Thursday, August 15, 2019

Mayor Quinton Lucas Grants Whitney Kerr More Time To Prep $63-MILLION Tax Break Pitch For Kansas City 5-Star Hotel



The new mayor proves patient with corporate welfare on the table . . .

KC Biz Journal: $63M downtown luxury hotel wins another delay

Deets:

The Tax Increment Financing Commission of Kansas City voted to delay the measure after the developer’s attorney requested more time, citing conversations with new Mayor Quinton Lucas, who asked the developers to refine their numbers and see whether they can find more money to allocate to affected taxing jurisdictions.

The TIF Commission granted the request, and the item will be heard again at the September meeting. The project has seen three other delays and originally was presented in May.

Developers Whitney Kerr Sr. of Cushman & Wakefield and Eric Holtze of EJ Holtze Corp. have described the project as Kansas City's first five-star hotel. The two seek a 75% property tax abatement for 23 years, among other incentives.

In addition to the property tax abatement, the total public assistance package would include sales tax on construction materials; a 50% personal property tax abatement; a "super TIF" reimbursement on hotel, food and beverage, individual income and utility taxes; and a 100% reimbursement from a 1% Community Improvement District tax. All assistance, aside from the sales tax on construction materials, would last 23 years.
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Developing . . .

13 comments:

Hyperblogal said...

This is absurd. More incentives for luxury.

Caleb Acuteinass said...

Forget this. It is past time for commercial properties and developers to step up and accept part of the load since the county just hosed the citizens with the new bungled real estate assessments. Visit KC told SLie a few months ago KCMO has an over abundance of hotel rooms so more rooms are not needed.

Anonymous said...

But, 5:50, the current over abundance of hotel rooms are not luxurious enough for the masses of celebrities, royalty and other fancy pants that flock to Kansas City on a daily basis. (insert eye roll here)

Anonymous said...

Developers love the word LUXURY when they describe their latest pig in a poke venture. I question the need for a FIVE-STAR hotel in Kansas City. That's KCMO, not New York City.

Anonymous said...

Another subsidized and incentivized hotel!! Did anyone ever think of combining both the current hotel under construction and this proposed “luxury” hotel into one building? That is the current market trend - a dual branded hotel. It is half the cost to build. You share the same land cost, same foundation, same elevator column, same kitchen, shared management functions with two different lobbies and half the subsidies. DUH! Example #1: The JW Marriott and Ritz-Carlton in LA; EXAMPLE #2: The Le Meridien & AC Hotel in Denver are just two examples of TWO hotels all in one building! Leave it up to the fools in this cowtown to just now be finishing a huge 800 room hotel. Those huge hotels are no longer being built. Those huge hotels were all the rage in the LAST real estate cycle. Who proposed the current hotel under construction and who is behind this new "luxury” hotel? Does anyone in our town ever talk to industry experts or is making bad, outdated and half-baked decisions just part of our local DNA?

Anonymous said...

Recall Quinton Lucas if he falls for this massive CON JOB!!!!

Anonymous said...

Recall him, then what. Jolie??? She's even worse.

Anonymous said...

So basically, JACO is in crisis mode with rising property taxes, at an astronomical and alarming rate, on the working class, most of whom are barely making ends meet and living paycheck to paycheck while, at the same time, we are giving TAX BREAKS to Whitney Kerr, who is a multi-millionaire, and his ilk to build a hotel in an area that's been said to be already over saturated with hotel space?

Makes perfect sense! What could possibly go wrong?

And some thought things would be different under Quinton Lucas...smh....

#KorruptCity

Anonymous said...

^^Ugh huh....look! Matlock's on!!!!!

Anonymous said...

8:21 would you like to debate the issue or is name calling all your pea brain can come up with?

Can you effectively argue that subsidizing luxury hotels is somehow the job of city government or that it is necessary for the good of the citizenry?

Where did you get your degree in economics? More likely if you have a degree it is in poli sci, a degree for those with room temp IQs.

Anonymous said...

@8:21 AM What's a "Matlock" lol!

Enjoy your ever increasing taxes!

Anonymous said...

@8:38 AM

I've stepped in puddles deeper than some people like 8:21 AM. They don't want to debate. They don't want to look at facts. They just want to bury their heads in the sand and pretend like everything is going to be ok.

The fact is our city government is corrupt and the Port Authority or whatever it is they call themselves, is leading the pack on that. That's what happens when people are put in power that care more about getting paid and their own agendas than what's best for the people they are supposed to serve. How in the hell does subsidizing nearly 40% of the cost of a LUXURY hotel help the people of this city? 99% of the people of this city will never step foot in that hotel. So who does that hotel really serve?

People like 8:21 AM can't go that deep. They see "shiny new building" and think everything is great. Meanwhile all this taxing, borrowing and spending to subsidize everything downtown hasn't done jack shit for our crumbling infrastructure, bad schools or anything for this city worthwhile. All it's done is make the rich people richer, keep bad leaders in power, and put more and more financial strain on the working class.

As mentioned, why does our city government bend over backwards to make things financially easier for the rich but continue to make things more financially difficult for the working class? It just doesn't make sense. What was supposed to have been the exception has now become the rule in that it's now almost commonplace for a developer to come into town, ask for millions in tax breaks and get it. All those millions of dollars going to wealthy developers that could be going to fixing our problems.

We were told that spending $100 million to build the streetcar was the last piece needed to spur development downtown. Guess they were wrong.

But hey, everything is going to be ok, right?

#KorruptCity

Anonymous said...

HOLY SHIT BATMAN !!

@8/15/19 9:53 PM Hit the bullseye!