Title
AN ORDINANCE TERMINATING AND DISSOLVING THE CHAPEL RIDGE TAX INCREMENT FINANCING PLAN, SPECIAL ALLOCATION FUND, AND THE TAX INCREMENT FINANCING ASSOCIATED THEREWITH, AND TERMINATING THE DESIGNATION OF THE REDEVELOPMENT AREA UNDER SAID PLAN AS A REDEVELOPMENT AREA. (F&BC 5/8/17)
Body
Issue/Request:
TO APPROVE AN ORDINANCE TERMINATING AND DISSOLVING THE CHAPEL RIDGE TAX INCREMENT FINANCING PLAN, SPECIAL ALLOCATION FUND, AND THE TAX INCREMENT FINANCING ASSOCIATED THEREWITH, AND TERMINATING THE DESIGNATION OF THE REDEVELOPMENT AREA UNDER SAID PLAN AS A REDEVELOPMENT AREA
Key Issues:
Whether to approve the Ordinance to terminate and dissolve the Chapel Ridge Tax Increment Financing Plan, Special Allocation Fund, and the Tax Increment Financing associated therewith, and, terminate the designation of the Redevelopment Area under said plan as a redevelopment area.
Proposed Council Motion:
FIRST MOTION: I move for second reading of AN ORDINANCE TERMINATING AND DISSOLVING THE CHAPEL RIDGE TAX INCREMENT FINANCING PLAN, SPECIAL ALLOCATION FUND, AND THE TAX INCREMENT FINANCING ASSOCIATED THEREWITH, AND TERMINATING THE DESIGNATION OF THE REDEVELOPMENT AREA UNDER SAID PLAN AS A REDEVELOPMENT AREA.
SECOND MOTION: I move for adoption of AN ORDINANCE TERMINATING AND DISSOLVING THE CHAPEL RIDGE TAX INCREMENT FINANCING PLAN, SPECIAL ALLOCATION FUND, AND THE TAX INCREMENT FINANCING ASSOCIATED THEREWITH, AND TERMINATING THE DESIGNATION OF THE REDEVELOPMENT AREA UNDER SAID PLAN AS A REDEVELOPMENT AREA.
Background:
The Chapel Ridge Tax Increment Financing Plan was approved and the Chapel Ridge Redevelopment Area as well as the Special Allocation Fund and tax increment financing for the Redevelopment area were established by Ordinance 5070 passed on December 7, 2000. The Plan was subsequently amended by Ordinance 6227 passed on July 27, 2006. The Chapel Ridge TIF Redevelopment Area was created to develop land North of Strother Road, formerly included in the North Tax Increment Financing District that had not been developed.
The Developers agreed to construct certain Public Road Improvements, including: The realignment and improvement of Ralph Powell Road to a four lane parkway from Woods Chapel Road to Strother Road; the realignment and improvement of Strother Road to four lanes, with appropriate turn lanes, from the Interchange on I-470 to a point west of its intersection with Ralph Powell Road; the installation of a traffic signal at the intersection of I-470 and Woods Chapel Road; the design and construction of the I-470 interchange at Strother Road; construction of a new collector road (Todd George) from Woods Chapel Road to Colbern Road; and the design and construction of four Project II roads in Redevelopment Project II (Northeast Akin Drive, Northeast Akin Terrace, Northeast Meadowview Drive, and Northeast Lone Hill Road). All the road public road improvements have been completed, and, all Public Road improvement costs have been reimbursed.
As part of the Development process, The Strother Road Transportation Development District was formed to assist with the construction and payment for Public Road Improvements in the geographic area also containing the Chapel Ridge Tax Increment Financing District's improvements. Under the terms of the Cooperative Agreement among the City, the Strother Road Transportation Development District, and the Developers, the Chapel Ridge TIF Redevelopment Area revenues were pledged to help pay the debt service on bonds issued by The Strother Road TDD to construct the Public Road Improvements listed in the Chapel Ridge TIF Plan as amended. The final outstanding bonds issued by The Strother Road TDD to construct the Public Road Improvements were redeemed in whole on May 1, 2017.
Thus, all debt obligations related to the construction of the Public Road Improvements specified in the Chapel Ridge TIF contracts have been paid in full at this time.
Monies remaining in the Special Allocation Fund have been distributed as surplus funds in accordance with Section 99.850 of the Real Property Tax Increment Allocation Act, Sections 99.800 to 99.865 RSMo (the "Act"), and, no monies remain in the Special Allocation Fund established under the Chapel Ridge Tax Increment Plan as amended.
Impact/Analysis:
Since all the Public Road Improvements required to be constructed under the Chapel Ridge Tax Increment Financing Plan have been constructed, either by the Developers, the Missouri Department of Revenue, or The Strother Transportation Development District, and all associated costs related to the construction of the Public Road Improvements have now been paid in full, the Chapel Ridge Tax Increment Financing Plan has been fulfilled. No other projects were contemplated to be constructed under the terms of the Amended and Restated Chapel Ridge Tax Increment Financing Plan. Also, all remaining monies in the Special Allocation Fund after the payment of all costs have been distributed as surplus funds under the Act.
Since the Plan has been fulfilled and costs paid in full, and all the remaining monies in the Special Allocation Fund after the payment of all costs have been distributed pursuant to the Act, the Chapel Ridge Tax Increment Financing Plan and Redevelopment Project Area thereunder can be terminated. The termination of the Plan and Redevelopment Project Areas will end the Payment in Lieu of Taxes segration of real estate taxes and return the real estate to the regular tax rolls, and also terminate the collection of Economic Activity Taxes in the Redevlopment Area and allow the sales taxes generated by the taxing jurisdictions to remain with the taxing jurisdictions.
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Presenter
Presenter: Conrad E Lamb
Recommendation
Recommendation: Staff recommends the commitee refer the Ordinance to terminate the Chapel Ridge Tax Increment Financing Plan, the Redevelopment Areas under the Plan, and the Special Allocation Fund to the City Council.
Committee Recommendation
Committee Recommendation: The committee recommends the full City Council approve An Ordinance Terminating and Dissolving the Chapel Ridge Tax increment Financing Plan, Special Allocation Fund, and the Tax Increment Financing Associated therewith, and terminating the Designation of the Redevelopment Area under said Plan as a Redevelopment Area.