Livestrong Sporting Park

[grovester]

Now's the time to make a move KC, if you have anything to offer

[OPIchabod]

Now's the time to make a move KC, if you have anything to offer

I agree.

From what I've read from the Unified Government (still haven't seen much reaction from the development team...), they are not happy with the state's offer and the stipulations that are part of the offer.

Perhaps the rationale is included somewhere from the Kansas Secretary of Commerce, but what's his reason for $144 million in STAR bonds as opposed to $155 million desired by the developers?

There's something else going on here, and I haven't seen anyone get at it yet.

[staubio]

While it remains to be seen whether the deal is sweet enough, is this a rare example of our two-state metro actually being an advantage? A regional amenity was preserved when it looked hopeless in one site and the other state stepped up with its own package.

[im2kull]

While it remains to be seen whether the deal is sweet enough, is this a rare example of our two-state metro actually being an advantage? A regional amenity was preserved when it looked hopeless in one site and the other state stepped up with its own package.

Indeed the pendelum is swinging both ways.

Unfortunately for KCMO Funkhouser is sure to miss it on the way back to town. 

[aknowledgeableperson]

Funk or no Funk the city was helpless.  Unless it wanted to issue a guarantee on the bonds - something that would have been very dangerous.  The first thing built would have been the stadium, backed by the city guaranteed bonds with the rest of the project in limbo for many years.  So there would have been a minimal amount of revenue to make payments on the bonds and therefore leaving the city exposed for the shortfall.

This project, on the Missouri side, was doomed because of the credit markets and the economy.

[mykem]

I think Jackson County should step up, and try to get this done at the TSC! The new stadium could be built directly west of both Kauffman, and Arrowhead stadiums. The retail could fit in between Kauffman, and Arrowhead, and Cerner could be placed just about anywhere there.

[mykem]

I think Jackson County should step up, and try to get this done at the TSC! The new stadium could be built directly west of both Kauffman, and Arrowhead stadiums. The retail could fit in between Kauffman, and Arrowhead, and Cerner could be placed just about anywhere there.

Check that! Southeast between a rerouted Chiefs Way, and Royals Way. They would need a plot of land that would be 850' long x 750' wide to fit a spacious new soccer specific stadium into.

[aknowledgeableperson]

I think Jackson County should step up, and try to get this done at the TSC! The new stadium could be built directly west of both Kauffman, and Arrowhead stadiums. The retail could fit in between Kauffman, and Arrowhead, and Cerner could be placed just about anywhere there.

What the problem is TIFF's require a revenue component and a stand alone stadium would not generate enough revenue to make bond payments, unless the government guarantees the bonds.  And with the recent economy the retail would not be forthcoming for a few years, which doomed the Bannister site.  At Village West the retail is already established so the revenue stream is already there to pay off the bonds.

[mykem]

What the problem is TIFF's require a revenue component and a stand alone stadium would not generate enough revenue to make bond payments, unless the government guarantees the bonds.  And with the recent economy the retail would not be forthcoming for a few years, which doomed the Bannister site.  At Village West the retail is already established so the revenue stream is already there to pay off the bonds.

Thanx for clearing that up AKP! So, VW is the only place in the metro that a plan like this could work??? This is the only option left to keep the Wizards in the KC metro area???

[aknowledgeableperson]

Thanx for clearing that up AKP! So, VW is the only place in the metro that a plan like this could work???

Given the current economic climate probably so.  But since you made the TSC proposal how would you finance it given the current economic climate, especially in retail?  Afterall, the whole area has booming retail activity.

[macnw]

Zona Rosa?

[knucklehead]

Last week the Star indicated that the total tax subsidy package was $230 million. This if for the soccer stadium, 4,500 Cerner jobs and 12 soccer fields.

Soccer stadiums are cheap. I estimate the soccer component is about $40 million of the total. That leaves 190 million for the 4,500 Cerner jobs.

That works out to be $42 K per job.

Kansas has been on this road of buying jobs for some time (Quintiles, the Bio Lab). Paying 42 K for a 65,000 job basically is equal to about the first 14 years of what the employees pay in income taxes.

[KCMax]

The soccer stadium will likely cost more than $40 million. It was going to cost $100 million at the Bannister site.

http://forum.kcrag.com/index.php?topic= ... #msg410884

Your point still stands though.

[knucklehead]

Thanks.

I am not sure what the scope of those cost estimates include, some may be more than just the stadium alone. But it does appear that $40 million isn't enough for the stadium alone.

If you use the 100 million, the Cerner jobs work out to be $29 K per job or about 9 to 10 years of employee income tax revenues. 

[KCFutbol]

Thanks.

I am not sure what the scope of those cost estimates include, some may be more than just the stadium alone. But it does appear that $40 million isn't enough for the stadium alone.

If you use the 100 million, the Cerner jobs work out to be $29 K per job or about 9 to 10 years of employee income tax revenues. 

The stadium will cost way more than $40MM. As was stated before, the Banister site stadium was pegged at $100MM.

[rokhok]

Without making a judgement about whether or not states should "buy" jobs or not, I think that your math is somewhat simplistic on this deal.  There are more factors that come to play like:

* Additional retail driven by having 4000 office workers in the area
* Additional home sales by __% of the 4000 that will want to live close to the office and related spinoff economics of home sales
* Additional retail driven by soccer events
* Additional jobs from the soccer activities and support positions for the primary Cerner jobs
* Potential to prove out western wyco as a viable place for businesses to locate white collar jobs (remains to be seen)
* Amateur soccer tournament economic impact

I think that all those factors, while fuzzy, work to lower the cost of "buying" Cerner jobs...

Thanks.

I am not sure what the scope of those cost estimates include, some may be more than just the stadium alone. But it does appear that $40 million isn't enough for the stadium alone.

If you use the 100 million, the Cerner jobs work out to be $29 K per job or about 9 to 10 years of employee income tax revenues. 

[mykem]

Given the current economic climate probably so.  But since you made the TSC proposal how would you finance it given the current economic climate, especially in retail?  Afterall, the whole area has booming retail activity.

I don't know enough about the local economics of Jackson county to know what they could offer for funding. I'm just hoping for something that could help develop the TSC, and make it more of a destination.

[zonk]

Looks like David Kerr has jumped ship....now with the State of MO.

KS Secretary of Commerce Becomes Missouri Director of Economic Development
Today David Kerr will be resigning his position as Secretary of Commerce and replacing Interim Director Kathleen Steele Danner in the Missouri Department of Economic Development.

Kathleen Steele Danner took over after Linda Martinez resigned due to disagreements with the Governor's office.

Kerr is a former AT&T executive.

[NDTeve]

Looks like David Kerr has jumped ship....now with the State of MO.

KS Secretary of Commerce Becomes Missouri Director of Economic Development
Today David Kerr will be resigning his position as Secretary of Commerce and replacing Interim Director Kathleen Steele Danner in the Missouri Department of Economic Development.

Kathleen Steele Danner took over after Linda Martinez resigned due to disagreements with the Governor's office.

Kerr is a former AT&T executive.

The old "if you can't beat em...hire em" move. 

[KCMax]

Kansas adjusts offer aimed at spurring Cerner, Wizards development near speedway

Kansas has sharpened its original offer to encourage a proposed $414 million Cerner and soccer development by Kansas Speedway, offering to make $48.5 million available upfront.

The proposal, which Kansas officials said doesn?t alter the total amount of the assistance package offered in mid-October, was announced Tuesday in an effort to move the project forward.

A representative for the development team said no decision has been made on whether to accept the revised offer.