Voters to Decide on Chiefs & Royals Stadiums’ Tax Support
1/19 UPDATE:
Jackson County Executive Frank White has vetoed the ordinance and appears to have garnered enough support in the legislature to sustain the veto jeopardizing the ballot issue going to voters in April. White and the legislators have a list of items they want all parties to agree to before putting the tax in front of voters. This is a developing story. More details to come.
Jackson County legislators have agreed to let voters decide on a sales tax renewal for Chiefs and Royals stadium projects.
If approved by voters in April, it would extend the existing 3/8 cent sales tax for another 40 years and would finance the construction of a new downtown ballpark for the Royals and extensive renovations at Arrowhead Stadium for the Chiefs.
The decision, an 8-1 vote on Jan. 8, comes as the county continues to negotiate with the teams on details, and many questions remain unanswered, including where the proposed new Royals stadium will be.
Jackson County Executive Frank White urged legislators to delay the vote for four days, with hopes of securing additional concessions from the teams, but the county legislature advanced the question to voters, with only Megan Marshall voting no.
White could still veto the measure, but the legislature would only need six votes to override and eight already voted yes.
The county — led by White’s office — has negotiated several concessions from the teams. The Chiefs and Royals issued a joint statement outlining their agreement to forgo their $3.5 million annual share from a tax for parks, levied at $.09 per $100 of assessed property value. This levy was approved by Jackson County voters in 1990, with the sports teams traditionally using their share to support stadium maintenance.
Both teams also committed to cover the insurance costs for their stadiums over the 40-year duration of a new lease, netting an estimated total savings of $200 million for Jackson County. The teams also pledged to stay in Jackson County if the 3/8 cent sales tax was renewed.
“We still have a lot of work to do, but this is an important step toward giving the Jackson County voters the opportunity to decide on April 2,” said the Chiefs and Royals in a joint statement.
White said the move erased some of the leverage that he might have had in negotiating further concessions. Ongoing issues include the exact location of the new baseball park and who would cover the costs of demolishing Kauffman Stadium. White is also seeking guarantees on keeping both team headquarters and the Chiefs’ training facility in Jackson County.
Despite the teams being under a lease through 2031, there was urgency with this issue because of the Jan. 23 deadline to get the tax renewal on the April election ballot.
The Royals are hoping to be in a new downtown stadium by 2028 and felt their best chance for successful renewal of the sales tax would come on the April ballot if the initiative was tied with the Chiefs.
The Chiefs, for their part, were hoping for a ballot initiative in April because Missouri Gov. Mike Parson indicated he’d contribute millions from the state toward the stadium projects if given the chance, and Parson’s term expires in January 2025.
When the previous 3/8 sales tax was approved in 2006, the teams did not have lease agreements and negotiated until deals were finalized in March, just ahead of the April vote.
Jackson County legislators said a similar timeline would allow voters to make an informed decision, but if details are not clarified soon, they would actively campaign against the sales tax extension. Legislator Jalen Anderson said if the teams haven’t signed a lease agreement by March 1, the legislature could take action, such as withdrawing the ordinance or refusing to override a potential veto from Frank White.
The Royals will need to decide on a final location for their proposed $1 billion stadium and adjoining privately funded $1 billion entertainment district. Both teams will need to negotiate new lease details and a community benefits agreement.
A potential community benefits agreement would ensure a living wage for stadium workers, union construction jobs, and support for affordable housing, especially for those displaced by a potential new stadium. Community benefits agreements are legally binding and have been on the rise where stadiums are funded with taxpayer dollars.
Retail and food workers group Stand Up KC said after the county vote that the Royals have committed to talks with them as they negotiate a community benefits agreement.
“If you’re not at the table, you’re on the menu,” said Stand Up KC leader Terrence Wise on Twitter. “To be able to be at the table and have a voice and to be able to negotiate anything is definitely a victory.”
