SHAME!!! DEVELOPERS WANT TO BORROW $27-MILLION FROM KANSAS CITY TO BUILD SPEC OFFICE SPACE DOWNTOWN!!!
Highlights dutifully
- The Strata office building would be built on a speculative basis, that is, without tenants committed beforehand.
- The city will instead allow its credit to back $27 million borrowed by the developers. That means it would cover any shortfalls should revenues fall below projection.
- The city would use the parking revenues generated by the garage to pay for its share of the cost and would be guaranteed the first $75 for each space per month.
Translation . . .
KANSAS CITY CORPORATE WELFARE QUIETLY MOVES THROUGH CITY HALL WITH A FEW DISCOUNTS FROM EMBARRASSED SUITS BEGGING FOR CASH!!!
Of course there are all kinds of promises to return the investment and even make a profit for KCMO as if City Hall was a bank.
If it was such a great idea they wouldn't be asking taxpayers to put up the money. For those who think this is cruel . . . Go ask Jon Copaken for some cash with only a flimsy promise to pay it back . . . Then wait for the answer and report back to us with the deets.
Of course the Council Finance Committee PUNTED and moved it along WITHOUT A RECOMMENDATION in hopes that TKC will be taking a nap when the decision goes down . . . Those are good odds BTW as local media is mostly kind to corporate welfare in order to keep future job prospects open very much the former newspaper "journalists" who play shill for big developers when they finally discover that the news doesn't pay.
Developing . . .
Tax payers have been MORE than generous in these kinds of deals to the point where it's a massive detriment to the city. We got people whose property assessments are driving up their property taxes and can't afford to live in their homes any longer. Then you have a billionaire developer wanting to borrow money from the city and the city backs the short fall and, stop me if you've heard this before, there are no tenants slated for the development as of yet. And they want to borrow money with a flimsy promise to pay it back based on a "build it and they will come" wink, wink, nudge, nudge borrowers agreement. Then when the project under performs, which it will, the city is on the hook and the developer gets off scott free.
ReplyDeleteHmmm....that's always worked out for the city....right? Cordish ....
#OtherPeoplesMoney
#KorruptCity
#firetroy
ReplyDeleteRemember Power & Light.
ReplyDeleteThe "Build In Order To Borrow" Technique
ReplyDelete(A/K/A "Stick It To The Patsy")
(as perfected locally along College Blvd. in the 1970s)
Step One - find a Fool (KPERS in 1970), KCMO today).
(Be sure you have a Pretty Picture of the completed project, and a spectacular "estimate" of how many jobs it will create)
Step Two- Borrow every cent the Fool will give you (or guarantee for you).
Step Three - Spend as little as possible building the project, paying yourself as much as you can in "Management" and "Development" fees.
Step Four - When the project is completed, set up a wholly-owned Subsidiary to "manage" it.
Step Five(a) - If the project ever makes any profit, pocket that! (wholly owned, remember?)
Step Five(b) - If (as more likely) the project fails due to cheap construction and heavy debt load, declare bankruptcy for the Subsidiary and walk away!
As Peter Allen sang, "Everything Old is new again"!
@8:00 AM is right! FIRE Troy Schulte. He is the one pushing all this tax payer subsidized development. Quinton! Show some balls and stop this train wreck!!
ReplyDeleteStupid projects and moves like this reinforce our cowtown and corrupt image. There is a nationwide real estate boom and the markets are flush with capital, but the locals are so shallow they go straight to city hall for a handout. Let’s see a thoughtful ordinance from the city council that requires a third party out of state firm not connected to the KC swamp hired to itemize the transaction fees. The developer should not make that profit. It should be subtracted. After all isn’t all this for the betterment of our great town? You know, to keep the momentum going? Therefore, the developer should contribute his profit to the city.
ReplyDeleteSign me up! Heads, I win. Tails, you lose!
ReplyDeleteThe only things that's surprising about this is that KCMO still has a line of $27 million worth of credit to borrow from.
ReplyDeleteIf Sly had known this he would have indebted the city even further than he did.
KCMO is the laughingstock of the entire region.
Momentum!
The city owes the pension fund $700-million ... if it even HAS $27-million, it should go towards that.
ReplyDeleteIf Quinton Lucas lets this corrupt proposal pass, he should be recalled immediately!!
ReplyDelete@11:19 Please let us know if there is a recall petition against Quinton and every councilperson who votes for this crap!!
ReplyDelete$27 million seems low.
ReplyDeleteWhy not spot them $800 million and then option another $764 million?
This important tax money can help line the pockets of many- including any and everyone who needs money... maybe even Frank White and Carwash Cleaver.
Maybe City Hall can sell the building and let employees all home base.
This money could go to other speculators building speculation buildings. Just refinance all pensions and put on hold for funding and everyone will understand. Any shortfalls? Just hold bake sales periodically.
You want to see Rome Burn,The Downturn started early. Most people don't understand what is around the corner .Not Just Kansas City City's in the Metro area. Business Bankruptcy is up and it will get worse. You can't do business with people who don't have any money. And there Tens of thousands of Dollars in debt.
ReplyDelete