It’s official. Kansas Gov. Laura Kelly has signed the Star Bonds legislation designed to help Kansas lure the Chiefs and Royals across the border. The battle is officially on, but Kansas is fighting with a much bigger stick than Missouri.
But the deal isn’t done yet, said Kerry Gooch, a lobbyist with “Scoop and Score,” the team the Chiefs put together to help pass the STAR bonds legislation through the Kansas Legislature.
There’s a lot to be worked through, even on the Kansas side, and Missouri isn’t giving up yet.
“All the legislature did was expand the tools that the lieutenant governor can use to make some negotiations,” said Gooch. “There’s nothing they actually did other than expanding STAR bonds so they can be a little more flexible.”
The legislature extended the percentage of projects STAR bonds can cover to 70%, expanded the payback time frame for the bonds to 30 years, and also set a minimum amount for projects like these to $1 billion.
“At a really high level, that’s all that happened,” said Gooch.
The Kansas Politics
The Kansas Legislature passed the bipartisan measure June 18 in a special one-day session, with the House approving it 84-38 and the Senate 27-8.
The legislation puts most of the responsibility for negotiating with both teams in the hands of Kansas Lt. Governor David Toland.
A mix of Republicans and Democrats voted against the bill. Originally, the teams thought the measure would be a slam dunk until Charles Koch-backed Americans for Prosperity came out against the bill, saying it was a tax increase for Kansans and the state shouldn’t use general funds for the project. Despite Koch’s stronghold on the legislature, his position only swayed a few Republicans.
The Democrats who opposed it were all over the board. Kansas Rep. Ford Carr (D-Wichita) voted against the bill, citing his concerns with potential gentrification in Wyandotte County. His position was totally opposite that of Kansas Sen. David Haley (D-KCK) who welcomed the teams into his district due to the potential for economic growth.
The governor praised the initiative, calling it an opportunity for Kansas to become “a professional sports powerhouse.”
The KCK Possibility
Early on, Tyrone Garner, mayor of Kansas City, KS, and the Wyandotte County Unified Government, welcomed the teams to his city and county.
“Kansas City, KS, is already home to several major sports venues, and we have a proven track record of success utilizing STAR bond legislation that has led to significant economic benefits to the great state of Kansas, Wyandotte County, and the entire KC region,” said Garner.
One intriguing possibility is the KCK riverfront. Haley, who represents the area, has long advocated for economic development along the riverbank. He sees the location as ideal for a stadium, offering a “beautiful backdrop” with easy access to downtown KC amenities and major highways.
With the Chiefs, there’s potential for three facilities in the package: the stadium, a practice facility, and the corporate headquarters, and all three don’t have to be in the same city.
“They have the potential of having the stadium in Wyandotte County, the practice facility in Leavenworth County, and the headquarters in Johnson County,” said Gooch. “Also, with the Chiefs, we talked about how the stadium (with a roof) could be used for a lot more things than just football games. You’re talking about a facility for concerts, you can host a final four basketball tournament, you could do things there year-round.”
With a new stadium featuring a dome (the Chiefs have committed to add a dome if they build in Kansas) the ultimate goal would be for the Chiefs to play host to a Super Bowl, says Gooch.
KCK Mayor’s Position
“If I had my choice, the Royals would go downtown, probably somewhere in the northeast, to help build out and infuse some economic development, there or in the bottoms, and then the Chiefs would go out by Village West,” said Garner. “Some people were saying let’s get one team, but I was saying let’s get both. They’ve got the Kansas City designation. Well, Kansas City, Kansas … let’s make it real Kansas City.”
However, Garner says it has to be designed in a way that Wyandotte County benefits.
“I want to make sure there’s value. When I say value I’m talking about economic development opportunities that could add to the growth in Wyandotte County,” said Garner.
More importantly, the mayor doesn’t want the projects to put an unnecessary tax burden on Wyandotte County citizens. He’d like to see the revenue generated from having the teams in the county go towards tax relief.
“I’m going to be a strong advocate for our commission to apply any monies that we get from the Chiefs and the Royals to specifically go towards property tax and BPU PILOT reduction,” Garner said. “Those are the two biggest complaints that everybody has across the board. That crosses all sectors of persuasion and race: They want tax relief.”
Gooch agrees, there is plenty of room for Wyandotte County to have a say in how moving the teams impacts their community.
“The Unified Government will have to sign off on a lot of this stuff, so there are many more steps,” Gooch reinforced.
Kansas’ Bigger Stick
What the STAR bonds do is put Kansas in a good negotiating position.
“They’re offering a great deal for both teams,” said Gooch
STAR bonds offer upfront money, while Kansas City, MO, is offering to reimburse both teams for their initial investment in small yearly repayments from sales tax revenue generated from a special tax.
Under the STAR bond program, “that’s 70% of the new stadium they don’t have to pay,” said Gooch. “The way the STAR bonds work is investors are basically putting the money upfront. The people that buy the bonds are the ones that are coming out of their pocket to build the stadium, and the bonds – not the sports teams – get paid back with the sales tax.”
In Missouri, there’s no upfront money for either team.
Jackson County is putting forward a new ballot measure that asks citizens to fund a sales tax for just the Chiefs. That proposal does not offer the Chiefs any upfront money to bill the stadium.
“It’s billions in out-of-pocket savings that Kansas is offering, “ said Gooch.
Missouri lawmakers, meanwhile, are considering their response. House Majority Leader Jonathan Patterson called the Kansas legislation a “wakeup call” and said he expects Missouri to craft a plan to keep the teams.
In the coming months, intense negotiations will likely occur as both Kansas and Missouri work to secure the long-term future of these beloved franchises in the KC area.
