When the Cordish Co. officials want to impress, they say the Power & Light District represents an $850 million investment. But when the time comes for the company to pay taxes on the downtown development, its value falls off a cliff.
For the second consecutive year, Cordish has fought Jackson County's determination of the worth of the Power & Light District. In 2008, Cordish sued the county, arguing that a segment of the district appraised at $61 million was really worth $12 million. The two sides settled on an $18 million value.
Last week, Joe Miller at KCDowntowner.com reported Cordish and the county had again come to very different conclusions about P&L's value. For 2009, the county appraised the district at $88 million. An appraiser hired by Cordish said a four-block portion of the district was worth only $18.5 million.
The numbers affect the city's budget. A lower value reduces the amount of property taxes that Cordish pays. The city uses the property taxes to help pay down the $295 million in debt issued to pay for the development.
The Board of Equalization found Cordish's number to be more convincing, setting a market value of $26 million.
The lower appraisal will reduce Cordish's property taxes by $1.8 million, according to The Kansas City Star. With less taxes coming in, the city anticipates having to increase the $7 million subsidy it expected to pay to keep current on the bond payments.
Cordish's arguments before the Board of Equalization clash with its frequent assertions that the district cost $850 million. Blake Cordish repeated the claim while being interviewed for The Next American Dream, a 60-minute television program about downtown's rebirth that recently made its KCPT debut.
A redevelopment plan submitted to the Tax-Increment Financing Commission put the cost of the project at $322 million, with taxpayers picking up 85 percent of the tab.
Comments (0)