The city of North Kansas City, has declined to give a break in the rent to Harrah’s Kansas City Hotel & Casino, which had to close its doors for several months due to the coronavirus.
The casino is built on land near the Missouri River it rents from the city
The casino requested forgiveness for up to $410,000 in rent for the 75 days it was closed. General Manager Julie Sola told the city council last week: “During this time due to closure we did not have any revenues. Yet we still had a significant amount of expense.”
Council members were not sympathetic, although they thanked the casino for its involvement in the community. They pointed out that the city relies to a great extent on money from the casino to run its budget.
They said it wouldn’t be right to give a break to Harrah’s when other businesses were also hard hit this spring and summer.
Councilman Richard Stewart said, “I know it was rough. But it was rough for restaurants and theaters. And so far I don’t think they’ve asked for any tax deduction. That’s the problem I have: What do we tell these people if we pass this.”
Councilman Anthony Saper added, “We can’t do it for them if we don’t do it for everyone else.” He continued, “And from their balance sheet, they don’t seem to be in need of it. They’re simply putting it forward because it’s a possibility.”
In March Harrah’s collected $7 million adjusted gross receipts, compared to almost $18 million the year before. Since the lockdown was lifted, the casino is rebounding. Its gross for June, July and August was higher than the same months in 2019.
Harrah’s taxes to the city going into its gaming fund, which helps pay for capital improvements. That fund has declined from $10.4 million in 2010 to $7 million last year. Rent is $2 million a year or 2 percent of gaming revenues, whichever is larger. The rent provides 14 percent of the city’s general fund. It has also declined over the last dozen years, from $4 million in 2007 to $3 million in 2020.
