The Risks of the New Convention Hotel

Despite being midsized in both population and convention business, Kansas City was rated among the top five cities in high travel taxes. That rating didn't include the new 1 percent downtown streetcar Transportation Development District (TDD) tax or the proposed 1 percent Community Improvement District (CID) for the proposed new 800-room convention hotel. These additional taxes will make Kansas City less attractive to conventions.

KC Convention Hotel Estimates Are Notoriously Wrong

Right now, leaders in Kansas City, Missouri, are eager to build a convention hotel downtown. But there is precious little information available. We know that the city has been negotiating for years with developers to build a $300 million 800-room hotel. It appears to be a 50-50 split, with $150 million coming from private investors and the remaining half will be supported by city outlays, tax abatements, and other subsides.