@BlogKCThe Cordish Co. has won a tax appraisal appeal, lower taxes on the Power & Light District and increasing the city’s liability to cover Cordish’s losses in the district. The County has valued the P&L District at $25 million, in between the original value of $88 million and Cordish’s appeal of $12 million.
The upshot is that the city will spend up to $20 million/year paying off the district’s debt. A figure well above the initial $4 million estimate and certainly not the profit the city was expecting when it took the risky move of guaranteeing the bonds with taxpayer money.
Biz Journal: Jackson County ruling on Cordish tax liability will cost Kansas City.
Can anyone explain what they mean by “valued the P&L District at $25million.” Didn’t this cost like $300mm to build? Am I missing something? Thanks for any info!
SMH, they are talking about the tax appraisal by the county assessor. Real estate is decline in value since the district opened. It’s very similar to the situation with who bought $200,000 houses in 2007 that are now only worth $150,000. The cost to build something isn’t necessarily the same as the real estate appraisal if the market has decided the property is worth less.
John that is true, but $55 per square foot for a brand new retail development is still ridicoulously low even with market conditions adjustments. Considering we the tax payers are carrying this burden, the appraisals should be public information. I still don’t believe the concluded value is reasonable at first glance. Market adjustments do not fully explain an 80% difference between cost and current value. This is completely fishy and Kansas City is getting screwed.