Fact Check: New Royals Stadium Risks General Fund

And this is the part where we get to play Debbie Downer again despite the assurances of our most confident readers . . .

YES, THE NEW ROYALS STADIUM DEAL REALLY RISKS KCMO BANKRUPTCY!!!

 The reality is that we wouldn't be the first or last major American city to have to default on so many no-vote loans . . . Take a look:

The ballpark, totaling $1.9 billion, will be one of the most expensive major league ballparks of all time. In addition, the Royals are planning an entertainment district around the stadium to bring the total project cost up to $3 billion.

Kansas City will provide $600 million for the project, including $90 million in infrastructure work, and Missouri will provide $540 million. All told, taxpayers will cover about 60% of the costs for the stadium.

The deal has been advertised as a tax-increment financing plan, also known as a TIF. That’s a kind of tax incentive where increases in tax revenue that result from a development go back to help pay off the debt required to get it built.

Structured like this, supporters argue, the stadium is paying for itself.

But crucially, the city will be on the hook to guarantee repayment of that $600 million debt. And the money to repay the debt will come from tax revenue that flows into the city’s general fund, which pays for public services.

Read more via www.TonysKansasCity.com link . . .

Kansas City conjured a Royals deal without voter approval. That comes at a price * Missouri Independent