FOR IMMEDIATE RELEASE
Platte County Prevails in
Lawsuit against Zona Rosa Bond Trustee
KANSAS CITY, MO. (May 31, 2019) — On Thursday, Circuit Court Judge James Van Amburg issued a decision granting summary judgment in favor of Platte County in its declaratory judgment action against UMB Bank, N.A., the Trustee for the Zona Rosa Bonds.
In its order, the Court rejected the Trustee’s demand for Platte County to pay shortfalls on the Zona Rosa Bonds in 2018 and each year thereafter. This demand would have imposed on Platte County an immediate liability of $765,390.95 and a long-term liability of up to $40 million through 2032. The Court agreed with Platte County’s position, finding that Platte County never agreed to make any payments to cover shortfalls for the Zona Rosa Bonds.
“The Commission’s lawsuit has saved Platte County taxpayers tens of millions of dollars,” said Todd Graves, counsel for Platte County along with Dane Martin and Jennifer Donnelli. “The Court was correct to reject the Trustee’s effort to impose a bondholder bailout on taxpayers. This is a great day for taxpayers—and a firm rebuke to financiers attempting to abuse the public treasury. The Zona Rosa Bonds will continue to be paid using the dedicated 1 percent sales tax in Zona Rosa, as has always been the case.”
In its Motion, Platte County sought a declaration from the Court regarding the validity of the Trustee’s demand that it cover shortfalls for the Zona Rosa Bonds. The Zona Rosa Bonds were issued by a third-party entity, not Platte County, to finance parking garages in the Zona Rosa shopping center. Under the Financing Agreement, the bonds are payable from a 1 percent sales tax in Zona Rosa.
Platte County continues to support Zona Rosa as a private shopping district and looks forward to the ongoing changes and improvements being made.
All media inquiries related to this legal matter should be directed to Nichole Kruger at Graves Garrett. Contact information is included above.
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