HomeMy WebLinkAbout1754 Approving a Skyline Townhomes - Plan for Industrial Development Authorizing City to Issue Taxable Industrial Revenue Bonds BILL NO. 2020-053 ORDINANCE NO. I 76-V
AN ORDINANCE APPROVING A PLAN FOR INDUSTRIAL DEVELOPMENT, AUTHORIZING
THE CITY TO ISSUE TAXABLE INDUSTRIAL REVENUE BONDS, AND AUTHORIZING THE
CITY TO ENTER INTO CERTAIN AGREEMENTS AND TAKE CERTAIN OTHER ACTIONS IN
CONNECTION THEREWITH.
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 "Act"),
to purchase, construct, extend and improve certain projects (as defined in Section 100.010 RSMo)
and to issue industrial 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 (the `Plan") was prepared and
distributed to the taxing jurisdictions along with notice of a public hearing to be held by the City
on December 15, 2020; and
WHEREAS, on December 15, 2020, the public hearing on the Plan was held by the City
and public comment was taken; 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; and
WHEREAS, the Board of Aldermen further finds and determines that it is desirable, in
order to further the purposes of the Plan, for the City to issue its Taxable Industrial Revenue
Bonds (Skyline Townhomes Project) in an aggregate principal amount not to exceed $20,000,000
(the "Bonds"), for the purpose of (a) improving and constructing approximately 32 two-story, four-
plex townhome units totaling approximately 128 units with related amenities, parking, and
infrastructure (the "Project Improvements") on certain real estate located in the City (the "Project
Site," and together with the Project Improvements, the "Project"), and (b) paying a portion of the
costs of issuing the Bonds; and
WHEREAS, simultaneously with the issuance of the Bonds, the City will lease the Project
from the Company under a Base Lease (defined herein) and sublease the Project back to the
Company under a Lease (defined herein), and
WHEREAS. the Board of Aldermen further finds and determines that it is necessary and
desirable in connection with the approval of the Plan and the issuance of the Bonds that the City
enter into certain documents and that the City take certain other actions and approve the
execution of certain other documents as herein provided,
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 City hereby approves the Plan and
hereby finds and determines the Project to be a "commercial" development for purposes of the
Act.
SECTION 2 -AUTHORIZATION OF THE BONDS. The City is hereby authorized to issue
and sell the Bonds as described in the recitals hereto for the purpose of providing funds to pay
the costs of the Project and to pay a portion of the costs of issuing the Bonds. The Bonds shall
be issued and secured pursuant to the Indenture and shall have such terms, provisions,
covenants and agreements as are set forth therein.
SECTION 3 - LIMITATION ON LIABILITY. The Bonds and the interest thereon shall be
limited and special revenue obligations of the City payable solely out of the rents, revenues and
receipts derived by the City from the Project and the Lease and not from any other fund or source
of the City. Such payments, revenues and receipts shall be pledged and assigned to the bond
trustee named therein (the "Trustee") as security for the payment of the Bonds as provided in the
Indenture. The Bonds and the interest thereon shall not constitute general obligations of the City or
the State of Missouri (the "State"), and neither the City nor the State shall be liable thereon. The
Bonds shall not constitute an indebtedness within the meaning of any constitutional or statutory
debt limitation or restriction, and are not payable in any manner by taxation.
SECTION 4 - AUTHORIZATION OF DOCUMENTS. The City is hereby authorized to
enter into the following documents (the "City Documents"), in substantially the forms on file with
the City Clerk, with such changes therein as are approved by the officials of the City executing
the documents, such officials' signatures thereon being conclusive evidence of their approval
thereof:
(a) Trust Indenture dated as of the date set forth therein (the "Indenture"),
between the City and the Trustee, pursuant to which (1) the Bonds will be issued and (2)
the City will pledge the Project and assign certain of the payments, revenues and receipts
received pursuant to the Lease to the Trustee for the benefit and security of the owners of
the Bonds upon the terms and conditions as set forth in the Indenture.
(b) Base Lease dated as of the date set forth therein (the "Base Lease"),
between the City and the Company, under which the Company will lease the Project to
the City, pursuant to the terms and conditions in the Base Lease, in consideration of
nominal rent paid by the City.
(c) Lease Agreement dated as of the date set forth therein (the "Lease"),
between the City and the Company, under which the City will lease the Project back to the
Company, pursuant to the terms and conditions in the Lease, in consideration of rental
payments by Company that will be sufficient to pay the principal of, premium, if any, and
interest on the Bonds, including a Memorandum of Lease Agreement providing notice of
the Lease.
(d) Bond Purchase Agreement dated as of the date set forth therein, among
the City, the Company and the purchaser of the Bonds.
(e) Sales Tax Exemption Agreement, under which City Staff is authorized to
provide a sales tax exemption certificate to the Company prior to the closing of the Bonds
for the purchase of construction materials for the Project, and under which the Company
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or an affiliate thereof agrees to pay any sales tax determined to be due with respect to the
Project due to misapplication of the certificate or failure to close on the Bonds.
SECTION 5 - EXECUTION OF DOCUMENTS. The Mayor and/or City Administrator is
hereby authorized to execute the Bonds and to deliver the Bonds to the Trustee for authentication
for and on behalf of and as the act and deed of the City in the manner provided in the Indenture.
The Mayor and/or City Administrator is hereby authorized to execute the City Documents and
such other documents, certificates and instruments as may be necessary or desirable to carry out
and comply with the intent of this Ordinance, for and on behalf of and as the act and deed of the
City. The City Clerk is hereby authorized to attest to and affix the seal of the City to the Bonds
and the City Documents and such other documents. certificates and instruments as may be
necessary or desirable to carry out and comply with the intent of this Ordinance.
SECTION 6 - FURTHER AUTHORITY. The City shall, and the officials, agents and
employees of the City are hereby authorized to, take such further 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 and to carry out, comply with and perform the duties of
the City with respect to the Bonds and the City Documents. The Mayor and/or City Administrator
is hereby authorized, throughout the term of the Lease, to execute all documents on behalf of the
City (including documents pertaining to the transfer of property) as may be required to carry out
and comply with the intent of this Ordinance, the Indenture and the Lease.
SECTION 7 - CONFLICTS. All ordinances or parts of ordinances in conflict herewith are
hereby repealed.
SECTION 8 - 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 15th day of December, 2020.
Kath en L. Rose, Mayor
ATTEST:
Robin Kincaid, Cif ,CIe'rk.
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SALES TAX EXEMPTION AGREEMENT
THIS SALES TAX EXEMPTION AGREEMENT (this "Agreement") is entered into as of
December 15, 2020 by and between the CITY OF RIVERSIDE, MISSOURI, a fourth-class city and
political subdivision duly organized and existing under the laws of the State of Missouri (the "City")and
SKYLINE TOWNHOMES,LLC,a Missouri limited liability company(the"Company").
RECITALS
WHEREAS, the City is authorized and empowered pursuant to the provisions of Article VI,
Section 27(b)of the Missouri Constitution and Sections 100.010 through 100.200, inclusive,of the Revised
Statutes of Missouri (collectively, the "Act"), to purchase, construct, extend and improve certain projects
(as defined in the Act)and to issue industrial 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, office industry and industrial development
purposes upon such terms and conditions as the City deems advisable,and
WHEREAS,the City, in accordance with Section 100.050 of the Act, has prepared and approved
a plan for industrial development (the "Plan") for the Company, or an affiliate or affiliates thereof, with
respect to a project consisting of improving and constructing approximately 32 two-story, four-plex
townhome units totaling approximately 128 units with related amenities,parking,and infrastructure located
on approximately 19 acres to the southeast of the intersection of Interstate 29 and Interstate 635 at or around
5190 NW Gateway Avenue, Riverside, MO 64150(the"Project"); and
WHEREAS,the City intends to issue industrial development revenue bonds (the "Bonds") for the
purpose of financing the Project,which Bonds will be payable solely out of payments,revenues and receipts
derived by the City from the lease of the Project to the Company,or an affiliate or affiliates thereof, from no
other source;and
WHEREAS,the City has determined that it is desirable in connection with approval of the Plan to
comply with the Company's request to provide a project exemption certificate to the Company allowing the
Company to acquire construction materials prior to the issuance of such Bonds on a basis exempt from sales
and use tax;and
WHEREAS,the City and the Company desire to enter into this Agreement to describe the terms and
conditions under which the project exemption certificate may be used by the Company;
NOW THEREFORE, for good and valuable consideration, the receipt and sufficiency of which
is hereby acknowledged,the parties to this Agreement hereby agree as follows:
SECTION 1. Exemption for Construction Materials. In order to obtain an exemption from
state and local sales and use taxes for construction materials incorporated into the Project, the City will
provide a project exemption certificate to the Company in connection with the Company's acquisition of
construction materials for the Project. Such project exemption certificate for construction materials shall
not be used by the Company in connection with the acquisition of personal property other than construction
materials. The Company agrees to immediately pay to the Missouri Department of Revenue all sales and
use tax that otherwise would have been due with respect to the Project if the Bonds are not issued by March
1,2021 (subject to any extension granted by the City it its sole discretion).
SECTION 2. Liability for Sales Determined to be Taxable. Upon a determination by the
Missouri Department of Revenue that any purchase made by the Company using a project exemption
certificate described herein was not exempt from sales or use tax, the Company shall pay to the Missouri
Department of Revenue all sales or use taxes so determined to be due(whether by virtue of failure of the
Company to comply with the terms of this Agreement or otherwise). The Company shall indemnify and
defend the City and its respective officers, employees and agents against and from any and all causes of
action or actions in law or equity, liens, claims damages, loss, costs or expenses of any nature whatsoever
by any person or entity, arising out of the City's furnishing of the project exemption certificate to the
Company or its affiliates. There shall be no reduction in payments in lieu of taxes relating to the issuance
of Bonds for the Project for any sales or use taxes paid by the Company in connection with the Project.
SECTION 3. Enforcement. In addition to other remedies allowed by law or in equity,the City
may bring an action for specific performance to enforce the provisions of this Agreement. In the event of
litigation pertaining to the enforcement of this Agreement,the losing party shall pay all costs of litigation,
including reasonable attorneys' fees.
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IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the day and
year first above written.
CITY OF RIVERSIDE,MISSOURI
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By:_'
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By:
Title: City Clerk
Sales Tax Exemption Agreement
Skyline Townhomes Project
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SKYLINE TOWNHOMES,LLC,
a Missouri limited liability company
By:
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Andre ackey, Member/Manager
Sales Tax Exemption Agreement
Skyline Townhomes Project
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NOTICE TO TAXING JURISDICTIONS
To: Taxing Jurisdictions (Distribution List attached)
Re: Notice of Public Hearing—Skyline Townhomes Project
On behalf of the City of Riverside,Missouri("City"),please find enclosed a copy of the proposed
Plan for an Industrial Development Project for the Skyline Townhomes Project ("Plan"), which
also contains a Cost Benefit Analysis on the affected taxing jurisdictions.
The Plan provides for a sales and use tax exemption on construction materials,but no property tax
abatement.
The City anticipates considering an Ordinance to approve the Plan at its regular meeting on
Tuesday, December 15, 2020 at 7:00 PM in the Board of Aldermen Chambers at City Hall, 2950
NW Vivion Road, Riverside, Missouri.
The City invites all affected taxing districts to attend the meeting and to make oral comments on
the proposed Plan to the City or to provide written comments to the City on the Plan prior to the
meeting. All comments of the taxing districts will be fairly and duly considered by the City.
A copy of the 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 will be available for public inspection during normal
business hours.
Any questions should be directed to Mike Duffy,Director of Community Development for the City
at(S 16)741-3993.
CITY OF RIVERSIDE,MISSOURI
2950 NW Vivion Road
Riverside, Missouri
r
City of Riverside Park Hill School District R-V
Director of Finance Superintendent
2950 N.W.Vivion Road 7703 NW Barry Road
Riverside, MO 64150 Kansas City,MO 64153
Platte County Board of Services for the Tri-County Mental Health Services,Inc.
Developmentally Disabled Chair
Executive Director 3100 NE 83`a Street,Suite 1001
7900 NW 106th Street Kansas City,MO 64119-9998
Kansas City,MO 64153
Missouri Department of Revenue Mid-Continent Public Library
County Tax Section Director
Blind Pension Fund 15616 E.Highway 24
P.O.Box 455 Independence,MO 64050-2057
Jefferson City,MO 65105
Platte County Missouri Department of Revenue
Presiding Commissioner Taxation Division
415 Third Street, Suite 210 301 West High Street
Platte City,MO 64079 Jefferson City,MO 65101
Platte County Collector Platte County Assessor
415 Third Street, Suite 212 415 Third Street, Suite 114
Platte City,MO 64079 Platte City,MO 64079
Parkville Special Road District Missouri Department of Economic
7101 NW Hampton Road Development
Parkville, MO 64152 Director
P.O. Box 1157
Jefferson City, MO 65102
Platte County Health Department Platte County Senior Fund
212 Marshall Road 11724 NW Plaza Circle, Suite 600
Platte City,MO 64079 Kansas City,MO 64153
Metropolitan Community College Missouri Director of Revenue
Chancellor County Tax Section
3200 Broadway Merchants/Manufacturers Replacement Tax
Kansas City, MO 64111 Fund
P.O.Box 453
Jefferson City,MO 65102-0453