Thursday, February 21, 2019
TKC EXCLUSIVE!!! KANSAS CITY CONFRONTS EMERGENCY $90-MILLION SHORT-TERM LOAN BETRAYAL OR PRIVATE EQUITY DEAL FOR NEW KCI AIRPORT!!!
In just a few moments Council, the Mayor and a great many suits will slug out the deets of the airport and what could be one of the most costly betrayals of local voters in Kansas City history.
Our KICK-ASS TKC Blog Community talked this one weeks ago but today the Biz Journal has an update for their subscribers. Here's a snippet:
The city needs roughly $90 million to bridge the gap between this fiscal year, which ends on April 30, to cover expenses accrued on the Kansas City International Airport project that must be paid before the fiscal year concludes.
City Finance Director Randy Landes said Wednesday that the airline use and lease agreement — the contract that details how the airlines will cover the project's costs — must be signed before the city can issue bonds. Because it’s not clear whether that will happen before the end of the fiscal year, the city has to find a way to make the funds available.
Previously, the Aviation Department had looked at internal fund borrowing with other city accounts to cover the costs. However, City Council members expressed concerns that it would appear to the public that city funds were being used on the project, contrary to prior assurances.
Fact check . . .
BOTH THE INTER-FUND BORROWING AND THIS EPIC EMERGENCY LOAN BETRAY PROMISES THAT THE NEW AIRPORT WOULDN'T COST A DIME!!!
But there's still a glimmer of hope . . .
KANSAS CITY INSIDERS SAY THE "PRIVATE EQUITY DEAL" IS ACTUALLY GAINING MOMENTUM AND MIGHT BE BACK ON THE TABLE AS EDGEMOOR FAILS TO LIVE UP TO PROMISES TIME AND TIME AGAIN!!!
Here's the word . . .
"Councilman Wagner argued at the last AC meeting that the airport should consider taking on private equity partners. Major James quickly denounced the suggestion as DOA. Why this immediate, forceful rejection? If private equity is allowed in, it will be a major rethink of the current financing scheme that basically hands over everything to the airlines in return for their agreement to pay for the construction bonds. It will let in a financing option that got B&M bounced at the beginning of this process. How will the airlines react if they have to share financing with other non-airline equity partners? Are they willing to do that? No wonder Mayor James and his enforcers want this idea dead, now. The fact that this resolution has been introduced for discussion by the Council suggests that Wagner and his supporters (aren't letting go of this issue, they want an open fight."
And the discussion continues over this construction battle over a STALLED project that grows more expensive and breaks more promises to voters every day.
Developing . . .