Dec. 22 Press Conference

[Slappy the Wang]

Wil announce the Royals putting up $25 million and the Chiefs upping $75 million for improvements to the TSC.  The state to give $50 mil in tax breaks and Jack Co to contribute $400+ via 3/8 cent sales tax increase.  Both leases will be extended 25 years.

That is all.

[kcdcchef]

Wil announce the Royals putting up $25 million and the Chiefs upping $75 million for improvements to the TSC.  The state to give $50 mil in tax breaks and Jack Co to contribute $400+ via 3/8 cent sales tax increase.  Both leases will be extended 25 years.

That is all.

what a suprise.

[schugg]

Wil announce the Royals putting up $25 million and the Chiefs upping $75 million for improvements to the TSC.  The state to give $50 mil in tax breaks and Jack Co to contribute $400+ via 3/8 cent sales tax increase.  Both leases will be extended 25 years.

That is all.

you make it sound so simple.

[KCPowercat]

that seems like a fair deal for 30 year old stadiums....wow, time to bend over JaxCo once again.

[kcdcchef]

that seems like a fair deal for 30 year old stadiums....wow, time to bend over JaxCo once again.

kcp - in all seriousness, i am not trying to start a flame war here. but i have posed this before, the primary fault of the tsc is it's location. if both parks, built as amazing as they both were, were built within the city, perhaps in the west bottoms with the skyline behind them, or in the north loop, or near crown center, and they were built there in the late sixties, like kauffman and arrowhead were, noone would be moaning about spending 400m on two stadiums, am i right??

and i have also asked.......can anyone show an example in history, where two stadiums, or even one, were both 33 years old, and still this nice, were torn down?

[KCPowercat]

well I guess "nice" is a very subjective term.

I love where Arrowhead is located actually.

Don't take my statement too seriously.....this is obviously the safest plan and with the royals not expressing enough interest in building downtown, that's kind of dead right now.  I'd like for there to be a little more leadership in JaxCo to stand up and take a stand but that's not going to happen.

I can't wait to hear what they threaten if this isn't passed.

[KansasCityCraka]

Slappy, where did you get this information?

[KCPowercat]

it isn't very breaking news.  They had meetings today and I believe on the bus. journal site they said they would announce tomorrow.  He probably got the numbers from somebody close to the meeting.

[TheNorthlander]

Jack Co to contribute $400+ via 3/8 cent sales tax increase. 

The $400M number is flat out wrong.  That is only the principal amount that will be bonded.  The tax will generate $750M+.

[mean]

A billion bucks? Hah! Don't think so, Jax.

[chingon]

fuck em.  let portland subsidize these fucks. vote it down.

[bahua]

Or, make the ownership of Arrowhead a five or six-county thing, and not just Jackson county. Or, at least, drop the Jackson county ticketing restriction.

But yeah. A billion dollars? This will definitely get me into the voting booth, to enthusiastically punch my "no" vote.

[aknowledgeableperson]

fuck em.  let portland subsidize these fucks. vote it down.

very impressive language.  hope you actually have a larger vocabulary than what is shown above.

[aknowledgeableperson]

Or, make the ownership of Arrowhead a five or six-county thing, and not just Jackson county. Or, at least, drop the Jackson county ticketing restriction.

But yeah. A billion dollars? This will definitely get me into the voting booth, to enthusiastically punch my "no" vote.

Agree with the ownership.  But many posters are seem to be willing to spend a billion dollars (total cost to taxpayers) for just, and only just, a downtown baseball stadium.

[WSPanic]

How did this go from $400M to $750M to a $1 Billion in less than a page?

And Fuck Portland. I'm voting for the fucking thing.

[bahua]

$400M in bonded funds, $750M as a realistic estimate on how much the tax will actually generate, $1B as a round up.

[TheNorthlander]

How did this go from $400M to $750M to a $1 Billion in less than a page?

These are round numbers, but it goes like this....
$400M in renovations
plus interest on the bonds = $750M
plus Missouri state tax credits ($50M) = $800M
plus $10M per year in maintenance subsidies for 25 years = $1.05 Billion
plus $100M from the teams =

$1.15 Billion

[bahua]

On top of that, they will be able to make improvements to the stadiums that'll allow them to charge more for tickets, hot dogs, beer, parking, you name it.

Sounds like a pretty sweet deal for the Chiefs and Royals.

[knucklehead]

As a CPA and someone who reviews capital investment decisions frequently, It cracks me up that some people do not understand the concept of time value of money and relative discount rates.

If the tax were only collected as the money was spent. We would only have a $400 million tax. Because the money is collected over 25 years we will have to collect $750 million to pay off the bonds because of interest.

If the taxpayer's cost of money is the same as the interest rate on the bonds, the present value of the cash stream of $400 million over the construction period and present value of the cash stream of $750 million over 25 years are the same. In other words, the two cash streams are economically equivelant. The true economic cost to the taxpayers (as a group) of the $750 milliion cash stream is exactly the same as the cost of the $400 million cash steam.

If the taxpayer's cost of money is higher than the interest rate on the bond (which it typically is), the $750 million cash stream is actually a better deal for the taxpayer than funding the construction on a cash basis. (Many taxpayers have a marginal cost of money equal to credit card interest rates which can be in the 14% range).

Thus, the taxpayer is generally better off by paying the $750 million over 25 years than they would be paying $400 million upfront.

[LenexatoKCMO]

Agree with the ownership.  But many posters are seem to be willing to spend a billion dollars (total cost to taxpayers) for just, and only just, a downtown baseball stadium.

OK if AKP comes out in support of this tax initiative after feeding us negative crap for ages about the fiscal responsibility of every single tax financed or tax abated project downtown than I think we can all begin to pose some serious questions about the sincerity of his motives.