An important message from Kansas City critics of this project who have served as the only check and balance in KCMO against rampant corporate welfare. Take a look:
CFRG: New Hotel Clears Hurdles!! Really???
Today the Mayor is trying to sell the voters on the proposed downtown hotel. Please understand, we are not against the proposed downtown hotel, we are opposed to spending taxpayer’s money on a project some say is doomed to failure. We are all for a downtown hotel if private investors want to build it. According to sources, since this project has started, there have been over 1,000 new hotel rooms opened or under construction in Kansas City. We have tried to get a firm number from the VisitKC people but they would not give us one. They referred us to another agency which didn’t answer our request. Nonetheless, we didn’t need the hotel then and we don’t need it now.
The problem we have with this scenario is:
- The Mayor says "the City will have no risk on this project.” Yet the Land Clearance for Redevelopment Authority (LCRA) will own the hotel. The LCRA is a board / commission appointed partly by the Mayor and is part of the structure of City Hall. If LCRA is going to own the hotel, how can the city (Taxpayers) not be involved??? If LCRA is issuing the bonds, they will be liable, thus the taxpayers are on the hook!
- If the LCRA is going to be the owner, then why don’t the taxpayers get all the information on the project?? For example in the local news today, it states “ the developer has secured a loan from “AN UNDISCLOSED LENDER”. Where is the local press? Does no-one ask who this lender is? Where is the City Council?? Doesn’t anybody care?? The voting taxpayers of KCMO have every right to this information if $170,000,000 of their money is going into the project. Who is underwriting the bonds?? Is the loan coming from LCRA, Port KC, EDC or some other City agency? Is that why they don’t want to disclose the source??
- The City Manager refers to a “term sheet” which supposedly contains all the details. PUBLISH THE TERM SHEET!! We are requesting a copy of the ‘Term Sheet” from the City manager and the LCRA. We will publish it, if we get it.
It appears the City might have to pledge City Hall as collateral for their part of the land deal. Who in their right mind would want to get involved with this convoluted mess. We are embarrassed for the City Council that they didn’t ask more questions and demand more information and a copy of the term sheet. This is a long way from over.
Citizens for Responsible Government
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Developing . . .
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