By Yael T. Abouhalkah, Kansas City Star Editorial Page columnist
In a stunning development, the worst fears of KC taxpayers may soon occur regarding Power & Light District debt.
Taxpayers may have to fork over $4 million or more to meet the district's bond payments in the current fiscal year ending next May.
That would divert $4 million or more from KC's basic services during an already severe budget crunch at City Hall.
Mayor Mark Funkhouser -- who has warned of this kind of shortfall for years -- and City Council members are waiting for the city staff to hand out exact estimates regarding taxpayers' liability for bond payments. That should happen in the next month or so.
Based on interviews with city officials on Monday, the news is likely to be bad for taxpayers.
Reason No. 1: Because of the worldwide credit crunch, the city is having to pay higher interest costs on the hundreds of millions in bonds it issued to build much of the Power & Light District's infrastructure.
Reason No. 2: The district is not meeting original revenue expectations. That's partly because the district opened later than expected and partly because the grocery store, the new movie theaters and other retailers still remain unopened.
Supporters of the district point out that any extra city assistance is worth the costs, considering the asset of having a new entertainment area next to the Sprint Center.
It's a valid stance -- up to a point.
However, former Mayor Kay Barnes and other project backers also continually said the risk to taxpayers would not be that great. They said the district's revenues would cover the bond payments.
Now that may not turn out to be the case. And that would make the district a much more expensive investment for taxpayers.
Delicious
Digg
Governments across the land are going to be coming up ....
short on funds. They might want to think about all of the TIFs, tax incentives, tax abatements, etc. handouts that they have given to big biz and developers resulting in a big reduction of tax revenue and that puts a heavier load on the average citizen. Think about those developers who got their TIFs in KC who built and sold their condos at a profit and where those buyers are not paying any property taxes for 10 to 20 years or more while you and I are still humping it to pay our full taxes.
We are forever taking care of some special interest group and the load gets heavier and heavier for the average Joe - you get the government you deserve so you might want to think about getting off your kaboodie and going to some city council meetings or county government meetings and telling the jaybirds to stop giving away tax revenue at your expense.
Stunning Development?
This revelation may be a stunning revelation to you, Yael, but I suspect that you're the only one. Why are you so stunned? Haven't you been paying any attention at all?
Really not a new development
... Deb Hermann warned of this several months ago... only her estimate at the time (if I recall correctly) was 7 million.
There's always a catch
We've learned a lot this fall with the economic crisis. There's a lot of institutions and concerns that have failed that many thought impossible. That said, as mayor (Kay Barnes) you don't put the City at risk for a commercial project. Yea it might be a feather in your hat if it succeeds, but that feather is not worth the risk. And the good old Star thought she was Washington material! She's the type of politician that would sell her constituents down the river if it made her look good in the interim. We've got a lot of those already in Washington (Barney Frank, Chris Dodd & Raum Emanuel).
That's OK Star, you got your new building. Now you want to sell it to the City and lease it back with new bonds. I doubt whether the bond market will be affordable to you, so you may have to lay off more. Why don't you start with Yael?
Really?
This is complete abuse of the taxpayers by the city and by Cordish. How it the taxpayer's fault that the P&L is almost a year behind schedule? It was all supposed to be open for the Big XII Tournament, then it was all supposed to be done in October, now its when?
I can't decide what's a bigger crock - the Mayor's lawsuit or this.
Good grief.
"Mayor Mark Funkhouser -- who has warned of this kind of shortfall for years "
But let's spend our time on his wife and a parks board appointment. A parks board appointment???????
"former Mayor Kay Barnes and other project backers also continually said the risk to taxpayers would not be that great."
Is this the same Barnes that the Star told us should go to Washington because her experience is needed there?
Lol - who cares?I don't
Lol - who cares?
I don't live in your rathole, Yael. I live in JOCO. But haven't I consistently pointed out that it has been extremely rare that the Star has NOT endorsed any issue resulting in tax increases or bond issuances?
Why, just this past Nov. 4th, the Star was in favor of EVERY SINGLE issue involving a tax increase or issuance of bonds in the bi-state area.
Every one.
And NOW you're actually so full of yourself that you could really warn people about the consequences of one of those? Who do you think you're fooling?
People, this is only the start - governments across this nation are going to be nailing you with tax increases at every freaking level right in the middle of a deep recession/possible depression - and they will act as if they are justified.
No - they have to be held to account and forced to cut back.
I honestly see taxpayer revolts in months from now. Those revolts will be simply not paying their property taxes on time, and letting them slide. Why not do that, since the completely irresponsible people who hold mortgages they either didn't understand (their fault) or could afford if values dropped (their fault) are getting bailed out at the expense of those of us who AREN'T stupid or irresponsible???
It's coming.