A KC "Convention Hotel"?

Oh, please.

I mean, even I want a brand new C-Class Mercedes Benz sedan, just like some here in KCMO want a convention hotel in downtown KC that would add 1000 rooms to the city so we could hold larger conventions but we just have way too many things going against us right now.

First, we simply don't have the money.  In spite of what the outgoing mayor said or says, we are not in some great financial situation where we can pull money out and help pay for the thing.

Second, check this out from The Kansas City Business Journal:

Fitch downgrades KC bond rating because of threat to earnings tax

Kansas City Business Journal
Date: Tuesday, February 22, 2011

The specter of Kansas City losing its earnings tax revenue caused a major ratings agency to downgrade its score on the city’s general obligation bonds.

Fitch Ratings assigned a AA rating Kansas City’s general obligation bonds, down from the previous AA+ score.

Fitch’s report on Tuesday attributed its downgrade to the unstable future of 1 percent Kansas City’s earnings tax, which provides about $200 million a year in revenue.

“The downgrade reflects the greater inherent risks to the city’s financial performance and overall vitality created by the new initiative requiring voter approval of the continuation of the city’s principal revenue source every five years,” the Fitch Ratings report said.

The downgrade could make the cost of issuing and financing bonds more expensive.

So we don't have the money and we don't, likely, have the credit or credit rating to do it, either.

Added to this situation is that this is the worst economy in literally 80 years, since the Great Depression of the 30's and you just don't have the scenario to make a large convention hotel in downtown KCMO happen right now.  Maybe in years to come.  Maybe.  If the economy locally, state-wide and nationally comes back but no one foresees that happening anytime too soon.

As a few people wrote over on the TKC blog, this should put an end to the whole erasure of the e-tax but the way voters are and the way this issue is, who can say what will happen come election day?  

One thing is certain--election day is going to be fascinating if for no other reason than the vote on the e-tax.  Let's hope it's "good fascinating" and not "depressing fascinating."

Link to original story:  http://www.bizjournals.com/kansascity/news/2011/02/22/fitch-downgrades-kc-bond-rating.html?ana=RSS&s=article_search&utm_source=feedburner&utm_medium=feed&utm_campaign=Feed:+bizj_kansascity+(Kansas+City+Business+Journal)