committeesub
[COMMITTEE SUBSTITUTE FOR] RESOLUTION NO. 260885
title
Sponsor(s): Mayor Pro Tem Ryana Parks-Shaw and Councilmember Darrell Curls
COMMITTEE SUBSTITUTE
RESOLUTION - Directing the City Manager to estimate costs necessary to complete infrastructure at the 63rd & Prospect Development; directing the City Manager to identify funding opportunities and tools to fund infrastructure work; and directing the City Manager to negotiate a co-development agreements with Southpointe, LLC, in connection with the redevelopment of certain real property located in an area generally located at 63rd and Prospect.
FINANCE COMMITTEE recommends “Immediate Adoption as a Committee Substitute, Debate.”
body
WHEREAS, Committee Substitute for Ordinance No. 210566 authorized the City Manager to execute a development agreement with the Tax Increment Financing Commission of Kansas City (“TIF”) and UA KC Southpointe, LLC, for the sale and development of mixed use, commercial, residential and community improvements (the “Project”) of certain real property located in Kansas City, Missouri in an area that is generally bounded by 59th Street on the north, 63rd Street on the south, Bruce R. Watkins Highway on the east and Brooklyn Avenue on the west as more fully described by the schematic phasing plan attached hereto as Exhibit A, and incorporated herein, which development is known as the 63rd & Prospect Development (the “Development Area”); and
WHEREAS, City, TIF, and UA KC Southpointe, LLC entered into a Development Agreement on February 4, 2022, as amended by the First Amendment dated July 31, 2023 and the Second Amendment dated December 21, 2023 (the “Development Agreement”); and
WHEREAS, UA KC Southpointe, LLC assigned certain interests to Southpointe, LLC; and
WHEREAS, pursuant to the Development Agreement, Southpointe, LLC, exercised its option to purchase certain areas of the Development Area referred to as “Subdivision 1-A”; and
WHEREAS, City entered into a ground lease agreement with TIF on February 29, 2012, for portions of the Development Area not owned by the City for the purpose of redeveloping the same; and
WHEREAS, portions of the Subject Property are owned by the City and others are owned by TIF; and
WHEREAS, the City and Southpointe, LLC, with TIF's consent, entered into a License Agreement on April 23, 2025, authorizing Southpointe, LLC, to conduct certain grading and site preparation activities; and
WHEREAS, City, TIF, and Southpointe, LLC, seek to enter into an Amended and Restated Development Agreement adjusting certain project timelines originally set forth in Committee Substitute for Ordinance No. 210566; and
WHEREAS, the City has previously allocated funds for the Project in the amount of $5,000,000.00 (the “Development Funds”) as set forth in Amendment E to Ordinance No. 250175 approved by the City Council on March 20, 2025, to assist in the completion of eligible work within the Development Area; and
WHEREAS, Committee Substitute for Ordinance No. 250381 authorized the City Manager to negotiate and execute a cooperative agreement, disbursement agreement, and other related agreements with Southpointe Development, LLC, to facilitate site preparation activities in connection with the redevelopment of certain real property located in an area generally located at 63rd and Prospect; authorizing the use of $4,500,000.00 previously appropriated from the General Fund; authorizing the use of $500,000.00 previously appropriated from the Development Services Fund; and authorizing the City Manager to negotiate and execute an Amended and Restated Development Agreement with Southpointe Development, LLC; and
WHEREAS, Developer represents that the Project requires up to $25,000,000.00 for necessary infrastructure improvements; and
WHEREAS, City staff has worked in phased approaches to fund important infrastructure improvements on past projects; NOW, THEREFORE,
BE IT RESOLVED BY THE COUNCIL OF KANSAS CITY:
Section 1. That the City Manager is hereby directed to estimate the cost of infrastructure, including water, sewer, and other necessary infrastructure, for the 63rd and Prospect Development.
Section 2. That the City Manager is hereby directed to identify funding opportunities and tools, including tax increment financing and other economic development tools, to provide sufficient funding for the infrastructure work.
Section 3. That the City Manager is directed to negotiate a co-development agreement with Southpointe, LLC, for site preparation and pre-development activities, development plans, and construction of infrastructure in connection with the redevelopment of certain real property located at 63rd and Prospect.
end
______________________________________________________