment schedule for the City Bridge Funds; NOW, THEREFORE,
BE IT ORDAINED BY THE COUNCIL OF KANSAS CITY:
Section 1. That the Director of Parks and Recreation is hereby authorized to execute an Amended and Restated Funding Agreement with the Starlight Theatre Association of Kansas City, Inc. for the reimbursement of certain funds provided by Kansas City to cover a portion of the costs required to make improvements to the existing Starlight Theatre at Swope Parkway and 63rd Street. The material terms of the Amended and Restated Funding Agreement shall include the following:
a) The Association’s commitment to contribute at least $1.5 million before the City is required to provide City Bridge Funds is acknowledged as having been satisfied in connection with the initial disbursement of City Bridge Funds under the Original Agreement, and no additional contribution under such requirement shall be required as a condition to the disbursement of the remaining City Bridge Funds for Phase II.
b) The Association must continue to provide monthly updates to the City Council, the Board of Parks and Recreation Commissioners, the City Manager, the Director of the Parks and Recreation Department, and the Director of the Finance Department regarding the status of fundraising efforts in the form and manner prescribed by the Director of the Parks and Recreation Department.
c) The City Bridge Funds will not be used unless and until the Association demonstrates a shortfall in cash flow from Fundraising and Association reserves, with any Shortfall evidenced through a cost certification process administered by the Parks and Recreation Department. City Bridge Funds may be used to pay or reimburse eligible Project Costs for Phase I or Phase II of the Starlight Improvement Project.
d) The City Bridge Funds must be first in priority for repayment from Fundraising after all Project Costs to be incurred are funded and must be repaid no later than January 1, 2030.
e) The Association’s prior repayment of $133,703.20 shall satisfy all repayment obligations arising through January 1, 2026 and shall be credited against the outstanding principal amount of the City Bridge Funds. On or before January 1 of each of 2027, 2028, and 2029, the Association shall repay the greater of (i) the Association’s Fundraising contributions in excess of the amounts necessary to fund Project Costs incurred and/or to be incurred or (ii) twenty percent (20%) of the aggregate City Bridge Funds provided through the date of such payment. The remainder of all City Bridge Funds then outstanding shall be due to the City on January 1, 2030.
f) The aggregate amount of City Bridge Funds shall not exceed $3,500,000.00, inclusive of all City Bridge Funds previously provided under the Original Agreement. The City Bridge Funds are non-revolving, and any repayment of City Bridge Funds shall not restore or increase the amount available for subsequent disbursement.
g) Eligible Phase II Project Costs may include costs incurred before, on, or after the effective date of the Amended and Restated Funding Agreement, provided such costs are submitted within eighteen (18) months after the date incurred, otherwise satisfy the Funding Agreement and applicable cost certification requirements, and have not previously been reimbursed.
h) Future appropriations, if any, for the Starlight Improvement Project will be reviewed in connection with the City’s annual budget processes.
Section 2. That the $3,500,000.00 appropriated by Section 2 of Committee Substitute for Ordinance No. 240477 remains the maximum aggregate amount of City Bridge Funds authorized for the Starlight Improvement Project, inclusive of all amounts previously provided under the Original Agreement. Nothing in this ordinance appropriates any additional City Bridge Funds or increases the aggregate City Bridge Funds above $3,500,000.00.
Section 3. That the Director of Parks and Recreation shall remain the requisitioning authority for the City Bridge Funds to the extent such funds are lawfully available for expenditure under this ordinance and the Amended and Restated Funding Agreement.
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Approved as to form:
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Mark P. Jones
Assistant City Attorney