The pandemic has decimated the hotel biz across the globe and, predictably, the finances of this cowtown are also taking a hit because of it.
This new shouldn't surprise our reader community but threatens to finally debunk the longstanding myth of a "downtown renaissance" that built almost entirely on debt . . .
CONSEQUENCES OF COVID IMPACT KANSAS CITY BORROWING TO FINANCE THE SKETCHY DOWNTOWN CONVENTION HOTEL!!!
Here's a reminder of the damage . . .
- City agency sold nearly $63 million of bonds in 2018
- Trustee used reserve funds to make $1.6 million bond payment
Translation . . .
Already the new hotel isn't living up to expectations. COVID has altered the convention biz model forever and so taxpayers should expect to suffer the burden of another TROUBLED development that was rammed through without support from voters.
Here' the money line . . .
"The bonds were sold through a local agency in 2018 to help finance the Loews Kansas City Hotel, which opened amid the pandemic in June 2020. The trustee on the debt said it had to take $446,430.90 this month from a debt-service reserve fund to make a $1.6 million bond payment, according to a regulatory filing."
Read more via www.TonysKansasCity.com link . . .
Developing . . .