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cmh6476
07-22-2008, 03:47 PM
July 21, 2008
Did Kay Barnes Cost Kansas City $60 Million?
A well placed source in the local financial community passed this tidbit on to The Source over the weekend, but we are told word is spreading throughout the political community and city hall.

Rumor has it that former Mayor Kay Barnes’ cozy relationship with Cordish may have cost Kansas City another $60 million. It seems the Mayor, and her legal and financial sidekicks, failed to understand IRS regulations as they relate to city bonds. While we have yet to see the details, we are told that the bonds the city sold as tax exempt bonds to cover the Power & Light District should have been taxable bonds. The IRS has supposedly issued a ruling which will mean the city has to pay $60 million back to the buyers of the bonds.

The difference, according to our source, is that with the involvement of a private enterprise (Cordish Company) in the funding scheme the city should never have sold the bonds as tax exempt.

If true this would be yet another example of where Kay Barnes’ too-close relationship with the Cordish Company ultimately costs taxpayers. Her failure to be able to make objective business decisions for the city had already delayed the opening of the district and put parking decisions and fees in the hands of a developer.

The Source will be watching closely to see if municipal and political reporters at the Star are able to develop this story without being restrained by their editors.

July 21, 2008 at 10:27 AM | Permalink | Comments (0)









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Guru
07-22-2008, 03:53 PM
Damn, bet the people that elected her are really kicking themselves in the ass.