ORDINANCE NO. 250402
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Sponsor: Councilmember Melissa Robinson
Estimating and appropriating revenue in the amount of $4,166,667.00 for the purpose of providing funds for the Olive Street / Promise Place housing project; designating requisitioning authority; authorizing the Director of Finance to close project accounts upon completion; declaring the intent of the City to reimburse itself from the bond proceeds for certain expenditures; and recognizing this ordinance as having an accelerated effective date.
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WHEREAS, the City Council passed Committee Substitute for Ordinance No. 210695 and Committee Substitute for Ordinance No. 210696 on September 23, 2021, each of which provided potential funding sources for Third District housing projects to include Olive Street Housing and Forest Street Housing in Beacon Hill; and
WHEREAS; the funding previously allocated for Forest Street Housing is no longer needed and the City Council desires to reallocate $1.5 million previously committed to Forest Street Housing to Olive Street Housing/Promise Place; and
WHEREAS, the prior ordinances proposed the use of General Obligation Question 1 bond proceeds to assist with infrastructure funding and, therefore estimated and appropriated bond proceeds for that purpose; however, the project is not in need of proceeds which would be restricted to infrastructure nor have any infrastructure needs been included in the City’s Five Year Capital Improvement Plan for this project; and
WHEREAS, the gap in funding for the Olive Street/Promise Place housing project persists and the City Council desires to issue taxable special obligation bonds in Fiscal Year 2026 to fund up to $4,166,667.00 of project costs so long as the developer has applied for tax abatement/incentives pursuant to the requirements of Committee Substitute for Ordinance No. 210696; and
WHEREAS, consistent with the requirements of Section 2-1990 (k)(4)(b)(1) of the City’s codified Debt Policy, the City Council intends to use available funds in the Shared Success Fund over the 20 year life of the bonds but understanding that any legally available revenue source of the City could be used for repayment should sufficient funds not exist in Shared Success Fund; and
WHEREAS, this ordinance provides for affordable housing and fulfills the goals of the City’s adopted Housing Plan; NOW, THEREFORE,
BE IT ORDAINED BY THE COUNCIL OF KANSAS CITY,
Section 1. That the revenue in the amount of $4,166,667.00 is hereby estimated in the following amount in the 2026A Taxable Special Obligation Bond Fund:
AL-3456-120000-590000 Bond Proceeds $4,166,667.00
Section 2. That the sum of $4,166,667.00 is hereby appropriated from the Unappropriated Fund Balance of the 2026A Taxable Special Obligation Bond Fund to the following account:
AL-3456-555317-B-55PROMPLACE Promise Place-Olive Street Housing $4,166,667.00
Section 3. That the Director of Housing is designated as requisitioning authority for Account No. AL-3456-555317-B-55PROMPLACE.
Section 4. That the Director of Finance is hereby authorized to close accounts, open
encumbrances and retainage related to the account in Section 2 and return the unspent portion to
the Fund Balance from which it came upon the earliest of: (i) the provisions of this ordinance; (ii) final maturity of financing or (iii) five years after issuance
Section 5. 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 2, (the "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 Appropriations is not to exceed $4,166,667.00. This constitutes a declaration of official intent under Treasury Regulation 1.150-2.
Section 6. That this ordinance relating to the appropriation of money and the expenses of government is recognized as an ordinance with an accelerated effective date as provided by Section 503(a)(3)(B) and Section 503(a)(3)(C) of the City Charter and shall take effect in accordance with Section 503, City Charter.
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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 Queen
Director of Finance
Approved as to form:
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Joseph A. Guarino
Senior Associate City Attorney