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[COMMITTEE SUBSTITUTE FOR] ORDINANCE NO. 230468
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Sponsor: Mayor Quinton Lucas and Councilmembers Andrea Bough and Kevin McManus
Authorizing the City Manager to enter into a Tax Redirection Agreement with Red Bridge Properties, Inc. for the purpose of increasing access to grocery services and incentivizing job creation and investment in Kansas City.
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WHEREAS, Kaw Fresh Market, LLC (the “Operator”) has identified a site to provide grocery services in the Red Bridge Shopping Center of Kansas City, Missouri (the “Business Site”) as the Red Bridge Farm Fresh Market (the “Project”) to provide quality produce and affordable grocery services to Kansas City residents and visitors as a replacement to previously discontinued services at the Business Site; and
WHEREAS, the Business Site is owned by Red Bridge Properties, Inc. (the "Owner"); and
WHEREAS, the Operator anticipates entering into a long-term lease (15 years with options to extend) with the Owner for the Business Site, in which lease the Owner will provide to the Operator the assistance provided by the City herein; and
WHEREAS, the Operator anticipates the Project creating more than 80 new employees at an anticipated average income of $17+ per hour; and
WHEREAS, the Project serves to ensure access to grocery services and incentivize job creation and investment in Kansas City by, without limitation, (i) providing grocery services in a highly residential area, (ii) prioritizing high quality produce and options to support a healthy diet, (iii) establishing or expanding Operator’s economic presence in City, (iv) promoting economic development in the area of City which the Business Site is located, (v) generating tax revenues for the City from the conduct of business and other activities in City that would not otherwise receive, (vi) catalyzing for additional investment in and further redevelopment and rehabilitation of the area of City in which the Business Site is located, and (vii) furthering the City’s policy of encouraging economic stability and growth; and
WHEREAS, the City therefore desires to encourage the Project for the purpose of realizing these public benefits by entering into an agreement to contribute certain revenues from City taxes generated by the Project in an amount needed to cause the Project to be undertaken; and
WHEREAS, the tax contributions contemplated by this Agreement are limited to those which have been determined necessary 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 City Manager is hereby authorized to execute a Tax Redirection Agreement in an amount not to exceed $1,375,000.00 over ten (10) years with Red Bridge Properties, Inc. The Tax Redirection Agreement shall provide that the redirection is subject to annual appropriation of funds by the City Council from a portion of the sales tax generated by taxable retail sales within the project at a rate of 1.25%.
Section 2. Further Authority. The Mayor, the City Manager, the Director of Finance and other officials, agents and employees of the City as required, are hereby authorized to take such further actions, and execute such other documents, certificates and instruments as may be necessary or desirable to carry out and comply with the intent of this ordinance.
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Approved as to form:
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Emalea Black
Associate City Attorney