Thursday, February 07, 2019
TKC BREAKING NEWS!!! NEW KANSAS CITY AIRPORT PIE IN THE SKY 'DEAL' EXCLUDES FINANCING COSTS AND MORE DEETS!!!
Today's airport committee meeting served mostly as an enthusiastic pitch for the new Kansas City Southwest Airport and inspires even more questions.
Basically . . .
NEW KCI SUPPORTERS DEMAND CHEERLEADING OF AN INCREASINGLY SKETCHY DEAL THAT'S NOW IN A PANIC FOR MORE MONEY!!!
The suits that stood in front of City Hall today were basically asking for cash in a hurry with an executive from Edgemoor brazenly telling council that "WE'RE NOT A BANK" as they seemed to encourage City Hall to borrow cash for short term financing rather than wait for final approval of this so-called deal.
Based on Aviation Dude Pat Klein's assurances and City Manager Troy Schulte's quick responses . . . They want to keep the "momentum" going and rush $90-MILLION to Edgemoor either from inter-fund borrowing from the Water Department OR the Industrial Development Authority of Kansas City.
As usual, Mayor Sly lost his temper and chided the Council for asking questions:
"Nothing has changed!" Mayor James scolded the room.
Actually, more than anything, what we've seen is that there are a lot of moving parts to this deal that are constantly evolving.
Brief aside . . . Nobody seemed to mention that this "deal" still doesn't include two of the airlines that Southwest is more than willing to cut out. They explained away the absence of two airlines that had previously held up the deal but it looks like the small carriers will STAY WINNING by staying far away from this busted negotiation and signing on their own terms later.
Credit to Councilman Scott Wagner for his persistent line of questioning.
"I want to know the terms of the deal before we start celebrating," he warned.
The highlight of what the mayoral candidate uncovered . . .
THE $1.5-BILLION COST OF THE NEW AIRPORT DOES NOT COVER THE FINANCING OF THE DEAL THAT WILL ADD BILLIONS TO THE PRICE TAG!!!
Even the airlines admit this one . . . Think of the deal like financing a home, there's the list price and then all of the financing costs over the years which add up to far more than the initial listing. In this case, still around 4-BILLION when everything is said and done.
Once again Council Lady Loar was forced to stand up to Mayor Sly's tirade and not only defend questions from the Council but remind him about who is REALLY on the hook for all of this . . .
Council Lady Loar stated: "The agreement is with the airlines but in the end . . . Aviation, a department of City Hall works to sell these bonds . . . The taxpayers own the airport."
Another important not-so-fun fact that was heretofore unknown but now revealed thanks to questions from Council Lady Heather Hall . . .
Kansas City has to pay $20-MILLION to tear down terminals B & C.
That's not covered by construction cost or bonds. The cash will come from Aviation. So essentially, that's a huge amount that taxpayers will be paying for the new airport . . . They're just not counting that as part of the construction. Remember that tactic, it'll keep coming up for the next 35 years.
Final note . . .
The airlines claim the new airport will keep the same "scope" despite $140-MILLION cut from the budget but, again, the airlines didn't really explain how they plan to do more with less and instead claimed the scale of the project and negotiating with bidders would allow them to live up to expectations.
And so the rush agreement is on its way to becoming a sketchy ordinance on February 25th.
Developing . . .