The Legends Outlets shopping center was scheduled for the auction block this morning at the U.S. Courthouse in Kansas City, Kan.
The action was taken after U.S. Bank filed a lawsuit and foreclosed on a $180 million loan.
The Legends Outlets, at I-70 and I-435 in Kansas City, Kan., is 1.2 million square feet.
The Legends Outlets management office this morning had no comment.
State Sen. David Haley, D-4th Dist., said he had been getting calls from constituents who were concerned about the potential effect on the taxpayers of Wyandotte County and Kansas, who issued sales tax revenue bonds for the project. He said he originally did not vote for the financing mechanism because he did not want taxpayers to be on the hook. He said he had several questions about the current situation.
One of his questions concerns the relationship between the $180 million in indebtedness and the $117.5 million highest bid (as of midday Friday), he said.
Edwin Birch, Unified Government spokesman, said this sale of the shopping center should have no effect on the sales tax revenue bonds and the taxpayers.
"Sales tax revenue was still up and doing well out there," Birch said. The bond repayments are tied to sales at The Legends, which are doing well, he said. The STAR bonds were being paid ahead of schedule, and the UG still expects the sales tax revenue bonds to be paid off early, he said.
From the point of view of the UG, the Legends Outlets is just changing ownership, Birch said. The UG is not expecting the taxpayers to be affected, he added.
He said the bids for the shopping center are expected to come in at a higher rate than its appraisal amount. Sales taxes at The Legends have come in at a higher rate last year than the previous year, he added.