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File #: 210895    Version: 1 Name:
Type: Ordinance Status: Passed
File created: 9/29/2021 In control: Council
On agenda: 10/7/2021 Final action: 10/7/2021
Title: Authorizing an application to the Missouri Development Finance Board for the authorization of state tax credits in the amount not to exceed $250,000.00 to support the Niles Home for Children Project; and authorizing the City Manager's Office to execute a tax credit agreement with the Missouri Development Finance Board in connection with the tax credits.
Sponsors: Melissa Robinson, Brandon Ellington
Attachments: 1. Niles Home for Children Fact Sheet FINAL, 2. Niles Fiscal Note, 3. Authenticate Ordinance 210895

ORDINANCE NO. 210895

 

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Authorizing an application to the Missouri Development Finance Board for the authorization of state tax credits in the amount not to exceed $250,000.00 to support the Niles Home for Children Project; and authorizing the City Manager’s Office to execute a tax credit agreement with the Missouri Development Finance Board in connection with the tax credits.

 

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WHEREAS, Niles Home for Children (“Niles”), located at 1911 E. 23rd Street, Kansas City, Missouri, in the 3rd Council District, was originally established in 1924 and later opened its behavioral healthcare residential center in the 1960s and Niles Prep Day Treatment in 1987; and

 

WHEREAS, Niles provides intensive therapeutic intervention in a safe and structured environment; and

 

WHEREAS, in 2017, Niles joined KVC Health Systems, determining that this alliance provided Niles the opportunity to focus on strengthening and expanding programs, enhancing program quality, and realigning fiscal sustainability; and

 

WHEREAS, KVC Niles/KVC Missouri is raising funds for a campaign of at least $1 million to provide significant facility remodeling to address critical issues like sewer line, roof, electrical, playground/outdoor fitness space,  to add bedrooms, and to facilitate significant program expansions in Missouri along its continuum of care (the “Project”); and

 

WHEREAS, Niles is seeking expansion of additional program areas that increase the success of youth once they are discharged from Niles. These program expansion services include treatment foster care and aftercare services; and

 

WHEREAS, in total, this Project represents $1 million dollars of new investment in the facility and building conservation; and

 

WHEREAS, construction of this Project, estimated to require $1,047,000.00 of investment, is to commence in early 2022 and has a target completion date of December 2022, contingent on remaining fundraising; and

 

WHEREAS, the Project will result in the addition of 25 employees to accommodate these program expansions increasing revenue by $1.3 million annually, an ability to recruit and train treatment foster home providers which expand service delivery for children discharging from Niles to a less restrictive environment, and provide aftercare services to youth and families to assist in smoother transitions from the facility to their home community; NOW, THEREFORE,

 

BE IT ORDAINED BY THE CITY COUNCIL OF KANSAS CITY:

 

Section 1. That the Council authorizes the City Manager to submit an application to the Missouri Development Finance Board (“MDFB”) in the amount of $250,000.00 for tax credits under the Contribution for Tax Credit program to assist in fundraising and financing for the Niles Project.

 

Section 2. That the Council authorizes the City Manager to execute a tax credit agreement with the MDFB for the issuance of tax credits by the MDFB in the amount of $250,000.00.  Such agreement is approved in such form as the City Manager shall determine to be appropriate for the purposes contemplated by this ordinance.

 

Section 3. That the Council finds and determines that the project will significantly benefit the City and the State, the benefits derived by the State are expected to exceed the benefits provided in the tax credit agreement, and the project would not proceed without the assistance provided by the MDFB.

 

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Approved as to form and legality:

 

 

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Emalea Kaye Black

Assistant City Attorney