Sunday, December 03, 2017
TKC MUST READ!!! KANSAS CITY TAX FIGHTERS STAND UP FOR COALITION DEMANDING DOWNTOWN CONVENTION HOTEL FINANCIAL TRANSPARENCY!!!
Earlier this week our AWESOME TKC Blog community reported some important EXCLUSIVE NEWS on behind the scenes City Council debate regarding the proposed Downtown Kansas City Convention Hotel . . . And now, tax fighters are taking up the cause . . .
Citizens For Responsible Government Kansas City: Hotel hits a major bump! Heroines step forward!
CFRG believes no bonding company will issue bonds as long as the ordinance #170961 is on the books. This ordinance was introduced by three Councilwomen with the guts to ask the tough questions. Other councilpersons retreated into their attorney stance or their developer persona with questions like “when will you guys be back?”. They looked shocked as these three ladies pushed for answers. The ordinance should guarantee those answers are produced. Of course the city will try to stop the ordinance. Which brings us to the question:
Who are you going to vote for mayor? The Star has shown their early favorite; more of the same. They have elected not to cover this story because it doesn’t fit with City Hall directives, more sheeple with shock collars attached.
It is interesting to note NOT ONE OF THE ANNOUNCED OR ANTICIPATED TO ANNOUNCE CANDIDATES FOR MAYOR STEPPED FORWARD TO CHALLENGE THE INCOMPLETE CONVENTION HOTEL PROSPECTUS. This should tell us none of the announced candidates have what it takes to be Mayor. They’re all afraid of the big bad wolf. Remember this when election time comes, we will remind you. You cannot be easily intimidated and be mayor of Kansas City.
WHO STEPPED UP?!? The three amigos, Councilwomen Hall, Loar and Shields. They questioned “How could the LCRA and the TIF Commission approve this incomplete prospectus? There is page after page left totally blank, spaces ________ left empty on many pages, missing dates and signatures yet both of these city agencies rubber stamped the project just like good little sheeple. They know if they don’t the Mayor will push their shock collar button and remove them from their commission.
Thank goodness for Hall, Loar and Shields. They are the only ones looking out for the taxpayer on this deal. If you read the incomplete documents there are statements like: …"The LCRA.. (which in essence is the City, which IS YOU THE TAXPAYER), is not obligated to raise any form of taxation...” What it doesn’t say is the LCRA can’t raise taxes… to pay for the bonds if necessary. The LCRA is going to own this hotel and that is you the taxpayer. If all goes south, which is the current history of these deals, the taxpayers could very easily be stuck.
Hall, Loar and Shields are looking for key parts of the deal… like occupancy rate projections (room nights). The question: HOW ARE YOU GOING TO PAY FOR THIS HOTEL DEAL? The chart below shows occupancy rates in Kansas City run between 55% and 60%. There have been over 1,000 rooms added in Kansas City since this chart was completed, so the occupancy rate could even be running lower. When asked about the price for a one night stay, the developers stumbled around and finally came up with $175.00 per night. Local hotel operators tell us this might not be out of line two years down the road but it will not hold for convention business which generally negotiate lower rates. How do you propose to pay for an 800 room hotel costing probably close to $400MM before all is said and done? How many room nights per year will you have at the $175 rate? What is your anticipated annual income and what are your annual expenses? Are there dollars left to cover the debt? Where are these projections?
Remember a large portion of these loans are being repaid by TIFs. Has anyone checked to see if this $322MM project fits Quinton Lucas’ rule for maximum amount of TIF’s per project? Developers will tell you this deal was done before the Lucas Rule but it really is a totally different company today than it was back then. It even has a different name. Of course they don’t want anyone to figure that out as it might instigate another petition to put the project on the ballot.
TIFs take money from schools, libraries, disadvantaged individuals, zoo, etc… It is important we have all the facts and a sound feeling of comfort before we rubber stamp this deal.
Please encourage Hall, Loar and Shields to continue their fight on behalf of the KCMO taxpayers. Be prepared to challenge City Hall if they attempt to negate this ordinance, which they will do.
You decide . . .