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