Saturday, February 16, 2019
DEAD-TREE MEDIA DEEP DIVE: INSIDER WORRIES ABOUT WORKERS & CORPORATE TAX STRUCTURE OF KANSAS CITY STAR!!!
Backed up with research, screen shots and verifiable info & analysis . . . Check this peek into the sordid finances of corporate endeavor disguised as a local newspaper biz . . .
FICTITIOUS NEWS = FAKE NEWS
The Kansas City Star is actually owned by Cypress Media, which itself is a subsidiary of The McClatchy Company of California. I thought that was odd, so I took a second look. Turns out that "Kansas City Star" is a fictitious (ahem, FAKE?) business name registered in Missouri.
"Kansas City Star" is owned by Cypress Media LLC, a Delaware corporation registered in Missouri as a foreign corporation. Cypress Media LLC shares a business address with The McClatchy Company of Sacramento California. I'm reminded of the Churchill quote in which he referenced Russia..."a riddle, wrapped in a mystery, inside an enigma." When McClatchy declares bankruptcy, how many total shell companies do you think will be disclosed? Former and current Kansas City Star employees will be counting on a pension, but from whom?
Registered in MO in April 1997 as a Foreign LLC, under the name ABC Media, LLC of Delaware, and will conduct business in MO under the name ABC Media Enterprises, L.L.C.
In October 1998, a Statement of Correction was filed in MO to say that the company was registered in Delaware as Cypress Media, L.L.C., and was to do business in MO as Cypress Media Enterprises, L.L.C.
In October 2001, another Statement of Correction was filed in MO to say that the company would now do business in MO as Cypress Media, L.L.C.
In January 2015, an Amendment of a Foreign LLC was filed in MO to change the company's business address to 2100 Q Street, Sacramento CA 95816.
We decided to search the MO Secretary of State's corporate database for "The Kansas City Star"
Search Results as of 2/15/2019
Of those listed which remain active and linked to The McClatchy Company:
Kansas City Star, registered August 2009 as a fictitious business name in MO, is 100-percent owned by Cypress Media, LLC
Kansas City Star Media Company, registered March 2015 as a fictitious business name in MO, is 100-percent owned by Cypress Media, LLC
Next, we decided to check with the city of KCMO to see if any of these entities has a business license to operate legally within the city.
"All persons (sole proprietors, partnerships, and corporations) who conduct business in Kansas City, Mo., must obtain a business license for that activity. A license is valid for the calendar year in which it is issued. Business licenses expire on Dec. 31 of each year. This database is updated weekly and provides only current-year business license information for businesses that are considered “currently licensed” by the City of Kansas City, Missouri.
“Currently licensed” means the business has been issued a business license for the current year."
Perhaps you won't be surprised to learn that after entering multiple permutations of Kansas City Star, Kansas City Star Media Company, Cypress Media, McClatchy, etc., each time the database returned the results "No Records Found."
Now, given the fact that these businesses are registered with the state of Missouri, but apparently not with the city of KCMO, what are the odds that they're paying any kind of taxes to Kansas City MO? We'll let you ponder that for a few minutes while we remind you that The Kansas City Star hired the Polsinelli law firm in 2015 to aggressively fight Jackson County for property tax reductions.
Review the story here from the Polsinelli website where they're proud to rip-off local taxing jurisdictions.
Here's a highlight: Michael Duffy, chairman of the Chapter 353 Advisory Board, made the June 24 recommendation to deny the request for two reasons. For one, he said, Chapter 353 abatements are intended to spur blight-removing redevelopment, “not as a bailout provision for a troubled business.” Second, he said, The Star’s request appears to be "an end run around an adverse county determination of fair market valuation."
You decide . . .