HomeMy WebLinkAbout1088 Industrial Development Project for Briarcliff Realty BILL NO. 2011-036 ORDINANCE NO. ��
AN ORDINANCE APPROVING A PLAN FOR AN INDUSTRIAL DEVELOPMENT PROJECT
FOR BRIARCLIFF REALTY, LLC
WHEREAS, the City of Riverside, Missouri, a fourth-class city and political subdivision of
the State of Missouri (the "City"), is authorized and empowered pursuant to the provisions of
Article VI, Section 27(b) of the Missouri Constitution, as amended, and Sections 100.010 through
100.200, inclusive, of the Revised Statutes of Missouri, as amended (RSMo) (collectively, the
"AcY'), to purchase, construct, extend and improve certain projects (as defined in Section 100.010
RSMo) and to issue indusVial development revenue bonds for the purpose of providing funds to
pay the costs of such projects and to lease or otherwise dispose of such projects to private
persons or corporations for manufacturing, commercial, warehousing and industrial development
purposes upon such terms and conditions as the City shall deem advisable; and
WHEREAS, Section 100.050 RSMo requires the City to prepare a plan in connection
with any industrial development project undertaken pursuant to the Act; and
WHEREAS, a Plan for an Industrial Development Project dated November 3, 2011 (the
"Plan") for Briarcliff Reafty, LLC, a Missouri limited liability company (the "Company"), was
prepared and distributed to the taxing jurisdictions along with notice of a public hearing to be
held by the City on December 6, 2011; and
WHEREAS, on December 6, 2011 the public hearing on the Plan was held by the City;
and
WHEREAS, the Board of Aldermen hereby finds and determines that it is desirable for
the improvement of the economic welfare and development of the City and within the public
purposes of the Act that the City approve the Plan pursuant to the Act; and
NOW, THEREFORE, BE IT ORDAINED BY THE BOARD OF ALDERMEN OF THE
CITY OF RIVERSIDE, MISSOURI, AS FOLLOWS:
SECTION 1— APPROVAL OF THE PLAN. The Board of Aldermen hereby finds that:
(a) proper notice as required by the Act was properly given to all taxing jurisdictions regarding
the proposed Plan and (b) it has fairly and duly considered all comments submitted to the Board
of Aldermen regarding the proposed Plan. The Board of Aldermen hereby approve the Plan in
the form of Exhibit A attached hereto.
SECTION 2- FURTHER AUTHORITY. The City shall, and the officials, agents and
employees of the City are hereby authorized to, take such fuRher action, and execute such
other documents, certificates and instruments as may be necessary or desirable to carry out
and comply with the intent of this Ordinance.
SECTION 3- EFFECTIVE DATE. This Ordinance shall be in full force and effect from
and after its passage and approval.
BE IT REMEMBERED that the above was read two times by heading only, passed and
approved by a majority of the Board of Aldermen and APPROVED by the Mayor of the City of
Riverside, Missouri, this 6th day of December, 2011.
��L�' C!�/ �/l�d�-Viv
Kathleen L. Rose, Mayor
ATTEST:
=��,l�.�_- �
Robin Littrell, City Clerk
APPROV D AS TO FORM:
�
a y o son, City Attorney
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NOTICE TO TAXING JUItISDICTIONS ON AT7'ACHED LFST
Re: NoticeofPublicHearing—BriarcliffHorizonsProject
On behalf of the City of Riverside, Missouri (the °City"), please find enclosed a copy of the
proposed Plan for an Industrial Development Project for Briarcliff Realry, LLC ("Plan"), which
also contains a Cost Benefit Analysis on the affected taxing jurisdictions. Since this Plan onlv
provides for sales taz exemation on construction materials, there should be no real property
tax impact to the real property taxing jurisdictions.
The City anticipates considering an Ordinance to approve the Plan at its regular meeting on
Tuesday, December 6, 2011 at 7:00 PM at City Hall located at 2950 N.W. Vivion Road,
Riverside, Missouri. The Plan, if approved, consists of acquiring, constructing, improving
purchasing, equipping and installing approximately 1,750,000 square feet of industrial buildings
and approximately I,100,000 square feet of office buildings to be located ou approximafely 260
acres generally located east of Horizons Parkway, north and ���est of Interstate 635 and south of
U�e BNSF railroad line in tlie City of Riverside, Missouri, for industrial development purposes as
further described in the attached Plan.
The CiTy invites al] affected taxing disd•icts to attend the meeting on December 6, 2011 and to
make oral comments on the proposed Plan to the City or to provide �vritten comments to the City
on the Plan prior to the meeGng. Al] comtnents of the taxing districts v��ill be fair]y and duly
considered by tlie City.
A copy of tUe Plan and Cost Benefit Analysis for the proposed project is enclosed and also will be
on file in the office of the City Clerk and �vill be available for public inspection during normal
business l�ours.
Any questions should be directed to Mike Duffy, Director of Community Development for the
City at (816) 741-3993.
Dated: November 3, 2011
CTTY OF RIVERSIDE, MISSOURI
2950 N.W. Vivion Road
Riverside, Missouri 64150
cc: Director of Missouri Dept. of Economic Development
City� of Rh�erside Yark Hill School District R-V
Donna Resz, DireMOr of Finance Dr. Dennis Fisher
2950 N.W. Vivimi Road 7703 NW 6arry Rnad
Riverside, MO 64150 Kansas Ciry, MO 64153
Platte County Board of Ser��ices for the Tri-County Mental Heatth Services, Inc.
Developmentally Disabled 3100 NE 83n Street, Suite ! 001
Janice Tilman, Executive D'uector Kaosas City, MO 64119-9998
7900 NW 106'" Street
Kansas City, MO 64 t53
Meh•opolitan Communit)' College Mid Continent Publle Librery
Dr. Mark James, Chencellor Steven V. Potter, D"vector
3200 Broadway 15616 E. Highway 24
Kansas City, MO 641 ll Independence, MO 64 05 0-205 7
Missouri Department of Revenue Missouri Department of Revenue
Blind Pension Fund Tax Administration Bureau
Brian Kinkade, Interim Director 301 West High Street
221 West High Sheet Jefferson City, MO 65101
Jefferson Ciry, MO 65102 :,
Platte County� Platte Couuty Assessor
Jason Bro�n�, Presiding Commissioner David Christian
415 Third Street, Suite 105 415 Third Street, Suite 20
Platte City, MO 64079 Platte City, MO G4079
Platte Caunty Collector Revenue Missouri Department of Ewnomic Development
Sheila Palmer David Kert, Direc[or
415 Th'ud Street, Suite 40 301 West High Street
Platte City, MO G4079 Jefferson City, MO 65102
Parlcville Speciat Road District Senior Citizens Tax Authority
7101 NW Hampton Road 11724 NW Plaza Circle, Suite 600
Parkville, MO 64152 Kansas City, MO 64(53 .
Platte County Health Department Riverside Quindaro Bend Levee District
2l2 Marshall Road 4330 N Belgium Avenue
Platte Ciry, MO 64079 Riverside, MO 64150
BEFORE TIIE
BOARD OFALDERMEN
OF
CITY OF RIVERSIDE, MISSOURL
PLAN FOR AN INDUSTRIAL DE VELOPMENT PROJECT
FOR
BRIARCLiFF REALTY, LLC
NovemUer 3, 2011 �
PLAN FOR AN INDUSTRIAL DEVELOPMENT PROJECT FOR
BItIriRCLIFF REALTY, LLC
TO: BOATtD OF ALDERMEN OF THE CITY OT RIV�RSIDE, MISSOURI
Briarcliff Realty, LLC, a Missouri limited liability company (the "Company") has proposed this
plan for an industrial development project as described herein to City of Riverside, Missouri (the "City"),
for approval, to be carried out pursuant to Article VI, Section 27(b) of the Missouri Constitution, as
amended, Sections 100.010 to 100.200, inclusive, of the Missouri Revised Statutes, as amended, and in
support of said application submits tha following:
1. Descrintion of t6e Proiect. � The Project consists of acquiring, constructing, i�nproving
purchasiiig, equipping and installing approximately 1,750,000 square feet of industrial
buildings and approximately 1,100,000 square feet of office buildings to be located on
appro�cimately 260 acres generally located east of Horizons Parkway, no�th and west of
Interstate G35 and south of tl�e BNSF railroad line iu the City of Riverside, Missouri, for
indusd�ial developinent purposes (the "ProjecP').
2, Estimate of the Cost of'the Proiect. The total aggregate construction cost ofthe Project
is estimated to be $202,000,000 (excluding infrashucture, land and site development
costs).
3. Souine of Funds to be Exoended for the Proiect The source of Funds to be expended
for the Project �vill be the proceeds of $202,000,000 estimated aggregate principal
amount of Taxable Industrial Revanue Bonds (tlie °`Bonds") to be issued by the City for
the Project.
4. Statement of the Terms Upon Which the Project is to be Leased and Otherwisc
Disnosec3 of bv the Citv. The Project �vill be leased (�vith an option to purchase) to the
Company, its affiliate or an assignee. The lease payments collectively will equal the
principal and interest on the Bonds plus the payments in lieu of taxes. Tlie Bonds will be
payable solely firom the revenues derived by the City from the lease or other disposition
of the Project and the Bonds will not be an indebtedness or general obligation, debt or
liability of the City, It is anticipated that parcels within d�e Project �vill be developed
over an npproximately 20 year period.
It is also anticipated that at tl�e time individual buildings constituting a part of the Project
are completed that t(ie Company, its afftliate or its assigtiee may acquire from the City
that portion of the Project relating to such land and building by payment of the Bonds
allocable to such land and building.
5. General Information Concernine tlie Comaanv. The Company is a Missouri limited
liability company. The principal business of the Company is development of commercial
real estate.
G. Bond Purchase Arrangements. It is expected that the Company, an affiliate of the
Company or the Company's lender will purchase the Bonds.
7. Affected Scliool District, Commmiitv Colleee District, Couutv and Citv. The Park
Hill, Missouri R-V School District, the Metropolitan Junior College District of Kansas
City, Platte County, Missouri and the City �vill be affected by the Project.
8. E�ualized Assessed Valuation. The most recent equalized assessed valuation of aIl of
the real propeity to be incfuded in the Project is $15,542. The estimated total equalized
assessed valuation after construction of the Project for real property to be included in the
Projectis $62,160,000.
9. Cost/Benefit Analvsis. Attached hereto as EIC1�iUit A is the cost/benefit analysis on each
affected school district, Platte Counry, Missouri, the City and the other affected tacing
jurisdictions, which assumes no tax abatement for real property since the Company will
make payments in ]ieu of taxes aud such payments in Iieu of taxes will be captured and
applied in accordance with t6e L-385 Levee Redevelopment Plan thru 2029,
10. Pavments in Lieu of Taxes. It is auticipated that the Company �vill make a payments in
lieu of taxes for each year that any rea] property is owned hy the City in amount equal to
the prope�ty taxes that othenvise would have been payable on such real property and such
payments in (ieu of taxes will be captured such payments in lieu of taxes ���ill be captured
and applied in accordance with the L-385 Levee Redevelopmenf Plan thru 2029.
11. Sales Tas Exemntion on Construction Materials. It is anticipated that the construction
materials used to construct the Project wilt be exempt from state and local sales taxes.
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EXHISITA
COSTBENEFTT ANALYSIS
Since the Chap[er 100 Bonds will be issued by the City solely for the putpose of ganting the sales tax exempUOn on construction materials there will be no real
property tax abatement. However, since the City will own tide to the projecu during constrvcrion, the property will be exempt from property tax durin� such time
of Ciry ownership, but the property owner will be required to make Payments in Lieu of Taxes (PILOTS) equal to 100% of the properiy taxes that otherwise would
be payable on such real property.
Horizon's East
Total Industrial5q. Ft 1,750,000
Assumed Construction Cost PSF $ 40.00
Total Construction Costs Industrial $ 70,000,000 �
Total Annual PILOTS (Ptoperty Taxes) $ 1,750,000
Total Office Sq. Ft ],100,000
Assumed Construction Cost PSF $ 120.00
Total Constxuction Costs Office $ 132,000,000
Total fumual PILOTS (Properry Taxes) $ 2,475,000
iotal Combined Construction Costs $ 202,000,000
Total Annual Estimated PILOTS When
Project Complete . $ 4,225,000