TKC BREAKING AND EXCLUSIVE NEWS!!! KANSAS CITY INSIDERS CLAIM: DOWNTOWN CONVENTION HOTEL DEAL CRUMBLING!!!
From today's East Patrol debut to the sordid topic of millionaire TIF up for debate this morning . . . Kansas City is at the crossroads of political push back against civic leadership almost completely dedicated to pushing a controversial development-focused agenda.
To wit . . .
KANSAS CITY INSIDERS REVEAL INCREASING DOUBT REGARDING THE ABILITY OF THE DOWNTOWN CONVENTION HOTEL TO ATTRACT INVESTORS AND SELL CITY HALL BACKED BONDS!!!
Ongoing debate, a petition effort looming against the project and sketchy promises about local employment efforts have put the public/private partnership in peril. Of course, a company financing this kind of deal WITHOUT TAXPAYER CASH could easily transcend these challenges but the process of starting a biz with PUBLIC FUNDS is often fraught with guarantees that might not be appealing for investors.
Here at TKC we only invest in coffee and consumer electronics so the game of high finance isn't our bag, baby. Instead, from behind the scenes here's a peek about NEW QUESTIONS concerning KCMO Downtown Convention Hotel viability . . .
"Pull one thread of this project and it all falls apart. From the catering agreement to the MBE/WBE requirements, there are so many ways for the city and developers to get screwed that this thing is starting not to make sense. It's time to go back to the drawing board and start over or else KCMO will be on the hook for millions. I like that Mayor James has tried to minimize the risk but right now KC is the only party ready to commit cash (at least $35 million) to this effort and more than a few impending lawsuits against the city are obviously going to stall this rushed and crudely constructed contract."
And so, it doesn't take much for RISKY PUBLIC/PRIVATE BIZ DEALS TO FALL APART and here @ TKC we're getting FIRST word that the investor crowd might not be willing to put their money where their mouth is on this project.
Developing . . .
TKC, I think it's a much simpler question than all of this.
ReplyDeleteKC voters need to ask: Would you invest in this deal? Basically, that's what kcmo has decided but without any board members, auditors or industry regulators. Actually, private industry doesn't have the luxury of avoiding shareholder sentiment. Even if the board of directors of a company doesn't get a vote - Every hour of every day the stock price is a good indication of what the public thinks about a company. So businesses and investors who are in charge of capital aren't going to be as eager as our elected leaders to play games with other people's money. It's a shame we can't get that kind of responsibility from our mayor and council.
Yes as we all know the economy is BOOMING and working people and taxpayers have TONS of disposable income to part with and they don't know what to do with!
ReplyDeleteWhy not give it to the Have Yachts! The have nots haven't earned anything.
New Flash!!! The Marriott, Sheraton and Westin will all be managed by the same company.
ReplyDeleteBurke's Folly is dead!!
The FBI needs to look into this deal-----all the political people whose names are hidden in the shell corporations designed to hide their names from the public---their friends and family members-----most not residents of Kansas City at all)---the many no bid contracts involved to allow these hidden people to be paid. Troy Schulte and his friends B. Langenkamp and J. Egan are key persons in wrapping up this nice little gift for Burke. Underneath all the paperwork you are likely to find high profile political people (Former Mayor and affiliates and and Schulte's friends and lots of other interesting people.) Funny how the city arranges so many no-bid contracts to enable the pay-off of political friends. Where is the when real corruption is ripping off public funds?
ReplyDeleteThe next Federal Reserve meeting is DEC 16th, and they're widely expected to FINALLY raise interest rates.
ReplyDeleteA rising rate environment will be another disadvantage to this boondoggle project. And, if petitioners bring suit against the project, delaying it a few months, events scheduled for the NYC area will likely deliver the death knell to this project. Please recall Mr. Rattner's warning to a KCMO audience for specifics.
Mr. Tony,
ReplyDeleteWhy is Kansas City being used..... again?
Seems like the sketchy money guy is in need of some type of project to LOOK like people are willing to work with his company. Don't matter that the project is vape. He just needs to seem like he is still in the game.
Reminds me, when are we getting a hockey team?
This deal makes the streetcar deal look sweet!
ReplyDeleteSo many incorrect comments here
ReplyDeleteNo, the Marriott and the Sheraton and the Westin are all run by the same company..false
Marriott is owned by DST, managed by Raphael Hotel Group. Sheraton and Westin, owned by the Hall family, managed by Starwood. The Marriott is a franchise as are the Sheraton and Westin. Get your facts straight.
Marriott bought Starwood true, but that deal is a ways off. And when that deal is done, they are still separate operating hotels.
As far as the city needing this hotel, for those of you who say no, you just are not in touch with reality of supply and demand in this city as it relates to hotels and tourism.
10:57 Why increase supply when demand is decreasing? And why increase supply when there is demand for only a few dates per year? And why even bother with tourism since it creates mostly low paying jobs at the expense of other business?
ReplyDeleteWhy is Troy Fucking Schulte still city manager????
ReplyDeleteThe building looks nice actually, I wouldn't pay money for it or anything though. A city needs a new building from time to time.
ReplyDeleteATTENTION! TONY'S INSIDERS, WHO DON'T KNOW THE DIFFERENCE BETWEEN A HOTEL MANAGEMENT COMPANY FROM A HOTEL DEVELOPER, ASSESS THE PRO-fORMA INTRICACIES OF THE DEVELOPMENT DEAL AND COME TO THE CONCLUSION THAT THEIR INITIAL POSITION IS SUPPORTED.
ReplyDeleteI am against the project, but to answer Miss Sweetie Pie's question, no one takes a blogger or his denizens seriously when they don't know what the hell they are talking about.
This is a good place for the racists to spew hate, along with an ever tiring number of "TOY TRAIN" and "FAN BOY" terms, but it's no place for educated fact finding.
BTW, I have the under on 1 hour before Tony posts the "fart sniffing" retort under the anonymous id.
Side Note To 1116:
The answer to your question is, Troy skillfully negotiated a contract where it requires Mayor and Council intervention to get rid of him. With the vacuum of leadership at City Hall, you may be asking that question for 20 more years.
SAVE OUR VACANT WEEDY LOTS FROM BEING TURNED INTO TAX BASE CONTRIBUORS! What's next, ppl? Repopulating the city to the mild and sustainable levels of population density that allows us to pay for city services? Where will it end? Like us in Facebook and donate to Coffeyfakes legal fundz
ReplyDeleteIf these jobs don't pay $15. Mayor Sly James is a hypocrite.
ReplyDeleteI object that Johnny-boy and his skinny jeans get consulting fees for commenting on this blog. I feel like that shouldn't come out of the tax base.
ReplyDelete"As far as the city needing this hotel, for those of you who say no, you just are not in touch with reality of supply and demand in this city as it relates to hotels and tourism."
ReplyDeleteThe city might need a new hotel, but they don't need to pay for it with my money!
Looks like the Burke PR brigade is out in full force...see 10:57!!
ReplyDeleteThis hotel will do nothing but steal business from existing tax paying hotels!!
This hotel is going to be built. Just like the Toy Train. Built and rolling.
ReplyDeleteOnce again Tony Botello full of shit. Wishing on a star or a skaters bung. Choo choo, spooner.
Will it be built just like phase II of the streetcar? That was going to happen too. Me thinks Russ Mensa boy doesn't like his new job @5:34 and he's taking it out in the comments. So sorry, so silly.
ReplyDeleteThe hotel WILL be constructed and it will cost KCMO no less than $10 million to maintain every year.
ReplyDelete116 & 534: "SAVE OUR VACANT WEEDY LOTS FROM BEING TURNED INTO TAX BASE CONTRIBUORS!" Give those vacant and weedy lots free to someone who will develop them at their own expense. If they don't even think the deal's good enough for them to build on free land, the deal's not good enough for taxpayers to pay them to build on free land.
ReplyDeleteToot toot. You get more moronic every day. Clunk.
The hotel deal is done and the ground breaking will begin in a few months. This subject is being beaten like a dead horse and nothing will change. The so-called opposition will not be able to stop this, just like the streetcar project and everything else going on downtown.
ReplyDeleteIn the decade from 2005 to 2015, Kansas City lost 665 groups, representing 5.5 million room nights and $3.9 billion in economic impact.
ReplyDeleteOf the top 30 destinations in the country, Kansas City ranks among the lowest when measured in total available hotel rooms within one-half mile of the convention center.
One hundred percent of Kansas City’s key convention competitors have added a major hotel facility in their downtown areas in the past 10 years.
Kansas City has not added any hotel rooms within a 10-minute walk of Bartle Hall since 1985.
Kansas City has 3,776 hotel rooms within one mile of the convention center, vs. 7,350 in Austin, 7,922 in St. Louis, 7,183 in Indianapolis, 7,042 in Minneapolis and 4,500 in Nashville.
An 800-room convention headquarters hotel will lead Kansas City into the future with 350-400 full-time-equivalent jobs, plus additional employment in other Kansas City-area businesses serving the convention business.
An 800-room hotel will require direct and indirect employment of approximately 1,500 construction workers during the construction phase.
^^^^So why doesn't some genius build the hotel on their own dime and a free lot already?
ReplyDeleteBecause it won't make any money.