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Schlitterbahn financier questions repayment abilities

Posted at 11:42 AM, Apr 11, 2018
and last updated 2018-04-11 14:40:44-04

KANSAS CITY, Mo. -- A filing made this week by one of the financiers of the Schlitterbahn Water Park in Kansas City, Kansas raised concerns about whether Schlitterbahn would be able to repay loans.

Kansas City-based EPR Properties referenced the situation in a Monday filing with the Securities and Exchange Commission. 

Recent criminal indictments against one of the company’s waterpark mortgagors and certain related parties may negatively impact the likelihood of repayment of the related mortgage loans secured by the waterpark and other collateral and have a material adverse effect on the company’s business, operating results, cash flows, financial condition, and liquidity.

Schlitterbahn and several of its current and former key officials – including Jeff Henry, John Schooley, and Tyler Miles – have been indicted in connection with the 2016 death of Caleb Schwab.

In the filing, ERP says Schlitterbahn still owes more than $174 million to ERP. Among the ways the company planned to repay the loans was to use financing from a Kansas economic development tool known as STAR bonds.

ERP officials question whether Kansas officials will continue to authorize STAR bond revenues to Schlitterbahn given the criminal charges.

“If additional STAR Bonds cannot be issued, the likelihood that SVV will be able to fully repay the mortgage loans will be negatively impacted,” the filing said. “In addition, negative publicity may have a negative impact on attendance at the Schlitterbahn waterparks, which may reduce the funds available to SVV to repay the mortgage loans.”

In a statement to 41 Action News, a company spokeswoman says Schlitterbahn remains committed to the project and working with EPR.

"We continue to maintain our long term commitment to Kansas and Wyandotte County, and are proud of our investment and role in state and county efforts to catalyze significant economic development, including the U.S. Soccer National Training Center and the Dairy Farmers of America’s world headquarters to the community. EPR has been an excellent partner in the development project, and we maintain a strong working relationship with EPR."