Bannister Mall: the new home of the Wizards. Watch KC screw this up.

[BigRedChief]

KC will screw this up. They had Bass Pro ready to go in abut they didn't want to give them TIF. Just what tax revenue are they getting now from that area? It's a wasteland.

http://www.kansascity.com/business/story/391605.html

Funkhouser opposes Super TIF for Bannister Mall redevelopment


By KEVIN COLLISON
The Kansas City Star Kansas City Mayor Mark Funkhouser said Wednesday that he opposed extraordinary tax breaks to help the Bannister Mall area redevelopment plan — incentives that backers say are vital for success.“It’s a wonderful project. I’m ready to sign off,” Funkhouser said at a development forum where he made a public appearance early in the day. “But I can’t stomach 23 years of Super TIF.”

Funkhouser later elaborated in a statement saying that while he was “excited” about the prospect of redeveloping the vacant mall property in south Kansas City, he wouldn’t support the $43.5 million in Super Tax Increment Financing being requested as part of the package to help finance the development.
Under Super TIF, all rather than just part of the local taxes generated by a project are diverted to help defray eligible costs.

The ambitious Three Trails redevelopment proposal, valued at almost $1 billion when fully built over 10 years, calls for a mixed-use development anchored by a new stadium for the Wizards professional soccer team. It would include a 12-field tournament-style soccer complex; a 250-room hotel; 609,000 square feet of retail space; and 610,500 square feet of office space.

The developers are seeking $273.3 million through a variety of local and state tax incentives to help finance the project.

“I want to see the Three Trails redevelopment happen,” Funkhouser said. “But I don’t intend to support the current plan without more thorough discussion and, at least, the removal of the Super TIF requirement, which redirects 100 percent of any new property, sales and earnings taxes back to the project.”

The development group backing the project, which includes top executives of Cerner Corp. and Lane4 Property Group, contends that Super TIF is needed to fill a financial gap for the project.

It remains unclear what effect Funkhouser’s position with have on the development group’s pursuit of the project at the Bannister Mall site. The developers have sought a decision by the Kansas City Council by the end of December to meet a construction timetable that calls for the soccer stadium to be open by spring 2010.
Project backers, who have considered alternative sites elsewhere in the area, could not be reached for comment after Funkhouser’s statement.

Besides the use of Super TIF, Funkhouser also objects to the plan’s provision that the city own the soccer stadium, saying it would require long-term expense and attention.

“The construction of the city-owned Sprint Center required a new tax and public vote, yet we are considering this plan with neither,” Funkhouser said in his statement. “I want to be sure we have thought through that decision and its fiscal impact on the city.”
The mayor’s announcement threw a new twist into a discussion that already had gotten off to a poor start earlier in the day.

At a meeting of the council’s Finance and Audit Committee, at which dozens of people testified, most favored the project. But Chairwoman Deb Hermann postponed a recommendation on the project after becoming frustrated by widely differing economic impact estimates submitted to her panel.

The city’s Finance Department issued an analysis indicating that the city would have a $41 million negative impact over the 23-year life of the project’s proposed financing. An analysis by the Economic Development Corp., in contrast, indicated a $45 million net benefit over the same period.
Both groups use different ways of evaluating the economics, and Hermann decided to seek additional time to sort out the issue.

Her committee has one more meeting scheduled before the end of the year.

“You just can’t give me a scenario with an $86 million swing,” Hermann said. “I’m not a financial expert. That’s why we have a Finance Department.”

Further complicating matters, Councilman John Sharp, a strong supporter of the Three Trails project, said Funkhouser had received a letter from state officials stating that any state aid for the project was contingent on the city’s granting the Super TIF assistance.

The project seeks $20.7 million in state tax-increment financing and $10 million in state tax credits.

[Deberg_1990]

Originally Posted by HonestChieffan

Freaking Tax breaks...who ends up paying? Taxpayers...amazing. Im with the Funk. If its a viable business it wont need tax breaks.

IM guessing tax breaks are how they lure investors to a crappy real estate location??

[HonestChieffan]

and we build...on the backs of taxpayers a failing business in a bad location? This is good?

Screw em.

[ChiefsCountry]

MLS has too many really deep pockets to let it fold - AEG, Stan Kroenke, Bob Kraft, Hunt Family.

[Deberg_1990]

Originally Posted by HonestChieffan

and we build...on the backs of taxpayers a failing business in a bad location? This is good?

Like everything, its a gamble. Ive seen worse areas than Bannister revitalized by new contruction in other cities.

[HonestChieffan]

Not saying it doesnt need revitalization. But have no faith that soccer is the answer.

[Ultra Peanut]

Originally Posted by ChiefsCountry

MLS has too many really deep pockets to let it fold - AEG, Stan Kroenke, Bob Kraft, Hunt Family.

And Red Bull, and the Hanauer/Drew Carey group in Seattle, and Lew Wolff (A's owner) in San Jose...

But hey, aside from tons of new stadiums (especially relevant once Red Bull Park is up and running and the Swamp isn't sucking massive amounts of money away from the league's coffers), rising attendance, better TV deals, increased interest, and ownership groups beating on the doors to get in, the league's in shambles.

[BigRedChief]

Originally Posted by HonestChieffan

and we build...on the backs of taxpayers a failing business in a bad location? This is good?

Screw em.

Backs of what taxpayers? KC Tax payers are not putting up one dime of new tax money. If they don't build it there are no new taxes being raised. If they build it there are no new taxes on the public. The benefit is the revitilazation of a blighted area. New jobs etc.

Whats the downside? No new taxes flowing into the coffers? Well if they don't get the TIF there is no new taxes, no project. Either way there is never going to be a tax stream into the kc coffers off this deal. You got a better idea?

[BigRedChief]

Anyone heard anything new about this?

[chiefqueen]

Originally Posted by BigRedChief

Anyone heard anything new about this?

The plan passed cmte. today with an advance. The plan will be approved by the full council tommorrow. Once items make it out of committee passage by the full council is almost automatic.

[BigRedChief]

Originally Posted by chiefqueen

The plan passed cmte. today with an advance. The plan will be approved by the full council tommorrow. Once items make it out of committee passage by the full council is almost automatic.

So the mayor's objections were overruled by the council?

[schneider221]

actually it appears the mayor got his issues solved and is behind the issue again... the council veto was not needed.


edit for link http://www.kansascity.com/382/story/400488.html

[BigRedChief]

http://www.kansascity.com/105/story/401551.html

Funkhouser, in switch, now backs Bannister Mall redevelopment plan



By KEVIN COLLISON
The Kansas City Star Mayor Mark Funkhouser, who recently said he “could not stomach” extraordinary tax incentives for a Bannister Mall redevelopment plan anchored by a Wizards soccer stadium, now supports the deal.
Funkhouser’s newfound support of super TIF for the project came as a City Council committee approved a $949 million Bannister Mall plan that in some respects exceeds the scale of the Power & Light District downtown. The Bannister area plan is scheduled to go before the full council today, where it is expected to be approved.

The mayor’s apparent shift on city incentives for the project came just days after he said at a public appearance that he “could not stomach 23 years of super TIF” for the project. His comment prompted a spasm of lobbying and negotiations in recent days.
Funkhouser said that amended legislation introduced Wednesday at the council’s Finance and Audit Committee would give the city the opportunity to continue to work with the developer to reduce the need for super TIF. The mayor also acknowledged that the state would not supply aid without super TIF.
“We’re going to approve the super TIF because we need state participation in this,” Funkhouser said Wednesday. “I support this. It’s an enormously beneficial project.”

The Three Trails redevelopment plan for the Bannister area has strong neighborhood backing in south Kansas City, where it is being touted as an opportunity to reverse the fortunes of an area that has been declining for years.

“Our community is passionate about this project,” said Councilwoman Cathy Jolly, whose district includes Bannister Mall.

The huge project, backed by top executives at Cerner Corp., calls for changing the environment of the 467-acre development site by demolishing the closed Bannister Mall and Benjamin Plaza shopping center. In their place, plans call for building an 18,500-seat soccer stadium; a 12-field tournament soccer complex; a 250-room hotel; up to 1.1 million square feet of retail; and up to 1.7 million square feet of office space.

The plan also calls for creating a $10 million neighborhood benefit district, with $2 million advanced up front by the developer, which would provide grants, loans and other assistance for commercial and residential property owners near the development site.

Funkhouser said the amended agreement, reached late Tuesday, represented “a reasonable deal for the city. This gives us time to stay engaged with the developer and get the support from the state it deserves.”
Even so, Funkhouser’s new position suggests that he didn’t have enough votes on the council to prevail in resisting super TIF. Jolly and Councilman John Sharp, who also represents the area, had been confident they could rally enough council votes to approve the redevelopment plan regardless of the mayor’s opposition.

Still, Robb Heineman, the president of OnGoal LLC, the owner of the Wizards, said he was pleased that the mayor supported the committee’s recommendation.
“What we’re most excited about is we have the mayor’s support,” he said.

The Three Trails plan was unveiled in early September by Lane4 Property Group. The developer had been hired last spring by the Wizards to pursue the goal of having a new stadium built for the team by 2010.
Strong interest in the pro sports stadium was expressed around the metropolitan area, particularly Olathe. But Lane4 was attracted to the Bannister Mall site because of its good access from throughout the area and the community interest in revitalizing the property.

Two of the owners of the soccer team, Neal Patterson and Cliff Illig, also are top executives at Cerner. The Kansas City-based medical software firm recently occupied part of the former Marion Laboratories complex just south of the Bannister Mall property and expects to ultimately house 2,000 employees there.
The Bannister Mall plan is seeking $273 million in tax incentives and other help from the city and state, about 29 percent of the eventual cost. That assistance is needed in part because developers estimate that it will cost at least $120 million to acquire the property, demolish about 2.5 million square feet of buildings and prepare the site for construction.

The most heavily subsidized part of the project would be early on to help build the stadium, hotel and tournament soccer complex. That cost is estimated at $143 million, with $78 million, or 54 percent, being supplied by tax incentives.

The development deal required the city to use many of the tools in its development arsenal, including regular tax-increment financing, super TIF and a transportation development district. But it does not ask the city to use its creditworthiness to back the bonds for the project, something the city’s new economic development and incentive policy opposes.
Besides objecting to super TIF, which allows all local taxes generated by a project to be diverted to help defray eligible costs, Funkhouser had also expressed skepticism regarding a letter from Lt. Gov. Peter Kinder advising the mayor that the city would have to furnish super TIF assistance to trigger the state aid.
At the committee meeting Wednesday, the mayor prefaced his announcement in support of super TIF by saying he remained concerned about the city’s financial condition, describing it as “precarious.”

Funkhouser acknowledged that he had been lobbied by supporters but said “I’m not trying to win a popularity contest.… I’m trying to do follow my best judgment about this deal.”

[Valiant]

Great.. When will they learn to say no.. Not one Super Tif has paid for itself yet and that including the Legends.. since all it did was steal jobs from other areas...

http://www.pitch.com/2007-08-16/news/not-hiring/full

[BigRedChief]

Originally Posted by Valiant

Great.. When will they learn to say no.. Not one Super Tif has paid for itself yet and that including the Legends.. since all it did was steal jobs from other areas...

http://www.pitch.com/2007-08-16/news/not-hiring/full

So we should just leave the area blighted? I think there will be no soccer stores/areas/fields that will close because this complex opens.

But this project can make a big difference to an area that can be saved.

[Valiant]

Originally Posted by BigRedChief

So we should just leave the area blighted? I think there will be no soccer stores/areas/fields that will close because this complex opens.

But this project can make a big difference to an area that can be saved.

No it won't... Those stores are just going to steal business from elsewhere making somewhere else vacant.. IF they want to build the soccer complex then fine.. The big hubbub is creating jobs with new business which it is not going to do..

The city and taxpayers are paying tons of money and will not see anything out of it.. All those jobs created? There will probably be 150 new jobs created to run the complex and maintain the fields.. Everything else will be transplanted..

The businesses that move in there will just relocate from another spot..


Everything you are hoping for is a foolish dream.. As for the examples in all the other superTIF deals in the last 10+ years that failed to achieve what they promised..