HomeMy WebLinkAbout1997-012 - Redevelopment Project I-Phase C - With Exhibits BILL NO. 97 � ORDINANCE NO.��.Z
ORDINANCE'ACCEPTING T8E RECONII�NDA1'�ON OF THE TAX INCREI�NT
"= FINANCING COMI�IISSION OF RIVF.RSIDE, MLSSOURI ("COMI�IISSION")
REGARDING 1� I�385 LEVF,E REDEVELOPI�NT PLAN (THE "PLAN");
APPROVIIVG THE INCLUSION OF T� RIDEVELOPMENf PROJECT I-1'HASE C
WITSIN THE PLAN; APPROVII�IG T�E DESIGNATION OF THE RIDEVELOPMENT
PTtOJECT I-PHASE C AREA; AND APPROVING THE ADOPTION OF TAX
INCREl1�NT FINANCING FOR THE REDEVELOPMENT PROJECT I-PHASE C AREA
WFIF3REAS, the Commission was created pnrsuant 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 Properry Tax Increment Allocadon Redevelopment Act, Sections
99.$00 to 99.865 of the Revised Statutes of Missouri, 1986, as amended (the "Act"), requires
the Commission to: (a) hoid hearings with respect W proposed redeve(apment areas,
redevelopment plans and redevelopment pmjects; (b) vote on We appmval of the same; and (c)
make its recomm�ndations on.the same w the Board of Aldeimen;
WHERF.AS, the Commission, by Resoluuon Na 96-06-01, passed on June 27, 1996,
classifie�i the Redevelopmeat Area (as defiaed in the Plan) as a"blighted area" and designated
it as a redevelopmem area under the Ad; appmved the Plan, the Redevelopment Project I and
the Redevelopment Project I Area; adopted tax increment financing for the Redevelopment
- Projact I Area; and expressed its recommendation to the Board of Aldermen with respect to the
same; and �
WFIEREAS, the Board of Aldermen, by Oniinance No. 96-72, passed on 7uly 16, 1996,
classified the Redevelopmeeott Aiea as a"blighted azea" and designated it as a redevelopment area
under the Act; approved che Plan, the Redevelopment Projax I and the Re�evelapment Projax
I Area; and adopted taac increment financing for the Redevelopmeat Projact I Anea; which
designadoa provides for the approval of individual Pi'ojects on a pmject-by-pmjxt basis; and
, WFffitEA.S, the Commission received and reviewed a Tax Inciement . Financing
Applicadon from Security Capital Industrial Trust regarding the consaucdon of light indu§trial
buildings (the 'Redevelopment Project I-Pt�ase C") within the Redevelopment Area, and on a
uact of property more particularly described on attached ��A (the "Redevelopment Project
I-P6ase C Area") (a capy of the Application is attacded as Fxhibit $); and
WFIEREAS, the Commission, by Resolution No. 97-01-03, passed on January 15, 1997,
reaft"umed the classified of the Redevelopment Project I-Phase C Area as a"blig6ted area" and
its designation as a redevelopment area under the Act approved the Redevelopment Project I-
Phase G and the Redevelopment Project I-Phase C Area; adopted tax increment financing for
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.. .. . . lu�wry 21. 1997 - 7:JOpm
the Redevelogment Proje�t I-Phase C Area; and expressed its recommendaaon to the Board of
Aldermen with respoct to the same; and
NOW, 'IT�REFORB, be it ordained by the Board of Aldeimen of Riverside, Missouri:
Secdon l• '�he recommendauons of the Commission set forth in its Resolution No. 97-
01-03 a=e herebq
Se�tion 2• The Board of Aidermen fmds that:
a. the existing conditions of the Redevelopment Proje�t I-Phase C Area, as
described in �A, az�e a fair depicdon of the Redevelopmedt Projea
I-Phase C Area and cause the Redevelopment Project I-Phase C Area to
be a"blighted anea" as defined in We Act;
b. the Redeyelopment Project I-Phase C Area 6as not been subject W growth
and development through investmeut by private enterprise and would not
reasonably be anticipated to be developed without the adoption of the
Plan;
c. the Plan, as ameaded, confotms to the comprehensive plan for
development of the City of Riverside, Missburi as a whole;
d. the estimated dates, which shall not be more than 23 years from the
adoption of the respective ordinances appmving the Redevelopment
Projects, of completion of the Redeyelopment Projects and retirement of
obligations incurned to finance redevelopment project costs have been �
�a �n r� �; �a
e, there are currently no lwsinesses or msidences withiut the Redevelopment
: Projax I-PLase C .4nea.
Saction 3• TI� Board of Aldermen appmves the designation of the Redevelopment
Projxt I-Phase C Area as a redeveiopmer�t projax area under the Act.
. , axioa 4• T1ie Board of Aldeimen has previously approved the Plan. '
Sxtion 5• Tl� Board of Aldermen approves aad designates the Redevelopment Project
I-Phase C and the Redevelopment Projax I-Phase C Area as a redevelopment project and
redevelopment pmjed uea, c�espoctively, under the Act.
Section 6• The Board of Aldermen adopts tax increment finaneing for the Redevelopment
Project I-Phase C Area and p�vides that:
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. _Z_ Lotury 21. 1997 - 3:10pm .
(i) after the total equalized assessed valuation of the taxable real propeity in che
Radevelopment Project I-Phase C Anea exceeds the certified total initial equaiized :
assessed valuatian of the taxable real property in such Redevelapment Project I-
_ Pbase C 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
C Arya by taxing districts and tax rates deterituned in tt►e manner provided in
subsaxion 2 of the Section 99,855 of the Act each yeaz after ttte effective date
of this ordinance until t6e Redevelopment Project Costs pursuant to the Plan have
been paid, shall be divided as follows:
(a) T6at portion of taxes levied upon each taxable lot, block, tract, or parcel .
of real property wirich is attributable to the initial equal'v,ed assessed value
of each such taxable lot, block, tract, or parcel of mal property in the
Redevelopment Project I-Phase C Anea shall 6e allocated to, and when
collected shall be paid by the county collector to the respecdve affected
taxing districts in the manner requued by law in the absence of the
adoption of tax increment-allocadon financing;
(b) Payments in lieu of taxes attributable to the increase in the current
equalized assessed valuation of each taxable lot, block, tcact, or parcel of
real pmgetty in the Redevelopme�t Projed I-Phase C Area over and
above the initial equalized assessed value of each such uait of property in
the Redevelopmeat Projece I-Phase C Area shall be allocated W, and when
collected shall be paid w, the municipal treasuier who shall deposit such
payment in lieu of taxes inW a special fund calle� the "Special Allocation
- Fund" of the municipality for the puipose of paying redevelopment costs
� and obligations ineumed in the payment theneof. Payments in lieu of taxes
wtrich aze due and owing shall constitute a lien against the real estate of
the redevelopment pmject from w(rich they are derived. The municipality
maY, in the oidinance, 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 mauner as a spocial assessment lien as pmvided in Section 88.B61
RSMo. No part of fhe curnnt equalized assessed valuaflon of each lot,
block, t�acx,. or parcxl of propertp in the Redavelopment Projxx I-Phase
C Mea att�wtable to any increase above the wtal initial equal�zed
asse.csed value of such properties shall be use� in calculating the generai
state school aid formula provided for in Saxion 163.031 RSMO., until
such time as all redevelopment costs have been paid as provided for in
this: section a6d Soction 99:850:
{u7 in additioa to the payments in lieu of taxes described in Sactioa 99.845.1(2) of
the Act, the total additional revsnues from taxes generated by economic activides
in a Redevelopment Project Area, as described in Section 99.845.3 of We Act,
shall be allocated as set foith in Section 99.845.3 of the Act.
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.. - . _3_ latw�ry 21. t997 • 3:10pm
Passed this � day of , 1997.
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EXFIIBIT A
, LEGAL DESCRIP'ITON
ALL OF LOT 5 AND LOT 4, PLAT'TE VALLEY INDUSTRIAL pARK Eps'T, gIVEgSIDE,
PLATTE COUNTSP', MISSOURI, ACCORDING TO T� RECORDID PLAT THEREOF;
EXCEPT THAT PART OF LQT 4 DESCRIBID AS FOLLOWS: BEGINNING AT TF�
SOUTfiVPF.ST CORNER OF SAID LOT 4; Tf�?NCfi N 20 E ALONG Tf� VJF.ST
LINE OF SAID LOT 4 A DISTANCE OF.403.92 FEET TO Tf� SOLTT'A RIGHT-OF-WAY
I�VE OF N.W. PARKWAY AS Tf NOW E}�STS; THENCE NORTFIEASTERLY
CONTINUING AIANG SAID SOUTH RIGHT-OF-WAY LINE ON A CURVE TO Tf�
LEFI' HAVING A CHORD BEARING N 82°07'38" E, A RADNS OF 60.00 FEET AND AN
ARC DISTANCE OF 57.95 FEET; TFIENCE S 36°44'47" E A DISTANCE OF 90.18 FEET;
Tf�1VCB S 20°59'43" W A DISTANCE OF 383.76 FEET TO TFIE SOUTHERLY LIt�Ig OF
SAID LOT 4; THFSICE N 6G°�0'17" W ALONG SAID SOiJTHERLY LINE A DISTANCE
OF 127.00 FEET TO Tf� POINT OF BEGINNING.
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°_XiIBIT 9 U � � � U
A.PPLIC�cTION Q[JESTIOPIS/?u`iSWERS FOR TAIC L`1CRE�:�IT FL�1A��iCI\'G
1. In r.o more than three paga provide relevaat information on the Applicant's background
and developmrnt experience. Include resumes of key iadi�iduals assigned to the project.
Securiry Capital tndustrid Ttust (SCp New York Stoek Exchaa�e Symbol: SCCt) [s the la e�t
pub:iely held owner and opaator of industrW propad�s w du Uai[ed Stata. SCP s primary objecave is to
acy: :•�e lon^,-term, sustaieable growth ia pa shere eesh flow.
SCI expecu to achieve this obJective thron;h the SCL Nadoaal Operatiag System, which is
c� L�imd m ercatiaB ahazeholdez yalue by providing aaepConal eustoma ut�ia. Under the SCl
i 1a��aa1 OpaMing Syrtem, ihe Narioeal Servicw Group, the Nationa� Devdopment Group and the �tarfcec
OE6ca Group work wgeNa w mr_c the indnsaial ccal a�ate aeeds of SCI'e corpoceca customas at che
locsl, r_gional md nationat levek.
SCI's inves�rne stncegy is co azqui� gmaie dlstribudon facilida and develop Cnll-service,
ma�er-planned dlsabutia�a.n in meaopolitan areas thu danoosvau s�roog demo;raphios and
in3um ial real atate markK l5adameotal�. .�s of Decembec 31, I995, SCI had 51.83 billioe inrested in
dtsets operatiag or unda developmen; RpmentuiB 1 mtal ot 67.5 afflioa square feet upon compledon in
35 �ietropolitaa areas.
Jamrs D. Cochnn - Vice Pr•sident of the REI'f Mana�er since Merch 1994, where he hrs Marktt Officer
tesponsbilitia fu Denva, Colondo and Kansss CitY. Mlswvrl aad Viea Preudrnt of SCI; Crom Au;nst
1988 to March 1994, via Prsideac for TCW Realty Advisocs, whae hewa3s responsibte for iaduscial
acqulsittons ia southem Californin; ffom September 1984 ro Augast 1987, Associate wrth EeonomIu
Rcs�.uch Assoeiates, whece 6a pefo:med market and Snmeial feas�ilicy ssudies for a wide variery of laad
use developmmt projaa.
-�
J�mes R Nau III u with Seeuriry Capinl Indaseial Tnuc where he is a member of t6e Nationsl
�� �zlopmeat Group with project management rapens�bilitia for the Chieago oad Kaosas Ciry markess.
Ptic; to jommg SCi, Mc Nau wu a projea manager wrt6 the Opns North Cotporadon fm zevm yeaa.
. o�i:.: thaeto, Mr. Nass was a projxc mgioea for the MeAon Stuact Cmnpmy. Mr. Nass ieccived his B.S.
in �'onsanrlon MaaaYemmt from Bcadiey Uaivasiry.
2. Ideatify the ApplicaaYs consulrants im�ol�ed or proposed to be imolved in the pmject
noting relevaat cxperience oa similar projeeu ('�.e. cirvil engineer, land use plaaaer.
Applica�'s legal counsel. Applicaat's financial advisor). .
Secutiry Capiml [adumi�l Tnut hat wntaeted Geo se Buda Assxlstes, Ine. Ixued io Lenexa, Ka�sas
to provida complete daip► xtrica.
Seeueiry Capital Indus�ial Tnut's 1egn1 counze! is Mayer, Hcown R Plau locaud in C6iaro, Alinou.
Seouiry Capiol Indusvial?cus['s 6nancing is all ia housa
3. Desctibe tfie proposed project, incLndinQ the siu and scope and phasiag of the proposed
g:r �ect � Specifically outline residential dcvelopment, if any, to be included ia the project
Seeuriry Gpita! Is co�micted to baild lighc iadusvial buildiu;s oo the reutaining land ia du PLux Vallry
Indu.mial Centa. The subjeet property is siruated at the wuthwest comer of the intcsection of Highway 9
� ane Iatarta�e 63S wirh froarage oa borh atcerialt. Due ro the 4xgular nann: of tha site, covaage is
maximiud with nvo buildiogs. 'I1�e site plm shows Bu7ding �II0,4l,000 squaze feet, end Butlding
�: I.38,000 square feec '[hese two bvild'm;s are daigaed to not eompeu with wcl� otha but rrsya ataact
u from differrnt segments ofthe mazket
4. L'��ne the bouadazies of the proposed TIF a.*ea by addtess and locaWr numbei(s).
fnciude a inap of the proposed Tff area.
Baildins 10'� addrest will be 400 N.W. Pazkway, Riveaide, Platte valley Coumy, Missouri,
LotSJ
Buildiag 11's addrus will oe 700 N.W. Pazkway, Riverside, Ptatte Vallcy Counry, Missovri,
Lot 4J
�. Idectify the propecry which is cuarntly ia the con�ol of the Applicam via ownenhip or
option. If under option note the opaon expiration date. ••
S�'I n�quircd ehi� 6.5 na aets si0a as pmt of the Rirerside (John Bmwn) porcfolio aeqnisItioa in Novemlxr
1994. ?he portfolio eonsisu of 957,172 fr.c in duee diseincc pada with !9 bn7dings and aa avera,�e
castoma size of l0,300 �quare feet the �iu IIa in Plave Valley Indiutrial Crnm, chrp�nnia SCI padc
in RIvetsida
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6. I< t ie property cuaen$y zoned for the proposed use? If not, what zoning chaage will be
� ��
Ye�. the pmperry is e�arrntly mned M
7. Will the proposed project result in the celocation of resideatial, commerciai or indusn�ial
faciiitia? If so, discuss the natta�e of aay aaticipated relocatioas.
Ouz mtwt u ro�maas addidam�l in�said eoa�peola inw oia Plute Valley Indataial Center thm mto the
- City of Rivastde. .
8. S tate the need aad justification far TIF assistanca Explaia how the applicant intends to
demonstrate complianee with the "but fo�' tesc Substantiate that other alternative
methods of finaneiag have been thorou;hly c�lored,
our project wil! no� need ITF asais�ce.
9. Di scuss the condition(s) that would qualify the proposed 1TF District as a"blighced area°
- or "�onservation aiea," as defined under Mo. Rev. Stat 99.805.
h`Oi Applieablt
' 0. Id�nvfy sources, amounts and sratus of all debt Snancing and/or equiry funding avaiiable
to c.�iuplete the project Does the applicant anticipau the debt to be privately finanad by
th: constructibn lcadcr or developer or publicIy sold? Please prrpare informarion in the
foliowing table format
Conract Contact
Source AmounS T4ffi �S�S �4a. Teleyhone
SCC E4,080,���.00 Equity 7itn Coehran (303) 576•2620
� i. Previde aa outline af the costs associated with the developmrnt of the proposed
project(s) and reIaud parcel or parcels loeated withia the TIF' area. Idenufy ia the outliac •
those costs you would propose to fuad with TIF finaacing and the proposed payback time
frame.
TfF assiznnce will not be needed.
__�
I2. In ��ne page or less, discuss and document iafocmatioa used to describe the mazket
fea;'bility of each elaaeat of the proposed project If a formal feasibility or comparable
m�: ies have been prepared, attach such repotcs as aa appendix to this application.
1. SCI's Ri�aside pottfolio is cuctmdy 97.9°h leased and ova che put year has aveng:d 97X
occupanry.
2. '1}�ete m ao mits above 14,000 square feec cerrencty �aaat ia SCI's Ri�eaide partfotio aad oaly
one adstfaa leue (c du 13,000 w 90,000 sqnare foot rauge ezphrs befors Jenuaty 1993.
3. 17►aa is i need fm mvre ipxe w ueommodate the QowW of SCI's aareat auooma bua
4. The developmart ir dnigned to meet the needJ of a v�iety of eustomas. Bw'ldiag M I O(48,000
squue feet� daipted fa smaUa b++lk/li�ht iadusaial uses, eaa be di�ided down to 9,600 squm
fea ahik Bulldint #11(EE,000 squaro feet) can xeommodau larga bulk nsas r+ngis� from
24,000 to EE,OOO squere feec
5. The Kmsas Ciry ewnomy mnaias saong with an unemploymeut rate of 4.0% in the metropoliren
am and 2.SY. ia P1aRe Counry (Rivmide).
13. On the attached T�' Revenue Worksheet esamate the incremental property taxes and
economic acdviry t3Yes W be generated by the pcoject.
_ l4. Tr:rvidraa estimate of the markcc value of all fixtiues aad equiptaeat to be vscd by all
owners or tenaau of the proposed projecc which wt71 be taxed aa personal PTOP�Y•
Yot Imown u this time
1 S. Identify any proposed tenants of the project Have leues been negotiated or signed?
What type of lease is wntemplated?
'[Y:•n have been no leasa sigued W date
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16. V�w will own the developed properry?
. Stt.uiry CapI[al Industrlal Tnut
7 •
17. Br.efly dacribe the "economic and quality of lifd' benefits of the proposed project to the
Ci;.�.
This projea wn71 athact new busuwu to Riverside
18: Attach a leua from a financial insdtution indica* � that the applicant has suffi«mt
financial resoiu'ces to obtain the private financing for the projat.
See eneloud atmua! cepon
'rn7 �v�xu� woxxs�r
' PROJECT SCE�DLTI.S: •
Preliminary Construction Start Date: September 23, 1996
Preliminary Constiuction Completion Date: May 1, 1997
Phasing An6cipated: N/A .
Date Occupied or Opened: .
SALFS TAX REVSNiTE:
Estimated Annual Sales S
Total Annual Sales from New Development ... $
PROPfiRTY TAX REVENUB:
Market Value of New Construction
Commercial S 4,080,00�
Residential S -0-
Market Value of Iand (Based on Optional Prices) S 420,000
: `
Total Market Value of New Development S 4,500,000
Commercial Assessal Valne - Rate of Market Value 32
Assessod Value of Land and New Coasuuctioa (a) $ 1,305,600
Asse,ased Value of Bxistin8 Pmpertp (b) S 134,400
Net Assesse� Value for TII Capture (a b) S 1,440,000
Taz Rate Basia Per S of Assessed Valuation S 100
Tax Basis (Assessed Valne = Tax Rate Basis) S 1,439.900
Propetty Tax Rate Per S100 of Assessed Valuation S 6.05
Annual Pmperty Tax Captured by Ttf+ from New Development S 87,114
(Tax Basis x Property Tax Rate/5100)
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