Major Tax Subsidy to build Ultra Luxury Hotel is delayed- a third time. TIF staff express support.
Developers of a proposed $63 million luxury hotel were given an additional extension by a Kansas City incentive-granting body on
Wednesday. The Tax Increment Financing (TIF) Commission of Kansas City voted to delay the measure after the developer’s attorney requested more time, citing conversations with Mayor Lucas, who asked the developers to refine their numbers...
...total public assistance package would include abatement of sales tax on construction materials; a 50% personal property tax abatement; a "super TIF" reimbursement on hotel, food and beverage, individual income and utility taxes; and a 100% reimbursement from a 1% Community Improvement District tax. All assistance, aside from the sales tax on construction materials, would last 23 years.
The public assistance requested represents more than $56 million during the life of those TIFs and about 38% of the project's total costs, according to SB Friedman's report. In Kansas City and throughout the Midwest, public assistance makes up 10% to 15% of a project's total cost, on average.