Kansas City's Hispanic contractors say H&R Block didn't earn its tax break

Now that H&R Block's gleaming green headquarters anchors the new Power & Light District, taxes generated by the building will soon start flowing back to H&R Block — the citizens of Kansas City will begin reimbursing it for its investment in downtown.

In February, H&R Block asked the TIF Commission for a payback of $137 million in city and county reimbursements. Once a couple of independent accountants review H&R Block's request, it'll go to the TIF Commission for approval. That's set to happen at the TIF Commission's meeting on May 14.

The Hispanic contractors say that, before the city starts writing checks to H&R Block for a total of $137 million, the city needs to have a public conversation about all of this. That's why, after years of frustration, they've circulated the court documents.

"It's a shame that we have to do all of this," says Gabe Perez, a member of the Hispanic contractors' association. "We started asking questions over two years ago. From day one, even before the litigation started, we asked some questions and wanted some answers — that's all we asked for. For whatever reason, our appointed or elected officials are having trouble finding the courage to look at this and deal with it."

They got some response from Councilwoman Beth Gottstein, who sent a memo to Cauthen asking for some explanations by May 1. Word from City Hall is, though, that because litigation is pending, everyone has been advised not to talk about it.

The contractors also want to talk to the full TIF Commission, and that won't happen anytime soon.

The TIF Commission's executive director, Joe Gonzalez, says he has told the contractors that their request has to go through the commission's Affirmative Action Committee. And, he says, because the lawsuit documents make allegations against specific people, the Affirmative Action Committee should invite all of those people to come in and explain their sides of the story. Then the committee will decide whether it's an issue that should go before the full TIF Commission.

The contractors see that as a stalling tactic — one that allows H&R Block to get approval for its reimbursements before the contractors have a chance to be heard.

"Prove us wrong, that's all we're asking," Perez says. "I think every citizen in Kansas City should be concerned about this because it's about how they really distribute and reward their tax dollars. Do you want to reward a developer for really shirking his responsibility? That's not just a minority issue — that's a taxpayer issue."

The $11 million that the contractors say H&R Block over-reported paying minority contractors who didn't really get the work might have helped make City Hall's recent budget cuts a little less painful. And what if the same accountability problems are happening with all taxpayer-assisted construction projects? "We believe quite strongly that this matter is more prevalent than just this one instance," adds Bill Torres of the Hispanic contractors' association. "Had we not brought this forward, status quo would go on."

The contractors can claim some victories. In February, following City Hall's lead, the TIF Commission updated its Affirmative Action Policy to make it clear that front companies aren't allowed.

When the Hispanic contractors filed their lawsuit, Torres says, they were after three things: accountability, justice and reform. "I believe we've accomplished a lot of that already," he says. "Now I believe it's time to complete the assignment."

But the longer City Hall stays quiet, and the longer the TIF Commission drags out the issue in committee, the longer it'll seem that this is just how Kansas City does business. It feels sad and dirty.

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