|City of Independence|
|AGENDA ITEM COVER SHEET|
17-080 - 1R. An ordinance approving the cooperative agreement among the city of Independence, Missouri, the Marketplace Shopping Center Community Improvement District and WNQE Independence VI, L.L.C. to implement the Marketplace Shopping Center Community Improvement District.
Staff recommends approval.
The City Council approved the CID by ordinance on September 6, 2016. The approving ordinance provides that approval of the CID is subject to the execution of a cooperative agreement. This ordinance will approve a cooperative agreement between the City, WQNE Marketplace, LLC (“Developer”) and the Marketplace Community Improvement District (the “CID”) to implement the MarketPlace Shopping Center Community Improvement District.
The CID is a companion funding district to the Marketplace Tax Increment Financing Plan. The property within Redevelopment Project 2 of the TIF Plan (existing hotel and adjacent commercial development on the north side of East 42nd Street) are the boundaries of the of the CID. The Noland Road CID already covers Redevelopment Project 1 of the TIF Plan.
The CID has imposed a 1% sales tax within the boundaries of the CID for up to 30 years. The sales tax revenues will be used to reimburse Developer for the eligible reimbursable project costs associated with the redevelopment of the site to cure the blighting conditions.
The TIF Plan will capture half of all CID sales tax revenues as Economic Activity Taxes, which will be expended on TIF-eligible Reimbursable Project Costs. The Developer projects that over the 23 year period that tax increment financing is in place, the CID will generate $1,267,006 in sales tax revenues that are not captured by TIF. The uncaptured portion of the CID revenues must be expended on CID-eligible costs, which must be public improvements and building renovation costs for the purpose of blight clearance.
The Developer has indicated that the following sources will fund the project:
Developer Loans $28,930,841
Revenues from Proposed CID $527,318
TIF Revenues – Project 1 $2,912,535
TIF Revenues – Project 2 $1,550,147
The Developer has agreed that the amount of CID revenues and TIF Revenues that can be used to reimburse Developer for the budgeted reimbursable items cannot exceed a hard cap of $4,900,000.
The CID will impose a 1% sales tax and revenues generated from the sales tax will be used to pay reimbursable project costs. The applicant does not request the appropriation of any City revenues for the redevelopment project.
|Department: Finance||Contact Person: Brian C. Watson|
|City Council Mgmt Analyst||Approved|
|City Managers Office||Approved|
|City Clerk Department||Approved|
|Council Action: ||Council Action: |