There's a myth that only Kansas City development schemes are doomed to failure . . . However, fact is,
LOCAL GOVERNMENT GETTING INTO THE DEVELOPMENT GAME IS ALWAYS A RECIPE FOR DISASTER!!!
Here's the latest example:
The Kansas City Business Journal reported that U.S. Bank said the owners of Legends Outlets owe more than $179 million and have not made a payment since October.
Sadly, Kansas City and so many other municipalities are quick to get suckered into silly schemes by developers rather than focus on the neighborhoods and infrastructure. KCMO is exceptionally guilty of this FAILED strategy but it's happening all over the Midwest and across The State Line Too.
Let me guess the owners of legends latest board meeting was . . "how much money can we save if we renounce our American citizenship? Can we sell to China?"
ReplyDeleteHello! It's a DEPRESSION!!
ReplyDeleteThis is what happens when you give away the farm. Cities give all these tax breaks and incentives and end up losing their ass because all they see is dollar signs and new, shiny buildings all the while not realistically calculating risk.
ReplyDeleteHow is KCK "losing out"?
ReplyDeleteIt's not property taxes that aren't being paid.
It's the principal and interest the developer owes to the financing bank.
Legends Outlet owners, you're no dummy!!!
ReplyDeleteNo doubt you've been taking notes from me (MO 5th District Congressman Cleaver) I made virtually no payments on a 1+ million SBA carwash loan for 10 years, then defaulted, leaving the taxpayers to clean up my mess! HaHa suckers!
You guys are still in the rookie leagues.....no payments for 7 months?....call me back when you're up to 7 YEARS!
I approved this message!
RED Development defaults on another loan, and KCK is still giving them more tax breaks at 79th and State!!
ReplyDeleteWhy would anyone think that a shopping center, located halfway to Topeka, would ever survive four dollar gas???
ReplyDeleteNow KCK knows how to structure a development deal.
ReplyDeleteMake sure you get your money out first and let the private sector folks who made promises take the losses when the project under performs.
Well done,!!!