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HomeMy WebLinkAbout2085 Approving Development Project for Soccor Complex (Phase 3) BILL NO. 2025-047 ORDINANCE NO. 2085 AN ORDINANCE APPROVING A PLAN FOR AN INDUSTRIAL DEVELOPMENT PROJECT FOR A SOCCER COMPLEX (PHASE 3); AUTHORIZING THE CITY TO ISSUE ITS TAXABLE INDUSTRIAL REVENUE BONDS IN THE AGGREGATE MAXIMUM PRINCIPAL AMOUNT OF NOT TO EXCEED $16,800,000; AND AUTHORIZING CERTAIN OTHER ACTIONS IN CONNECTION WITH THE ISSUANCE OF THE BONDS. 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, the City, in accordance with Section 100.050 of the Act, prepared a Plan for an Industrial Development Project dated May 12, 2025 (the "Plan") for the third phase of a soccer complex project, consisting of an outdoor stadium with a 2,000 person capacity and a 17,000 square foot single-story performance center building providing indoor/outdoor training areas, locker rooms, a player lounge, and a multipurpose meeting room (the "Project"), notice of the Project was given to the taxing jurisdictions in accordance with Section 100.059.1 of the Act and the City now desires to approve the Plan; and WHEREAS, the City desires to finance the costs of the Project out of the proceeds of a series of industrial development bonds to be issued under the Act; and WHEREAS, the City has and does hereby find and determine that it is desirable for the economic development of the City and within the public purposes of the Act that the City proceed with the issuance of said bonds for the purpose described above; and WHEREAS, the City further finds and determines that it is necessary and desirable in connection with 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. PROMOTION OF ECONOMIC DEVELOPMENT; FINDING OF COMMERCIAL FACILITY. The Board of Aldermen hereby finds and determine that (1) the Project will promote the economic welfare and the development of the City, and the issuance of the bonds by the City to pay costs of the Project will be in furtherance of the public purposes set forth in the Act, and (2) the Project constitutes a commercial facility under the Act. SECTION 2 —APPROVAL OF PLAN. The Board of Alderman hereby approves the Plan for an Industrial Development Project attached hereto as Exhibit A in accordance with Section 100.050 of the Act. SECTION 3 -AUTHORIZATION OF THE BONDS. The City is hereby authorized to issue and sell its Taxable Industrial Revenue Bonds (Soccer Complex Project - Phase 3), in an aggregate maximum principal amount of not to exceed $16,800,000 (the"Bonds"), for the purpose of providing funds to costs of the Project and to pay 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 4 - LIMITATION ON LIABILITY. The Bonds and the interest thereon shall be limited and special revenue obligations of the City payable solely out of the payments, rents, revenues and receipts derived by the City from the herein authorized Lease Agreement and not from any other fund or source of the City. Certain of such payments, rents, revenues and receipts shall be pledged and assigned to the bond trustee named in the Indenture (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 5 - AUTHORIZATION OF DOCUMENTS. The City is hereby authorized to enter into the following documents (the "City Documents"), in substantially the forms presented to and approved by the Board of Aldermen and attached to this Ordinance, 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 Agreement 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) Lease Agreement dated as of the date set forth therein (the "Lease Agreement"), between the City and KC WFC Riverside, LLC, or its affiliate, assignee or designee (the "Company"), under which the City will lease the Project to the Company, pursuant to the terms and conditions in the Lease Agreement, 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 Agreement. (c) Bond Purchase Agreement dated as of the date set forth therein, among the City, the Company and the purchaser of the Bonds. SECTION 6. CREATION OF BOND FUND. The City is hereby authorized to establish with the Trustee pursuant to the Indenture, a special trust fund in the name of the City and the City shall cause all sums required by the Indenture to be deposited therein and shall create all accounts therein required by the Indenture. -2- SECTION 7 - EXECUTION OF DOCUMENTS. The Mayor 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 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 8 - 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 is hereby authorized, throughout the term of the Lease Agreement, 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 Agreement. SECTION 9 - CONFLICTS. All ordinances or parts of ordinances in conflict herewith are hereby repealed. SECTION 10 - 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 3rd day of June, 2025. Kathleen L. Rose, Mayor ATTEST: Robin Kincaid, city Clerk -3- EXHIBIT A PLAN FOR INDUSTRIAL DEVELOPMENT -4- $16,800,000 AGGREGATE MAXIMUM PRINCIPAL AMOUNT CITY OF RIVERSIDE,MISSOURI TAXABLE INDUSTRIAL REVENUE BONDS (SOCCER COMPLEX PROJECT-PHASE 3) SERIES 2025 Dated June 1,2025 BOND PURCHASE AGREEMENT City of Riverside,Missouri 2950 N.W.Vivion Road Riverside,Missouri 64150 On the basis of the representations, and covenants and upon the terms and conditions contained in this Bond Purchase Agreement (the "Agreement"), KC WFC Riverside, LLC, a Missouri limited liability company (the "Purchaser") offers to purchase from the City of Riverside, Missouri (the "Issuer"), the above-referenced Taxable Industrial Revenue Bonds,dated as provided in the Indenture(hereinafter defined), in the maximum aggregate principal amount of$16,800,000(the"Bond"),to be issued by the Issuer, under and pursuant to an ordinance adopted by the governing body of the Issuer on June 3,2025(the"Ordinance") and a Trust Indenture dated as of June 1,2025(the"Indenture"),by and between the Issuer and UMB Bank, N.A., a national banking association authorized to accept and execute trusts of the character herein set forth under the laws of the State of Missouri, with a corporate trust office located in Kansas City, Missouri, as Trustee(the"Trustee"). SECTION 1. REPRESENTATIONS AND AGREEMENTS By the Issuer's acceptance hereof,the Issuer hereby represents to the Purchaser that: (a) The Issuer is a fourth-class city duly organized and existing under the laws of the State of Missouri. The Issuer is authorized pursuant to the Constitution and laws of the State of Missouri,to authorize, issue and deliver the Bond and to consummate all transactions contemplated by this Bond Purchase Agreement, the Ordinance, the Indenture, the Lease Agreement dated as of June 1,2025 (the"Lease Agreement"),by and between the Issuer and KC WFC Riverside, LLC,a Missouri limited liability company(the"Tenant"),and any and all other agreements relating thereto. The proceeds of the Bond shall be used to finance the Project as defined in the Indenture and to pay for the costs incurred in connection with the issuance of the Bond. (b) There is no controversy, suit or other proceeding of any kind pending or threatened wherein or whereby any question is raised or may be raised,questioning,disputing or affecting in any way the legal organization of the Issuer or its boundaries,or the right or title of any of its officers to their respective offices,or the legality of any official act leading up to the issuance of the Bond or the constitutionality or validity of the indebtedness represented by the Bond or the validity of the Bond, the Lease Agreement,the Indenture or this Bond Purchase Agreement. SECTION 2. PURCHASE,SALE AND DELIVERY OF THE BOND On the basis of the representations and covenants contained herein and in the other agreements referred to herein,and subject to the terms and conditions herein set forth and in the Indenture,the Purchaser agrees to purchase from the Issuer and the Issuer agrees to sell to the Purchaser the Bond on the terms and conditions set forth herein. The Bond shall be sold to the Purchaser by the Issuer on the Closing Date(hereinafter defined)upon payment of an amount equal to the Closing Price(hereinafter defined), which amount shall be deposited in the Project Fund as provided in Section 502 of the Indenture and shall thereafter on the Closing Date immediately be applied to the payment of Project Costs as provided in Section 4.4 of the Lease Agreement. From time to time after the Closing Date, the Purchaser may make additional payments with respect to the Bond ("Additional Payments") to the Trustee under the Indenture, which Additional Payments shall be deposited in the Project Fund and applied to the payment of Project Costs and the outstanding principal amount of the Bond shall increase by each such Additional Payment; provided that the sum of the Closing Price and all such Additional Payments shall not, in the aggregate,exceed$16,800,000. As used herein,the term"Closing Date"shall mean the date mutually agreed upon by the Issuer and the Purchaser and reflected in the closing certificates executed in connection with the issuance of the Bond; the term"Closing Price"shall mean that certain amount specified in writing by the Purchaser and agreed to by the Issuer as the amount required to fund the initial disbursement from the Project Fund on the Closing Date. The Bond shall be issued under and secured as provided in the Ordinance and in the Indenture and the Lease Agreement authorized thereby and the Bond shall have the maturity,interest rate and shall be subject to redemption as set forth therein. The delivery of the Bond shall be made in definitive form as a fully registered bond in the maximum aggregate principal denomination of $16,800,000; provided, that the principal amount of the Bond outstanding at any time shall be that amount recorded in the official bond registration records of the Trustee and further provided that interest shall be payable on the Bond only on the outstanding principal amount of the Bond,as more fully provided in the Indenture. The Tenant agrees to indemnify and hold harmless the Issuer and the Trustee,including any member, officer,official or employee of the Issuer or of the Trustee within the meaning of Section 15 of the Securities Act of 1933, as amended (collectively, the "Indemnified Parties"), against any and all losses, claims, damages, liabilities or expenses whatsoever caused by any violation or failure to comply with any federal or state securities laws in connection with the Bond; provided, however, the indemnification contained in this paragraph shall not extend to such Indemnified Party if such loss, claim, damage, liability or expense is(a) the result of the Indemnified Party's negligence or willful misconduct, or (b) the Indemnified Party is not following the written instructions of the Tenant or the Owner of the Bond. In case any action shall be brought against one or more of the Indemnified Parties based upon the foregoing indemnification and in respect of which indemnity may be sought against the Tenant, the Indemnified Parties shall promptly notify the Tenant in writing and the Tenant shall promptly assume the defense thereof, including the employment of counsel,the payment of all reasonable expenses and the right to negotiate and consent to settlement. Any one or more of the Indemnified Parties shall have the right to -2- employ separate counsel in any such action and to participate in the defense thereof,but the fees and expenses of such counsel shall be at the expense of such Indemnified Party or Indemnified Parties unless employment of such counsel has been specifically authorized in writing by the Tenant. The Tenant shall not be liable for any settlement of any such action effected without its consent by any of the Indemnified Parties,but if settled with the consent of the Tenant or if there be a final judgment for the plaintiff in any such action against the Tenant or any of the Indemnified Parties, with or without the consent of the Tenant, the Tenant agrees to indemnify and hold harmless the Indemnified Parties to the extent provided herein. SECTION 3. CONDITIONS TO THE PURCHASER'S OBLIGATIONS The Purchaser's obligations hereunder shall be subject to the due performance by the Issuer of the Issuer's obligations and agreements to be performed hereunder on or prior to the Closing Date and to the accuracy of and compliance with the Issuer's representations contained herein,as of the date hereof and as of the Closing Date,and are also subject to the following conditions: (a) There shall be delivered to the Purchaser on or prior to the Closing Date a duly executed copy of the Ordinance, the Indenture, the Lease Agreement and the Bond Purchase Agreement and any other instrument contemplated thereby shall be in full force and effect and shall not have been modified or changed except as may have been agreed to in writing by the Purchaser. (b) The Issuer shall confirm on the Closing Date by a certificate that at and as of the Closing Date the Issuer has taken all action necessary to issue the Bond and that there is no controversy,suit or other proceeding of any kind pending or threatened wherein any question is raised affecting in any way the legal organization of the Issuer or the legality of any official act shown to have been done in the transcript of proceedings leading up to the issuance of the Bond, or the constitutionality or validity of the indebtedness represented by the Bond or the validity of the Bond or any proceedings in relation to the issuance or sale thereof. The form and substance of such certificate shall be satisfactory to the Purchaser and the Tenant. (c) Receipt by the Purchaser and the Tenant of an approving opinion from Gilmore& Bell,P.C.,in form and substance satisfactory to the Purchaser and the Tenant. SECTION 4. THE PURCHASER'S RIGHT TO CANCEL The Purchaser shall have the right to cancel its obligation hereunder to purchase the Bond by notifying the Issuer in writing sent by first class mail, facsimile or reputable overnight delivery service, of its election to make such cancellation at any time prior to the Closing Date. SECTION 5. CONDITIONS OF OBLIGATIONS The obligations of the parties hereto are subject to the receipt of the approving opinion of Gilmore& Bell, P.C.,Bond Counsel,with respect to the validity of the authorization and issuance of the Bond. SECTION 6. REPRESENTATIONS AND AGREEMENTS TO SURVIVE DELIVERY All of the representations and agreements by either party shall remain operative and in full force and effect,and shall survive delivery of the Bond to the Purchaser. -3- SECTION 7. PAYMENT OF EXPENSES The Tenant shall pay all reasonable expenses and costs to effect the authorization, preparation, issuance,delivery and sale of the Bond from Bond proceeds or otherwise. SECTION 8. NOTICE Any notice or other communication to be given to the Issuer or the Tenant under this Agreement may be given by mailing or delivering the same in writing as provided in the Indenture; and any notice or other communication to be given to the Purchaser under this Agreement may be given by delivering the same in writing to Purchaser at the notice address set out in the Indenture. SECTION 9. APPLICABLE LAW;ASSIGNABILITY This Bond Purchase Agreement shall be governed by the laws of the State of Missouri and may be assigned by the Purchaser with the written consent of the Issuer. SECTION 10. EXECUTION OF COUNTERPARTS This Bond Purchase Agreement may be executed in several counterparts, each of which shall be regarded as an original and all of which shall constitute one and the same document. [The remainder of this page is left intentionally blank] -4- Very truly yours, PURCHASER: KC WFC RIVERSIDE,LLC, a Missouri limited liability company, By: Name: Angie K. Long Title: Authorized Signatory Accepted and Agreed to as of the Closing Date. TENANT: KC WFC RIVERSIDE,LLC, a Missouri limited liability company, By: Name: Angie K. Long Title: Authorized Signatory Bond Purchase Agreement S-1 Riverside MO-Soccer Complex Project-Phase 3 Accepted and Agreed as of the Closing Date. ISSUER: CITY OF RIVERSIDE,MISSOURI By: • Mayor (Seal) ATTEST: B � City lerk Bond Purchase Agreement S-2 Riverside MO-Soccer Complex Project-Phase 3 NOTICE TO TAXING JURISDICTIONS To: Taxing Jurisdictions (Distribution List attached) Re: Notice of Public Hearing On behalf of the City of Riverside,Missouri(the"City"),please find enclosed a copy of a proposed plan for an industrial development project(the"Plan"),which also contains a cost benefit analysis on the affected taxing jurisdictions. The City anticipates considering an ordinance to approve the Plan at its regular meeting on June 3, 2025 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 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(816)741-3993. CITY OF RIVERSIDE,MISSOURI 2950 NW Vivion Road Riverside,Missouri 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 83rd Street,Suite 1001 7900 NW 106th Street Kansas City,MO 64 1 1 9-9998 Kansas City,MO 64153 Platte County Senior Fund Mid-Continent Public Library 12200 N.Ambassador Dr., Ste 206 Director Kansas City, MO 64163 15616 E.Highway 24 Independence,MO 64050-2057 Platte County Metropolitan Community College Presiding Commissioner Chancellor 415 Third Street,Suite 210 3200 Broadway Platte City,MO 64079 Kansas City,MO 64111 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 Revenue 7101 NW Hampton Road Taxation Division Parkville,MO 64152 301 West High Street Jefferson City,MO 65101 Platte County Health Department Missouri Department of Revenue 7925 NW 110th Street County Tax Section Kansas City, MO 64153 Blind Pension Fund 301 West High Street Jefferson City,MO 65101 Missouri Director of Revenue County Tax Section Merchants/Manufacturers Replacement Tax Fund 301 West High Street Jefferson City,MO 65101 CITY OF RIVERSIDE, MISSOURI PLAN FOR AN INDUSTRIAL DEVELOPMENT PROJECT AND COST-BENEFIT ANALYSIS (SALES TAX EXEMPTION ONLY ON CONSTRUCTION MATERIALS) FOR A SOCCER COMPLEX PROJECT (PHASE 3) DATE: MAY 12,2025 I. PURPOSE OF THIS PLAN The Board of Aldermen of the City of Riverside,Missouri(the"City")will consider an ordinance approving this Plan for an Industrial Development Project and Cost-Benefit Analysis (the "Plan") for an industrial development project consisting of a soccer stadium and performance center to be operated for a profit(the"Project")as more fully described herein. This Plan calls for the issuance by the City of taxable industrial development revenue bonds in an aggregate principal amount not to exceed $16,800,000 (the "Bonds") with respect to the Project. The Bonds will be issued pursuant to the provisions of Article VI, Section 27(b) of the Missouri Constitution, as amended and Sections 100.010 to 100.200 of the Revised Statutes of Missouri,as amended(collectively,the"Act"). This Plan has been prepared to satisfy requirements of the Act and to analyze the potential costs and benefits, including the related tax impact on all affected taxing jurisdictions, of using industrial development revenue bonds to finance the Project and to facilitate the exemption from sales and use tax of purchases of construction materials for the Project. This Plan applies to property (described below under the heading "REQUIREMENTS OF THE ACT—Description of the Project")that is currently subject to(1)the Plan for an Industrial Development Project for Briarcliff Realty, LLC dated November 3, 2011 (the"Briarcliff Plan"), and(2)the Plan for an Industrial Development Project and Cost-Benefit Analysis (Sales Tax Exemption Only on Construction Materials)for a Soccer Complex Project dated September 15,2021 (the"Original Soccer Complex Plan"). This Plan should be considered a supplement to the Briarcliff Plan and the Original Soccer Complex Plan, adding to the Briarcliff Plan and the Original Soccer Complex Plan without deleting or terminating any portion of the Briarcliff Plan or the Original Soccer Complex Plan. II. GENERAL DESCRIPTION OF CHAPTER 100 FINANCINGS General. The Act authorizes cities, counties, towns and villages to issue industrial development revenue bonds to finance the purchase, construction, extension and improvement of warehouses, distribution facilities, research and development facilities, office industries, agricultural processing industries, service facilities that provide interstate commerce, industrial plants and other commercial facilities. Issuance and Sale of Bonds. Revenue bonds issued pursuant to the Act do not require voter approval and are payable solely from revenues received from the project.The municipality issues its bonds and in exchange,the benefited company promises to make payments that are sufficient to pay the principal of and interest on the bonds as they become due. Thus,the municipality merely acts as a conduit for the financing. Concurrently with the closing of the bonds, the company will convey to the municipality title to the property included in the project. The municipality must be the legal owner of the property while the bonds are outstanding. At the same time, the municipality will lease the property, including the project, back to the benefited company pursuant to a lease agreement. The lease agreement will require the company, acting on behalf of the municipality,to use the bond proceeds to pay the costs or reimburse the costs of purchasing,constructing and installing the project,as applicable. Under the lease agreement,the company typically:(1)will unconditionally agree to make payments sufficient to pay the principal of and interest on the bonds as they become due; (2) will agree, at its own expense,to maintain the project,to pay all taxes and assessments with respect to the project,and to maintain adequate insurance; (3) has the right, at its own expense, to make certain additions, modifications or improvements to the project;(4)may assign its interests under the lease agreement under certain conditions or may sublease the project while remaining responsible for payments under the lease agreement;(5)will covenant to maintain its corporate existence during the term of the bond issue; and (6) will agree to indemnify the municipality for any liability the municipality might incur as a result of its participation in the transaction. Property Tax Exemption. Under Article X, Section 6 of the Missouri Constitution and Section 137.100 of the Revised Statutes of Missouri, all property of any political subdivision is exempt from taxation. In a typical transaction,the municipality holds fee title to the project and leases the project to the benefited company. If the municipality and the company determine that partial tax abatement is desirable,the company may agree to make"payments in lieu of taxes." The amount of payments in lieu of taxes is negotiable. The payments in lieu of taxes are payable by December 31 of each year,and are distributed to the municipality and to each political subdivision within the boundaries of the project in the same manner and in the same proportion as property taxes would otherwise be distributed under Missouri law. Under this Plan, no property tax abatement is being provided, so a payment in lieu of tax will be made by the benefitted company in each year in an amount calculated to be equal to the taxes that would otherwise be due on the property. The area in which the Project will be located is subject to a tax increment financing plan. For this reason,payments in lieu of taxes made by the benefitted company will be captured and applied as tax increment financing revenues. III. DESCRIPTION OF THE PARTIES The Company. KC WFC Riverside, LLC,or its assignee or designee(the"Company"),will enter into a lease with the City for the Project. KC WFC Riverside,LLC is a limited liability company organized and existing under the laws of the State of Missouri, whose operations center around sports and entertainment. City of Riverside, Missouri. The City is a fourth-class city and municipal corporation organized and existing under the laws of the State of Missouri. The City is authorized and empowered pursuant to the provisions of 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 and industrial development purposes upon such terms and conditions as the City deems advisable. IV. REQUIREMENTS OF THE ACT Description of the Project. The Project to be financed by the Bonds consists of the design and construction of the third phase of a for-profit soccer complex,such phase to consist of an outdoor stadium with a 2,000 person capacity and a 17,000 square foot performance center. The performance center will be a single-story building providing indoor/outdoor training areas, locker rooms, a player lounge, and a multipurpose meeting room. The location of the Project is 5000 N.W.Canal Street in Riverside,Missouri. The red-outlined portion of the map below shows the approximate boundaries of the real property to be included in the site for the Project(the"Project Site"). -2- jill ,t ,; 44) et it N 1 61111111*---)"4''''.. '' ' 40, . • ilif • • 1. i ## 0 S ' : . ., 44 I' 1 /f {. 1 / Y Project Site S, 1;. * '.Y Estimate of the Costs of the Project. The Project is expected to cost approximately $16,800,000, with$7,312,000 estimated to be spent on construction materials. The Project is expected to be constructed during the years 2025 through 2026. Source of Funds to be Expended for the Project. The sources of funds to be expended for the Project will be the proceeds of the Bonds in a principal amount not to exceed$16,800,000,to be issued by the City and purchased by the Company (the "Bondholder") and, if needed, other available funds of the -3- Company. The Bonds will be payable solely from the revenues derived by the City from the lease or other disposition of the Project(as further described below). The Bonds will not be an indebtedness or general obligation,debt or liability of the City or the State of Missouri. Statement of the Terms Upon Which the Project is to be Leased or Otherwise Disposed of by the City. The City will hold title to the Project Site under the Chapter 100 transaction. The City will lease the Project to the Company for lease payments equal to the principal and interest payments on the Bonds. Under the terms of the lease agreement with the City, the Company will have the option to purchase the Project at any time and will have the obligation to purchase the Project at the termination of the lease. The lease between the City and the Company will terminate at Project completion, unless terminated sooner pursuant to the terms of the lease. Affected School District, Community College District, County, City, and Emergency Services Districts. The Park Hill School District is the school district affected by the Project. Platte County, Missouri is the county affected by the Project. Metropolitan Community College is the community college district affected by the Project. The City is the city affected by the Project. No ambulance or fire district is affected by the Project. The Cost-Benefit Analysis attached hereto identifies all other taxing districts affected by the Project. Assessed Valuation. The most recent equalized assessed valuation of the Project Site is$274,001. The estimated total equalized assessed valuation of the Project Site after construction of the Project(2027) is$3,661,440. Payments in Lieu of Taxes. If this Plan is approved by the Board of Aldermen, the City intends to issue the Bonds in 2025. The Bonds are being issued for the sole purpose of providing sales and use exemption on construction materials and no property tax abatement will be provided. During the time that the Bonds are outstanding,the Project will be under construction and the Company will pay a payment in lieu of taxes calculated to be equal to 100%of the real property taxes due on the Project in each year. After completion of the Project, it will be placed back on the tax rolls. The Project Site is within the redevelopment area established by the City's L-385 Levee Redevelopment Plan (the "TIF Plan"). Incremental property tax revenues, including payments in lieu of taxes generated pursuant to this Plan, will be captured as tax increment financing ("TIF') revenues for application in accordance with the TIF Plan. For this reason, it is not anticipated that any payments in lieu of taxes generated pursuant to this Plan will be distributed to the taxing districts. Sales and Use Tax Exemption on Construction Materials. Qualified building materials purchased for the construction of the Project are expected to be exempt from sales and use tax pursuant to the provisions of Section 144.062 of the Revised Statutes of Missouri and the underlying bond documents upon delivery of a project exemption certificate by the City to the Company. The anticipated cost of this exemption to taxing jurisdictions levying a sales or use tax is shown below: Sales/Use Taxes Taxing Jurisdiction Tax Rate Abated State of Missouri 4.225% $308,932 Platte County 1.250% $91,400 City of Riverside 1.500% $109,680 Total 6.975% $510,012 -4- Cost-Benefit Analysis. In compliance with Section 100.050.2(3) of the Revised Statutes of Missouri, this Plan has been prepared to show the costs and benefits to the City and to other taxing jurisdictions affected by the Project. The attached Cost-Benefit Analysis shows the direct tax impact the Project is expected to have on each taxing jurisdiction. This Plan does not attempt to quantify the overall economic impact of the Project. V. ASSUMPTIONS AND BASIS OF PLAN In preparing this Plan, key assumptions have been made to estimate the fiscal impact of the exemptions proposed for the Project. See ATTACHMENT A for a summary of these assumptions. Information necessary to complete this Plan, has been furnished by representatives of the City, representatives of the Company and its counsel,the Bondholder and other persons deemed appropriate and such information has not been independently verified for accuracy,completeness or fairness. * * * -5- ATTACHMENT A SUMMARY OF KEY ASSUMPTIONS In addition to the assumptions described in the Plan and the Cost-Benefit Analysis, the following assumptions have been made in preparing the Cost-Benefit Analysis: 1. Commercial real property taxes are calculated using the following formula: (Assessed Value/ 100)* Tax Rate 2. The assessed value of the Project is calculated using the following formula: Estimated Value* Assessment Ratio of 32% 3. The tax rates used in this Plan reflect the rates in effect for the tax year 2024. The tax rates were held constant through the years shown in the Cost-Benefit Analysis. The actual payments in lieu of taxes imposed pursuant to the Plan will be based on the current levy rates in each year. 4. The assessments imposed by the Riverside Quindaro Bend Levee District are not affected by ownership of the Project Site by the City and will continue to be imposed upon the Project Site during the term of the Bonds. The Company will be responsible for payment of such assessments. * * * A-I City of Riverside,Missouri (Soccer Complex Project-Phase 3) COST BENEFIT ANALYSIS PLAN FOR INDUSTRIAL DEVELOPMENT PROJECT GILMOIkEBELL Table of Contents Project Assumptions 1 Summary of Cost Benefit Analysis 2 Projected Tax Revenues without Project 3 Projected Tax Revenue with Project 4 Projected PILOTS 5 Projected Tax Abatement 6 This information is provided based on the factual information and assumptions provided to Gilmore&Bell,P.C.by a party to or a representative of a party to the proposed transaction.This information is intended to provide factual information only and is provided in conjunction with our legal representation.It is not intended as financial advice or a financial recommendation to any party.Gilmore&Bell,P.C.is not a financial advisor or a"municipal advisor" as defined in the Securities Exchange Act of 1934,as amended. City of Riverside,Missouri (Soccer Complex Project-Phase 3) Cost Benefit Analysis 5/2/2025 Project Assumptions • Initial year taxes assessed 2025 • 2025 Appraised value of real property $ 881,941 • 2026 Appraised value of real property $ 8,967,791 • Assessed value as a percentage of appraised value(real) 32.0% • 2025 Assessed value of real property $ 282,221 • 2026 Assessed value of real property $ 2,869,693 • Terms of abatement: Real property Years 1-2 0% City of Riverside,Missouri (Soccer Complex Project-Phase 3) Cost Benefit Analysis -1- 5/2/2025 Summary of Cost Benefit Analysis Projected Tax Projected Tax Projected Revenues without Revenue with Projected Tax Taxing Jurisdiction Tax Rate Project Project PILOTS Abatement State 0.0300 $ 169 $ 946 $ 946 $ - County 0.0100 56 315 315 - Health Department 0.0722 408 2,276 2,276 - Board of Disabled Services 0.1175 663 3,704 3,704 - Mental Health 0.0902 509 2,843 2,843 - Mid-Continent Library 0.3152 1,779 9,935 9,935 - Senior Citizen Fund 0.0452 255 1,425 1,425 - Park Hill School District 5.3955 30,454 170,062 170,062 - Parkville Special Road District 0.2324 1,312 7,325 7,325 - Metropolital Community College 0.1806 1,019 5,692 5,692 - Surtax 0.3600 2,032 11,347 11,347 - 6.8488 $ 38,657 $ 215,868 $ 215,868 $ - City of Riverside,Missouri (Soccer Complex Project-Phase 3) Cost Benefit Analysis -2- 5/2/2025 Projected Tax Revenues without Project Estimated Assessed Value of Real Property $ 282,221 $ 282,221 Tax Rate per Taxing Jurisdiction $100 2025 2026 Total State 0.0300 $ 85 $ 85 $ 169 County 0.0100 28 28 56 Health Department 0.0722 204 204 408 Board of Disabled Services 0.1175 332 332 663 Mental Health 0.0902 255 255 509 Mid-Continent Library 0.3152 890 890 1,779 Senior Citizen Fund 0.0452 128 128 255 Park Hill School District 5.3955 15,227 15,227 30,454 Parkville Special Road District 0.2324 656 656 1,312 Metropolital Community College 0.1806 510 510 1,019 Surtax 0.3600 1,016 1,016 2,032 6.8488 $ 19,329 $ 19,329 $ 38,657 City of Riverside,Missouri (Soccer Complex Project-Phase 3) Cost Benefit Analysis -3- 5/2/2025 Projected Tax Revenues with Project Estimated Assessed Value of Real Property $ 282,221 $2,869,693 Tax Rate per Taxing Jurisdiction $100 2025 2026 Total State 0.0300 $ 85 $ 861 $ 946 County 0.0100 28 287 315 Health Department 0.0722 204 2,072 2,276 Board of Disabled Services 0.1175 332 3,372 3,704 Mental Health 0.0902 255 2,588 2,843 Mid-Continent Library 0.3152 890 9,045 9,935 Senior Citizen Fund 0.0452 128 1,297 1,425 Park Hill School District 5.3955 15,227 154,834 170,062 Parkville Special Road District 0.2324 656 6,669 7,325 Metropolital Community College 0.1806 510 5,183 5,692 Surtax 0.3600 1,016 10,331 11,347 6.8488 $ 19,329 $ 196,540 $215,868 City of Riverside,Missouri (Soccer Complex Project-Phase 3) Cost Benefit Analysis -4- 5/2/2025 Projected PILOTS Estimated Assessed Value of Real Property $ 282,221 $2,869,693 PILOT Payment 100% 100% Tax Rate per Taxing Jurisdiction $100 2025 2026 Total State 0.0300 $ 85 $ 861 $ 946 County 0.0100 28 287 315 Health Department 0.0722 204 2,072 2,276 Board of Disabled Services 0.1175 332 3,372 3,704 Mental Health 0.0902 255 2,588 2,843 Mid-Continent Library 0.3152 890 9,045 9,935 Senior Citizen Fund 0.0452 128 1,297 1,425 Park Hill School District 5.3955 15,227 154,834 170,062 Parkville Special Road District 0.2324 656 6,669 7,325 Metropolital Community College 0.1806 510 5,183 5,692 Surtax 0.3600 1,016 10,331 11,347 6.8488 $ 19,329 $ 196,540 $215,868 City of Riverside,Missouri (Soccer Complex Project-Phase 3) Cost Benefit Analysis -5- 5/2/2025 Projected Tax Abatement • Estimated Assessed Value of Real Property $ 282,221 $2,869,693 Abatement Percentage 0% 0% Tax Rate per Taxing Jurisdiction $100 2025 2026 Total State 0.0300 $ - $ - $ - County 0.0100 - - - Health Department 0.0722 - - - Board of Disabled Services 0.1175 - - - Mental Health 0.0902 - - - Mid-Continent Library 0.3152 - - - Senior Citizen Fund 0.0452 - - - Park Hill School District 5.3955 - - - Parkville Special Road District 0.2324 - - - Metropolital Community College 0.1806 - - - Surtax 0.3600 - - - 6.8488 $ - $ - $ - • City of Riverside,Missouri (Soccer Complex Project-Phase 3) Cost Benefit Analysis -6- 5/2/2025