Thursday, January 04, 2018

TKC MUST SEE!!! DOWNTOWN KANSAS CITY MIKE BURKE CONVENTION HOTEL KEEPS GETTING MORE EXPENSIVE!!!



A bit of financing information that shouldn't be overlooked amid the ongoing Downtown Kansas City development bubble the keeps getting bigger.

Checkit:

KC Biz Journal: Bond interest change may create revenue gap for convention hotel

Deets:

The developer of Kansas City’s $322.7 million downtown convention headquarters hotel may need to come up with an additional $4.4 million to fill a revenue gap potentially created by a delay in the sale of bonds for the project.

On Friday, the Land Clearance for Redevelopment Authority is scheduled to act on an interest rate increase requested by the project’s bond underwriter, Stifel Nicolaus & Co.

Plans approved in November by the LCRA and the Tax Increment Financing Commission of Kansas City called for the LCRA to issue as much as $68 million in tax-exempt bonds bearing fixed interest rates resulting in a true interest cost of not more than 5.7 percent . . .

Juxtaposition . . .

While development cheerleaders contend that this cash crunch is caused by tax fighters holding up the project via citizen initiative petition, critics also note that KCMO is handing over big money with FEW IF ANY DEETS regarding a term sheet or how much this town is really on the hook to pay for this hopeful scheme.

Developing . . .

6 comments:

Anonymous said...

Oh gee. Now there's a headline no one expected to see.

Anonymous said...

at least this project seems basically rigorous as far as how the finances are being approached.

one can't help but wonder about the airport and what happens there as long-term rates go up.

Anonymous said...

Why can't the 20 billionaires of Kansas City step up and support this hotel project. Frank Morgan did back in the day, don't put this on the back of the overloaded basic taxpayer. A Mayor that leads should ask the business leaders who have incredibly benefited by being in KC to help support a convention hotel with their commitments and cash. What the $%^&@ is the deal the Mayor and Chamber don't ask them to do that. The Star should do an article about the great wealth of this region and what they actually do to lift the City and region. Some do a great deal, some do very little, and they seem to have a hard time doing something outside build a building, something with arts, or higher education. The Mayor and Governor should ask, what the hell are they wasting their bully pulpit on stuffing stuff down on regular folks who have a regularly declining quality of life while the rich get richer. Mediocre leadership you say.

Anonymous said...

the big lottery tickets for kansas city are amazon or the maglev train. but they are equivalent to lottery tickets.

Anonymous said...

3:37 The billionaires in Kansas City got to be rich by making good business decisions, not investing in a money pit hotel. Of course if they can convince the middle class to pay for it so one of their own gets richer they will never complain.

Retro ROCKER said...

The Downtown Hotels are only at sixty,percent occupancy unless Taylor Swift is in town or a WORLD series. Maby a play off game and the hotel's will under cut the convention hotel. They will not make a profit.