By Yael T. Abouhalkah, Kansas City Star Editorial Page columnist
Here's some frightening news for KC taxpayers in a new city report on economic development:
The Power & Light District is expected to generate a puny $4.8 million in tax revenues this fiscal year. That is far short of the $16.8 million in annual debt service needed to pay for its bonds.
Fortunately, the city previously has set aside an additional $8 million for the bond payments. That leaves a net shortfall of "only" $4 million that will come from the pockets of taxpayers this fiscal year.
That's bad news for neighborhood residents. Every extra tax dollar plowed into the Power & Light District is a dollar less available for providing services to residents.
But here's an even more financially frightening possibility.
When the next fiscal year starts in May, the Power & Light District will need to create $20 million in tax revenues to pay off the new projected annual debt service.
In other words, the district will have to generate four times as much tax revenues as it's creating this fiscal year.
So how much in tax receipts will the Power & Light District bring in?
It depends on a lot of things.
-- If more retail stores open to big crowds.
-- If the soon-to-open grocery store is a success.
-- If the movie theaters attract crowds..
-- If the already-open restaurants and bars can attract repeat business.
But what happens if the district falls short of that goal?
Once again, taxpayers would have to ride to the rescue.
For instance, if the district created $15 million in tax revenues, taxpayers would have to shell out an extra subsidy of around $5 million.
Or -- scary thought here -- the news could be much worse. If the district fails to lure much extra tax money at all, many more millions in taxpayers funds would have to be allocated for Power & Light debt payments.
That's not how former Mayor Kay Barnes and other supporters sold the project earlier this decade. Back then they predicted it would generate enough money to pay for its annual debt service.
So far, those expectations are not being met.
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You Think This is Bad. Wait
You Think This is Bad. Wait until the Citadel Project starts hemorrhaging debt. Despite all the negative news listed above the city council approved that project.
So the P&L District is
So the P&L District is 12,000,000 dollars short on it's bond debt service for the year, thanks a pant load Kay. Does anyone really wonder why the taxpayers of KC doesn't trust the city government with expensive projects like Light Rail. These turkeys couldn't organize a one-man parade, much less an expensive building project.
As a taxpayer I just can't bring muself to trust SNAFU Ed and the rest of the Council clowns.
Are the people better off
Are the people better off because of this project or many other projects throughout the metro area or worse off. When will the people fully realize that all of the tax incentives, tax abatements, tax refunds, tax cuts, TIFs, Star Bonds, etc. given to big biz and developers do nothing for their bottom line but does wonders for the entities wanting them and who stand in line before elected officials with their hands out. The tax dollars lost to the taxing entities and the people because of these handouts are astronomical. Every average citizen pays their full tax dollars year after and year after and year after for the needs of the community and never is their tax dollar diverted back to them thru some financing scheme. Wake up people and demand that your elected officials work for YOU.
The mayor wanted to remove
The mayor wanted to remove the incompetent city manager, but the city council overruled him. Now council members are shocked and amazed that unexpected debts are popping up and their favorite city manager didn't tell them in advance. I wonder if any of them have second thoughts about their actions. Kansas City should return to the days of the "strong mayor" concept. That's when the city really thrived.
Actually mrhistory, Mayor
Actually mrhistory, Mayor Smart With Nothinghouser ran against the expansion of these kind of tax payer drilling arrangements but since he became Mayor has approved a wide assortment of TIF and Super TIFF projects even while acknowledging that each would cost the City money. In all cases, I believe you will find that the receipients of this taxpayer largess are all CONTRIBUTORS to the FUNKHOUSER CAMPAIGN. The worst of the lot is the Neal Patterson/Wizards Bannister Road Super TIFF giveaway followed by the Boley Building TIF which enabled the developer/campaign contributor to get more money for his building.
Oops! We got fooled again. Long live the Oranage Revolution, the Orange Revolution is dead!
[/b] Yael, next time
[/b] Yael, next time remember to add an HTML command to undo your bolding command.
The Same Kay Barnes
The Same Kay Barnes
That's not how former Mayor Kay Barnes and other supporters sold the project earlier this decade. Back then they predicted it would generate enough money to pay for its annual debt service.
And this is the same Kay Barnes that the Star Editorial Board said would be so NEEDED in Washington.
The Star would have
The Star would have supported the Tooth Fairy over Sam Graves. Of course Kay would fit well in Washington - who in that town ever worries whether there would be enough money? Kay was gambling on her legacy here. The problem is that if she gambled wrong, the City pays!
Welcome to the
Welcome to the Depression
"Money is the barometer of a society's virtue. When you see that trading is done, not by consent, but by compulsion...when you see that in order to produce, you need to obtain permission from men who produce nothing...when you see your laws don't protect you against them, but protect them against you...when you see corruption being rewarded and honesty becoming a self-sacrifice...you may know that your society is doomed." from "Atlas Shrugged" by Ayn Rand
Lol - this is a microcosm of the U.S. economy, so exactly what do you think is going to happen when the trillions the government is pouring into the black hole comes due in the form of debt service? That's right, the taxes are going to increase on the taxpayers because as sure as hell they're not going to cut government.
Yael, weren't you in favor of the P&L District? In fact, isn't the Star always in favor of huge projects at the taxpayers expense, most recently the massive ripoff laughingly called 'light rail'? You KNEW what lousy economic times we were in back on Nov. 4 and you KNEW the KC area could not afford this, and yet the Star gave it thumbs up.
This is happening all over the country in so many locations you cannot believe it. As the sales tax revenue falls, bonds still have to be serviced - oops! Did NO ONE think this could happen? Did no one ever once consider that recessions could occur?
No - first because politicians are generally incompetent since they have short-term selfish interests at heart - how to get re-elected - and so they do things with that main goal in mind. Second, the pols know they can always raise taxes if they screw up.
Those of you still in denial over what is happening should look at these articles from today, Nov. 24:
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U.S. Pledges Top $7.7 Trillion to Ease Frozen Credit
A near-riot and parliament besieged: Iceland boiling mad at credit crunch
UK TOP INCOME TAX RATES COULD HIT 61%...