Main Center Redevelopment Corporation Board

MAIN CENTER REDEVELOPMENT CORPORATION MEETING AGENDA April 11, 2019 9:00 a.m. Pizza Shoppe, 1105 W. Main, Blue Springs, MO 64015 1. Approval of Minutes from February 26, 2019 Meeting 2. Consideration of Jones Place Application 3. Other Business 4. Adjourn For more information, contact Teresa Evans at 816-622-4006. A quorum of the City Council may be in attendance; however, no City Council votes will be taken. Posted at the City Hall, 903 W. Main, Blue Springs, MO and on the City’s website on April 9, 2019. 1  MCRC BOARD OF DIRECTORS MEETING MINUTES OF MEETING February 26, 2019 A meeting of the Main Center Redevelopment Corporation Board of Directors was held on Tuesday, February 26, 8:00 a.m. at Howard Brown Public Safety Building with Gailen Snyder presiding. BOARD MEMBERS Ken Billups, Jr. Cindy Miller IN ATTENDANCE Jen Hauschild Gailen Snyder Vickie Jacks - Absent Also present were Megan Miller, Attorney – Gilmore & Bell; Community and Economic Development Director Tom Cole; Economic Development Coordinator Teresa Evans; and Devin Mirfasihi, Attorney – Mirfasihi Law Offices (representing applicant – Blue River Real Estate Investment, LLC) CALL MEETING Chairman Gailen Snyder called the meeting to order at 8:00 a.m. TO ORDER APPROVE Ken Billups, Jr. moved to approve the Minutes of the August 21, 2018 PREVIOUS MINUTES meeting. Motion seconded by Jen Hauschild and carried unanimously. PRESENTATION – Community and Economic Development Director, Tom Cole made a Blue River Real presentation on the tax abatement application from Blue River Real Estate Investment, Estate Investment, 709 W. Main Street, Blue Springs, Missouri. Mr. Cole LLC discussed the type of interior and exterior improvements included in the new construction project’s $1,540,820 budget and the applications conformity with the adopted Policy. APPROVAL OF Blue Cindy Miller moved to recommend the approval of the Blue River Real River Real Estate Estate Investment, LLC tax abatement application, providing tax Investment, LLC abatement corresponding to the investment threshold at 25% for CJCFD for 25 years, and 100% for 25 years for BSSD and all remaining taxing entities; and authorizing President of MCRC to execute the Abatement Agreement at the appropriate time. The motion was seconded by Jen Haushchild and carried with the following vote: Ken Billups, Jr. – AYE Cindy Miller – AYE Jen Hauschild – AYE Gailen Snyder – AYE Vickie Jacks - Absent 2 PRESENTATION – Tom Cole made a presentation on the MCRC Tax Abatement Policy MCRC TAX recommended revisions. ABATEMENT POLICY Ken Billups, Jr. moved to approve the MCRC Tax Abatement Policy subject to following amendments: Section III addition of Statement regarding Missouri Senate Bill 870; Section VI editing to include the tax impact analysis to be completed at the time of the Downtown Review Board review, corrections to the numbering of items VIII and IX; in item VIII add the 5th day of November to the date for when the next date of review for this policy; and adding content that states the applicant associated with the request for incentives and the subject property must be current on all property taxes due in the City of Blue Springs. Motion seconded by Cindy Miller and carried with the following vote: Ken Billups, Jr. – AYE Cindy Miller – AYE Jen Hauschild – AYE Gailen Snyder – AYE Vickie Jacks - Absent PRESENTATION - Tom Cole made a presentation on a proposed meeting schedule for the PROPOSED MCRC MCRC Board. The meeting schedule recommends the MCRC meetings SCHEDULE immediately follow the monthly Downtown Alive Board meetings. In the event, there is a month there are no projects or activities for the MCRC Board to review/consider, the meeting would be cancelled. Cindy Miller moved to approve the proposed MCRC meeting schedule going forward. Motion seconded by Jen Haushchild and carried with the following vote: Ken Billups, Jr. – AYE Cindy Miller – AYE Jen Hauschild – AYE Gailen Snyder – AYE Vickie Jacks - Absent OTHER BUSINESS No other business noted. ADJOURNMENT At 8:30 a.m., there was no further business to come before the Board; Cindy Miller moved the meeting be adjourned. Motion seconded by Ken Billups, Jr. and carried unanimously. ___________________________________ ATTEST: Gailen Snyder, Chairman ______________________________ 3 April 11, 2019 MCRC Board of Directors: For your consideration is a proposed real property tax abatement for Jones Place. As outlined in the packet materials, the project consists of five two-story buildings with ten residential units and associated public improvements including; construction of an alleyway behind the units extending the length of the property, as well as sewer and water main extensions. Specific projected budgets provided outlined the following improvements and associated contingences; Exterior Improvements: • Sitework • Utilities and Stormwater Detention • Exterior of Home Construction • Landscaping Exterior: • Electrical • Plumbing • HVAC • Finish Work (paint, tile, carpet) Project Costs: • Each of the Residential Units is estimated to cost $152,800 • Total Project Costs for Jones Place is $1,528,000 The project represents an abatement of up to $151,202.02. It is projected in the referenced impact analysis the abatement will be effective for ten years, depending on the final assessed value of the property. MCRC Policy states the “total project budget for the investment should look to allocate 50% to exterior costs and 50% to interior costs, subject to the MCRC Board of Directors review”. The ratio for this project is 31% interior, 62% exterior, with the remaining in soft costs and professional services. The project costs as presented are in line with the MCRC policy. It is also understood that with new construction the intent of the policy, encouraging publicly facing improvements is being met. Contingencies for each cost category have been included at 5%. This is considered acceptable to account for unforeseen conditions, pricing fluctuations, and potential challenges with the infrastructure installation. In the event all or a portion of the contingency is not used for eligible expenses, the abatement will be reduced by the unused balance. 4 This project’s requested abatement represents a negotiated level that addresses the Main Center Redevelopment Corporation Policy and its reference and treatment of multi- family residential structures. It was determined that the treatment of a multiple residential unit project and the potential for building additional density in the redevelopment area warranted presenting the negotiated level of abatement for the Redevelopment Corporation’s consideration. In communication between developer John Broker – Dwellings by Design, the Blue Springs School District (BSSD) and Central Jackson County Fire Department (CJCFD), the following ten-year tax abatement agreements have been agreed upon: CJCFD o Years One through Ten 25% Tax Abatement BSSD and All Remaining Taxing Entities o Years One through Five 100% Tax Abatement o Years Six through Ten 50% Tax Abatement If the Redevelopment Corporation wishes to move this project forward the Board would need to take the following action: o Recommend the Tax Abatement to the City Council o Approve the proposed projects and the Redevelopment Agreement authorizing the Chair to execute the Agreement upon ratification by City Council and satisfactory completion of the project and appropriate costs certifications. Respectfully Submitted, Thomas A. Cole Director of Community and Economic Development List of Attachments Attachment A Application Attachment B Project Budget Attachment C Tax Impact Analysis Attachment D Main Center Redevelopment Corporation Policy Attachment E Redevelopment Agreement between MCRC and Dwellings by Design KC 5 6 7 Supplement to MCRC Tax Abatement Program Application Incentive Amount Requested In a communication between developer, John Broker – Dwellings by Design, the Blue Springs School District and the Central Jackson County Fire Protection District, the following tax abatement agreements have been agreed upon: Central Jackson County Fire Protection District • Years One through Ten 25% Tax Abatement (See attached Letter) Blue Springs School District and Remaining Taxing Jurisdictions • Years One through Five 100% Tax Abatement • Years Six through Ten 50% Tax Abatement 8 9 10 11  - NOTE: 1. TOTAL AREA OF THE SITE = 0.75ac 2. TOTAL NUMBER OF UNITS = 20 STORM NOTES: 1. TOTAL AREA OF THE SITE = 0.75ac 2. EXISTING IMPERVIOUS AREA = 0.49ac 3. PROPOSE IMPERVIOUS AREA DRIVES = 7,659sf BUILDING & WALKS = 5 X 2,500sf - TOTAL IMPERVIOUS AREA = 0.46ac - 821 NE Columbus ST. e-mail = rwalquist@quistengineering.com 10' UTILITY VACATED ALLEY Lee's Summit, Missouri 64063 EASEMENT Civil Engineering for Residential & Commercial Site Development 10.00' 10.00' 10.00' 10.00' 10.00' 10.00' 10.00' Phone: (816) 550-5675 MH NEW PROPERTY LINE 5.49' 5.41' 5.00' 166.00' 19.21' REMOVE EXISTING ENTRANCE & FRONT PORCH INSTALL CURB 3,188 sq. ft. 19.21' DUPLEX GARAGE AND GUTTER 165.99' 0.07 acres 19.03' 3,158 sq. ft. 19.03' 166.00' SEWER LATERALS TO 0.07 acres uist Engineering Inc. 19.05' EACH UNIT INSTALL 15' WIDE 10.48' FRONT PORCH 19.05' SHARED DRIVE 3,162 sq. ft. DUPLEX GARAGE 166.00' 0.07 acres INSTALL CURB AND 25' 19.27' CROSS ACCESS GUTTER AT 19.27' EXISTING DRIVE EASEMENT 3,198 sq. ft. 166.00' 0.07 acres REMOVE EXISTING ENTRANCE & 19.17' VACATED Q FRONT PORCH 10.84' 19.17' INSTALL CURB ALLEY AND GUTTER 3,182 sq. ft. DUPLEX GARAGE 166.00' 0.07 acres 19.27' BLUE SPRINGS, JACKSON COUNTY, MISSOURI JONES PLACES LOTS 1 THRU 10 19.27' ONE TAP PER BUILDING 3,198 sq. ft. PRELIMINARY PLAT FOR W/ TWO METERS JONES PLACES, LOTS 1 THRU 10 166.00' 0.07 acres 19.18' 15' FRONT PORCH 10.84' 3,183 sq. ft. 19.18' DUPLEX GARAGE 166.00' 0.07 acres 19.27' 19.27' 20' 5' CITY SIDEWALK 3,198 sq. ft. 166.00' 15' UTILITY ON ROW LINE 0.07 acres EASEMENT A RE-PLAT OF KABEL'S ADDITION LOTS 8 THRU 10 19.18' FRONT PORCH 19.18' 10.84' 3,183 sq. ft. DUPLEX GARAGE 166.00' 0.07 acres 4' SIDEWALK 24.39' 10.51' 4,049 sq. ft. 24.39' INSTALL CONCRETE 10.59' 166.0 0' 0.09 acres DRIVE ENTRANCE R20.00' MH RAW RAW 7-15-18 E18-305 PROJECT CONTACTS: ROBERT WALQUIST, P.E.. 812 NE COLUMBUS ST LEE'S SUMMIT, MISSOURI 64063 12 Phone: (816) 550-5675 - 13 14 15  CHAPTER 353 REDEVELOPMENT CORPORATION TAX IMPACT ANALYSIS Main Center Redevelopment Corporation Jones Place - Dwellings by Design - John Broker SECTION A. ASSUMPTIONS SECTION 1 PROPERTIES APPRAISED ASSESSED ADDRESS PARCEL CLASS VALUE VALUE 106 SW 8th Street 36-920-11-07-00-0-00-000 $ 19,500 32% $ 6,240 110 SW 8th Street 36-920-11-08-00-0-00-000 $ 19,500 32% $ 6,240 SECTION 2 2018 TAX LEVIES Per $100 AV TAX CODE AREA 042 YR 1-5 YR 6-10 Blue Springs School District $ 5.7286 $ 5.7286 $ 2.8643 CJC Fire Protection District $ 1.1519 $ 0.2880 $ 0.2880 Jackson County $ 0.7013 $ 0.7013 $ 0.3507 City of Blue Springs $ 0.7175 $ 0.7175 $ 0.3588 Handicap Workshop $ 0.0720 $ 0.0720 $ 0.0360 Mental Health $ 0.1171 $ 0.1171 $ 0.0586 Metropolitan Community College $ 0.2305 $ 0.2305 $ 0.1153 Midcontinent Public Library $ 0.3963 $ 0.3963 $ 0.1982 State Blind Pension Fund $ 0.0300 $ 0.0300 $ 0.0150 Replacement Tax NA NA NA Total $ 9.1452 $ 8.2813 $ 4.2846 SECTION 3 2018 LAND ASSESSED VALUE TOTAL LAND IMPROVEMENT SQUARE ADDRESS ASSESSED ASSESSED ASSESSED ACRES FOOTAGE VALUE VALUE VALUE 106 SW 8th Street $ 6,240 $ 6,240 $ - 14,345.87 0.3293 110 SW 8th Street $ 6,240 $ 6,240 $ - 11,055.77 0.2538 TOTAL 25,401.64 0.5831 SECTION 4 INFLATION RATE 2% SECTION 5 ABATEMENT TERM 10 years [Yrs 1-5 100% Abatement and Yrs 6-10 50% Abatement] 16 SECTION 6 PROPOSED IMPROVEMENTS $ 1,528,000 Property Class changed to Residential 19% Land Market Value changed to Residential Lot based on 15th Street Parcels ($7.60 per square foot) $ 19,305 ESTIMATED ESTIMATED TOTAL ESTIMATED ESTIMATED LAND IMPROVEMENT ADDRESS OR LOT IMPROVEMENT APPRAISED NEW ASSESSED ASSESSED ASSESSED COST VALUE VALUE VALUE VALUE (per Lot) 106 SW 8th Street $ 862,956 $ 790,666 $ 150,227 $ 20,715 $ 129,511 110 SW 8th Street $ 665,044 $ 609,334 $ 115,773 $ 15,965 $ 99,809 $ 1,528,000 $ 1,400,000 $ 266,000 $ 36,680 $ 229,320 ESTIMATED ESTIMATED ESTIMATED TOTAL ESTIMATED LAND APPRAISED IMPROVEMENT ADDRESS OR LOT IMPROVEMENT NEW ASSESSED ASSESSED VALUE ASSESSED COST VALUE VALUE ($80 per SF) VALUE (per Lot) Lot 1 $ 152,800 $ 140,000 $ 26,600 $ 3,668 $ 22,932 Lot 2 $ 152,800 $ 140,000 $ 26,600 $ 3,668 $ 22,932 Lot 3 $ 152,800 $ 140,000 $ 26,600 $ 3,668 $ 22,932 Lot 4 $ 152,800 $ 140,000 $ 26,600 $ 3,668 $ 22,932 Lot 5 $ 152,800 $ 140,000 $ 26,600 $ 3,668 $ 22,932 Lot 6 $ 152,800 $ 140,000 $ 26,600 $ 3,668 $ 22,932 Lot 7 $ 152,800 $ 140,000 $ 26,600 $ 3,668 $ 22,932 Lot 8 $ 152,800 $ 140,000 $ 26,600 $ 3,668 $ 22,932 Lot 9 $ 152,800 $ 140,000 $ 26,600 $ 3,668 $ 22,932 Lot 10 $ 152,800 $ 140,000 $ 26,600 $ 3,668 $ 22,932 TOTAL PROJECT $ 1,528,000 $ 1,400,000 $ 266,000 $ 36,680 $ 229,321 17 SECTION B. ESTIMATED TAXES WITHOUT THE IMPROVEMENT PROJECT 106 SW 8th Street 110 SW 8th Street TOTAL ESTIMATED ESTIMATED ESTIMATED ESTIMATED ESTIMATED ESTIMATED YEAR APPRAISED APPRAISED APPRAISED TAX TAX TAX VALUE VALUE VALUE YR 1 $ 19,500 $ 660.33 $ 19,500 $ 660.33 $ 39,000 $ 1,320.66 YR 2 $ 19,890 $ 671.74 $ 19,890 $ 673.54 $ 39,780 $ 1,345.28 YR 3 $ 19,890 $ 671.74 $ 19,890 $ 673.54 $ 39,780 $ 1,345.28 YR 4 $ 20,288 $ 683.38 $ 20,288 $ 687.01 $ 40,576 $ 1,370.39 YR 5 $ 20,288 $ 683.38 $ 20,288 $ 687.01 $ 40,576 $ 1,370.39 YR 6 $ 20,694 $ 695.26 $ 20,694 $ 700.75 $ 41,387 $ 1,396.00 YR 7 $ 20,694 $ 695.26 $ 20,694 $ 700.75 $ 41,387 $ 1,396.00 YR 8 $ 21,107 $ 707.37 $ 21,107 $ 714.76 $ 42,215 $ 1,422.13 YR 9 $ 21,107 $ 707.37 $ 21,107 $ 714.76 $ 42,215 $ 1,422.13 YR 10 $ 21,530 $ 719.72 $ 21,530 $ 729.06 $ 43,059 $ 1,448.78 TOTALS $ 204,987 $ 6,895.56 $ 204,987 $ 6,941.49 $ 409,974.28 $ 13,837.05 SECTION C. ESTIMATED TAXES WITH IMPROVEMENT PROJECT WITHOUT ABATEMENT 106 SW 8th Street 110 SW 8th Street TOTAL ESTIMATED ESTIMATED ESTIMATED ESTIMATED ESTIMATED ESTIMATED YEAR APPRAISED APPRAISED APPRAISED TAX TAX TAX VALUE VALUE VALUE YR 1 $ 790,666 $ 13,738.52 $ 609,334 $ 10,587.71 $ 1,400,000 $ 24,326.23 YR 2 $ 806,480 $ 14,013.29 $ 621,520 $ 10,799.47 $ 1,428,000 $ 24,812.76 YR 3 $ 806,480 $ 14,013.29 $ 621,520 $ 10,799.47 $ 1,428,000 $ 24,812.76 YR 4 $ 822,609 $ 14,293.56 $ 633,951 $ 11,015.45 $ 1,456,560 $ 25,309.01 YR 5 $ 822,609 $ 14,293.56 $ 633,951 $ 11,015.45 $ 1,456,560 $ 25,309.01 YR 6 $ 839,061 $ 14,579.43 $ 646,630 $ 11,235.76 $ 1,485,691 $ 25,815.19 YR 7 $ 839,061 $ 14,579.43 $ 646,630 $ 11,235.76 $ 1,485,691 $ 25,815.19 YR 8 $ 855,843 $ 14,871.02 $ 659,563 $ 11,460.48 $ 1,515,405 $ 26,331.50 YR 9 $ 855,843 $ 14,871.02 $ 659,563 $ 11,460.48 $ 1,515,405 $ 26,331.50 YR 10 $ 872,959 $ 15,168.44 $ 672,754 $ 11,689.69 $ 1,545,713 $ 26,858.13 TOTALS $ 8,311,610 $ 144,421.55 $ 6,405,415 $ 111,299.73 $ 14,717,026 $ 255,721.27 18  CHAPTER 353 REDEVELOPMENT CORPORATION TAX IMPACT ANALYSIS Main Center Redevelopment Corporation Jones Place - Dwellings by Design - John Broker SECTION D. ESTIMATED TAXES ABATED WITH IMPROVEMENT PROJECT [Taxed only on Land Assessed Value PLUS 75% CJCFPD] 106 SW 8th Street 110 SW 8th Street TOTAL ESTIMATED CUMULATIVE ESTIMATED CUMULATIVE ESTIMATED CUMULATIVE YEAR TAX ABATEMENT TAX ABATEMENT TAX ABATEMENT YR 1 $ 10,725.17 $ 10,725.17 $ 8,265.45 $ 8,265.45 $ 18,990.62 $ 18,990.62 YR 2 $ 10,973.99 $ 21,699.16 $ 8,457.20 $ 16,722.65 $ 19,431.19 $ 38,421.81 YR 3 $ 10,973.99 $ 32,673.15 $ 8,457.20 $ 25,179.85 $ 19,431.19 $ 57,853.00 YR 4 $ 11,227.78 $ 43,900.93 $ 8,652.78 $ 33,832.63 $ 19,880.56 $ 77,733.56 YR 5 $ 11,227.78 $ 55,128.70 $ 8,652.78 $ 42,485.42 $ 19,880.56 $ 97,614.12 YR 6 $ 5,943.04 $ 61,071.74 $ 4,580.06 $ 47,065.47 $ 10,523.10 $ 108,137.22 YR 7 $ 5,943.04 $ 67,014.78 $ 4,580.06 $ 51,645.53 $ 10,523.10 $ 118,660.31 YR 8 $ 6,079.65 $ 73,094.44 $ 4,685.34 $ 56,330.87 $ 10,764.99 $ 129,425.30 YR 9 $ 6,079.65 $ 79,174.09 $ 4,685.34 $ 61,016.20 $ 10,764.99 $ 140,190.29 YR 10 $ 6,219.00 $ 85,393.09 $ 4,792.73 $ 65,808.93 $ 11,011.72 $ 151,202.02 TOTALS $ 85,393.09 $ 65,808.93 $ 151,202.02 YEAR Lot 1 Lot 2 Lot 3 Lot 4 Lot 5 Lot 6 Lot 7 Lot 8 Lot 9 Lot 10 TOTAL YR 1 $ 1,899.06 $ 1,899.06 $ 1,899.06 $ 1,899.06 $ 1,899.06 $ 1,899.06 $ 1,899.06 $ 1,899.06 $ 1,899.06 $ 1,899.06 $ 18,990.62 YR 2 $ 1,943.12 $ 1,943.12 $ 1,943.12 $ 1,943.12 $ 1,943.12 $ 1,943.12 $ 1,943.12 $ 1,943.12 $ 1,943.12 $ 1,943.12 $ 19,431.19 YR 3 $ 1,943.12 $ 1,943.12 $ 1,943.12 $ 1,943.12 $ 1,943.12 $ 1,943.12 $ 1,943.12 $ 1,943.12 $ 1,943.12 $ 1,943.12 $ 19,431.19 YR 4 $ 1,988.06 $ 1,988.06 $ 1,988.06 $ 1,988.06 $ 1,988.06 $ 1,988.06 $ 1,988.06 $ 1,988.06 $ 1,988.06 $ 1,988.06 $ 19,880.56 YR 5 $ 1,988.06 $ 1,988.06 $ 1,988.06 $ 1,988.06 $ 1,988.06 $ 1,988.06 $ 1,988.06 $ 1,988.06 $ 1,988.06 $ 1,988.06 $ 19,880.56 YR 6 $ 1,052.31 $ 1,052.31 $ 1,052.31 $ 1,052.31 $ 1,052.31 $ 1,052.31 $ 1,052.31 $ 1,052.31 $ 1,052.31 $ 1,052.31 $ 10,523.10 YR 7 $ 1,052.31 $ 1,052.31 $ 1,052.31 $ 1,052.31 $ 1,052.31 $ 1,052.31 $ 1,052.31 $ 1,052.31 $ 1,052.31 $ 1,052.31 $ 10,523.10 YR 8 $ 1,076.50 $ 1,076.50 $ 1,076.50 $ 1,076.50 $ 1,076.50 $ 1,076.50 $ 1,076.50 $ 1,076.50 $ 1,076.50 $ 1,076.50 $ 10,764.99 YR 9 $ 1,076.50 $ 1,076.50 $ 1,076.50 $ 1,076.50 $ 1,076.50 $ 1,076.50 $ 1,076.50 $ 1,076.50 $ 1,076.50 $ 1,076.50 $ 10,764.99 YR 10 $ 1,101.17 $ 1,101.17 $ 1,101.17 $ 1,101.17 $ 1,101.17 $ 1,101.17 $ 1,101.17 $ 1,101.17 $ 1,101.17 $ 1,101.17 $ 11,011.72 TOTALS $ 15,120.20 $ 15,120.20 $ 15,120.20 $ 15,120.20 $ 15,120.20 $ 15,120.20 $ 15,120.20 $ 15,120.20 $ 15,120.20 $ 15,120.20 $ 151,202.02 19  CHAPTER 353 REDEVELOPMENT CORPORATION TAX IMPACT ANALYSIS Main Center Redevelopment Corporation Jones Place - Dwellings by Design - John Broker ESTIMATED TAXES TO BE ABATED CJC Fire Metropolitan Blue Springs City of Blue Handicap Midcontinent Blind Pension Year Protection Jackson County Mental Health Community Total School District Springs Workshop Public Library Fund District College 1-5 69.18% 3.48% 8.47% 8.66% 0.87% 1.41% 2.78% 4.79% 0.36% 100.00% 6-10 66.85% 6.72% 8.18% 8.37% 0.84% 1.37% 2.69% 4.62% 0.35% 100.00% YR 1 $ 13,136.83 $ 660.38 $ 1,608.22 $ 1,645.37 $ 165.11 $ 268.53 $ 528.58 $ 908.80 $ 68.80 $ 18,990.62 YR 2 $ 13,441.59 $ 675.70 $ 1,645.53 $ 1,683.54 $ 168.94 $ 274.76 $ 540.85 $ 929.88 $ 70.39 $ 19,431.19 YR 3 $ 13,441.59 $ 675.70 $ 1,645.53 $ 1,683.54 $ 168.94 $ 274.76 $ 540.85 $ 929.88 $ 70.39 $ 19,431.19 YR 4 $ 13,752.45 $ 691.33 $ 1,683.59 $ 1,722.48 $ 172.85 $ 281.12 $ 553.35 $ 951.38 $ 72.02 $ 19,880.56 YR 5 $ 13,752.45 $ 691.33 $ 1,683.59 $ 1,722.48 $ 172.85 $ 281.12 $ 553.35 $ 951.38 $ 72.02 $ 19,880.56 YR 6 $ 7,034.76 $ 707.27 $ 861.20 $ 881.09 $ 88.42 $ 143.80 $ 283.06 $ 486.66 $ 36.84 $ 10,523.10 YR 7 $ 7,034.76 $ 707.27 $ 861.20 $ 881.09 $ 88.42 $ 143.80 $ 283.06 $ 486.66 $ 36.84 $ 10,523.10 YR 8 $ 7,196.47 $ 723.53 $ 881.00 $ 901.35 $ 90.45 $ 147.11 $ 289.56 $ 497.85 $ 37.69 $ 10,764.99 YR 9 $ 7,196.47 $ 723.53 $ 881.00 $ 901.35 $ 90.45 $ 147.11 $ 289.56 $ 497.85 $ 37.69 $ 10,764.99 YR 10 $ 7,361.41 $ 740.11 $ 901.19 $ 922.01 $ 92.52 $ 150.48 $ 296.20 $ 509.26 $ 38.55 $ 11,011.72 TOTAL $ 103,348.76 $ 6,996.17 $ 12,652.04 $ 12,944.30 $ 1,298.94 $ 2,112.58 $ 4,158.41 $ 7,149.59 $ 541.23 $ 151,202.02 20 21 22 23 24 25 26  ABATEMENT AGREEMENT FOR THE JONES PLACE PROJECT IN THE MAIN CENTER REDEVELOPMENT AREA This ABATEMENT AGREEMENT FOR THE JONES PLACE PROJECT (the “Agreement”) is made this ____ day of April, 2019, between the MAIN CENTER REDEVELOPMENT CORPORATION, a Missouri Urban Redevelopment Corporation (the “Corporation”), and DWELLINGS BY DESIGN KC, LLC (the “Owner”). Corporation and Owner may be referenced as a “Party” or collectively as the “Parties.” This Agreement described the conditions under which Corporation will assign rights to abatement of real estate taxes in accordance with the Main Center 353 Redevelopment Plan. RECITALS WHEREAS, the City Council (the “City Council”) of the City of Blue Springs (the “City”) has enacted into law Ordinance No. 3397, finding the Redevelopment Area to be blighted within the meaning of Section 353.020(2) of the Urban Redevelopment Corporations Law and approving the original Redevelopment Plan (the “Redevelopment Plan”), which has been amended several times to approve Redevelopment Projects; and WHEREAS, the Corporation was formed for the purposes of redeveloping and rehabilitating property within the Redevelopment Area in accordance with the Redevelopment Plan; and WHEREAS, the Corporation may assign certain of its rights, duties and obligations with regard to redevelopment and rehabilitation of property within the Redevelopment Area and abatement of certain taxes related thereto; and WHEREAS, the Owner desires to redevelop and rehabilitate certain property within the Redevelopment Area, as described herein and in the Application which is attached hereto as Exhibit A, and has applied to receive abatement of certain taxes in accordance with the Redevelopment Plan; and WHEREAS, the Corporation has reviewed the Owner’s application and has determined that the proposed redevelopment and rehabilitation, if completed, complies with the Redevelopment Plan; and WHEREAS, Owner holds title to the real property (the “Property”) which is legally described in the attached Exhibit B, which the Owner will redevelop and rehabilitate by completing the Improvements described in Exhibit A (the “Improvements”) in order to complete the redevelopment project (the “Redevelopment Project” or “Project”) for which tax abatement will be provided through the Redevelopment Plan and in accordance with this Agreement; and WHEREAS, the Corporation desires to assign, and the Owner desires to assume, certain of the Corporation’s rights, duties and obligations with respect to the completion and maintenance of the Improvements in exchange for tax abatement. NOW, THEREFORE, for and in consideration of the above recitals, the mutual promises, covenants, undertakings and understanding hereinafter set forth, and other good valuable consideration, Corporation and Owner agree that: 27 1. Definitions. In addition to the terms defined elsewhere in this Agreement, the following capitalized words and terms shall have the following meanings: “Applicable Laws and Requirements” means any applicable constitution, treaty, statute, rule, regulation, ordinance, order, directive, code, interpretation, judgment, decree, injunction, writ, determination, award, permit, license, authorization, requirement or decision of or agreement with or by any governmental entity. “Lot” means a lot created by subdivision of the Property which is developed in accordance with budget pages set forth in Exhibit A. “Owner” means the party described in the introductory paragraph of this Agreement and any purchaser of the Property that is authorized to continue to receive tax abatement as described in this Agreement. “PILOT Payment” means payments in lieu of taxes allowed by Section 353.110.4, RSMo, and as provided in this Agreement. “Redevelopment Area” means all of the real property located within and comprising the Redevelopment Area as more particularly described in the Redevelopment Plan upon which redevelopment projects may be completed pursuant to this Agreement. “Reimbursable Costs” means the costs incurred by the Owner for constructing improvements on the Property which may be certified for reimbursement in accordance with the provisions of this Agreement. The budget for the Reimbursable Costs is set forth in Exhibit A with respect to each anticipated Lot on the Property. “Urban Redevelopment Corporations Law” means Chapter 353 of the Revised Statutes of Missouri, as amended. 2. Representations of Owner. Owner represents that: A. Owner understands the potential effect that participation in this program may have on existing liens and title insurance policies related to the Redevelopment Project. B. Owner has obtained from the provider of any title insurance policy for the Redevelopment Project an endorsement on such policy that permits the existing title insurance policy to continue regardless of the property transfer that is required to participate in this program. C. Owner has received any required consent of any mortgage lender to participate in this program and the mortgage lender will waive its right to enforce a “due on sale” or similar clause against the Owner as a result of the property transfer that is required as a component of participation in this program. D. Owner will take steps to ensure that the recitals in this Section are explained to each buyer of a developed Lot. 3. Notice to Proceed. The Corporation, concurrent with the Corporation’s execution of this Agreement, hereby consents to provide the tax abatement requested by Owner and approved by the City Council of Blue Springs, upon satisfaction of the terms and conditions of this Agreement. 28 4. Assignment of Corporation’s Rights and Obligations. A. The Corporation assigns and the Owner assumes the Corporation’s duties and obligations to clear blight, complete the Improvements described in Exhibit A and to maintain the Redevelopment Project in accordance with all Applicable Laws and Requirements. B. The Corporation also assigns and the Owner assumes the Corporation’s rights to tax abatement in accordance with the approval granted by the City Council and in accordance with this Agreement, the Redevelopment Plan and the Urban Redevelopment Corporations Law. C. Owner may assign the right to receive tax abatement to the purchaser and re-purchaser of each Lot, and the tax abatement provided by this Agreement and assigned to the Owner shall be deemed assigned to the purchaser and each re-purchaser of such Lot provided that all terms and conditions of this Agreement are satisfied at the closing of such transaction and continue to be satisfied on such Lot in order to maintain the level of tax abatement authorized by this Agreement. Tax abatement for any transferred Lot may be terminated in the event that any subsequent owner fails to comply with any terms and conditions of this Agreement. D. Owner and each subsequent seller of each Lot shall provide a fully-executed original of the attached notice in Exhibit C upon the sale of each Lot in order for the tax abatement provided under this Agreement to continue with respect to that Lot. The failure to deliver a fully-executed original shall give the Corporation the right to terminate the tax abatement with respect to that Lot. 5. Improvements to Redevelopment Project. A. Time for Completion. The Owner shall commence or direct the commencement of work promptly in accordance with the Application set forth in Exhibit A, and shall continue and complete the work in accordance with the schedule set forth in Exhibit A. All work on the Improvements must be performed with reasonable diligence and work may not cease for more than fifteen (15) consecutive days. Owner must transfer each lot within the project area to the Corporation within five years. B. Completion of Improvements. The Owner shall make or cause to be made all Improvements in a workmanlike manner and in accordance with all Applicable Laws and Requirements. The Owner shall obtain or shall cause to be obtained all licenses, permits or other approvals required by any governmental authorities to complete the Improvements. C. Final Inspection. Upon the completion of the Improvements the Owner shall submit to the Corporation copies of all paid invoices and approved permits. The Owner also shall furnish all records, contracts, bills and other documents relating to the Redevelopment Project and any Improvements that the Corporation reasonably request. Representatives of the Corporation or the City shall have the right to enter upon the Property during the period of any construction and after the completion of construction to determine whether the Improvements conform to this Agreement. D. Extension of Time for Completion. The Owner may submit to the Corporation a request to extend the time for completion of the Improvements. Such request shall be in writing and shall state, at a minimum: (i) the reason for the extension; (ii) the Improvements that remain to be completed; and (iii) the proposed length of time needed to complete the Improvements. Upon review of the Owner’s request for extension of time, the Corporation, in cases of undue hardship, may extend the date of completion of the Improvements. E. Certification of Reimbursable Costs. The Reimbursable Costs shall be established in 29 accordance with the following: 1. All requests for certification of Reimbursable Costs shall be made in writing and directed to the Corporation. Owner may submit a reimbursement request not more often than once each calendar quarter, and the total amount of all reimbursement requests shall be in accordance with the terms and conditions of this Section 5. The written request for reimbursement shall specify and itemize the improvement costs that have actually been incurred and paid by Owner for construction of Improvements on each Lot in accordance with this Agreement, by line-item category of costs as set forth in the budget pages in Exhibit A with respect to each Lot, and shall be accompanied by sufficient documentation to provide proof that such costs have been incurred and paid. Owner shall, at the Corporation’s request, provide additional itemized invoices, receipts or other information that is reasonably requested by the Corporation to confirm that any submitted cost qualifies for reimbursement under this Agreement. The Corporation shall either approve or reject each request for reimbursement in writing within thirty (30) days after the submission thereof. 2. The amounts that are approved by the City shall be the “Certified Reimbursable Costs” under this Agreement. The Certified Reimbursable Costs shall be assigned to an applicable Lot, and the amount of the Certified Reimbursable Costs for such Lot shall be used to determine the duration of the tax abatement as provided in Section 6 for such Lot. 6. Tax Abatement. A. The Lots may be transferred to the Corporation to initiate tax abatement as provided in this Agreement. Lots may be transferred to the Corporation when the Improvements are constructed on each such Lot and when Owner seeks to initiate the tax abatement period as allowed by this Agreement. Upon the Owner’s transfer of a Lot to the Corporation as allowed by this Agreement, tax abatement shall commence immediately in the year of such transfer. B. The real property legally described in Exhibit B shall be subject to partial ad valorem real property tax abatement for ten years, except in an event expressly provided for in this Agreement. During the abatement period, the Owner and subsequent owners of a Lot will pay the reduced amount of ad valorem real property taxes required by the Urban Redevelopment Corporations Law and make a PILOT Payment. The tax abatement rights for the property are as follows: Taxing Jurisdiction Years Abatement Percentage Central Jackson County Fire Protection District 1-10 25% All Remaining Taxing Jurisdictions 1-5 100 All Remaining Taxing Jurisdictions 6-10 50 C. The Corporation hereby assigns to Owner the Corporation’s right to tax abatement for the Redevelopment Project, subject to the terms and conditions of this Agreement. The tax abatement rights for each Lot shall be for the lesser of (1) ten years or (2) the year in which the total value of the tax abatement provided for a Lot has exceeded the Certified Reimbursable Costs for such Lot. In the event that the value of abatement in the final year of abatement for a Lot exceeds the amount of Certified Reimbursable Costs for such Lot, no PILOT Payment shall be due for such year. D. The Property shall be transferred by the Corporation back to the Owner promptly after such transfer to the Corporation, and the tax abatement authorized above in this Section shall continue in accordance with the terms and conditions of this Agreement. 30  E. Termination of Abatement. The following events shall provide the Corporation with the right to terminate the tax abatement: (1) Failure of the Owner or an authorized purchaser to observe and perform any covenant, condition or agreement as provided in this Agreement. (2) Failure to comply with the schedule of development as set forth in Exhibit A. (3) The filing by the Owner or an authorized purchaser of a petition in involuntary bankruptcy, or failure by the Owner to promptly lift any execution, garnishment or attachment of such consequence as would impair the ability of the Owner to carry on its operation, or adjudication of the Owner as bankrupt, or assignment by the Owner for the benefit of creditors. To the extent that Owner is a bank, then the placement of Owner in an involuntary receivership (or similar legal process) by its chartering authority. (4) Failure to pay all required real estate taxes which are assessed against the Property before they become delinquent. (5) Failure of the Owner to pay any personal property or business license taxes which are attributable to the Property or any activities on the Property. (6) Owner fails to cooperate with and permit, at a reasonable time and upon reasonable prior notice, authorized representative of the City or the Corporation to enter upon the Redevelopment Project during the period of any construction and after completion of the Improvements to determine whether the Redevelopment Project conforms to this Agreement. (7) The failure of Owner to comply with all Applicable Laws and Requirements. (8) Foreclosure on the Property or any portion thereof by a lender and transfer of the Property or any portion thereof to the lender or a subsequent owner. 7. Inspections. The Corporation may conduct on-site inspections on a periodic basis to ensure compliance with this Agreement. The Owner shall cooperate with the Corporation and permit access to the Project for such inspections at reasonable times, at the request of the Corporation, and with reasonable notice. 8. Appeals. Except as otherwise provided in this Section, an Owner who is aggrieved by the decision of the Corporation with regard to the implementation and enforcement of the Redevelopment Plan and this Agreement may appeal such decision to the Blue Springs City Council. The decision of the City Council shall be final and conclusive. 9. Excusable Delays. The Parties understand and agree that neither Party shall be deemed to be in default of this Agreement because of Excusable Delays. “Excusable Delay” means any delay beyond the reasonable control of the Party affected, caused by damage or destruction by fire or other casualty, strike, shortage or materials, unavailability of labor, unusually adverse weather conditions such as, by way of illustration and not limitation, severe rain storms or below freezing temperatures of abnormal degree or abnormal duration, tornadoes, and any other events or conditions, interfering with the redevelopment and rehabilitation of the Redevelopment Project through the completion of all or any portion of the Improvements, which in fact prevents the Party so affected from discharging its respective obligations 31 hereunder. 10. Indemnification. The Owner shall indemnify the Corporation, its officers, and the City from any liability for injury or damage arising from any casualty to persons or property due to the negligence, omission or willful, wrongful act of the Owner in connection with the redevelopment and rehabilitation of the Redevelopment Project through the completion of the Improvements, or arising from a failure of the Corporation or its officers to compel, supervise or inspect any construction, reconstruction or maintenance of the Redevelopment Project. The Owner is responsible for compliance with all Applicable Laws and Requirements and agrees to hold harmless and indemnify the Corporation from and against all suits, claims, costs of defense, damages, injuries, liabilities, costs and/or expenses, including court costs and attorneys fees, resulting from, arising out of, or in any way connected with the Owner’s failure to comply with any applicable state law. 11. Dealings between the Parties. The Parties agree to and shall cooperate and deal with each other in good faith, and shall assist each other whenever possible, appropriate or necessary in the performance of this Agreement. The Parties agree to take such actions (including adopting additional and further resolutions, rules, regulations or codes) and to make, execute and deliver such further and/or additional documents, agreements, instruments and/or understanding as may be required, necessary or convenient to effectuate fully this Agreement and all of the terms, conditions and provisions hereof and to act reasonably and expeditiously in all performances or understandings required under or by this Agreement. The Owner acknowledges that City staff and City representatives work closely with the Corporation, and the rights, duties and obligations of the Corporation under this Agreement may be carried out and completed with the assistance of City staff on behalf of the Corporation. 12. Recording. This Agreement shall be recorded by the Corporation in the office of the Department of Records of Jackson County, Missouri, at Independence. 13. No Waiver. Any failure by either Party to insist upon or enforce any of their respective rights or duties hereunder shall not constitute a waiver, nor shall a failure to insist upon or enforce any rights preclude either Party from insisting upon or enforcing any of their respective rights or duties during the remaining term of this Agreement. 14. Governing Law. This Agreement shall be governed by and construed in accordance with the domestic laws of the State of Missouri without giving effect to any choice or conflict of law provision or rule (whether of the State of Missouri or any other jurisdiction) that would cause the application of the laws of any jurisdiction other than the State of Missouri. 15. Severability. If any one or more of the terms, provisions or conditions of this Agreement shall be declared unconstitutional, invalid, illegal or unenforceable by a court of competent jurisdiction, the validity of the remaining terms, conditions and provisions contained herein shall in no way be affected, prejudiced, limited or impaired thereby. 16. Interpretation. As used herein, the plural shall include the singular, the singular shall include the plural, and use of any gender shall be applicable to all genders. 17. Entire Agreement. This Agreement and all Exhibits attached hereto constitute the entire understanding between the Parties and supersede any and all prior agreements or understanding, whether oral or written, pertaining to the subject matter of this Agreement. This Agreement may be amended only by the mutual consent of the Parties, and by the execution of an amendment by the Parties or their respective successors in interest. 32 18. Electronic Transmission. The Owner and the Corporation agree that the transactions described herein may be conducted and related documents may be received, delivered or stored by electronic means. Copies, telecopies, facsimiles, electronic files and other reproductions of original executed documents shall be deemed to be authentic and valid counterparts of such original documents for all purposes, including the filing of any claim, action or suit in the appropriate court of law. [remainder of page intentionally left blank] 33 IN WITNESS WHEREOF, the Parties have set their hand the date and years first above written. DWELLINGS BY DESIGN KC, LLC ___________________________________ Date _______________________________ STATE OF MISSOURI ) ) SS. COUNTY OF JACKSON ) BE IT REMEMBERED, that on this ________ day of _________, 2019, before me, the undersigned, a Notary Public in and for the County and State aforesaid, came ____________, _________________ of Dwellings By Design KC, LLC, a Missouri limited liability company, who is personally known to me to be the same person who executed the within instrument on behalf of Dwellings By Design KC, LLC, and such person duly acknowledged the execution of the same to be the free act and deed of Dwellings By Design KC, LLC. IN WITNESS WHEREOF, I have hereunto set my hand and affixed my official seal, the day and year last above written. [SEAL] NOTARY PUBLIC My Commission Expires: 34  MAIN CENTER REDEVELOPMENT CORPORATION _____________________________________________ Date _________________________________________ STATE OF MISSOURI ) ) SS. COUNTY OF JACKSON ) BE IT REMEMBERED, that on this ________ day of _________, 2019, before me, the undersigned, a Notary Public in and for the County and State aforesaid, came ____________, _________________ who is the _______________________ of the Main Center Redevelopment Corporation (the “Corporation”), a Missouri redevelopment corporation organized pursuant to Chapter 353 of the Revised Statutes of Missouri, who is personally known to me to be the same person who executed the within instrument on behalf of the Corporation, and such person duly acknowledged the execution of the same to be the free act and deed of the Corporation. IN WITNESS WHEREOF, I have hereunto set my hand and affixed my official seal, the day and year last above written. [SEAL] NOTARY PUBLIC My Commission Expires: 35  EXHIBIT A DESCRIPTION OF THE REDEVELOPMENT PROJECT [See Attached Application] 36  EXHIBIT B LEGAL DESCRIPTION OF THE PROPERTY 37 Legal Description: Proposed as: Jones Place, Lots 1 Thru 10, Blue Springs, Missouri Currently described as: Kabel’s Addition Lots 8 Thru 10, Blue Springs, Missouri AND A piece of property located in Blue Springs, Missouri more precisely described as follows: Beginning at the northwest corner of lot 11 of Kaleb’s Addition a subdivision in Blue Springs, Jackson County, Missouri being the point of beginning. Thence along the north property line of said lot 11 South 87 degrees 46 minutes 24 seconds East a distance of 166.00 feet; thence North 02 degrees 09 minutes 18 seconds East a distance of 222.00 feet; thence North 87 degrees 46 minutes 24 seconds West a distance of 166.00 feet; thence South 02 degrees 09 minutes 18 seconds West a distance of 20.00 feet; thence South 87 degrees 46 minutes 24 seconds East a distance of 150.00 feet; thence South 02 degrees 09 minutes 18 seconds West a distance of 172.00 feet; thence North 87 degrees 46 minutes 24 seconds West a distance of 150.00 feet; thence South 02 degrees 09 minutes 18 seconds West a distance of 30.00 feet to the point of beginning CONTINAING 0.25 ACRES, MORE OR LESS. Except for the portions vacated and granted to adjacent properties, including the south half of vacated east-west right-of-way (formerly SW Jones Street south of Kabel’s Lot 10) and the north half of vacated east- west right-of-way (alley to north of Kabel’s Lot 8). 4/9/2019 38  EXHIBIT C NOTICE FOR PURCHASE OF RESIDENTIAL LOT _____________________________________________________________________________ This Notice, signed by the buyer, must be provided to the Main Center Redevelopment Corporation (the “Corporation”) upon the sale of any Lot that is described in the Abatement Agreement for the Jones Place Project in the Main Center Redevelopment Area dated _____, 2019 (the “Abatement Agreement”). If not provided upon the purchase of property, the tax abatement provided by the Corporation may be terminated for such property. Terms not otherwise defined herein shall have the meaning ascribed to such terms in the Abatement Agreement. Legal Description and Address of Property: _____________________________________________________________________ The undersigned hereby acknowledges and agrees to the following: 1. Acquisition and ownership of the Property described above is subject in all respects to the rights, duties and obligations of the Abatement Agreement. 2. The property described above is located within the boundaries of the Redevelopment Area for the Main Center Redevelopment Plan which has been approved by the City of Blue Springs, and the property will receive the benefit of tax abatement in exchange for maintaining the property in the condition described in the Abatement Agreement and continuing to satisfy all terms and conditions of the Abatement Agreement. 3. The property described above shall be subject to partial ad valorem real property tax abatement for ten years, except in an event expressly provided for in the Abatement Agreement and in (4) below. During the abatement period, the owner of such Lot will pay the reduced amount of ad valorem real property taxes required by the Urban Redevelopment Corporations Law and make a PILOT Payment. The tax abatement rights for the property are as follows: Taxing Jurisdiction Years Abatement Percentage Central Jackson County Fire Protection District 1-10 25% All Remaining Taxing Jurisdictions 1-5 100 All Remaining Taxing Jurisdictions 6-10 50 4. The tax abatement provided for the property will last for the lesser of (1) ten years or (2) the year in which the total value of the tax abatement provided for a Lot has exceeded the Certified Reimbursable Costs for such Lot. In the event that the value of abatement in the final year of abatement for a Lot exceeds the amount of Certified Reimbursable Costs for such Lot, no PILOT Payment shall be due for such year. 5. As the successor in interest to property described in the Abatement Agreement, I agree to comply with the terms and conditions of the Abatement Agreement in order to continue to receive the tax abatement benefits provided by the City and the Corporation. 39 6. I understand that I am responsible for maintaining an adequate funds in escrow with any lender for my property, in accordance with the terms and conditions of such loan, in order to pay real estate taxes when due under the law after tax abatement is terminated in accordance with the Abatement Agreement. Signature: _______________________________________________ Name: __________________________________________________ Date: ___________________________________________________ 40  CERTIFICATE OF FINAL CONSTRUCTION COSTS TO: City of Blue Springs, Missouri Attention: Christine Cates, Assistant City Manager, Finance & Administrative Services Re: Abatement Agreement for the Jones Place Project in the Main Center Redevelopment Area Terms not otherwise defined herein shall have the meaning ascribed to such terms in the Abatement Agreement for the Jones Place Project dated as of ____ ____, 2019 (the “Agreement”) between the Dwellings by Design KC, LLC (defined as the “Owner” in the Agreement) and the Main Center Redevelopment Corporation (the “Corporation”). In connection with said Agreement, the undersigned hereby states and certifies that: 1. Owner has undertaken the construction of a single-family dwelling (the “Structure”) located at the street address of ____ (the “Property”). In the construction of the Structure, Owner has incurred not less than $___ it total project costs. Owner is requesting that the City, on behalf of the Corporation, certify this amount as the Certified Reimbursable Project Costs for this Property under the Agreement. 2. The amount stated in paragraph 1 has actually been incurred in the construction of the Structure and Owner could provide evidence of such costs in the form of receipts, invoices and other documentation upon demand by the Corporation or the City. 3. Owner has undertaken construction of the Structure in compliance with all requirements in the Agreement. 4. The amount stated in this Certificate has not previously been certified by the City as Certified Reimbursable Project Costs and no part thereof has been included in any other Certificate previously filed with the City by Owner. 5. There has not been filed with or served upon Owner any notice of any lien, right of lien or attachment upon or claim affecting the right of any person, firm or corporation to receive payment of the amounts stated in this request, except to the extent any such lien is being contested in good faith. 6. All necessary permits and approvals required for the Structure have been issued and are in full force and effect. 7. Owner is not in default or breach of any term or condition of the Agreement and no event has occurred, and no condition exists, which constitutes an event of default under the Agreement. 8. All of Owner’s representations set forth in the Agreement remain true and correct as of the date hereof. 41 Dated this _____ day of ______________, 20____. DWELLINGS BY DESIGN KC, LLC, a Missouri limited liability company By: Name: Title: Approved for reimbursement this ____ day of ___________, 20___: CITY OF BLUE SPRINGS, MISSOURI on behalf of the Main Center Redevelopment Corporation By: Name: Title: 42