Developers shelve proposed hotel near Hollywood Casino in Wyandotte County

Plans for a $200 million, 248-room hotel near Hollywood Casino in western Wyandotte County are on hold.

The owners and operators of the casino — Kansas Entertainment LLC and Penn National Gaming — said Monday in a news release that proposed changes to casino taxation and gambling laws in Kansas convinced them to postpone construction of the hotel.

The companies’ casino development agreement requires them to pay a penalty to the Unified Government of Wyandotte County and Kansas City, Kan. if the hotel isn’t built. That penalty will equal more than $1.4 million this year, government officials said.

“I’m pleased the Unified Government will receive significant new revenues from the casino operator for as long as the project is postponed,” Mayor Mark Holland said in a statement.

The hotel would have been built near the casino and Kansas Speedway.

In January, the Unified Government gave the casino owners more time to build the hotel. Construction was to have started this week, officials said.

But Kansas lawmakers are considering raising taxes on casinos — or expanding gambling — to cover shortfalls in state revenue. Monday’s news release said those possibilities contributed to the decision not to proceed with the hotel.

Holland said the delay does not suggest economic problems in the Legends District, which includes shopping, entertainment, and offices.

The Dairy Farmers of America recently announced its decision to move to the district from Kansas City, North.

This story was originally published April 13, 2015 at 2:29 PM with the headline "Developers shelve proposed hotel near Hollywood Casino in Wyandotte County."