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File #: 220565    Version: 1 Name:
Type: Ordinance Status: Referred
File created: 6/24/2022 In control: Neighborhood Planning and Development Committee
On agenda: 7/13/2022 Final action:
Title: Accepting the recommendation of the Central City Economic Development Tax Board for additional funding in the amount of $150,000.00 for a total not to exceed amount of $2,050,000.00, for an economic development project proposed by Taliaferro and Browne Real Estate 22nd/23rd Street LLC for the purpose of incentivizing the construction of an affordable housing development consisting of a 23 units in 12 duplex buildings to be known as Prospect Summit Apartments located at or near 22nd and 23rd Streets and Prospect Avenue; estimating and appropriating $150,000.00 from the Central City Economic Development Sales Tax Fund; and authorizing the Director of Housing to execute the Amendment.
Sponsors: Melissa Robinson
Attachments: 1. Fact Sheet - CCED Prospect Summit, 2. Fiscal Note - CCED Prospect Summit, 3. Approp Admin - TMP 1987, 4. Authenticated Ordinance 220565

ORDINANCE NO. 220565

 

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Accepting the recommendation of the Central City Economic Development Tax Board for additional funding in the amount of $150,000.00 for a total not to exceed amount of $2,050,000.00, for an economic development  project proposed by Taliaferro and Browne Real Estate 22nd/23rd Street LLC for the purpose of incentivizing the construction of an affordable housing development consisting of a 23 units in 12 duplex buildings to be known as Prospect Summit Apartments located at or near 22nd and 23rd Streets and Prospect Avenue; estimating and appropriating $150,000.00 from the Central City Economic Development Sales Tax Fund; and authorizing the Director of Housing to execute the Amendment.

 

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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, and then approved by, a majority of the votes cast; and

 

WHEREAS, on April 4, 2017, pursuant to authority granted by Section 67.1305, 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, Gregory Boulevard on the south, Paseo Boulevard on the west and Indiana Avenue on the east; and

 

WHEREAS, as part of the first round of funding, Taliaferro and Browne Real Estate 22nd/23rd Street LLC (“Developer”) submitted a proposal seeking $1,900,000.00 of Central City Economic Development (“CCED”) sales tax funds for the construction of an affordable housing development consisting of a 23 units in 12 duplex buildings to be known as Prospect Summit Apartments (the “Project”) generally located at or near 22nd and 23rd Streets and Prospect Avenue (the “Project Site”), all in Kansas City, Jackson County, Missouri; and

 

WHEREAS, the Council authorized a funding agreement with Taliaferro and Browne Real Estate 22nd/23rd Street LLC for the above Project in the amount of $1,900,000.00 with its passage of Ordinance No. 190650 on August 29, 2019; and

 

WHEREAS, Developer subsequently identified a need for additional funding due to increases in construction labor and construction materials; and

 

WHEREAS, at its May 10, 2022 meeting, the Central City Economic Development Sales Tax Board voted to approve a recommendation to the Council for additional funding for such costs associated with this Project from CCED sales tax funds in the amount of $150,000.00; bringing the total funding for this Project to a total of $2,050,000.00; 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/or 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 CCED Board’s recommendation that CCED sales tax revenues in an additional amount of $150,000.00, not to exceed $2,050,000.00, to be utilized for the costs associated with the construction of an affordable housing development consisting of a 23 units in 12 duplex buildings to be known as Prospect Summit Apartments by Taliaferro and Browne Real Estate 22nd/23rd Street LLC for its above-referenced Project is hereby accepted.

 

Section 2. 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                                                                             $150,000.00

 

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 account:

 

23-2200-555998-B-57190662                          Taliaferro & Brown Real Estate                                            $150,000.00

 

Section 4. That the City Manager is hereby authorized to enter into an amended funding agreement with Taliaferro and Browne Real Estate 22nd/23rd Street LLC for the costs associated with the above-referenced Project in a total amount not to exceed $2,050,000.00, from funds previously appropriated in the Central City Economic Development Sales Tax Fund in Account No. 23-2200-555998-B-57190662.

 

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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.

 

 

                                                                                                                              ___________________________________

                                                                                                                              Tammy L. Queen

                                                                                                                              Director of Finance

 

                                                                                                                              Approved as to form and legality:

 

 

                                                                                                                              ___________________________________

                                                                                                                              Emalea Black

                                                                                                                              Associate City Attorney