Insiders say there are still "too many questions for the city to move ahead" as Mayor Sly James attempts to ram this tragic deal through before the new City Council can't vote on it AND before an activist petition can make sure the public has a say on the matter. The Tax Increment Financing commission is being told the 800 room facility will now cost nearly $311 million. That's a boost of about $9 million. More facts and figures here: Downtown convention center hotel price increases - Kansas City Business Journal
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- The Management
Anyone else remember when KC was at one time doing pretty steady business with a variety conventions few complained about lack of hotel space.
ReplyDeleteNo surprise here. Of course the project cost is going up, and if actually built, will likely be at least 50% (maybe more) higher than the numbers being thrown around now. It's the KC way... lie, hope the City is in too deep when the lies are discovered, and laugh your way to the bank. Meanwhile, the taxpayers will figure out the hard way:
ReplyDelete- there were "loopholes" in the City's supposed maximum commitment to the project and they're on the hook for more than they thought they would be
- the "no-bid" catering contract will result in a LOSS of minor convention traffic because costs increase when competition decreases
- the City will end up having to subsidize the existing hotels, whose business will significantly decrease with a property this large in the mix, especially one who benefits from preferred City status and lots of taxpayer cash
Take a look at the hotel the Unified Government built in KCK next to the BPU, and the current horrible state of the property and it's finances, to see what KCMO is in for (on a much larger scale) if this deal goes through.
KCK Hilton Garden Inn was decently redecorated in the lobby and majority of the rooms almost two years ago. They have updated linens, accessories, and a have a fair staff in place.
ReplyDeleteBut, like P & L, the hotel and Reardon Center attached are sudsidized by UG.
And the LEED certified EPA bldg. sits empty on 5th St. Residents would love to place BPU in there..."the utilities company owned by the people it serves". That could save the Dotte loads on the electric and water consumptions of the employees, visitors, and all those special catered board meetings. Then, maybe the YMCA could retrofit the current BPU.
Burke claims that part of the increase is the fact that interest rates are rising. But generally, interest rates are NOT increasing.
ReplyDeleteWhat's happening is the bond market where the bonds would actually be bought and sold is now looking at the tremendous risk of the "project" and is bringing some reality to the lowball estimates of the "consultants", who are of course paid for their work by the developers who are in turn looking for as optimistic numbers as possible to rope the elected hayseeds into the deal.
Another example where Sly and the gang will leave the negotiation room wearing nothing but their socks and big smiles.
Amateur night on the plains!
And for the taxpaying KCMO residents?
Just add it to their very long-term bond payments bill.
Might need to take a look how much Burke and his firm gets out of this.
ReplyDeleteNo worries. All the usual suspects will make a killing. Hotel will be built and tax payers milked for all their worth. Bonds-men, lawyers and low level politico's living large sucking off the public treasury will rule the day. Sly continues to have a reason to dance.
ReplyDelete10:53 always good to hear from one of UG cool-aid drinkers. The reason the EPA moved is a fantasying story. They couldn't wait to get of one of corrupt cities in the U.S. For fed employees to talk about corruption at this level, it was bad. The KCK no-tell hotel made a few people rich and the rest of us broke. Just wait until 2016 when these crooks go crazy with funds that should be going back to tax payers. KCMO you are on the fast track to becoming KCK. God help you all.
ReplyDeleteBPU in there..."the utilities company owned by the people it serves". That could save the Dotte loads...
ReplyDeleteYou lying thieves.