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Platte County commissioners file lawsuit over Zona Rosa revenue bond dispute

Posted at 6:25 PM, Nov 02, 2018
and last updated 2018-11-02 19:36:30-04

KANSAS CITY, Mo. — The Platte County Commission has asked a judge to clear the county of any responsibility to repay past-due revenue bonds at the Zona Rosa shopping center.  

The commission is fighting claims from a bond trustee that Platte County is responsible for paying millions of dollars in past-due revenue bond payments.

The initial past-due amount is $2 million, but it could increase to as much as $40 million over the life of the revenue bond.

It’s no secret that Zona Rosa is struggling financially.  

The Northland shopping center was recently sold, and the new owners are working to get crowds back and improve sales.

Before Zona Rosa was sold, however, $32 million in revenue bonds were issued to pay for two parking garages on the west side of the shopping center

According to Platte County commissioners, the previous owners of Zona Rosa would make the bond payments — but the new owners, Texas-based Trademark Property Company, are not.

A bond trustee claims Platte County is responsible for making the bond payments.  

Platte County commissioners argued in the lawsuit filed Friday that the revenue bond is supposed to be paid from the 1 percent tax at Zona Rosa. They also stated that Missouri law forbids the county from repaying a revenue bond without a vote of the people approving that measure.

Finally, Platte County officials said in the lawsuit that if they are forced to make the revenue bond payments, it would seriously jeopardize providing services to Platte County residents.