Good morning, MBA readers,
It’s been a while, but there’s an update on the Jackson County reassessment fiasco. After thousands of residents reported their property value skyrocketed overnight, the county executive proposed a modest cut to next year’s property taxes. (Spoiler alert: People aren’t happy.) Also in the Kansas City area, Sprint faces an investigation over alleged misuse of subsidies, and Port KC voted to limit its role in future downtown developments — unless it’s invited by the City Council. You can read more about these stories and other business news from around the state down below.
Want Missouri’s top business news in your inbox? Subscribe here.
Moody’s: Climate change poses credit risk for Missouri
Rising temperatures due to climate change could pose a credit risk for local governments across the Midwest, Moody’s investors Service said on Tuesday. The credit rating agency anticipates Missouri will be particularly impacted by lowered agricultural and labor productivity as well as increased infrastructure costs and energy demands. (Reuters)
A-B InBev raises $5 billion in Asia IPO
The Asia unit of Anheuser-Busch InBev raised about $5 billion in its initial public offering in Hong Kong at $3.45 a share. The brewer expected to raise twice as much when it first floated the idea of an Asia IPO, which it called off at the time citing market conditions. (Wall Street Journal)
Feds say Sprint abused subsidies for low-income customers
Sprint received tens of millions in subsidies for 885,000 low-income subscribers who were not using the service, the Federal Communications Commission said on Tuesday. The FCC said it is cracking down on companies abusing the Lifeline program, which gives low-income subscribers a $9.25 monthly subsidy for phone and broadband services. (Reuters)
Kehoe announces 2020 run for lieutenant governor
Lt. Gov. Mike Kehoe announced his campaign to keep his job, to which he was appointed by Gov. Mike Parson last June. At an event in Jefferson City, Kehoe discussed the need to improve Missouri’s workforce development. (Columbia Missourian)
Port KC votes to limit incentives for downtown development
The Port Authority of Kansas City passed an agreement that will limit its ability to offer incentives for projects in the area without the Kanas City Council’s permission. The memorandum, which still requires city council approval to take effect, would also limit incentives to a 50% net exemption of property taxes if the council approves or requests Port KC’s involvement. (Kansas City Business Journal)
KC’s longtime city manager announces retirement
Troy Schulte, who served as city manager in Kansas City for a decade, announced Tuesday that he will retire when his contract expires early next year. During his tenure, Schulte oversaw the city’s emergence from the 2008 financial crisis, passage of an $800 million bond package and approval of the renovation project at Kansas City International Airport. (Kansas City Star)
Ski giant completes Peak Resorts purchase
Colorado-based Vail Resorts has closed on its acquisition of Peak Resorts, which owns the Hidden Valley ski resort in Wildwood. Vail plans to invest about $15 million in its newly acquired resorts over the next two years. (St. Louis Post-Dispatch)
KC wealth management firm acquires national 401(k) service provider
Overland Park, Kansas-based Creative Planning has acquired America’s Best 401k, an Arizona firm that helps employers manage 401(k) plans. The deal marks the second acquisition for Creative Planning this year. (Kansas City Business Journal)
Lambert gets $4.65 million grant to reduce emissions
The Federal Aviation Administration has awarded $4.65 million in grants to St. Louis Lambert International Airport. The funds are part of the Voluntary Airport Low Emission Program, which helps airports reduce their ground emissions by using low-emission vehicles and electric ground support equipment. (St. Louis Business Journal)
Maryland Heights moves toward financing 2,400-acre development
Maryland Heights officials met Monday night to discuss the creation of a new tax increment financing district that would finance $100 million in infrastructure upgrades needed to develop a 2,400-acre area along the Missouri River. The city’s planning consultant said the area is the only place in the St. Louis County “where a new ‘community’ can be created.” (St. Louis Post-Dispatch)
St. Louis startup relocates to Baltimore
KaloCyte, a biotech startup developing a synthetic blood product, said it has moved its headquarters from St. Louis to Baltimore. The move comes after two of KaloCyte’s co-founders were appointed to faculty positions at the University of Maryland. (St. Louis Business Journal)
Buchanan County inches toward wind farm rules
The Buchanan County Commission is working with the Kansas City engineering firm Black & Veatch to draft a set of regulations for potential wind farms in the area. (Missourinet)
Today’s graphic looks at a national decline in soybean acreage. In the face of headwinds from trade disputes and weather, planting of the cash crop declined by more than 9% this year in Missouri. Nationally, planted acreage decreased more than 10% from last year, reaching its lowest level since 2013.
Say that again
“It’s a hocus pocus, bullsh–t thing that is done by the executive’s office that has nothing to do with the reassessment problem that they have.”
That’s Jackson County Legislator Dan Tarwater, who accused County Executive Frank White of deflecting the county’s ongoing reassessment fiasco, KCUR reports. On Monday night, White proposed a $3 million cut to next year’s property taxes, which was met with ridicule from lawmakers. Another lawmaker said White was “blind” as thousands of real estate parcels in the county skyrocketed in value after this year’s reassessment. White said his plan would reduce property taxes on a $100,000 home by just $21.
That’s how many Missouri recipients of Medicare drug benefits were prescribed opioids last year, compared to 29% of recipients nationwide, according to the U.S. Department of Health & Human Services. A new report by HHS finds that nearly 10,000 Missourians received “high amounts of opioids” through Medicare Part D last year. About 1,400 of them are “at serious risk of opioid misuse or overdose.” The report comes as more opioid makers face greater legal scrutiny over their role in creating the nationwide opioid epidemic. Last week, oxycontin maker Purdue Pharma filed for bankruptcy after attorneys general from over 20 states sued the company and its billionaire owners, the Associated Press reports.
Hello, my name is
This hotel brand could be setting up shop in downtown Kansas City by 2021, the Kansas City Business Journal reports. Maryland-based Choice Hotels International announced plans Tuesday to build a six-story 149-room Cambria hotel near the upscale 21c Museum Hotel and local bar John’s Big Deck. A franchise official said Choice Hotels is drawn to Kansas City by a “surge in investment and rise in annual visitors” in the area. The proposed hotel would include design elements drawn from nearby districts and on-site dining options with local beer on tap.
It’s been a pleasure doing business with you this morning.