![]() Repayment is built into the airport’s lease agreement with the airlines. The bonds are secured by payments from the city to the authority under a financing agreement subject to the annual appropriation by the city council with airport revenues serving as the source of repayment. The finance team decided to use $30 million of the $60 million for a runway project that will serve as the primary runway once the overhauled facility opens and then “with the reduction in enplanements from COVID, we eliminated the remaining $30 million pay-go and chose to completely bond fund the project,” said John Green, the airport’s chief financial officer. The airport team also decided to include the 2013 refinancing as part of the deal. Without subsidies in hand from City Hall, financing the hotel will likely be an uphill climb for the developers.In response to the pandemic, the airport revised its terminal financing plans to include the reduction in $60 million of pay-as-you go passenger facility charges. Of the 12 members of the council present for Thursday’s vote, all except Katheryn Shields voted against it. That meant the project would have faced a daunting task of garnering a supermajority of council votes to get the incentives. ![]() The Tax Increment Financing Commission, which advises the Kansas City Council on a subsidy that lets developers capture future property and economic activity taxes to pay for project costs, recommended against giving Hotel Bravo some of the incentives the project sought. Hotel Bravo requested a host of subsidies for the hotel, which has been estimated to cost at least $63 million to build. Organizations outside of City Hall, including Visit KC, which exists to promote Kansas City’s tourism and convention industry, have also opposed Hotel Bravo. ![]() Most council members have expressed skepticism about giving tax breaks for a hotel that’s mostly aimed at a wealthy clientele. But the hotel has been the subject of much discussion in the past. There wasn’t much discussion at Thursday’s meeting. ![]()
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