Purpose of the District

The purposes of the Independence Avenue Corridor Community Improvement District (the “District”) are to provide for enhanced and reliable improvements, security, services and activities, such as general maintenance of public areas, continued efforts to address area beautification related issues, as well as other concerns within the Independence Avenue corridor not already receiving such services. Additionally, the District would undertake an image and marketing program that will include continued activities, such as increased uniform signage, a sustained advertising campaign, and annual events within the District.

The boundaries of the District are set forth on the District boundary map set forth on Exhibit A, attached hereto and incorporated herein. The District would be funded with a one percent (1.0%) sales tax on all eligible taxable sales within its boundaries and from a special assessment levied against real property in amounts equal to $300 per parcel of real property within the CID boundaries.

Estimated First-Year Budget

Income:
Special Assessment $ 30,000
Sales Tax $175,000

Expenses:
Crime and Grime Maintenance/Landscaping (includes graffiti removal) $ 70,000
Events/Marketing/Signage $ 25,000
Additional Capital Improvements/Maintenance Program $ 20,000
Administration/Operating Reserve $ 50,000
One Time Set-up Costs (City) $ 40,000

Board of Directors

The District will be governed by an (11) eleven member Board of Directors (the “Board”). The Board will consist of various representatives from within the District’s boundaries and immediate neighborhoods, including residents, business owners and property owners. The initial board members will be representatives from geographic areas within the District, East of the Paseo on Independence Avenue to Ewing.

Base Level of City Services

As part of the process of forming the District, the City of Kansas City, Missouri, will be required to certify to the existing level of city services being provided within the District. The City will then not be permitted to reduce such services as a result of the District providing additional services. In essence, formation of the District will ensure that no city services will be reduced in the area without an equal reduction-taking place throughout the entire city.

District Boundaries

The boundaries of the District are shown on the attached Boundary Map.

What is needed to Form the District

After this proposal has been circulated and comments have been received from property and business owners within the District, a petition to form the District (the “Petition”), will be prepared. The Petition must be signed by: (1) more than 50 percent of the property owners per capita; and (2) the owners of property totaling more than 50 percent of the total assessed value within the District. The Petition will also include: (1) the District’s purposes; (2) the District’s proposed first year budget; (3) a five-year plan for the District; (4) whether the District will be a political subdivision or non-profit corporation; (5) the initial term of the District’s existence (currently proposed to be ten (10) years); and (6) the sales tax rate to be imposed by the District.

Sales Tax

The District will seek to impose a one percent (1.0%) sales tax on all eligible taxable sales within its boundaries. Sales Tax Revenue will support the District’s purposes and will provide the District with enhanced services as well as strengthened image and marketing capabilities. The initial term of the District’s sales tax is expected to be for a period of ten (10) years.

Special Assessments

A special assessment is proposed for the District. The special assessment will be in the amount of $300 per parcel of real property within the CID boundaries.

Timeline

Once the Petition is drafted, following comments received as a result of this proposal, the Petition will be circulated for signatures and, upon obtaining enough signatures, the Petition will be considered by the City of Kansas City, Missouri, for approval. The approval process can take as much as 120 days. Following that time, the District will be deemed to have been formed by city ordinance.