Mayor: Hotel Topeka deal moving forward; mayor says hotel is not the cause of city budget deficit

Mayor Duncan said negotiations to finalize the Hotel Topeka deal are ongoing, with the county and the Endeavor Group given extra time to work through remaining terms and an expectation the deal could be finalized by July. He said the hotel is bonded and financed over 20 years and that selling the hotel later could remove it from the general fund.

Asked if the month-long delay in hotel negotiations was worsening the city's budget position, Mayor Duncan said the hotel has "almost been breaking even" this year and that the city's $12.5–15 million estimated deficit stems primarily from rising costs for insurance, construction materials and technology and from recent union contracts that add about $5–6 million over the next three years.

"The hotel really has nothing to do with it," Mayor Duncan said, adding that municipal costs outside his control — including nearly 40% increases in health insurance and double-digit rises in asphalt and water-line installation costs — have driven much of the shortfall.

Why it matters: Officials said separating the hotel's debt and operations through sale or other means could affect future general-fund accounting, but current deficits will require budget choices, possible project timeline changes and conversations about revenue options.

What’s next: City leaders will continue budget work through the summer, and staff will provide more detailed cost estimates on specific projects and the hotel delay if requested by media or council members.