HomeMy WebLinkAbout1997-011 - Redevelopment Project I-Phase B - With Exhibits r
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BII.L NO. � �/ ORDINANCE NO.�-�/
ORDINANCE tiCCEPTIN`G THE RECONIII�.NDATION OF THE TAR INCRIIV��V'C
FINANCING COMNII3SION OF RIVFdLSIDE, MLSSOURI ("CONIlVIISSION")
REGARDING THE I�385 LEVEE REDE�LOPMEIVT PLAN ('PHE "PLAN");
APPROVII'dG TSE INCLUSION OF THE RIDEVELOPMENC PRUJECT I-PHASE B
WI'i�T't'� PLAN; APPROVING TSEDESIGNATION OF'1� RIDEVELOPMFIVT
PROJECT I-PHASE B AREA; AND APPRO�'ING THE ADQPTION OF TAX
ITTCREN�IVT FiNANCING FOR TSE REDEVELOPMENT PROJECT I-PHASE B AREA
WF�REAS, tt►e Commission was created pursuant W Ordinance No. 95-64, adopted by
the Board of Aldermen of Riverside, Missouri (the "Board of Aldermen") on September 12,
1995;
pJF�REpS, the geal property Tax Increment Alloeation Redevelopment Act, Secdons
99.800 w 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;
WHF.RBAS, the Commission, by Resoludon No. 96-06-Oi, passed on 7une 27, 1996,
classified t6e 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 u►creme� financing for the Redevelopment
Project I Area; and expressed its recommendation to the Board of Aldermen with respect to che
same; and
WHERBAS, che Board of Aldermen, by Oidinance No. 96-72, passed on July 16, 1996,
classifitd the Redevelapment Area as a"blighted az+ea" and desiSnated it as a redevelopmem ama
under We pa; approved the Plan,. the Redevelopment Project I and the R�edevelopment Projoct
I Aiea; and adopted tax increment financing for the Redevelopmwt Project I Area; which
designarion provides for the agproval of individual project� on a projace-by-pmjed basis; and
W�BA.S, the Commission received and reviewed a Ta�c Incien►ent Financing
� ppplicatian fium phil Snowdcn, Steve Danner and Gary Siraa regardin8 the opernt►on of a hotel
(the "Redevelopment Pmjxt I-Phase B") within che Redevelopme,nt Area, and on a trad of
P�rtY m� P�cularly described on attached h' i (the "Redevelopment Project I-Phase
B Area") (a copy of the Application is attached as Exhibit BJ; and
WI�REAS, the Commission, by Resolution No. 97-01-02, passed on JanuarY 15, 1997,
reafficmed the classified of the Redevelopment Project I-P6ase B Area as a"blighted area" and
rts designation as a redevelopment azea under the Act; approved tho Redevelopment Project I-
phase B aad the Redevelopment Project I-Phase B Area; adopted tax increment financing for the
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Redevelopmem Projed I-Phase B Area; and expressed its recommendation to the Board of
Aldermen with� r�,cpect to the same; and
-i
NOW, TT�ORE, be it ordained 6y the Board of Aldermen of Riverside, Missouri:
Section 1• The c+ecommendations o€ the Commission set forth in its Resoluaon No. 97-
O1-02 are hemby accepted. '
Seetio° 2• The Board of Aldermen fmds f6at:
� a. the existing condidons 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 andcipated to be developed without the adoption of the
Plan;
c. the Plaa, as amended, conforms to the comprehensive plan for
development of the City of Riverside, Missouri as a whole; •,
d. the estimated dates, w4ich shall not be mone than 23 years from the
! adoption of the respactive ordinances app�ving the Redevelopment
Pmjects, of compledon of the Redevelopment Projects and retirement of
obligations incurred to finance redevelopment project eosts have been
stated in tite Plan. and
e: there az+e cumently no businesses or residences withia the Redevelopmeat
Pmject I-Phase B.Area.
Sxtion 3• The Boant of Aldeimen appmves tha designation of the Redevelopment _
Projoct I-Phase B Area as a iedevelopment projax acea under tl�e Act.
Section 4• 1Le Boatd of Aldermen has. previously approved the Plan. �
ection 5• The Board of Aldermen approves and designates the Redevelopment Project
I-phase B and the Redevelopment Project I-Phase B Area as a redevelopment project .and
redevelopment projxt area, respectively, under the Act.
Section 6• The Board of Aldermen adopts tax increment finanoing for the Redevelopment
Projax I-Pl�ase B Area and provides that:
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(i) after the total equalized assessed valuation of the ta�cable real property in the
Redevelopment Project I-Phase B Area exceeds the certified total initial equalized
assessed valuation of the taxable real property in such Redevelopment Projecc I-
, Phase B Area, t6e 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 Acra by taxing districts and tax rates determined in the manner provide� in
� subsaxion 2 of the Saxion 99,855 of the Act each year after the effective date
of this ordinance until the Redevelopment Project Costs pursaant to the Plan have
been paid, s6all be divided as follows:
(a) That ponion of taxes levied upon each taxable lot, block, tract; or parcel
of mal property w6ich is attributable W the initial equaliud assessed value
of each such taxable lot, block, aact, or parcel of reai property in the
Redevelopment Project I-Phase B Area shall be aliocated to, and when �
collected shall be paid by the county collector to, the respective afFected
taxing districts in the manner reqnired by law in the absence of the
adopdon of tax increment allocadon financing,
(b) Paymenu in lieu of taxes attr�butable to the increase in the current
equalized assessed valuation of each taxable lot, block, tcact, or pancel of
reat property in the Redevelopment ProjecE I-Phase B Area over and above
the initial equalized assessed value of eaoh such uait of properly in the
. Rodevelopment Proje�t I-Phase B Area shall be allacated to, and when
coll� shall be paid to, the muaicipal tceasurer who shall deposit such
payment in lieu of taxes into a spacial fund called the "Spacial Allocation
Fund" of We municipality for the putpose of paying redeyelopment costs
and obligations incumed in the payment thereof. Payments in lieu of taxes
wtiich are due and owing shall constitute a lien against the real estate of
the nedevelopment projed from w6ieh they are derived. The municipality
may, in the ordinance� Pledge the funds in the special allocation fund for
the paymeM of such costs and obligations and provide for the collection
of payments in liw of taues, the lien of which may be foreclosed ia the
same manaer as a spocial assessme� lien as provided in Section 88.861
RSMo. No part of .the cumcnt equalized assessed valuation of each lot, .
block; uad, or parcel of property in the Redevetopment Projxt I-Phasa
• B Area attn'butable to aay inerease above the total initial eqnalized .
assessed value of such pcoperties shall be usod in calculating the genernl
state school aid formula provided for in $ectioa 163.031 RSMO., untii
such time as all redevelopmeat costs have been paid as provided for in
tLia section and Section 99.850.
(ri) in addition to the payments in lieu of taxes described in Sxtion 99.845.1(2) of
the Act, the Wtal additional tevenues from taxes generated by economic activities
in a Redevelopment Project Area, as described in Section 99.8453 of the Act,
shall be allocated as set forth in Secaon 99.845.3 of the Act.
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Passed N�is "Y�v day of , 1997. ,�/
, �"..�..� �'�C�
G' . - ,/�
. - . . MAYOR
A1TE�ST:
CITY CLSRK
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E7CHIiBTT A
' `r LEGAL DESCRIPTTON
A TR.ACT OF LAND LOCATID IN FRACTIONAL SECTION 9, TOWNSHIF 50 NORTH;
RANGE 33 WFST, RIVERSIDE, PL,4TTE COUNFY, MISSOURI, BEING . MORE
PARTICULARLY DESCRIBED AS FOLLOVJS: CObIIvIF.NCING AT Tf� NORTHWE.ST :
CORNER OF SAID FRACTIONAL SECTTON 9; TF�1CB S 00 E ALONG Tf�
WEST LINE OF SAID FRACTIONAL SECTION 9 A DISTANCB OF 1,591.58 FE�T;
THENCE S 89 E A DISTANCE OF 377,65 FEET; TI�NCE N 78 E;A
DISTANCE OF 72.45 FEET; 'TFIIQJCE S 11 E A DISTANCfi OF 8.00 FEET;
THENCE N 78 E A DISTANCE OF 113.34 FEET; THENCE ON A CURVETO Tf�
LEFT, TANGENT TO Tt� LAST DESCRIBED COURSE, FiAVING A RADNS OF 468.00
FEET' AND AN ARC DISTANCE OF 57.18 FEET; T�NCE N 71 ° 48'2'7" E A DISTANGE
OF 109.58 FEET TO Tf� PuiNT OF BEGINNING OF Tf� TRACT OF LAND TO BE
DESCRIBID; TFIENCE N 18 W A DISTANCE OF 240.00 FEET; THENCE N
17 E A DISTANCE OF 170:44 FEET; Tf�IVCE N 71 E A DISTANCE OF
91.15 FEET; TT�NCE S 18°I1'33" E A DISTANCB OF 378.84 FEET TO T�
NORTFIERLY RIGHT-OF-WAY LINE OF ARGOSY PARKWAY AS TT IS NOW
FSTABLISHED; Tf�_NCE S 71 °48'27" W ALONG SAID NORTFIERLY RIGHT-OF-WAY
LINE A DISTANCE OF 190.00 FE��I' TO TFIE POINT OF BEGINNING. CONTAINS
65,117 SQUARE FEET' OR 1.49 ACRES MORE OR I.FSS.
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�zeis:T a
APPLICATION FOR TAX INCREMENT FINANCING ("TIF")
, APPLICANT:; _ Phil Snowden, S[eve Danner and
�, Gary Sirna
ADDRESS: 4642 N. Holly Ct.
• Kansas Ci[y, MO 64116
PHONE #: (816) 746-6635
_ FAX 0: (816) 746-6818
CONTACT PERSON: Phil Snowden
PROJECT NAME: RIVERSIDE - SUPER 8
Application Format,: - "vp a separate sheet of paper please answer [he
following questions. Please type each question prior to the
applicabie res.ponse.
(1) In no more than three pages provide relevant informarion on
the Applicant's background and development experience.
Irtclude 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
uniEs 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.
A!1 applicants will be involved in the development of the
Riverside Super 8 and Sirna/Danner will manage the facility
once it opens. ,
.(2} Identify the AppYicant's.consultants involved or proposed•to
be involved in the project nocing relevant experience on
similar projects (i.e., civil engineer, land use planner,
Applicant's legal counsel, npplicant's financial advisor).
ANSWER:
Consultant's:
A) Kaw Valley Engineering (Civil Engineers - Stan Eiler)
Phone Numbet: 587-5033
_ 1
B1 G. Dirk Ellis (Architect)
_Phone Number: 47t-0050
C) Globe Construction (General Contractor - Mark Doolittle)
Phone Number: 384-8970
D) Mar�el & Associates, Inc. (Market Feasibility and
Financial Advisor)
Phone Number: 931-9620
E) S[ephen Danner (Legal Counsel)
Phone Number: 532-3088
F) Qualicy Lodging (Lodging ConsCruction Consultant)
Phone Number: 532-8899
All of the above consultant§ have worked and compieted several
motel projects u�ring the past five (5) y.ears.
(3) Describe the proposed project, including the size and scope
and phasing of the proposed project. Speci-f�-eal-ly out{inE --
residentiaL development, if any, to be included in the •
projeat.
: ANSWER:
A 48 unit Super 8 Motet on approximately 68,000 square feet.
(4) IIefine the boundaries of the proposed TIF area by address and
locator number(s). Include a map of the proposed TIF area.
ANSWER:
Directly to fhe North of the Argosy Casino on Argosy Parkway.
(5) Identify the property which is currentiy 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 Snoaden Family),
(6) Is Ehe propetty currently zoned for the propose use? If not,
what zoning change will be required?
ANSWER:
M-2. We need a special use permit.
Z .
(7) Wi1t Che proposed project result in the relocation of
resid.ential, commercial or induserial facilities? If so,
discuss the nature of any anticipated relocations:
ANSWER:
No. -
(8) S[ate the need and justifieation for TIF assistance. Explain
how the app�icant 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 conuttion(s) that would qualify the proposed TIF .
District as a"blighted area" or "conservation area," as
defined under Mo. Rev. Stat. 99.805.
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ANSWER: ,
Property presently is located in the flood plain.
(10) Ide�tify 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 pubiicly sold? Please
prepare information in the following table format.
ANSWER:
SO�rFe AMOUf�T TERM S ATUS CONTACT CONTACT
PERSON TELE•
Private 51,000.00 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 mark�t feas.ibility 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 ecor�omic activity taxes to be generated by
the project.
ANSWER: '
See Attached Worksheet.
(14) Provide an es.timate 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:
' - J 312S,OOO.00
(15) Identify any proposed tenants of the project. Aave leases
been negotiated or signed? What type of lease is
contemplated?
ANSWER:
No tenants. Motei 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.
' ANSWEIt:
First class Motel for ali business customers as wePl as
patrons of Argosy Casino. .
(181 Attach a let;ter from a financiai institution indicating that .
the appli.cant has sufficient financial resources to obtain the
private financing for the projeci.
ANSWER:. .
See Attached Letter.
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TIF REVE:V"UE WORKSHEET
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PROJECT SCHEDULE:
Proliminary Construction Scart Date: Nov. 1, 1996
Preliminary Conitcuction Completion Date: aort t i 1 997
Phasing.An6cipatcd: n.,e a►,a�o
: Date Occupied or Opened: �� �. � gg �
SALES TAX REVFNiJE:
Estimated A.nnual Sales S a s n, n n n- n o
Total Annual Sales from New Development ... S 450, 000. 00
PROPERTY TAX REVENUE:
Market Value of New Construc6on .
Commercia! $1 , 000, OU0.00
Residential a _0_
Market Value of Land (Based on Optional Prices) � 1 00, 000.00
r Total Market Va1ue of New Development � 1,100, 000. 00
Commencial Assessed Vaiue - Rate of Market Value .32
Assessed Value of Land and New Construcaon (a) � 352, 000.00
Assessed Value of Fxisting Property. (b) S 7, 000. 00
NetAsseuedValuefor"TIFCapture(a-b) a 351,000.00
Tax Rate Basis Per S of Assessed Valuation . S 100.00 .
Tax Basis (Assessed Value = Tax Rate Basis) S 351 , 000. 00
Prope�ty Tax Rate Per 5100 of Assessed Vaivacion a - 6. 05
Annual Prop�rty Tar Captured by'TIF from New Development S 2t , 235.00
(Tax Basis x Property: Tax RatdS 100)
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