A Kansas City International Airport hotel lost a tax appeal and will have to pay $2.3 million in taxes after a hearing in front of the Missouri State Tax Commission.
On Tuesday, Jan. 16, the state office decided in favor of the Platte County Assessor’s Office regarding the Marriott Hotel property at KCI, ending an appeal that has been ongoing since 2016. The hotel operated by Grady Hotel Investments presented true value money of $0.
Meanwhile, the assessor’s office used evidence of the sale of the property on April 29, 2015 for $8.5 million in their evaluation of the property located at 775 Brasilia Ave, Kansas City, Mo.
The court took the value of the property and subtracted construction cost of $1.2M, which brought the final total to $7.3M. The tax on that assessed value came in at $2.336M.
The hotel was first constructed in 1974 and an addition was added in 1988, bringing the total hotel rooms to 384. The business also has meeting space, restaurant, business center, indoor pool and fitness center.
Thomas Slack, a certified real estate appraiser, testified that the hotel was required to make $6M in improvements between 2008-2014 in a prior agreement with the City of Kansas City. He did note in his testimony he didn’t have records for the $6M in expenditures for construction or improvements.
Court documents show that Grady Hotel Investments agreed with the City of Kansas City to expend $3,781,000 on real property and cost incurred in 2015-16 was $1.2 M.
“It is extremely important to be fair and reasonable with everyone in Platte County and we’re convinced we did so in this case,” Platte County Assessor David Cox said in a press release.
The initial hearing took place on Sept. 18, 2017. Platte County residents Stephen Magers and Ferdinand Niemann represented the assessor’s office.