Saturday, September 07, 2019

TKC TOLD YOU SO!!! KANSAS CITY CONVENTION HOTEL ALREADY OVER BUDGET AND FAILING!!!



Over and over our KICK-ASS TKC READERS & TAX FIGHTERS have warned about the sketchy finances of the upcoming Downtown Convention Hotel.

Here's confirmation . . .

Cost overruns, new budget pushes price of Kansas City's downtown convention hotel up millions

Deets:

The cost to build a new 800-room convention hotel in downtown Kansas City — initially pegged at $310 million — has grown by about $57 million, according to the latest figures.

A new budget for the Loews hotel at the northwest corner of 16th Street and Baltimore Avenue grew to $360 million last year, in part because new elements like an event deck were added to the project.

Since then, the project has incurred $7 million in cost overruns. Those figures were disclosed on Friday at a meeting of the Tax Increment Financing Commission of Kansas City.

The increased costs are the responsibility of the hotel developers, not taxpayers.

About that last line.

WRONG!!!

Allow us to explain . . .

THIS HOTEL DISASTER WAS RIGGED FROM THE START AND DENIED VOTER INPUT!!! THERE HAS BEEN NO ACCOUNTABILITY DESPITE EPIC TAXPAYER SUBSIDY!!!

Agreements and contracts can be changed given that the KC legal department is this town's favorite punching bag.

So, forgive us if we don't take assurances from politicos and lawyers seriously.

In the end, KC has backed this project with tens of million up front and bond issues worth hundreds of millions. The hotel hasn't even opened and already there's a revenue gap.

Like so many readers predicted . . . The Downtown Kansas City Convention Hotel is a FAIL and a money losing proposition that will blight the skyline and drain City Hall coffers for years.

Developing . . .

20 comments:

Anonymous said...

This won't cost developers a dime. Just like the Alameda Plaza, in the end the city will have to step in and bail out the project.

KC has already had to do this with a few other hotels more recently than that.

Thank Sly for this one.

It's his legacy, his friends but it's your problem.

Anonymous said...

Burke and all the other "transaction" people got their money out of this long ago.
So now the question becomes "is this "project" financially viable"?
Just like the same question could be asked about the P&L District.
If the answer is no, which is most likely, who makes up the difference to try to keep the doors open?
If you're a KCMO taxpayer, that answer would be YOU.
Keep that downtown renaissance momentum going!
Are we Portland yet?

Anonymous said...

There's the new prison. Problem Solved.

Anonymous said...

^^^^^

Yep I agree it would be a great prison.

Anonymous said...

Don't worry. Beeee happy.

Anonymous said...

Thanks Tony, but I happen to trust an actual news source A LOT MORE than you just claiming it's wrong without any proof whatsoever.

Hyperblogal said...

Another project where the voters weren't allowed to see the consultant's report. Without seeing it, I can only assume it was lukewarm at best. Only KC would subsidize a hotel to compete with other hotels its subsidizing.

Anonymous said...

Tony is # 1 in news

Anonymous said...

What were you haters saying about the 18th and Vine area being a loser? Oh I forgot, when the city is losing money on huge projects that white people use then its ok, but if its people of color, then that's terrible.

Anonymous said...

Bullshit 9:13 us whities hate the P&L Dist Tax Money Pit also.

Anonymous said...

You're brain dead if you didn't see this coming.

Anonymous said...

Mike Burke, Glorioso and the bond dealers were main backers of Kay Waldo Cronkite Barnes that brought KC the P&L disaster.
The Star never explored the details of the cost of refinancing the Baltimore Cordish P&L bonds in 2014 as a lead-up to Sly's re-election in 2015?
Reportedly fifteen million taxpayer annual subsidy lowered in 2014 and 2015 to five million dollars for each year. Why?
Only apparent reason for refinance was to help Sly's re-election in 2015. Reported cost of extending bond repayment and increasing debt was $36 million added to $297 million Cordish P&L debt?
Where is the outrage?

Anonymous said...

Stop the Airport disaster from getting worse by keeping two remaining terminals.
Modernize, upgrade them and create a trendy "retro vibe."
They can become a tourist destination for the world.

Anonymous said...

TOP PHOTO -- HITTING NEW LOEWS

Sylvester James' battered legacy was reinforced when he showed up for the delayed grand opening sporting a SHRINER under both eyes!!!

Anonymous said...

The reason this wasn’t put to a vote is because of revenue bonds. With revenue bonds, voters don’t have to give their approval. If this were funded with General Obligation bonds, then the voters would have a constitutional right to be heard. Revenue bonds are issued based on potential revenue of a thing and requires only a feasibility study and approval of the local legislative body. However, since the TIF commission is involved, it’s assumed that the developers asked for some type of infrastructure or other City resource to help with the development.

Anonymous said...

Don’t elect a bigger mayor and this won’t happen

Anonymous said...

Good building for low income people.

Anonymous said...

We all knew this was not needed and that the public would hold the bag. Of course Sly and Burke had an understanding on the back of the public.

Sanitize City Hall, about ten people should be let go just to begin to end
entrenched deals.

There ought to be a executive summary on every project and what happens five to ten years later. Of course the lawyers want you to need lawyers to get access as it keeps the whole rotten racket going.

Please don't invite the Brookings Institution to town anymore either.

Anonymous said...

It’s hard to come in under budget when you have to pay off the MBE WBE crowd.

Anonymous said...

You all may know who posted at @11:35 AM her name is council woman Teresa Loar. She is the 25-year veteran of local politics who could not find one of her council colleagues to support her “renovate the terminals to the bones” proposal. She was on the wrong side of the biggest KC public issue in two generations. This evening she is still pouting about losing control of the airport and drinking yet another bottle of Merlot. Just her, a bottle and of cheap wine, and her 12 cats on a Saturday evening.