HomeMy WebLinkAbout1836 Series of Taxable Industrial Revenue Bonds (Logistics Centre Building 2 Project) - Different Special Purpose Entity BILL NO. 2022-013 ORDINANCE NO. 1 g 3L0
AN ORDINANCE AUTHORIZING THE CITY TO ENTER INTO PREVIOUSLY AUTHORIZED
AGREEMENTS RELATING TO A SERIES OF TAXABLE INDUSTRIAL REVENUE BONDS
(LOGISTICS CENTRE BUILDING 2 PROJECT) WITH A DIFFERENT SPECIAL PURPOSE
ENTITY.
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, the Board of Aldermen has previously authorized by ordinance (the "Prior
Ordinance") the issuance by the City of its Taxable Industrial Revenue Bonds (Logistics Centre
Building 2 Project) in an aggregate principal amount not to exceed $26,250,000 (the `Bonds"), for
the purpose of (a) acquiring certain land described as Lot 4, Replat of Doorlink, 1st Plat, a
subdivision in Riverside, Platte County, Missouri (the "Project Site"), (b) leasing the Project Site
and Project Improvements (as hereinafter defined) to HIDGFBR Associates. LLC, a Missouri
limited liability company ("HIDGFBR") for the construction of an approximately 302,176 square foot
facility consisting of approximately 228,176 square feet of distribution/warehousing and light
industrial uses, and approximately 74,000 square feet of office uses, including buildings, structures,
improvements, and fixtures (collectively, the "Project Improvements," and together with the Project
Site, the "Project"), and (c) paying costs of issuing the Bonds; and
WHEREAS, the developers of the Project have requested that, instead of HIDGFBR, the
City enter into the lease and related documents (the "Documents") with LLE3 Riverside SPE LLC,
a Missouri limited liability company (the "Tenant"); and
WHEREAS, the Board of Aldermen hereby finds and determines that it is necessary and
desirable to accomplish the transactions relating to the Bonds that the City enter into the
Documents with the Tenant instead of with HIDGFBR;
NOW, THEREFORE, BE IT ORDAINED BY THE BOARD OF ALDERMEN OF THE CITY
OF RIVERSIDE, MISSOURI, AS FOLLOWS:
SECTION 1 -AUTHORIZATION OF CHANGE IN TENANT. The City is hereby authorized
to substitute the Tenant for HIDGFBR in the Documents and to enter into the Documents with the
Tenant in the manner described in the Prior Ordinance.
SECTION 2 - EXECUTION OF DOCUMENTS. The Mayor is hereby authorized to
execute the Documents with the Tenant as a party 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 such 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. City staff is authorized to provide a sales tax exemption certificate to the
Tenant for the purchase of construction materials.
SECTION 3 - CONFLICTS. All ordinances or parts of ordinances in conflict herewith are
hereby repealed.
SECTION 4 - 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 _3r'' day of a . 2022.
- . . thleen L. Rose, Mayor
ATtEST: . • '
Robin Kincaid, G ty Clerk
•
-2-
GILMOIJEBELL
2405 Grand Boulevard,Suite 1100
Kansas City,Missouri 6 4108-2 521
(816)221-1000/(816)221-1018 FAX/gilmorebell.com
To: Michael Duffy
Director of Community Development
City of Riverside,Missouri
2950 N.W. Vivion Road
Riverside,MO 64150
From: David Martin
Gilmore&Bell, P.C.
2405 Grand Boulevard, Suite 1100
Kansas City,MO 64108
Re: The City's authorized but unissued$26,250,000 Taxable Industrial Revenue Bonds(Logistics
Centre Building 2 Project)(the"Bonds")for Lot 4 of Doorlink, 1st Plat
Michael—
As we move closer to the issuance of the Bonds, the developer of the project, Block Real Estate
Services, LLC, has determined a need to substitute the special purpose entity formed to take title to the
property and enter into the bond documents. Originally, and as approved by the original bond ordinance,
this was intended to be HIDGFBR Associates, LLC,a Missouri limited liability company. As part of the
investment in the project,the investors intend to take advantage of a Section 1031 exchange,which required
the developer to form a new special purpose entity for the investment group. The developer has formed
LLE3 Riverside SPE LLC, a Missouri limited liability company (the "New SPE") to take title to the
property and to replace HIDGFBR in the transactions relating to the Bonds. The ultimate developer of the
project remains unchanged.
As the original bond ordinance approved HIDGFBR as the bond lessee,the developer has requested
that the City approve, by ordinance, the substitution of the New SPE so that the bond documents may be
executed between the City and the New SPE. An ordinance is included with this letter for that purpose.
Sincerely,
lam' `
David Martin