This morning an EPIC NOTE ON THE SKETCHY NEW KCI DEAL was e-mailed FAR AND WIDE. We're happy to be included in the hot mess and KANSAS CITY BREAKING NEWS.
First a caveat . . .
REMEMBER that no matter how TKC dies, even if there's a suicide note, it was MURDER.
Even better . . .
NEW KCI AIRPORT COMPETITORS ARE SERIOUS AND THIS EPIC INFO DROP SHOULD DISRUPT THE SECRETIVE NEW KCI CONCESSIONS DEAL!!!
Check it out . . . Like it or not, this is BILLION DOLLAR journalism FIRST on TKC. It's even sourced, signed and ribbed . . . For your pleasure . . .
KCI - Sunshine Request Reveals
Mayor Lucas and Council Members,
As you know all proposals became subject to full public review. On behalf of PLTR-SSP, Polsinelli submitted a very limited Sunshine Request to obtain a copy of the proposals. We have not yet received the full request, but we did receive some revealing information.
Based on the documents produced to date by the Aviation Department, the PLTR-SSP team has prepared the attached one-page document outlining some of the key differences between the Vantage proposal and the PLTR—SSP. To date, the council has been provided limited information that did not reveal the actual rent Vantage will charge the tenants and pass on to the city. The documents from the Aviation Department confirm that the KCI subtenants (local KC businesses) will be paying substantially higher rent to Vantage than they would to PLTR-SSP and the City will receive substantially less in rent from Vantage than it would from PLTR—SSP. See the attached one-pager for further details.
MAG has been a confusing discussion. MAG under Vantage drops with every drop in traffic (enplanements); with PLTR-SSP, MAG does not drop unless traffic drops by 15%. See attached for an apples to apple comparison between the Vantage proposal and the PLTR-SSP proposal of revenue to the city based on MAG if traffic drops by 10%. The city revenue does not drop with PLTR—SSP at all, but it does drop by 10% with Vantage. See the attached one-pager for further details.
Pricing has also been a significant discussion. Vantage will upcharge the customers 15% while PLTR-SSP’s upcharge from street pricing is only 10%. Who benefits from the significant upcharge? It’s not the City and it’s not the subtenants. Vantage subtenants pay substantially higher rent and Vantage takes home 20% of that rent instead of passing 100% of that rent to the city. See the attached one-pager for further details.
We would appreciate the opportunity to meet to discuss the information obtained from the Sunshine Request. We would encourage the council to take its time to review these proposals and have a full understanding of rent vs. MAG and the pros/cons of the developer model proposed by Vantage.
The attachments include the following:
1. One Page Document (prepared by PLTR-SSP from documents obtained from Sunshine Request)
2. Sunshine Request dated 9.29.2021
3. Apples to Apples Rent Comparison (prepared by PLTR—SSP from documents obtained from Sunshine Request)
4. Vantage proforma – June proposal (obtained from Aviation Department via Sunshine Request)
5. KCI Rent Question – PLTR-SSP July Presentation (obtained from Aviation Department via Sunshine Request)
6. KCI enplanements stats -2020- Year to Date December (obtained from Aviation Department via Sunshine Request)
7. MAG Comparison (prepared by PLTR-SSP)
8. KCI Concessions Tech Proposal (obtained from Aviation Department via Sunshine Request)
9. Qualitative Scoring – Vantage (obtained from Aviation Department via Sunshine Request)
10. Qualitative Scoring – PLTR-SSP (obtained from Aviation Department via Sunshine Request)
Roxsen Koch
Shareholder
Polsinelli.com
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Developing . . .
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