Polsinelli Shughart HQ @ West Edge

[FangKC]

PS must have heard about the rising crime rate in Johnson County.

Oh, and the growing poverty there.

http://www.kansascity.com/2011/08/30/31 ... ounty.html

[FangKC]

Star editorial about PS and West Edge solving two long-term problems.

http://www.kansascity.com/2011/08/30/31 ... plaza.html

[pash]

.

[KCMax]

Polsinelli Shughart’s West Edge HQ choice begs for details about deal

Chase Simmons, a real estate finance lawyer with Polsinelli, said only that West Edge developer Caymus Real Estate LLC will work to restructure the TIF plan.
“In my mind, the proposal will have a lot of similarities to what is currently in place but, like a lot of other parts of this stalled project, the incentive does need to be adjusted,” Simmons said in an email.
Caymus Principal Dave Harrison said the garage still requires millions of dollars’ worth of construction work. Harrison said Caymus probably also will seek construction loans from banks.

A request for state incentives is expected to go before the Missouri Development Finance Board later this month.

They also considered the Mission Gateway, Valencia II on the Plaza, and 12th and Grand.

[mudjack]

So, does this kill the deal or is it just a distraction?

http://www.bizjournals.com/kansascity/b ... e_kan_rdup

[KCMax]

Without seeing the suit I would guess a distraction.

[KCMax]

With West Edge nightmare ending, restaurateur has reasons to rejoice

[Stockton]

Seems like this is a good time for somebody to step up and place a grocery store near the Plaza. Hen House???

[FangKC]

KC may seek $7.5 million in tax credits for West Edge developer.

This appears mostly for the demolition of the present structure.

http://www.bizjournals.com/kansascity/n ... b&page=all

[grovester]

Man that looks bad. A gift for people against redevelopment tax credits.

[KCMax]

TKC EXCLUSIVE!!! CHECK THIS LIST OF PRICEY PLAZA FACTS AND QUESTIONS!!!

Some questions for Polsinelli Shughart

a. The project already has tax increment financing. Why are these unprecedented concessions being requested?

b. How can the City Council find the Project will promote the economic well-being if no taxes are collected and to help provide services from the City?

c. Why should the City provide these incentives when the Highwoods proposal would not have required any such incentives?

d. Have Jackson County and the School District approved these concessions?

e. Why should KCMO residents vote to approve the earnings tax when the City Council gives the tax to a wealthy law firm?

f. What's stopping every business in KCMO from threatening to move to Kansas in order to request the same concessions from the City? What tax base will be left if concessions are granted for business not to move?

g. What is the value of the concessions? How much benefit is being provided to the Polsinelli Shughart and how much additional profit for Cecil Van Tuyl?

h. Why not just say no?

[kcjak]

TKC EXCLUSIVE!!! CHECK THIS LIST OF PRICEY PLAZA FACTS AND QUESTIONS!!!

Some questions for Polsinelli Shughart

a. The project already has tax increment financing. Why are these unprecedented concessions being requested?

b. How can the City Council find the Project will promote the economic well-being if no taxes are collected and to help provide services from the City?

c. Why should the City provide these incentives when the Highwoods proposal would not have required any such incentives?

d. Have Jackson County and the School District approved these concessions?

e. Why should KCMO residents vote to approve the earnings tax when the City Council gives the tax to a wealthy law firm?

f. What's stopping every business in KCMO from threatening to move to Kansas in order to request the same concessions from the City? What tax base will be left if concessions are granted for business not to move?

g. What is the value of the concessions? How much benefit is being provided to the Polsinelli Shughart and how much additional profit for Cecil Van Tuyl?

h. Why not just say no?

i. What are the consequences of saying no?

j. Why not direct all of these questions to the Save our Plaza contingency?

[KCMax]

Kansas City crafts an incentives package for Polsinelli at West Edge

The package involves the city issuing as much as $200 million in industrial revenue bonds. It would own the development abutting the Country Club Plaza for 25 years, thus removing it from the property tax roll and making the project eligible for $7.5 million in Missouri tax credits..

[kcjak]

$250 million and no property taxes for 25 years? I don't even know what to say...

[bobbyhawks]

$250 million and no property taxes for 25 years? I don't even know what to say...

That sounds crazy. There must be a real threat of them going to Kansas. Either that or businesses have just learned they can pout long enough to get someone to bend over backwards.

[kboish]

I need some more explanation on what this means. Sounds crazy off hand and I don't have access to the full article on the bizjournal.

[KCMax]

The Industrial Revenue Bond (from what I understand) is similar to TIF in that the city raises the construction costs through the sale of bonds, then the project pays back the bonds. However, unlike TIF, the city is not on the hook should the project come up short on revenues to pay the bonds back.

I think the bigger deal is they wouldn't pay property tax for 25 years.

[kboish]

Ok, I kind of figured the 200mil figure would be paid back...better that the city isn't on the hook for it.

Yea, it's stupid we forgo tax revenue so we don't loose tax revenue...sucks.

[taxi]

Why should a building full of lawyers pay property taxes?

[zonk]

But seriously $200+ mil? I can see another $100ish mil for the new building (which is crazy expensive), maybe another few points for bond fees, counsel, insurance, etc....But someone is making some serious $$ on this one.

The WE may turn out to be close to a 1/2 billion dollar project when all is said and done.

Kind of funny that they could be under construction at the Neptune location with ZERO incentives by now.....Thank you Save the Plaza!