ORDINANCE NO. 250636
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Sponsor: City Manager’s Office
Approving the Fifth Amendment to the Heart of the City Neighborhood Stabilization Tax Increment Financing Plan; and directing the City Clerk to transmit copies of this ordinance.
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WHEREAS, pursuant to the Real Property Tax Increment Allocation Redevelopment Act, Sections 99.800 to 99.865 of the Revised Statutes of Missouri, 1986, as amended (the "Act"), the City Council of Kansas City, Missouri, by Ordinance No. 54556, passed on November 24, 1982, and thereafter repealed and amended in certain respects by Committee Substitute for Ordinance No. 911076, as amended, passed on August 29, 1991, Ordinance No. 100089, passed on January 28, 2010, and Committee Substitute for Ordinance No. 140823, As Amended, passed on June 18, 2015, and Committee Substitute for Ordinance No. 230524, passed on June 22, 2023, created the Kansas City Tax Increment Financing Commission (the "Commission"); and
WHEREAS, the City Council, by passage of Ordinance No. 160979, accepted the recommendations of the Commission, approved the Troost Avenue Tax Increment Financing Plan, as modified, and renamed the same to be known as the Heart of the City Neighborhood Stabilization Tax Increment Financing Plan (the "Plan"), and designated the redevelopment area described therein to be a Conservation Area (the “Redevelopment Area”); and
WHEREAS, the Plan has been amended four times by Ordinance No. 170887 on November 30, 2017, by Ordinance No. 180212 on April 5, 2018, by Ordinance No. 190828 on October 17, 2019, and by Ordinance No. 190943 on December 5, 2019; and
WHEREAS, the Fifth Amendment to the Plan (“Fifth Amendment”) has been proposed to the Council, which incorporates certain parameters for the Housing Program so that tax increment financing can fund improvements contemplated thereby (the “Proposed Fifth Amendment Modifications”); and
WHEREAS, the proposed Fifth Amendment Modifications do not alter the exterior boundaries of the Redevelopment Area or enlarge the exterior boundary of any Redevelopment Project Area described by the Plan, affect the general land uses described by the Plan or change the nature of any Redevelopment Project described by the Redevelopment Plan; and
WHEREAS, the Council wishes to approve the proposed Fifth Amendment; NOW, THEREFORE
BE IT ORDAINED BY THE COUNCIL OF KANSAS CITY:
Section 1. That the Council hereby approves the Fifth Amendment to the Plan, a copy of which is attached hereto.
Section 2. All terms used in this ordinance, not otherwise defined herein, shall be construed as defined in the Act.
Section 3. The Council hereby finds that:
(a) Good cause has been shown for the Fifth Amendment of the Plan, and that the findings of the Council in Ordinance No. 170887, Ordinance No. 180212, Ordinance No. 190828, and Ordinance No. 190943 are not affected by the Fifth Amendment and apply equally to the Fifth Amendment;
(b) The Redevelopment Area is a Conservation Area and has not been subject to growth and development through investment by private enterprise and would not reasonably be anticipated to be developed without the adoption of the Plan. A conservation study is attached to the Plan which includes a detailed description of the factors that qualify the Redevelopment Area as a Conservation Area, along with an affidavit, signed by the developer, attesting that the provisions of this subdivision have been met;
(c) The Plan, as amended, conforms to the comprehensive plan for the development of the City as a whole;
(d) The areas selected for the Redevelopment Project include only those parcels of real property and improvements therein which will be directly and substantially benefited by the improvements contemplated by the Redevelopment Project;
(e) The estimated dates of completion of the improvements contemplated by the Redevelopment Project and retirement of obligations incurred to finance Redevelopment Project Costs, have been stated in the Plan, as amended by the Fifth Amendment, and are not more than 23 years from the adoption of any ordinance approving a Redevelopment Project within the Redevelopment Area, provided that no ordinance approving a Redevelopment Project shall be adopted later than ten years from the adoption of the ordinance approving the Plan and provided that no property for a redevelopment project shall be acquired by eminent domain later than five years from the adoption of the ordinance approving the Redevelopment Project;
(f) A relocation assistance plan for businesses and residences is incorporated and made a part of the Plan;
(g) A cost-benefit analysis showing the economic impact of the Plan on each taxing district which is at least partially within the boundaries of the Redevelopment Area is attached to the Plan and the analysis demonstrates the impact on the economy if the Redevelopment Project is not built, and is built pursuant to the Plan under consideration and such analysis includes a fiscal impact study on every affected political subdivision, along with sufficient information from the developer for the Commission to evaluate whether the project, as proposed, is financially feasible; and
(h) The Plan, as amended by the Fifth Amendment, does not include the initial development or redevelopment of any gambling establishment.
Section 4. That the Commission is authorized to issue obligations in one or more series of bonds secured by the Heart of the City Neighborhood Stabilization Tax Increment Financing Plan Account ("Heart of the City TIF Account") of the Special Allocation Fund to finance Redevelopment Project Costs within the Redevelopment Area and, subject to any constitutional limitations, to acquire by purchase, donation, lease or eminent domain, own, convey, lease, mortgage, or dispose of, land or other property, real or personal, or rights or interests therein, and grant or acquire licenses, easements and options with respect thereto, all in the manner and at such price the Commission determines, to enter into such contracts and take all such further actions as are reasonably necessary to achieve the objectives of the Plan pursuant to the power delegated to it by the City. Any obligations issued to finance Redevelopment Project Costs shall contain a recital that they are issued pursuant to Sections 99.800 to 99.865, which recital shall be conclusive evidence of their validity and of the regularity of their issuance.
Section 5. That pursuant to the provisions of the Plan, as amended by the Fifth Amendment, the City Council approves the pledge of all funds that are deposited into the Heart of the City TIF Account of the Special Allocation Fund to the payment of Redevelopment Project Costs identified by the Plan and permitted by the Act and authorizes the Commission to pledge such funds on its behalf.
Section 6. That the City Clerk shall transmit a copy of this ordinance to the County Clerk and County Executive of Jackson County, Missouri.
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Approved as to form:
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Emalea Kohler
Associate City Attorney