City collects special money to help developer out building a mostly empty development, then the developer goes bankrupt.
Pulaski foreclosed on a loan to Sappington Square LLC last year and is suing the corporation. In the meantime, a special one-cent sales tax that is designed to finance $2.5 million in public improvements at the site is still being collected, and the new agreement is needed to allow Pulaski Bank to access those funds as a developer.
How are cities going to make up for these losses on individual public-private partnerships? Volume.
I guess we know what happened to the people left unemployed by the Internet bubble of the late 1990s and who blew vast amounts of capital on things like Pets.com. They went back to school and got into government.