HomeMy WebLinkAbout1997-01-02 TIF Commission ResolutionRESOLUTION NO. 97-01-02
RESOLUTION OF THE TAX INCREMENT FINANCING COMMISSION OF
RIVERSIDE, MISSOURI ("COMMISSION") APPROVING THE INCLUSION OF THE
REDEVELOPMENT PROJECT I-PHASE B WITHIN THE L-385 LEVEE
REDEVELOPMENT PLAN ("PLAN"); APPROVING THE DESIGNATION OF THE
REDEVELOPMENT PROJECT I-PHASE B AREA; APPROVING THE ADOPTION OF
TAX INCREMENT FINANCING FOR THE REDEVELOPMENT PROJECT I-PHASE B
AREA; AND EXPRESSING ITS RECOMMENDATIONS TO THE CITY COUNCIL OF
RIVERSIDE, MISSOURI WITH RESPECT TO THE SAME
WHEREAS, the Commission was created pursuant to Ordinance No. 95-64, adopted by
the Board of Aldermen of Riverside, Missouri (the "Board of Aldermen") on September 12,
1995;
WHEREAS, the Real Property Tax Increment Allocation Redevelopment Act, Sections
99.800 to 99.865 of the Revised Statutes of Missouri, 1986, as amended (the "Act"), requires
the Commission to: (a) hold hearings with respect to proposed redevelopment areas,
redevelopment plans and redevelopment projects; (b) vote on the approval of the same; and (c)
make its recommendations on the same to the Board of Aldermen;
WHEREAS, the Commission, by Resolution No. 96-06-01, passed on June 27, 1996,
classified the Redevelopment Area (as defined in the Plan) as a "blighted area" and designated
it as a redevelopment area under the Act; approved the Plan, the Redevelopment Project I and
the Redevelopment Project I Area; adopted tax increment financing for the Redevelopment
Project I Area; and expressed its recommendation to the Board of Aldermen with respect to the
same; and
WHEREAS, the Board of Aldermen, by Ordinance No. 96-72, passed on July 16, 1996,
classified the Redevelopment Area as a "blighted area" and designated it as a redevelopment area
under the Act; approved the Plan, the Redevelopment Project I and the Redevelopment Project
I Area; and adopted tax increment financing for the Redevelopment Project I Area; which
designation provides for the approval of individual projects on aproject-by-project basis; and
WHEREAS, the Commission has received and reviewed a Tax Increment Financing
Application from Phil Snowden, Steve Danner and Gary Sirna regarding the operation of a hotel
(the "Redevelopment Project I-Phase B") within the Redevelopment Area, and on a tract of
property more particularly described on attached Exhibit A (the "Redevelopment Project I-Phase
B Area°). (A copy of the Application is attached as Exhibit B.)
NOW, THEREFORE, BE IT RESOLVED by the Tax Increment Financing
Commission of Riverside, Missouri;
The Commission has previously found that:
a. the existing conditions of the Redevelopment Project I-Phase B Area, as
described in Exhibit A, are a fair depiction of the Redevelopment Project
I-Phase B Area and cause the Redevelopment Project I-Phase B Area to
be a "blighted area" as defined in the Act;
b. the Redevelopment Project I-Phase B Area has not been subject to growth
and development through investment by private enterprise and would not
reasonably be anticipated to be developed without the adoption of the
Plan;
c. the Plan, as amended, conforms to the comprehensive plan for
development of the City of Riverside, Missouri as a whole;
d. the estimated dates, which shall not be more than 23 years from the
adoption of the respective ordinances approving the Redevelopment
Projects, of completion of the Redevelopment Projects and retirement of
obligations incurred to finance redevelopment project costs have been
stated in the Plan; and
e. there are currently no businesses or residences within the Redevelopment
Project I-Phase B Area.
2. The Commission approves the designation of the Redevelopment Project I-Phase
B Area as a redevelopment project area under the Act.
3. The Commission has previously approved the Plan.
4. The Commission approves the inclusion of the Redevelopment Project I-Phase B
within the Plan and expects to adopt additional specific redevelopment project(s)
and redevelopment project area(s) within the Redevelopment Area on a project-
by-project basis.
S, The Commission recommends to the Board of Aldermen that the Board of
Aldermen pass one or more ordinances:
a. Finding the Redevelopment Project I-Phase B Area to be blighted and
designating the Redevelopment Project I-Phase B Area as a redevelopment
project area under the Act.
b. Approving the inclusion of the Redevelopment Project I-Phase B within
the Plan.
c. Approving tax increment financing for the Redevelopment Project I-Phase
B Area and providing that:
(i) after the total equalized assessed valuation of the taxable real
property in the Redevelopment Project I-Phase B Area exceeds the
certified total initial equalized assessed valuation of the taxable real
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property in such Redevelopment Project I-Phase B Area, the ad
valorem taxes and payments in lieu of taxes, if any, arising from
the levies upon taxable real property in such Redevelopment
Project I-Phase B Area by taxing districts and tax rates determined
in the manner provided in subsection 2 of the Section 99,855 of
the Act each year after the effective date of this ordinance until the
Redevelopment Project Costs pursuant to the Plan have been paid,
shall be divided as follows:
(a) That portion of taxes levied upon each taxable lot, block,
tract, or parcel of real property which is attributable to the
initial equalized assessed value of each such taxable lot,
block, tract, or parcel of real property in the
Redevelopment Project I-Phase B Area shall be allocated
to, and when collected shall be paid by the county collector
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
Redevelopment Project I-Phase B Area over and above the
initial equalized assessed value of each such unit of
property in the Redevelopment Project I-Phase B Area shall
be allocated to, and when collected shall be paid to, the
municipal treasurer who shall deposit such payment in
lieu of taxes into a special fund called the "Special
Allocation Fund" of the municipality for the purpose of
paying redevelopment costs and obligations incurred in the
payment thereof. Payments in lieu of taxes which are due
and owing shall constitute a lien against the real estate of
the redevelopment project from which they are derived.
The municipality may, in the ordinance, pledge the funds
in the special allocation fund for the payment of such costs
and obligations and provide for the collection of payments
in lieu of taxes, the lien of which may be foreclosed in the
same manner as a special assessment lien as provided in
Section 88.861 RSMo. No part of the current equalized
assessed valuation of each lot, block, tract, or parcel of
property in the Redevelopment Project I-Phase B Area
attributable to any increase above the total initial equalized
assessed value of such properties shall be used in
calculating the general state school aid formula provided
for in Section 163.031 RSMO., until such time as all
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EXHIBIT A
LEGAL DESCRIPTION
A TRACT OF LAND LOCATED IN FRACTIONAL SECTION 9, TOWNSHIP 50 NORTH,
RANGE 33 WEST, RIVERSIDE, PLATTE COUNTY, MISSOURI, BEING MORE
PARTICULARLY DESCRIBED AS FOLLOWS: CONIIvIENCING AT THE NORTHWEST
CORNER OF SAID FRACTIONAL SECTION 9; THENCE S 00°02'00" E ALONG THE
WEST LINE OF SAID FRACTIONAL SECTION 9 A DISTANCE OF 1,591.58 FEET;
THENCE S 89°20'30" E A DISTANCE OF 377.65 FEET; THENCE N 78°48'27" E A
DISTANCE OF 72.45 FEET; THENCE S 11 ° 11'33" E A DISTANCE OF 8.00 FEET;
THENCE N 78°48'27" E A DISTANCE OF 113.34 FEET; THENCE ON A CURVE TO THE
LEFT, TANGENT TO THE LAST DESCRIBED COURSE, HAVING A RADIUS OF 468.00
FEET AND AN ARC DISTANCE OF 57.18 FEET; THENCE N 71°48'27" E A DISTANCE
OF 109.58 FEET TO THE POINT OF BEGINNING OF THE TRACT OF LAND TO BE
DESCRIBED; THENCE N 18°11'33" W A DISTANCE OF 240.00 FEET; THENCE N
17°15'29" E A DISTANCE OF 170.44 FEET; THENCE N 71°48'27" E A DISTANCE OF
91.15 FEET; THENCE S 18°11'33" E A DISTANCE OF 378.84 FEET TO THE ,.
NORTHERLY RIGHT-OF-WAY LINE OF ARGOSY PARKWAY AS IT IS NOW
ESTABLISHED; THENCE S 71°48'27" W ALONG SAID NORTI~RLY RIGHT-OF-WAY
LINE A DISTANCE OF 190.00 FEET TO THE POINT OF BEGINNING. CONTAINS
65,117 SQUARE FEET OR 1.49 ACRES MORE OR LESS.
7:\61492\00001 \SNO WREN. LG L
^•J [lTOTT 'J
APPLICATION FOR TAX INCREMENT FINANCING ("TIF")
APPLICANT: Phil Snowden, Steve Danner and
Gary Sirna
ADDRESS: 4642 N. Holly Ct.
Kansas City, MO 64116
PHONE #: (816) 746-6635
FAX #: (816) 746-6818
CONTACT PERSON: Phil Snowden
PROJECT NAME: RIVERSIDE - SUPER 8
Application Format: Un a separate sheet of paper please answer the
following questions. Please type each question prior to the
applicable response.
(1) In no more than three pages provide relevant information on
the Applicant's background and development experience.
Include resumes of key individuals assigned to the project.
ANSWER:
Applicant Phil Snowden has developed, built and owned single
family projects, office buildings and self service storage
units over the past twenty (20) years in the Kansas City
Metropolitan area.
Applicants Gary Sirna and Steve Danner have developed, own and
manage several Super 8 and Ramada Express Motels in Clay
County and Northwest Missouri.
All applicants will be involved in the development of the
Riverside Super 8 and Sirna/banner will manage the facility
once it opens.
(2) Identify the Applicant's consultants involved or proposed to
be involved in the project noting relevant experience on
similar projects (i.e., civil engineer, land use planner,
Applicant's legal counsel, Applicant's financial advisor).
ANSWER:
Consultant's:
A) Kaw Valley Engineering (Civil Engineers - Stan Eiler)
Phone Number: 587-5033
1
B) G. Dirk Ellis (Architect)
Phone Number: 471-0050
C) Globe Construction (General Contractor - Mark Doolittle)
Phone Number: 384-8970
D) Marvel & Associates, Inc. (Market Feasibility and
Financial Advisor)
Phone Number: 931-9620
E) Stephen Danner (Legal Counsel)
Phone Number: 532-3088
F) Quality Lodging (Lodging Construction Consultant)
Phone Number: 532-8899
A11 of the above consultants have worked and completed several
motel projects curing the past five (S) years.
(3) Describe the proposed project, including the size and scope
and phasing of the proposed project. Specifically outline
residential development, if any, to be included in the
project.
ANSWER:
A 48 unit Super 8 Motel on approximately 68,000 square feet.
(4) Define the boundaries of the proposed TIF area by address and
locator number(s). Include a map of the proposed TIF area.
ANSWER:
Directly to the North of the Argosy Casino on Argosy Parkway.
(5) Identify the property which is currently in the control of the
Applicant via ownership or option. If under option note the
option expiration date.
ANSWER:
14.5 acres presently owned by Riverfront Golf Range L.L.C.
(Phil Snowden Family).
(6) Is the property currently Toned for the propose use? If not,
what zoning change will be required?
ANSWER:
M-2. We need a special use permit.
2
(7) Wi11 the proposed project result in the relocation of
residential, commercial or industrial facilities? If so,
discuss the nature of any anticipated relocations.
ANSWER:
No.
(8) State the need and justification for TIF assistance. Explain
how the applicant intends to demonstrate compliance with the
"but for" test. Substantiate that other alternative methods
of financing have been thoroughly explored.
ANSWER:
"But for" the L385 Levee, the entire area will not develop.
(9) Discuss the conuition(s) that would qualify the proposed TIF
District as a "bl-ighted area" or "conservation area," as
defined under Mo. Rev. Stat. 99.805.
ANSWER:
Property presently is located in the flood plain.
(10) Identify sources, amounts, and status of all debt financing
and/or equity funding available to complete the project. Does
the applicant anticipate the debt to be privately financed by
the construction lender or developer or publicly sold? Please
prepare information in the following table format.
ANSWER:
CONTACT CONTACT
SOURCE AMOUNT TERM STATUS PERSON TELE.
Private $1,000.00 20 year Under N/A N/A
Financing consideration
Bank or Savings
and Loan
(11) Provide an outline of the costs with the development of the
proposed project(s) and related parcel or parcels located
within the TIF area. Identify in the outline those costs you
would propose to fund with TIF financing and the proposed
payback time frame.
3
ANSWER:
None.
(12) In none page or less, discuss and document information used
to describe the market feasibility of each element of the
proposed project. If a formal feasibility or comparable
studies have been prepared, attach such reports as an
appendix to this application.
ANSWER:
A study has been done and the project is feasible.
(13) On the attached TIF Revenue Worksheet estimate the incremental
property taxes and economic activity taxes to be generated by
the project.
ANSWER:
See Attached Worksheet.
(14) Provide an estimate of the market value of all fixtures and
equipment to be used by all owners or tenants of the proposed
project which will be taxed as personal property.
ANSWER:
$125,000.00
(15) Identify any proposed tenants of the project. Have leases
been negotiated or signed? What type of lease is
contemplated?
ANSWER:
No tenants. Motel offered to the general public on a nightly
basis.
(16) Who will own the developed property?
ANSWER:
An L.L.C. to be formed.
4
(17) Briefly describe the "economic and quality of life" benefits
of the proposed project to the City.
ANSWER:
First class Motel for all business customers as well as
patrons of Argosy Casino.
(13) Attach a letter from a financial institution indicating that
the applicant has sufficient financial resources to obtain the
private financing for the project.
ANSWER:
See Attached Letter.
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TIF REVENUE WORKSHEET
PROJECT SCHEDULE:
Preliminary Construction Start Date: Nov. 1 , 1 996
Preliminary Construction Completion Date: ~nri1 1 . 1997
Phasing Anticipated: nna ohaGA
Date Occupied or Opened: ~p~l 1. 1 9 9 7
SALES TAX REVENUE:
Estimated Annual Sales $ a s n, o n n_ o n
Total Annual Sales from New Development . $ 450 000.00
PROPERTY TAX REVENUE:
Market Value of New Construction
Commercial
Residential
Market Value of Land (Based on Optional Prices)
Total Market Value of New Development
Commercial Assessed Value -Rate of Market Value
Assessed Value of Land and New Construction (a)
Assessed Value of Existing Property (b)
Net Assessed Value for TIF Capture (a-b)
Tax Rate Basis Per $ of Assessed Valuation
Tax Basis (Assessed Value = Tae Rate Basis)
Property Tax Rate Per $100 of Assessed Valuation
Annual Property Tax Captured by TIF from New Development
(Tax Basis x Property Tax Rate/$100)
$1,000,000.00
$ -o-
$ 100,000.00
$1,100,000.00
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$ 352,000.00
$ 1,000.00
$ 351,000.00
$ 100.00
$ 351,000.00
$ 6.05
$ 21,235.00
U:16I 4\61441 \000021 WORKS HEE
July 7, 1996 - 10:77em