The Bank of Kansas City has frozen $3.4 million in renovation funds after the surety bond company that backed the project went bankrupt. The money was to be used on a half-billion-dollar renovation of the Truman Sports Complex, home of the Chiefs’ Arrowhead Stadium and the Royals’ Kauffman Stadium.
As the project’s trustee, the bank felt the need to take action one the surety was out of the picture, as the bond had guaranteed the payment of debt service on the bonds. The surety, Ambac Financial Group, had issued the $22 million dollar surety bond for the project back in 2006 and then declared bankruptcy in November 2010.
Professionals have estimated that replacing the bond will cost the Jackson County Sports Complex Authority $220,000 to replace the surety bond, however, if it does not the bank could continue to freeze funds, hindering the project’s progress.
Officials speaking on behalf of the sports complex expect the problem to resolve the issue within the next month. Bank officials have agreed to reallocate the funds once the bond has been reinstated.