Legislative auditors skeptical Prairiefire development can pay off $64.8M in bond debt

The Overland Park retail, office, hotel and residential development attached to the Prairiefire museum struggles to attract out-of-state tourists and could default on $64.8 million in bond debt issued through a state economic development program under scrutiny by the Legislature. Auditors with the Legislature said their analysis of the PrairieFire project built with capital raised through issuance in 2012 of Sales Tax Revenue Bonds, or STAR bonds, indicated the project wasn’t generating enough sales tax revenue to repay debts in the required 20-year period. Originally, $64.9 million in bonds were issued for the project. Debt remaining to be paid: $64.8 million. Auditors predicted it could take until 2046 or 2104 to produce sufficient sales tax revenue to retire the PrairieFire obligations held by the city of Overland Park.
Source: Kansas Reflector