K.C. Searching for STARs

The Unified Government of Wyandotte County/Kansas City, Kan., last week submitted to the state its official request to use $173.3 million of sales tax revenue pledged to the support of existing, outstanding STAR bonds to help finance a $414 million development that includes an 18,500-seat soccer stadium.

The application must be approved by the Kansas Department of Commerce before the project can proceed.

The proposed development would be financed in part by continuing to collect revenue now earmarked for debt service on existing STAR bonds for seven years after the refinanced debt has been scheduled for retirement.

The development would be located in the 400-acre Village West entertainment and recreation area adjacent to the Kansas Speedway motor racetrack.

The combined government in 2005 refinanced $265 million of STAR bonds issued in 2001 issued for the Village West project. At that time officials said the lower rate and increased retail activity in the district would allow the debt to be paid off in 2013 rather than 2021. The revised plan calls for the revenue to go to the new project through 2021.

The refunding bonds were rated BBB by Fitch Ratings and were enhanced with a letter of credit from Citibank NA.

The financial plan also includes $220.9 million of private funds and $20 million in state tax credits determined by the creation of new jobs at the proposed development.

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