Platte County sues to avoid $1 million Zona Rosa debt shortfall

Platte County filed a lawsuit Friday asking a judge to find that the county is not legally obligated to cover shortfalls on bonds issued to help finance a construction project in the Zona Rosa retail district.

The shortfall on the debt payment, due Dec. 1, exceeds $1 million. Platte County’s lawsuit seeks a declaration that it’s unconstitutional for the county to cover the shopping development’s debt.

The troubles arose because Zona Rosa, like other shopping centers, has been hurt by the rise of online retail. As a result, the shopping center has failed to generate enough in sales tax to cover payments on debt issued in 2007 to construct two parking garages.

County officials suggested earlier this year that they may walk away from the debt, rather than saddle taxpayers with the costs. That led to sharp downgrades in Platte County’s credit rating.

Read more: Kansas City Star


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