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Home My Public Portal AboutORD15283 BILL NO. 2014-37 SPONSORED BY COUNCILMAN: Scrivner ORDINANCE NO. I S 2 , > 3 AN ORDINANCE APPROVING THE CAPITAL MALL TAX INCREMENT FINANCING REDEVELOPMENT PLAN AS A REDEVELOPMENT PROJECT AND ADOPTING TAX INCREMENT FINANCING THEREIN. WHEREAS, on January 21, 2014, the City Council of the City of Jefferson, Missouri (the "City") adopted the Capital Mall Tax Increment Financing Plan (the "Redevelopment Plan") by Ordinance No. 15222 and designated the Redevelopment Area, described therein, as a blighted area, all pursuant to the provisions of the Real Property Tax Increment Allocation Act, Sections 99.800 to 99.865, RSMo (the "TIF Act"); and WHEREAS, the Redevelopment Plan contemplates implementation through a single Redevelopment Project, and the adoption of tax increment financing in the area selected for such Redevelopment Project; and WHEREAS, the approval of the Redevelopment Plan and the related redevelopment agreement occurred more than ninety (90) days after the close of the City of Jefferson's Tax Increment Financing Commission ("TIF Commission") hearing on the matter, it was necessary to hold an additional hearing before the TIF Commission regarding the matter of initiating tax increment financing for the redevelopment area; and WHEREAS, pursuant to notice duly given in accordance with the TIF Act, the TIF Commission met on June 17, 2014, to hold a public hearing on the matter of initiating tax increment financing for the redevelopment area and unanimously adopted a resolution recommending that the City Council adopt an ordinance authorizing same; and WHEREAS, the City Council desires to activate tax increment allocation financing for the Redevelopment Project. NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF JEFFERSON, MISSOURI, as follows: SECTION 1: All terms used in this ordinance not otherwise defined herein shall be construed as defined in the TIF Act or Redevelopment Plan. SECTION 2: The area selected for the Redevelopment Project legally described in Exhibit A attached hereto is approved and designated as a Redevelopment Project Area (hereinafter referred to as "Redevelopment Project"). Redevelopment Project Area includes only those parcels of real property and improvements thereon which will be directly and substantially benefited by the Redevelopment Project improvements therein. SECTION 3: Tax increment allocation financing is hereby adopted for taxable real property in the above-described area selected for the Redevelopment Project Area. Pursuant to Bill 2014-37 Page 1 the Act, after the total equalized assessed valuation of the taxable real property in the Redevelopment Project Area exceeds the certified total initial equalized assessed valuation of the taxable real property in the Redevelopment Project Area, the ad valorem taxes, and payments in lieu of taxes, if any, arising from the levies upon the taxable real property in such project by taxing districts and tax rates determined in the manner provided in subsection 2 of Section 99.855, RSMo, each year after the effective date of the ordinance until the sooner of the expiration of 23 years, or when redevelopment costs have been paid and all reimbursable project costs have been reimbursed pursuant to the Redevelopment Plan shall be divided as follows: a. That portion of taxes, penalties and interest levied upon each taxable lot, block, tract, or parcel of real property which is attributable to the initial equalized value of each such taxable lot, block, tract or parcel of property in the area selected for the Redevelopment Project Area shall be allocated to and, when collected, shall be paid by the Cole County Collector and the City Treasurer to the respective affected taxing districts in the manner required by law in the absence of the adoption of tax increment allocation financing. b. Payments in lieu of taxes attributable to the increase in the current equalized assessed valuation of each taxable lot, block, tract or parcel of real property in the area selected for the Redevelopment Project Area, and any applicable penalty and interest over and above the initial equalized assessed value of each such unit of property shall be allocated to and, when collected, shall be paid to the City Treasurer who shall deposit such payment in lieu of taxes into a special fund called the "Special Allocation Fund" of the City for the purpose of paying Redevelopment Project Costs and obligations incurred in the payment thereof and for the collection of payments in lieu of taxes, as applicable. Any payments in lieu of taxes which are not paid within 60 days of the due date will be deemed delinquent and assessed a penalty of one percent (1%) per month. SECTION 4: That in addition to the payments in lieu of taxes described in subsection (b) of Section 3 above, fifty percent (50%) of the total additional revenue from taxes, penalties and interest which are imposed by the City or taxing districts, and which are generated by economic activities within the area selected for the Redevelopment Project over the amount of such taxes generated by economic activities within such area in the calendar year prior to the adoption of this ordinance, while tax increment financing remains in effect, but excluding personal property taxes, taxes imposed on sales of charges for sleeping rooms paid by transient guests of hotels and motels, taxes levied pursuant to Section 70.500 RSMo, taxes levied for the purpose of public transportation pursuant to section 94.660, RSMo, licenses, fees or special assessments, other than payments in lieu of taxes, and penalties and interest thereon, or any sales tax imposed by a county with a charter form of government and with more than six hundred thousand but fewer than seven hundred thousand inhabitants, for the purpose of sports stadium improvement, shall be allocated to, and paid by the local political subdivision collecting officer to the City Treasurer or other designated financial officer of the City, who shall deposit such funds in a separate segregated account within the Special Allocation Fund. SECTION 5. That the City Administrator, or his designee, is authorized to take all necessary actions and execute all necessary documents to carry out the intent of this Ordinance. Bill 2014-37 Page 2 SECTION 6. That if any section, subsection, sentence, clause, phrase or portion of this Ordinance is for any reason held invalid or unconstitutional by any court of competent jurisdiction, such portion shall be deemed a separate, distinct and independent provision and such holding shall not affect the validity of the remaining portions thereof. SECTION 7. That all ordinances or parts of ordinances in conflict with this Ordinance are hereby repealed. SECTION 8: This ordinance shall be in full force and effect from and after its passage and approval by the Mayor and City Council. 1 Passed: (. Approved: �I Presiding Officer � Eric J. Struemp/ a • - ATTEST: _ - APPROVED AS TO FORM: IAA 124/P1/0 Phyllis Powell, City Clerk _ ew Hilpert, City Counselor 1s` reading �,ZL�C �� 2od reading `L1T�:�rli'U` Bill 2014-37 Paee 3 EXHIBIT A LEGAL DESCRIPTION OF REDEVELOPMENT PROJECT Part of the South Half of Section 4. and part of the Northeast Quarter of the Northwest Quarter and part of the West Half of the Northwest Quarter of the Northeast Quarter of Section 9, all in Township 44 North. Range 12 W. in the City of Jefferson. Cole County, Missouri. more particularly described as follows: BEGINNING at the northeast corner of the West Half of the Northwest Quarter of the Northeast Quarter of said Section 9; thence S4°26'19"E. 760.31 feet to the northerly line of Old U.S. Route No. 50 (now Country Club Drive); thence 54°44'37"E, crossing said Country Club Drive right-of-way, 101.20 feet to a point on the southerly line thereof and said corner being the northwest corner of a tract of land described by deed of record in Book 136, page 132. and on the easterly boundary of a tract described by deed of record in Book 239, page 903, Cole County Recorder's Office; thence S4°34'31"E, along the easterly boundary of said tract described in Book 239, page 903, 375.37 feet to the southeasterly corner thereof, said corner being on the northerly line of U.S. Route No. 50; thence S75°33'03"W. along the northerly line of said U.S. Route No. 50. 77.73 feet; thence N88°2420"W. along the northerly line of said U.S. Route No. 50, 125.05 feet to the southeasterly corner of a tract of land described by deed of record in Book 362, page 519, Cole County Recorder's Office; thence N7°57'56"W. along the easterly boundary of said tract described in Book 362, page 519, 346.95 feet to the northeasterly corner thereof, said corner being on the southerly line of the aforesaid Country Club Drive; thence S77°59'08"W, along the southerly line of said Country Club Drive, 334.21 feet to the northwesterly corner of a tract of land described by deed of record in Book 315, page 773, Cole County Recorder's Office; thence S14°07'00"E. along the westerly boundary of said tract described in Book 315, page 773. 273.73 feet to the southwesterly corner thereof, said corner being on the northerly line of the aforesaid U.S. Route No. 50; thence N88°24'20"W, along the northerly line of said U.S. Route No. 50. 765.43 feet; thence S75°24'00"W. along the northerly line of said U.S. Route No. 50, 36.12 feet to the southeasterly corner of a tract of land described by deed of record in Book 298, page 83, Cole County Recorder's Office; thence N3°07'58"W, along the easterly boundary of said tract described in Book 298, page 83, 96.22 feet to the northeasterly corner thereof, said corner being on the southerly line of the aforesaid Country Club Drive; thence continuing N3°07'58"W. 102.09 feet to the northerly line of said Country Club Drive; thence S78°00'23"W, along the northerly line of said Country Club Drive, 104.04 feet to the most easterly corner of the U.S. Highway 50 connection right-of-way described by deed of record in Book 240, page 660. Cole County Recorder's Office; thence, along the northerly line of said connection right-of-way, the following courses: N85°29'44"W. 264.86 feet; thence N49°07'58"W. 230.71 feet; thence N47°05'00"W, 313.86 feet to the easterly line of West Truman Boulevard (formerly known as North Ten Mile Drive); thence N8°34'28"E, along the easterly line of said West Truman Boulevard. 490.41 feet; thence N6°3721"E. along the easterly line of said West Truman Boulevard, 401.12 feet to the northerly end of the aforesaid connection right-of-way; thence N79°05'18"W. 36.28 feet to the centerline of West Truman Boulevard (as described in Parcel 1 of the deed of record in Book 626, page 565 Cole County Recorder's Office); thence, leaving the aforesaid connection right-of-way line, described in Book 240, page 660, N3°27'09"E, along the centerline of West Truman Boulevard (as per said Parcel 1 description). 113.55 feet; thence N23°44'10"E. along the centerline of West Truman Boulevard (as per said Bill 2014-37 Page 4 Parcel 1 description), 233.03 feet to the southerly end of the property deeded to the City of Jefferson for the street right-of-way, now known as West Truman (formerly known as North Ten Mile Drive) as per deed of record in Book 275, page 214, Cole County Recorder's Office; thence N85°03'03"E, along the southerly line of said property described in Book 275, page 214, and along the southerly boundary of the property described by deed of record in Book 555. page 698, along the southerly boundary of El Mercado Development, Section 1, as per plat of record in Plat Book 11, page 402 and along the southerly boundary of those properties described by deeds of record in Book 529. page 947 and in Book 462, page 649. Cole County Recorder's Office, 1461.95 feet; thence N86°11'11"E, along the southerly boundary of said property described in Book 462, page 649 and along the southerly boundary of the property described by deed of record in Book 546, page 150. Cole County Recorder's Office, 692.99 feet to the southeasterly corner of said property described in Book 546, page 150 and said corner being on the westerly boundary of Monticello Acres, Section Nine, as per plat of record in Plat Book 11. page 859, Cole County Recorder's Office; thence S3°59'18"E, along the westerly boundary of Monticello Acres, Section Nine, 700.95 feet to the southwesterly corner thereof, being a point on the south line of said Section 4, Township 44 North. Range 12 West, at the southeasterly corner of the property described by deed of record in Book 629, page 196, Cole County Recorder's Office; thence S86°32'02"W, along the Section Line, 389.43 feet to the POINT OF BEGINNING. Bill 2014-37 Page 5 STAFF AND CONSULTANT REPORT TO THE CITY COUNCIL CAPITAL MALL TAX INCREMENT FINANCING PLAN TIF PROJECT ACTIVATION PURPOSE Consider an ordinance to activate tax increment financing for the Capital Mall TIF by authorizing the capture of incremental tax revenues with the Redevelopment Project Area. BACKG ROUND On October 28, 2013, the TIF Commission of the City of Jefferson ("TIF Commission") voted to adopt a resolution recommending to the City Council the approval and adoption of the TIF Plan, recommending the designation of the Redevelopment Area and the Redevelopment Projects included therein, recommending that the City Council find the Redevelopment Area a blighted area, recommending that at the appropriate time tax increment financing be initiated for the Redevelopment Project, and recommending the designation of the Developer as the developer of the Redevelopment Project. By Ordinance No. 15222, adopted by the City Council on January 21, 2014, the City approved the Capital Mall Redevelopment Plan (the "Redevelopment Plan"), declared the Redevelopment Area as a blighted area, and Capital Mall JC. LLC ("Developer") as the developer to implement the Redevelopment Plan. On May 5, 2014. the City Council adopted Ordinance No. 15258 which approved a Tax Increment Financing Contract between the City and the Developer ("TIF Contract"), which provided terms establishing the specific duties and benefits of the parties related to the implementation of the TIF Plan. No changes to the TIF Plan were necessary to complete the TIF Contract. Section 99.820.1(1). RSMo, provides that before the City Council may adopt an ordinance to activate tax increment financing. for the Capital Mall TIF Redevelopment Project, such an ordinance must be introduced within 14-90 days after the close of the TIF Commission's hearing on the matter, or a new hearing will be required. The 90-day window for activation of tax increment financing without need for an additional hearing expired long before the TIF Contract was fully negotiated and executed. Consequently, the TIF Commission was required to hold an additional hearing and make a recommendation to the City Council before the Council may approve an ordinance to activate tax increment financing for the Capital Mall Redevelopment Project. The TIF Commission provided the statutorily required notices and held its public hearing on June 17, 2014. No members of the public spoke at the hearing. The TIF Commission voted unanimously to recommend that the City Council adopt an ordinance activating tax increment financing for the redevelopment project related to the Capital Mall TIF. A copy of the resolution is attached for your review. RECOMMENDATION Because the TIF Plan and TIF Contract are now fully approved, no members of the public spoke in opposition of the activation of tax increment financing for the redevelopment project, and the TIF Commission unanimously recommended approval of an ordinance activating tax increment financing for the redevelopment project. City staff and consultants also recommend that the City Council should adopt an ordinance to activate tax increment financing for the Capital Mall TIF Redevelopment Project. Bill 2014-37 Staff Report/Summary Page I