TKC EXCLUSIVE!!! MORE REFINANCING PROBLEMS: KANSAS CITY HAS NO LEGAL OPINION ON TAX EXEMPTION FOR PRICEY P&L DISTRICT BONDS!!!
This is kinda complicated but I'll do my best to explain everything as clearly as I possibly can . . .
At lunchtime I had a very interesting conversation with one of the most well-informed people I've ever talked to . . . This person put the P&L District problems in perfect perspective for me.
Here's what we already know:
But, as always . . . With anything related to Kansas City . . . There are huge problems with restructuring the debt.
See, in order to get the tax exemption status . . . A legal opinion from a law firm is required . . . And here's my EXCLUSIVE:
THE LAW FIRM THAT INITIALLY OFFERED THE LEGAL OPINION ON THE TAX EXEMPTION FOR P&L DISTRICT BONDS IS NO LONGER WILLING TO PERFORM THE SAME DUTY!!!
Good luck on getting them to say exactly why . . . But let's look at the structure of P&L District borrowing . . .
Cordish wants bargain basement property taxes.
The variable rate on the debt is killing Kansas City.
And . . .
NOBODY WILL OFFER A LEGAL OPINION TO REFINANCE THE P&L DEBT UNDER THE SAME TERMS!!!
Why?
Well, not only does the municipal bond market suck . . . It has been widely reported that the expectations for the P&L District are just completely out of line. Abouhalkah wrote:
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.In the very near future, during a global economic crisis . . . The P&L District is going to have to come up with almost $20 million in revenues in orderto simply service the debt. Good Luck.
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.
Word is, any law firm helping to draft a legal opinion for tax exemption status on these bonds would almost certainly face an IRS audit that would threaten their liability insurance. Once again, Kansas City isn't worth the risk.
Clearly, this isn't just bad news related to the economy . . . THIS IS A KANSAS CITY FINANCIAL CRISIS!!!
The plan to get out of this mess sounds shaky as well . . . Put simply . . . Kansas City can't refinance these bonds if the tax exemption status isn't there . . . It all looks like another, horrible showdown that will undoubtedly be interesting . . . Just don't forget that TKC told you first. Natch.
First
ReplyDeleteFirst on what? It's not news that the P&L district is fucked. The details of it are boring.
ReplyDeleteTelling us first Tony will certainly help ease our collective pain.
ReplyDeleteNow it falls to either you or Mayor Smart With Nothinghouser to tell us where the money to make up the shortfall is going to come from.
The money will come from layoffs, cutbacks in city services and closing or defunding various attractions like the zoo. Also don't look for any new police officers any time soon but do expect a trash pick up fee regardless of what the previous councils said back in year one.
ReplyDeleteYEAH PAYING FOR THE P&L DISTRICT IS CERTAINLY WORTH HAVING FEWER COPS.
ReplyDeleteTHANK YOU KAY
Thank you Kay :)
ReplyDelete-------------
And Cauthen and the rest of the Council Titans of the time. Too bad Kay Barnes didn't get her contract extended like Cauthen did. She would have fit right in in Washington DC.
Oh yeah it's me 4:43 p.m. again. Just read on The Star's site that the city is prepared to cut funding to the buses too. But I guess that benefits P&L in the long run since they want to jack everyone for parking fees and want to discourage attendance by those wrong types of people who tend to ride the bus. And with the loss of the St. Pat's parade...Like I said ealier this week the P&L is going to elite itself out of business and now it looks like it will take KC with it.
ReplyDeleteAt least Mayor Funkadelic wasn't asspounding an underage aide in his office, like in Portland Oregon.
ReplyDeleteSee how good we've got it?
No, he is just getting yanked in the bathroom by the Squid. A charming thought an alternate observation.
ReplyDeleteI am wondering if the Star will ever compare his published schedule against the idea that he doesn't work on Fridays any more so he can tend to "making money" from his new business venture.
Consider this: Long gone are the council who approved this monster.
ReplyDeleteThe only legacy that remains of this TIF crazed era is Wayne Cauthen.
It's time to get rid of him.
You could layoff half of city hall and most people would never even notice. We fund health care for transients. Why should the city do that?!?! The zoo should be paid for by all the city, not just KCMO. Cut all that shit. And they won't cut the number of cops on the street, just paper pushers and extra benefits. It won't even be noticed either.
ReplyDeleteI got an idea. Why not charge less than 7 for a beer. Those fucks.
ReplyDeleteWe should have just dug a crater where the Sprint Center is and ordered everyone in Kansas City to drive by and empty their wallets in the money pit.
ReplyDelete$7 beers are fine when you're surrounded by hot women and the critch grabbing gangstas are out at Westport.
ReplyDeleteDon't worry there'll be plenty of JoCo $ support the party down there as soon as the weather warms up and the halter tops break out.
Empty the gangstas and the crotch grabbers in the crater then you Westport "tradionalist" can revive what was once a great area. Ode to the days when we hung at the window of the "New Stanley" and reeled the ladies in...now those we're the days.
ReplyDeleteThe Star, however will have bank names, actual dollar amounts, etc.
ReplyDeleteYou know. Facts. Not innuendo.
Let's refer to
The Tony Botello School of Journalism
Linking to other sources = reporting
"Sources tell me" = I made stuff up
"I don't claim to know the details" = I am lazy
"I called McClatchy" = I made stuff up
"Mary Sanchez is..." = I wish I could have ten percent of the class of Mary Sanchez
"AWESOME TKC TIPSTERS" = a black hole of made-up stupidity that sucks all the stupid in
"Here's what I've heard" = I made stuff up
"Sushi...is kind of like a signal to brown people that their business isn't wanted." = I am either brain-damaged or retarded, your choice
"According to close watchers" = I made stuff up
ALL CAPS IN RED = phony hyperbole
NO HOMO = I pitch and catch
"Mike Hendricks is..." = I wish I had some money too
"Parties close to the case..." = no one would talk to me even if I had tried, which I didn't
"I'm not going to quote anybody on this one but people familiar with..." = I made stuff up
"The Star is dying" - I am still bitter over being rejected as an intern in '04
"Word is that..." = yup - I made stuff up
The Tony Botello School of Journalism Part Two:
http://www.pitch.com/2007-01-18/news/the-truth-about-tony/
Spam.
ReplyDeleteWhy do we even need a stinkin' zoo? Come on, folks - I know, "teach the children," blah, blah. Meanwhile, the actual creatures we have imprisoned are leading lives that are UNnatural.
ReplyDeleteTony - why don't you delete that asshole's constant "school of journalism" posts? They suck, they take up space, they take up time better spent elsewhere.
ReplyDeleteWhy doesn't the asshole volunteer somewhere and leave you the fuck alone? Is it a women you screwed over? Or a guy whose girlfriend you showed a much better time to than he could?
I know it can't be Funkstinker or his crew - none of them is that literate.
Agree with 10:51. It's comment spam and wouldn't be missed.
ReplyDeleteLet's refer to
ReplyDeleteThe Tony Botello School of Journalism
Linking to other sources = reporting
"Sources tell me" = I made stuff up
"I don't claim to know the details" = I am lazy
"I called McClatchy" = I made stuff up
"Mary Sanchez is..." = I wish I could have ten percent of the class of Mary Sanchez
"AWESOME TKC TIPSTERS" = a black hole of made-up stupidity that sucks all the stupid in
"Here's what I've heard" = I made stuff up
"Sushi...is kind of like a signal to brown people that their business isn't wanted." = I am either brain-damaged or retarded, your choice
"According to close watchers" = I made stuff up
ALL CAPS IN RED = phony hyperbole
NO HOMO = I pitch and catch
"Mike Hendricks is..." = I wish I had some money too
"Parties close to the case..." = no one would talk to me even if I had tried, which I didn't
"I'm not going to quote anybody on this one but people familiar with..." = I made stuff up
"The Star is dying" - I am still bitter over being rejected as an intern in '04
"Word is that..." = yup - I made stuff up
The Tony Botello School of Journalism Part Two:
http://www.pitch.com/2007-01-18/news/the-truth-about-tony/
Waaaaaaaaaaaaaaaah! Tony's Fanboys are whining again while the facts live on.
Spam.
ReplyDeleteYum. I like spam.
ReplyDeleteWas this a Sly James deal?
ReplyDeleteAFTER ALL OF THIS SHOCKING NEWS ON THE STATUS OF KANSAS CITY, TIF, BONDS, KCP&L, CORDISH, CITY MANAGER, AND KANSAS CITY LEGAL.
ReplyDeleteWHY IS IT SO HARD TO FIRE THE CITY MANAGER?
IF THE CITY MANAGER IS SUCH A SKILLED CITY MANAGER, HOW COULD GO CRAZY SPENDING DEVELOPMENT MONEY WITHOUT HAVING A BUDGET, SHORT TERM AND LONG TERM?
ANYBODY COULD HAVE DEVELOPED A DOWNTOWN WITHOUT WORRY ABOUT THE MONEY (THEY THOUGHT).