UPDATE: City council to continue KCI discussions with Edgemoor - KCTV5 News

UPDATE: City council to continue KCI discussions with Edgemoor

Posted: Updated:
On Thursday, Kansas City's Airport Committee will debate the next step in their push to rebuild KCI. (KCTV5) On Thursday, Kansas City's Airport Committee will debate the next step in their push to rebuild KCI. (KCTV5)
KANSAS CITY, MO (KCTV) -

UPDATE (4:28 p.m.) - The Kansas City City Council approved a resolution that will authorize continued negotiations with Edgemoor. 

The resolution establishes a timeline for completing work on the memorandum of understanding. 

It was a 12-1 by the City Council. 

"I appreciate the Council's approval of our proposal to move forward with addressing legitimate concerns that have been raised with the Edgemoor MOU, however, I sincerely hope that this is the last time we take a business partner to the brink like this,” Councilmember Jermaine Reed said in a statement. "The drama with last week's vote and the more recent AECOM press conference confused and upset our voters, tarnished our reputation as a business partner, and could have placed us squarely on a path to costly litigation and delays in the most transformative infrastructure project in Kansas City's history.”

Text of the resolution: 

COMMITTEE SUBSTITUTE FOR RESOLUTION NO. 171017

Directing the City Attorney and appointed outside counsel to continue negotiations of a Memorandum of Understanding with Edgemoor Infrastructure and Real Estate LLC for a terminal modernization project at the Kansas City International Airport and establishing a process for review of a Memorandum of Understanding with Edgemoor Infrastructure and Real Estate LLC.

WHEREAS, because of the aging of the current terminal and appurtenant facilities at Kansas City International Airport (“KCI”), and the importance of improving the functionality of KCI for the airlines, airline passengers, and general public who use KCI, the Council recognized that there is a need to plan for the modernization of the existing terminals and their appurtenant facilities by demolishing the existing terminals and replacing them with a single terminal that will better serve airline passengers, the airlines and the general public (“Terminal Project”); and

WHEREAS, the Council adopted Ordinance No. 170390 and subsequent legislation to support further planning of the Terminal Project and authorizing the City Attorney “to negotiate and execute agreements with Husch Blackwell LLP and Wilmer Cutler Pickering Hale and Dorr LLP to provide legal services . . . related to the proposed terminal modernization project,” including but not limited to negotiation of a Memorandum of Understanding; and

WHEREAS, to further planning for the Terminal Project, the City issued a request for qualifications and proposal for the design, construction and financing of a new single terminal and its appurtenant facilities and convened a selection committee under Chapter 3 of the Code of Ordinances, which ranked Edgemoor Infrastructure and Real Estate LLC (“Edgemoor”) as most qualified; and

WHEREAS, the City Council adopted Ordinance No. 170663, as amended, which authorized the City in accordance with Chapter 3 of the Code of Ordinances “to undertake negotiations toward a Memorandum of Understanding and other initial contractual arrangements . . . . ”; and

WHEREAS, the City has undertaken negotiations with Edgemoor, which led to the introduction of Ordinance No. 170941, seeking Council authorization of a proposed Memorandum of Understanding and, by its vote on Ordinance No. 170941, the Council has found that proposed Memorandum of Understanding not to be in the best interests of the City and the regional flying public in response to concerns which include, but are not limited to, absence of adequate specificity in discussion of financial terms and obligations of the Memorandum of Understanding; terms of the proposed reimbursement obligation; provisions of the community benefit agreement; local workforce hiring and workforce protection issues; items raised previously by members of Council; and any and all other concerns necessary to protect the best interests of the City and the regional flying public; and

WHEREAS, the City Council determines it is in the best interests of the City to continue negotiations with Edgemoor and to establish a timeline for initial review of a newly submitted Memorandum of Understanding and related information; NOW, THEREFORE,

Section A. That the Council hereby again finds that the terms of the proposed Memorandum of Understanding presented to it by Ordinance No. 170941 are not acceptable to the City Council because those terms are not in the best interests of the City and the regional flying public.

Section B. That the City, by and through the City Attorney and appointed counsel and advisors as designated by Husch Blackwell and Wilmer Cutler Pickering Hale and Dorr, shall continue to undertake negotiations of a Memorandum of Understanding with Edgemoor Infrastructure and Real Estate LLC for a terminal modernization project at the Kansas City International Airport, subject to good faith and all other obligations prescribed under Chapter 3 of the Code of Ordinances and other applicable law.

Section C. That on Tuesday, January 9, 2018, the City Attorney and appointed outside counsel and advisors as designated by Husch Blackwell and Wilmer Cutler Pickering Hale and Dorr shall present to Council an update on negotiations with Edgemoor and provide information concerning the status of negotiation relating particularly to concerns which include, but are not limited to, absence of adequate specificity in discussion of financial terms and obligations of the memorandum of understanding; terms of the proposed reimbursement obligation; provisions of the community benefit agreement; local workforce hiring and workforce protection issues; items raised previously by members of Council; and any and all other concerns necessary to protect the best interests of the City and the regional flying public.

Section D. That on Thursday, January 11, 2018, the Council shall meet as a Committee of the Whole to discuss those matters presented by the City Attorney and outside counsel on January 9, 2018 and to discuss any outstanding items and issues of concern to the Council and to produce a final written list of additional terms to be negotiated and concerns or questions to be addressed.

Section E. That the City Attorney and appointed counsel are further directed by Thursday, January 18, 2018 to report back to Council as to the progress of negotiations, the lack thereof, or impediments to resolving the items and issues of concern to the Council, and if satisfied with the status of the Memorandum of Understanding as a best and final expression of terms between the parties, to circulate on that date a draft copy of the document for review by Council.

Section F. That on or by Tuesday, January 30, the Council shall meet as a Committee of the Whole to discuss the status of the negotiations and all material concerns involving the Memorandum of Understanding and, if timely, a recommendation concerning authorization to the City Attorney to adopt and formally present to Council a revised Memorandum of Understanding as a best and final expression of terms between the parties or a recommendation concerning a remaining impediment to resolution of the items and issues of concern to Council.

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ORIGINAL STORY

Edgemoor Infrastructure & Real Estate may get another shot at building the new terminal at Kansas City International Airport on Thursday.

The city recently rejected a deal with the firm before reentering negotiations with them.

On Thursday, Kansas City's Airport Committee will debate the next step in their push to rebuild KCI.

The city council could renegotiate with Edgemoor, go with a new plan proposed by AECOMM or start from scratch.

After the Edgemoor plan was rejected, AECOMM announced that they had teamed up with Burns & McDonnell to take over the KCI project.

Council members say they rejected the Edgemoor memorandum of understanding due to a lack of minority hiring, a lack of financials and a $30 million reimbursement issue.

Edgemoor says they are still committed to the project and want a chance to work with the council to address some of their concerns.

Ties aren’t completely cut yet.

The council plans to discuss if negotiations between the city and Edgemoor will be terminated. Those discussions will begin at 9:30 a.m. on Thursday.

Previous coverage:

AECOM, Burns-McDonnell team up to build new KCI single-terminal

KC Mayor pushes for continued negotiations after Edgemoor KCI memorandum rejected

Chamber of Commerce expresses concern about new KCI developments

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