Title
AN ORDINANCE AUTHORIZING THE ISSUANCE OF SPECIAL OBLIGATION TAX INCREMENT AND SPECIAL DISTRICT REFUNDING AND IMPROVEMENT BONDS (SUMMIT FAIR PROJECT), SERIES 2017 OF THE CITY OF LEE’S SUMMIT, MISSOURI, AND AUTHORIZING CERTAIN OTHER ACTIONS IN CONNECTION WITH THE EXECUTION AND DELIVERY OF THE BONDS. (F&BC 12-4-17)
THIS ITEM WAS A DUPLICATE OF BILL NO. 17-261. COUNCIL READ AND APPROVED BILL NO. 17-261 SO THIS ONE WILL END AT APPROVAL AT COMMITTEE.
Body
The City is authorized and empowered under its Charter and the Revised Statutes of Missouri, as amended, to issue bonds for the purpose of providing funds to finance the costs of certain redevelopment projects, to refund the bonds validly issued for such purposes and to pay certain costs related to the issuance of such bonds
The City has (a) approved a plan for redevelopment known as the “Lee’s Summit East Amended and Restated Tax Increment Financing Plan” (as amended, the “Redevelopment Plan”) for certain areas described therein, including an area designated and described in the Redevelopment Plan as “Project Area 1” and “Project Area 5” (together, the “Redevelopment Area”), (b) designated the Redevelopment Area, along with other property described in the Redevelopment Plan, as a “blighted area” within the meaning of the Real Property Tax Increment Allocation Redevelopment Act, Sections 99.800 to 99.865, inclusive, of the Revised Statutes of Missouri, as amended (the “TIF Act”), (c) approved projects and adopted tax increment financing for Project Area 1 and Project Area 5, and (d) designated RED Lee’s Summit East, LLC, a Missouri limited liability company (the “Developer”), as the developer to implement the Redevelopment Plan with respect to the Redevelopment Area.
On May 27, 2008, the City and the Developer entered into an Amended and Restated Tax Increment Financing Contract (as amended, the “Redevelopment Agreement”), which provides for the funding and financing of certain Reimbursable Project Costs, as defined therein.
On April 17, 2008, the City Council, by adoption of Ordinance No. 6619, established the Summit Fair Community Improvement District, a community improvement district and political subdivision of the State of Missouri (the “CID”) for the purpose of providing funding through the imposition of a sales tax and special assessments for a portion of the Reimbursable Project Costs that are eligible to be funded with revenues of the CID.
In order to provide financing for certain Reimbursable Project Costs, the City has issued the City of Lee’s Summit, Missouri Tax Increment Revenue Bonds (Summit Fair Project), Series 2011 (the “Series 2011 Bonds”), in the original principal amount of $22,300,000.
The City has determined that it is in the best interest of the City to issue its Special Obligation Tax Increment and Special District Refunding and Improvement Bonds (Summit Fair Project), Series 2017 (the “Series 2017 Bonds”) for the purpose of (a) financing additional Reimbursable Project Costs relating to the Redevelopment Plan, (b) advance refunding the outstanding principal amount of the Series 2011 Bonds (the “Refunded Bonds”), (c) funding a debt service reserve deposit for the Series 2017 Bonds, and (d) paying the costs of issuance of the Series 2017 Bonds and the incidental costs of refunding the Refunded Bonds.
Recommendation
Presenter
Presenter: Conrad E. Lamb, Finance Director
Committee Recommendation
Committee Recommendation:
A motion was made by Councilmember Faith, seconded by Vice Chair Edson, that this Ordinance be recommended for approval to the City Council - Regular Session, due back on 12/14/2017. The vote was unanimous.