Kansas City Code § 74-1 Title.
Sec. 74-1. - Title.
This chapter shall be known as Economic Development Incentive Policies and Procedures Code.
(Ord. No. 251058, § 6, 2-5-26)
GENERAL
Kansas City Code ch. 74, art. I
in effectKansas City Code § 74-2 Statement of general policy.
Sec. 74-2. - Statement of general policy.
Reserved.
(Ord. No. 251058, § 6, 2-5-26)
Kansas City Code § 74-3 Definitions.
Sec. 74-3. - Definitions.
The following definitions shall apply in this chapter, unless the applicable article or section provides for more specific or different definitions:
Chapter 100 means chapter 100 of the Revised Statutes of Missouri.
Chapter 353 means chapter 353 of the Revised Statutes of Missouri.
City means the City of Kansas City, Missouri.
City incentives means economic incentives granted by the city or any city incentive agency in the nature of the capture and redirection, abatement, or exemption of taxes or the issuance of bonds or grants by the city or other city backed financing.
City incentive agency means any economic development agency created by the city, including the IDA, LCRA, PIEA, Port, and the land clearance redevelopment authority of Kansas City, Missouri ("LCRA"), the planned industrial expansion authority of Kansas City, Missouri ("PIEA"), the port authority of Kansas City Missouri, the Clay County KC TIF Commission, and the Kansas City TIF Commission.
Clay County KC TIF Commissions means the tax increment financing commissions created by code section 74-54(b).
East Side Investment Zone means all areas within the geographic boundaries depicted in exhibit A to second committee substitute for ordinance no. 170962, as further amended.
EDC means the Economic Development Corporation of Kansas City.
IDA means the Industrial Development Authority of Kansas City, Missouri.
Kansas City TIF Commissions means the tax increment financing commissions created by code section 74-54(a).
LCRA means the Land Clearence Redevelopment Authority of Kansas City, Missouri.
PIEA means the Planned Industrial Expansion Authority of Kansas City, Missouri.
Port means the Port Authority of Kansas City, Missouri.
(Ord. No. 251058, § 6, 2-5-26)
Kansas City Code § 74-4 Outside agencies.
Sec. 74-4. - Outside agencies.
(a) That the EDC shall make recommendations on economic development projects to the city council for the capture and redirection, or abatement or exemption of real property taxes on the basis of the following:
(1) The EDC shall have evaluated the project using the AdvanceKC Scorecard for the purposes of determining the extent to which the project aligns with the city council's priorities as set forth therein.
(2) The EDC shall have prepared, or caused a third party to prepare, a financial return analysis for the purposes of comparing the leveraged and unleveraged internal rate of return to determine whether and to what extent the project warrants public assistance consistent with incentivizing the project to an appropriate market benchmark. That analysis shall specifically include a review of the project's economic viability were the real property tax incentives limited to that which is provided herein.
(b) The city and any economic development agency created by the city shall complete the initial review of any application for economic development incentives within eight weeks of receipt of a completed application and necessary supporting documentation.
(Ord. No. 251058, § 6, 2-5-26)
Kansas City Code § 74-5 AdvanceKC.
Sec. 74-5. - AdvanceKC.
(a) The city has adopted the AdvanceKC strategic plan, an AdvanceKC process, and created an AdvanceKC scorecard to evaluate incentive projects against council priorities to ensure positive economic growth for our community and responsible fiscal stewardship of public resources.
(b) All AdvanceKC plans, processes, and scorecard are to be implemented in a manner consistent with the following:
(1) Make economic development equitable/inclusive;
(2) Make economic development more effective for small scale and incremental neighborhood and community developers and development;
(3) Ensure that projects eligible for incentives fulfill an adopted economic development policy goal and create desired community outcomes;
(4) Ensure economic development tools are accessible to developers and businesses of all sizes without the need for legal representation;
(5) Ensure that projects are evaluated based on a consistent set of criteria that is appropriate for the type of development being proposed;
(6) Make the process and review of economic development applications/proposals transparent and accountable;
(7) Ensure that applications and approvals are considered in a timely manner;
(8) Provide relevant and reliable project information to encourage strategic investment of resources;
(9) Focus incentives on projects that address economic inequities or where there is a historic lack of investment activity, which is inhibiting economic growth of the surrounding neighborhood or the city overall; and
(10) Ensure that the positions of any contributing taxing districts are considered for all projects seeking incentives
(c) The EDC shall have evaluated the project using the AdvanceKC scorecard for the purposes of determining the extent to which the project aligns with the city council's priorities as set forth in this section. Projects shall comply with these general requirements:
(1) Projects should support the city council's priorities for economic development, align with the citywide business plan, the city's comprehensive plan, the city's capital improvements plan, the AdvanceKC purpose and value statement, and adhere to the appropriate State of Missouri statute(s) to be eligible for city incentives.
(2) Projects should strengthen the economy of the City of Kansas City, preserve and enhance the local tax base, and provide opportunities for increased income and income equality for residents, especially in areas of high unemployment and underemployment through sustainable and equitable place-based development and redevelopment, business attraction, expansion and retention and entrepreneurial support activities.
(Ord. No. 251058, § 6, 2-5-26)
Kansas City Code § 74-6 Maximum incentives.
Sec. 74-6. - Maximum incentives.
(a) The following conditions shall apply to all applicable incentivized development projects in the city:
(1) TIF commission. That, in the absence of extraordinary qualifications, as hereinafter defined, the city council shall not approve any redevelopment plan providing for, with respect to payments in lieu of taxes ("PILOTS") pursuant to section 99.845.1(2)(a), RSMo, the redirection of such sums in an amount that would exceed 70 percent of the PILOTS captured by the special allocation fund for a term of up to ten years and 30 percent for up to five additional years. The city council shall accomplish the same by excluding from any pledge of funds in and to be deposited in the special allocation fund an amount equal to 30 percent of the PILOTS for years one through ten and 70 percent for years eleven through fifteen, and shall, to the extent permitted by law, annually surplus such sums for distribution by the applicable county collector in accordance with section 99.850.1, RSMo.
(2) PIEA. That, in the absence of extraordinary qualifications, as hereinafter defined, the city council shall not grant its approval to any plan, or substantial modification thereto, recommended by the PIEA unless such plan shall provide for not greater than a 70 percent abatement of real property taxes for up to ten years and 30 percent for up to five additional years, and which taxes shall, for the entire term, be measured by the assessed valuation thereof, inclusive of any improvements, as assessed by the applicable county assessor. The inclusion of such a term shall be regarded as a substantial element of any plan so approved and shall be incorporated as a material term of any applicable contract.
(3) LCRA. That, in the absence of extraordinary qualifications, as hereinafter defined, the city council shall not grant its approval to any redevelopment plan, urban renewal plan, or substantial modification thereto, recommended by the LCRA unless such plan shall provide for not greater than a 70 percent abatement of real or personal property taxes for the duration of the public incentives, and which taxes shall, for the entire term, be measured by the assessed valuation thereof, inclusive of any improvements, as assessed by the applicable county assessor. The inclusion of such a term shall be regarded as a substantial element of any plan so approved and shall be incorporated as a material term of any applicable contract.
(4) Chapter 353. That, in the absence of extraordinary qualifications, as hereinafter defined, the city council shall not its approval to any development plan or substantial modification thereto recommended by the Kansas City Chapter 353 Advisory Board, unless such plan shall provide for not greater than a 70 percent abatement of real or personal property taxes for up to ten years and 30 percent for up to five additional years, and which taxes shall, for the entire term, be measured by the assessed valuation thereof, inclusive of any improvements, as assessed by the applicable county assessor. The inclusion of such a term shall be regarded as a substantial element of any plan so approved and shall be incorporated as a material term of any applicable contract.
(5) Chapter 100. That the city council reaffirms its policies as established by committee substitute for resolution no. 041033. In the absence of extraordinary qualifications, as hereinafter defined, any leaseback structure pursuant to the provisions of sections 100.010 through 100.200, RSMo, shall not exceed ten years and shall ensure that the lessee thereunder be contractually obligated to tender payments in lieu of taxes in an amount not less than 50 percent of the amount of real property taxes that would have been due and payable but for the public ownership of the real property for the duration of the public incentives, and which taxes shall, for the entire term, be measured by the assessed valuation thereof, inclusive of any improvements, as assessed by the applicable county assessor. Such requirement shall be incorporated as a material term of any applicable contract.
(6) EEZ. That, in the absence of extraordinary qualifications, as hereinafter defined, the city council shall not grant its approval to any plan, or substantial modification thereto, recommended by an enhanced enterprise zone board unless such plan shall provide for not greater than a 70 percent abatement of the value of improvements for up to ten years and 30 percent for up to five additional years. The inclusion of such a term shall be regarded as a substantial element of any plan so approved and shall be incorporated as a material term of any applicable contract.
(b) That in the event any provision of subdivision (a) of this section is deemed unenforceable by reason that it conflicts with a provision of state law providing for a differing level of abatement for all or any portion of the term of the public incentives, or providing that the assessed valuation be determined by some other measure than is set forth therein, then the LCRA, PIEA or City, as applicable, shall, to the maximum extent permitted by law, contractually require payments in lieu of taxes structured to achieve the objectives of this ordinance, such payments to be distributed pro rata to the affected taxing jurisdictions. Such requirement shall be included within the body of the redevelopment plan, urban renewal plan, plan, or development plan, as applicable, and shall be regarded as a substantial element of any plan so approved.
(c) Extraordinary qualifications. Notwithstanding the foregoing provisions of this ordinance, the city council and any economic development agency created by the city shall retain the discretion to authorize the abatement, redirection or exemption, in whole or in part, of ad valorem real property taxes to the full extent authorized by any provision of law. The city council shall give particular consideration to the following exception to the above policies ("extraordinary qualifications") in determining whether to authorize any abatement/exemption structure, or approve any development plan providing for incentives to be conveyed on a project-specific basis at any level other than what has been provided for herein. Any economic development agency created by the city shall only grant an exception to this policy if the project meets an extraordinary qualifications. The extraordinary qualifications are:
(1) Projects located in a severely distressed census tract that has continuously maintained such status for not less than ten years immediately prior to the effective date of the request; or
(2) Projects that support affordable housing and extremely affordable housing by meeting the requirements of section 74-11.
(3) Projects that connect residents living in continuously distressed census tracts to new employment opportunities by:
a. providing at least 100 new entry-level jobs to Kansas City with an annual salary of at least $32,000.00, or $42,000.00 inclusive of wages and benefits; and
b. Incorporating options for mass public transportation or locating in an established high-frequency transit corridor.
(4) Projects that involve the renovation or rehabilitation of a building that has been designated by a government entity as a local or national historic landmark or contributes to a historic district, or projects that have filed an application with the National Park Service to be placed on the National Register of Historic Places, win which case the exclusion would be subject to such designation being approved.
(5) Projects that are industrial in nature and support manufacturing or serve as a distribution center.
(d) Determination of eligibility for extraordinary qualifications shall be made upon receipt by the city or any economic development agency created by the city including Port KC of an application or request for ad valorem real and personal property tax abatement, exemption or redirection.
(e) The city manager shall annually update and publish maps indicating the locations of continuously distressed census tracts utilizing comparisons of American community standards 5-year estimates for the most recently published 5-year range and the two prior but non-overlapping 5-year ranges.
(Ord. No. 251058, § 6, 2-5-26)
Kansas City Code § 74-7 The shared success fund
Sec. 74-7. - The shared success fund
(a) The Shared Success Fund, as initially constituted by ordinance no. 160383, shall be funded from certain payments in lieu of taxes distributed to and retained by the city, and which are derived from projects benefiting from tax abatements or tax redirections through an economic development agency or program ("Shared Success PILOTS").
(b) The direction of any one-time revenues to the Shared Success Fund shall be deemed an appropriate use pursuant to section 2-1970(g), Code of Ordinance.
(c) The Shared Success PILOTS shall be deposited to the Shared Success Fund and shall be appropriated at the direction of the city council only to Shared Success Projects located within Shared Success Fund eligible areas. The city council's planning, zoning and economic development committee shall make such recommendations to the City Council as it determines appropriate in consultation with such representatives as the city manager and the economic development corporation of Kansas City, Missouri may identify for such purposes.
(d) That the Shared Success Projects shall be located in a severely distressed census tract that has continuously maintained such status for not less than ten years immediately prior to the effective date of the request meeting.
(e) the following limitations shall apply with respect to the Shared Success Fund:
(1) In the event that the emergency reserve portion of the committed general fund balance shall fall below one month of general fund operating expenditures, then the director of finance shall be authorized, without further city council action, to suspend the direction of Shared Success PILOTS to the Shared Success Fund until such time as such minimum fund balance shall have been restored.
(2) In the event that the emergency reserve portion of the committed general fund balance shall fall below one month of general fund operating expenditures, then no one-time revenues shall be directed to the Shared Success Fund until such time as such minimum fund balance shall have been restored.
(3) In the event that the city council shall have adopted a budget that estimates and appropriates revenues which might otherwise be categorized as Shared Success PILOTS somewhere other than the Shared Success Fund, then only such portion of the actual revenues which exceeds the estimated revenues shall be directed to the Shared Success Fund.
(Ord. No. 251058, § 6, 2-5-26)
Kansas City Code § 74-8 Compliance with contracting program and workforce regulations.
Sec. 74-8. - Compliance with contracting program and workforce regulations.
All projects seeking city incentives shall comply with all City Code requirements, including but not limited to chapter 3, article IV, contracting program requirements and chapter 38, civil rights.
(Ord. No. 251058, § 6, 2-5-26)
Kansas City Code § 74-9 Revive the east side.
Sec. 74-9. - Revive the east side.
(a) The revive the east side initiative was first created by second committee substitute for ordinance no. 170962, as amended.
(b) Any proposed economic development project located within the boundaries of the east side investment zone and receiving a total job-based score as "standard impact" or "high impact" under section 74-5, shall not be subject to a financial return analysis required by Section 74-4. The EDC shall not require such an analysis as a condition of any AdvanceKC related process or procedure. However, the EDC may elect to require and prepare an in-house financial return analysis for any proposed economic development project if the EDC has cause to believe that one or more of the incentives authorized in this section should not be extended, or that the extension of the same might cause the proposed development project to be incentivized in excess of the appropriate market benchmark.
(c) The reinvestment in economic growth program (the "reinvestment program") was established by second committee substitute for ordinance no. 170962, as amended. The reinvestment shall be governed a follows:
(1) The following definitions shall apply for purposes of the reinvestment program:
a. Allocable earnings tax shall mean, with respect to a given fiscal year (May 1 through April 30), an amount equal to not less than 50 percent nor more than 100 percent of the incremental increase in the earnings tax over the fiscal year having expired immediately prior to the effective date of the applicable reinvestment in economic growth agreement which is due for work done or services performed or rendered for an employer within the east side investment zone by those employees whose wages, or portions thereof, the employer has been approved by the Missouri Department of Economic Development to claim as a federal tax credit under the federal work opportunity tax credit ("WOTC") program, or who were hired through the services of the full employment council, Inc., in its capacity as the strategic workforce organization/fiscal agent for the Kansas City & Vicinity ("KCV") and Eastern Jackson County ("EJC") local workforce development boards, or who is currently attending or has graduated from a public high school located in the east side investment zone or in lieu thereof has successfully obtained high school equivalency
b. Allocable electrical utility license fees shall mean, with respect to a given fiscal year (May 1 through April 30), an amount equal to not less than 50 percent nor more than 100 percent of the incremental increase in the electrical utility license fees over that which was recouped by the electrical utility provider from an energy-intensive business in the form of a franchise or city license fee with respect to a facility located within the east side investment zone during the fiscal year having expired immediately prior to the effective date of the applicable reinvestment in economic growth agreement.
c. Earnings tax shall mean the city's tax on earnings levied pursuant to section 68-382 of the Kansas City, Missouri Code of Ordinances, as the same may be amended, or any successor thereto.
d. Electrical utility license fees shall mean the city's license fees and emergency license taxes on the gross receipts of electrical utility providers levied pursuant to sections 40-344 and 40-345 of the Kansas City, Missouri Code of Ordinances, as the same may be amended, or any successors thereto.
e. Employer shall be an individual, corporation (including a corporation not for profit), partnership, governmental administration agency, arm, authority, board, body, branch, bureau, department, division, subdivision, section or unit, or any other entity, who or that employs one or more persons on a salary, wage, commission or other compensation basis within the east side investment zone.
f. Energy-intensive business means a business within the east side investment zone that uses significant quantities of electrical energy in the performance of its primary economic activities, which shall include information technology, including data centers containing electrical equipment used in processing, storing, and transmitting digital information; and the bulk manufacturing of aluminum, chemicals, forest and paper products, metal casting, glass, petroleum refining, mining and steel.
g. Reinvestment in economic growth agreement shall mean a written agreement between the city and an employer or energy-intensive business with respect to the reinvestment of certain allocable earnings tax and allocable electrical utility license fees, individually or collectively, for the purpose of promoting economic development within the east side investment zone.
(2) Except as otherwise provided in this section, an energy-intensive business or employer proposing to expand its operations within the east side investment zone and engaged with the EDC for purposes of identifying those incentives which might be available shall be eligible for consideration as a participant under this reinvestment program as the same is applicable to their respective operations. The EDC shall make its written recommendation to the city manager with respect to such participants and the portion of the allocable electrical utility license fees and/or allocable earnings tax that it recommends to be committed, and the city manager shall thereafter be authorized to execute such reinvestment in economic growth agreement as he shall determine to be the city's best interest.
(3) Notwithstanding the provision of subsection 74-9 (c)(2), the following exceptions shall be applicable:
a. No employer or energy-intensive business electing to compensate any employee at a rate less than $15.00 per hour, exclusive of benefits, shall be eligible to receive any incentive under this reinvestment program.
b. No employer or energy-intensive business shall be eligible to receive any incentive under the reinvestment program if they are otherwise deemed ineligible for incentives under the provisions of section 74-5, AdvanceKC.
c. No business located within the geographical boundaries of Kansas City, Missouri, as of the effective date of this ordinance and subsequently relocating to the east side investment zone shall be eligible to receive any incentive under the reinvestment program unless the city manager shall have designated the employer of the energy-intensive business as being the subject of an effort to retain the same.
(d) No individual or business located in the east side investment zone and having received or directly benefitting from the capture and redirection, or abatement or exemption of taxes, within the ten year period immediately preceding November 15, 2018, shall be eligible for any incentive hereunder.
(e) This section shall expire November 25, 2028.
(Ord. No. 251058, § 6, 2-5-26)
Kansas City Code § 74-10 Reserved.
Kansas City Code § 74-11 Affordable housing set aside.
Sec. 74-11. - Affordable housing set aside.
(a) The following definitions shall apply to this section:
Affordability offset value means the estimated financial gap between revenues from market-rate units and affordable units. This amount shall be calculated annually by the city manager's office, by adjusting the current estimated $5,000.00, by an amount equal to any increase in the construction cost index for Kansas City published by the Engineering News Record.
Affordable housing means housing that a household having an income at or below 60 percent of the HUD MFI ("60% MFI") for all households within the Kansas City metropolitan area would be able to afford if they were to expend not more than 30 percent of such income for the mortgage or rent, including utilities.
City incentives means economic incentives granted by the city or any economic development agency created by the city, including Port KC, in the nature of the capture and redirection, abatement, or exemption of taxes or the issuance of bonds or grants by the city or other city-backed financing.
Deeper levels of affordability means housing priced such that households at lower incomes than 60 percent MFI within the Kansas City metropolitan area would be able to afford it if they were to expend not more than 30 percent of such income for the mortgage or rent, including utilities.
Sources of income means the lawful manner by which an individual supports themselves and their dependents, including tenant-based rental assistance.
(b) For all development projects primarily providing multi-family housing available for rent and including 12 or more residential units across all sites and phases of the development project that are seeking city incentives, at least 20 percent of the total residential units shall be affordable housing. The requirements of this section shall not apply to projects that benefit from no city incentive other than the reimbursement of costs for public improvements eligible for reimbursement pursuant to section 99.825.3 RSMo that are located in a redevelopment plan for any redevelopment area that has been found by the city council to constitute an economic development area pursuant to RSMo. § 99.800 et seq.
(c) A project developer may make a payment to the city in lieu of the affordable housing unit provision in an amount equal to the affordability offset value multiplied by the total number of housing units in the project. In the event that project developer provides some affordable housing units, but less than the number required to comply with subsection b, the payment in lieu shall be calculated by the affordability offset value multiplied by the total number of housing units less the number of affordable housing units. Such payment shall be deposited into the city's housing trust fund.
(d) That for purposes of this ordinance, affordable housing shall comply with the following criteria:
(1) That all units qualifying as affordable housing shall be on the principal development project site and shall not be off site from the project.
(2) That affordable housing units shall be mixed with, and not clustered together or segregated in any way, from market-rate units.
(3) That all units qualifying as affordable housing shall either be at least one-bedroom units in size or be equal to or share the same size as at least 25 percent of units to be constructed on the project site.
(4) That if the project development contains a phasing plan, the phasing plan shall provide for the development of affordable housing units concurrently with the market-rate units. No phasing plan shall provide that the affordable housing units built are the last units in a housing development.
(5) That the quality and cost of in-unit finishes, systems, appliances, and square footage of all units deemed as affordable housing shall be comparable with that of the remaining units on the project site.
(6) That the exterior appearance of affordable housing units shall be made similar to market-rate units by the provision of exterior building materials and finishes substantially the same in type and quality.
(7) That the project developer must covenant with the city and successors in interest that the designated units remain affordable for a period of not less than the period of the incentive awarded.
(8) That the project developer must covenant with the city and successors in interest that the appropriate number of units be rented to individuals or families whose household incomes are at or below 60 percent MFI, in accordance with subsection (b).
(9) That the project developer must covenant with the city and successors in interest that the developer will not engage in any discriminatory housing practices as defined in section 38-105(d) of the city's Code of Ordinances, including discrimination based on lawful sources of income.
(10) That the project developer must covenant with the city and successors in interest that developer will use a procedure deemed acceptable by the city to determine income eligibility of residents qualifying for the affordable housing units and that the city or its designee shall have the right to audit any such income verification procedure records. Any required determinations of income eligibility shall occur at the time an initial lease with the resident is entered into.
(e) The following shall be exempt from the requirements of this section:
(1) Any project that has been awarded federal or state low income housing tax credits from the Missouri Housing Development Commission; and
(2) Any project that involves the renovation or rehabilitation of a building that has been designated by a government entity as a local or national historic landmark.
(Ord. No. 251058, § 6, 2-5-26; Ord. No. 260286, § 4, 5-7-26)
Kansas City Code § 74-12 Incentivized project construction timeline.
Sec. 74-12. - Incentivized project construction timeline.
(a) The following definitions shall apply to this section:
City incentive agency means any economic development agency created by the city, including the industrial development authority of Kansas City, Missouri, the land clearance redevelopment authority of Kansas City, Missouri ("LCRA"), the planned industrial expansion authority of Kansas City, Missouri ("PIEA"), the port authority of Kansas City Missouri, and tax increment finance commissions for property in Kansas City, Missouri (the "TIF commission").
City incentives means economic incentives granted by the city or any city incentive agency in the nature of the capture and redirection, abatement, or exemption of taxes or the issuance of bonds or grants by the city or other city-backed financing.
Development commitment means any document committing the city or any city incentive agency to provide a city incentive, including development agreements, predevelopment agreements, redevelopment agreements, contribution agreements, and funding agreements, or any amendment to a development agreement, predevelopment agreement, redevelopment agreement, contribution agreements, funding agreement, or other document committing the city or any city incentive agency to provide a city incentive.
Incentive approval date means:
(1) For a city incentive granted pursuant to RSMo 99.800 et seq. through the TIF commission, the date the redevelopment agreement is executed for the project.
(2) For a city incentive granted pursuant to RSMo 100.300 et seq. through the PIEA, the date the tax abatement is approved by the PIEA board of commissioners.
(3) For a city incentive granted pursuant to RSMo 99.300 et seq. through the LCRA, the date the tax abatement is approved by the LCRA board of commissioners.
(4) For a city incentive granted pursuant RSMo 353.010 et seq., the date the tax abatement is approved by city council.
(5) For a city incentive granted pursuant to RSMo 100.010 et seq., the date the plan for the project is approved by city council.
(6) For enhanced enterprise zones abatement in excess of the statutory minimum provided in RSMo 135.950 et seq., the date the tax abatement is approved by city council.
(7) For other city incentives, the date the incentive amount is approved by the final governing body required by statute or city ordinance to approve the applicable city incentive.
Incentive plan means any tax increment finance plan, urban renewal plan, urban redevelopment plan, redevelopment plan, industrial development plan, or any other similar plan required by statute for the grant of city incentives.
Incentivized project means any new construction or rehabilitation projects receiving city incentives valued at or above $300,000.00.
Materially conflict means that a development commitment contains timelines for the substantial completion of the project that differ from those provided in this section in a manner that would cause the development commitment to be substantially impaired.
Substantial completion/substantially complete means the issuance of a certificate of occupancy or temporary certificate of occupancy for the project, whichever is issued first.
(b) All incentivized projects shall substantially complete construction within three years of the incentive approval date or the awarded incentive shall expire, unless the city council has specifically modified the time period for completion by ordinance or resolution. If more than 20 percent of the total residential units provided in a project qualify as affordable housing, as defined in section 74-11, and comply with the criteria in section 74-11(d), the timeline for substantial completion is extended from three years to five years.
(c) The requirements outlined in this section shall be included in all development commitments and incentive plans approved or executed by the city or any city incentive agency after May 31, 2023.
(d) For incentivized projects for which a development commitment has been fully executed but substantial completion has not occurred by May 31, 2023:
(1) If the relevant development commitment or incentive plan does not materially conflict with the provisions of subsection (b), subsection (b) shall apply. If the incentive approval date is prior to June 1, 2021, the project must be substantially complete by June 1, 2024. If the incentive approval date is from June 1, 2021 to June 1, 2022, the project must be substantially complete by June 1, 2025.
(2) If the relevant development commitment or incentive plan does materially conflict with the provisions of subsection (b), the relevant development commitment or incentive plan shall control, but if any modifications or amendments are made to any such development commitment or incentive plan, the requirements of this section as outlined in (d)(1) shall apply.
(e) Every city incentive agency shall review each incentive plan five years after it is established and every five years thereafter to evaluate the performance of the plan and shall report to the city manager and council as to the status of the plan. Each report shall include the status of each project in the plan and a recommendation whether any projects that have not yet been approved should be removed from the plan.
(Ord. No. 251058, § 6, 2-5-26)
Source: City of Kansas City, Missouri, Code of Ordinances, Charter and Zoning and Development Code (Municode Library, library.municode.com)URL: https://library.municode.com/mo/kansas_city/codes/code_of_ordinances?nodeId=COORKAMIVOII_CH74ECDEINPOPRCO_ARTIGEFetched: 10/28/2026