Legislators Approve Plan to Attract Kansas City Chiefs to Kansas
The Kansas legislature has approved a comprehensive plan designed to attract the Kansas City Chiefs, potentially moving the NFL team from neighboring Missouri. The plan, which is awaiting Governor Laura Kelly’s signature, involves the state covering up to 70% of the costs for a new stadium.
Financial Structure and Repayment
The proposed plan is set to be repaid over 30 years using revenue generated from sports betting, the lottery, and new taxes. According to the governor’s chief of staff, a veto from Governor Kelly is unlikely, suggesting that the plan may soon be set into motion.
This move comes in response to Missouri voters rejecting a sales tax extension that would have financed the renovations of Arrowhead Stadium, the current home of the Chiefs. Initially, Republican leaders in Kansas hesitated to discuss the stadium plan until tax cuts were approved. Consequently, Governor Kelly called a special session to address both tax reduction and stadium financing.
Stadium Financing Limits and Private Investments
The final bill places a cap on the state's financing commitment at 70% of the total stadium costs. It also mandates approval from both the legislature and the governor. The Kansas City Chiefs are expected to invest between $500 million and $700 million in private funds toward the construction of the new stadium.
Despite these commitments, the plan has faced opposition from both economists and free-market advocates. Critics argue that subsidizing stadiums diverts funds from other potential entertainment or public investments. Economist Andrew Zimbalist noted, "Most of the money that gets spent on the Chiefs is money that would otherwise be spent on other entertainment projects." He added that while this move could potentially benefit Kansas, it might hurt Missouri by a similar measure.
Missouri’s Position and Future Plans
To date, Missouri has yet to announce any counterplans to retain the Chiefs. However, the state's focus remains on keeping its major league teams, especially since Arrowhead Stadium requires renovations seven or eight years before the current leases expire in 2031. Missouri's legislators and leaders are keenly aware of the economic and civic significance of retaining the Chiefs within their domain.
Tax Revenues and Economic Impacts
The plan relies heavily on the projection that new tax revenues will be substantial enough to repay the bonds issued to fund the stadium. Senate President Ty Masterson highlighted the importance of providing tax relief to Kansas citizens, emphasizing, "We definitely need to demonstrate that we're getting relief to our citizens."
House Commerce Committee Chair Sean Tarwater also reassured that the financial commitments are controlled and monitored, stating, "There are no blank checks."
Support and Urgency
Lobbyists from Scoop and Score and the Kansas City Royals have thrown their support behind the new stadium plan. Advocates underscore the urgency of finalizing and implementing the plan to ensure Kansas doesn’t miss this critical opportunity. David Frantz, a proponent of the plan, succinctly remarked, "There is an urgency to this."
Korb Maxwell, another advocate, stressed the vital role major league teams play in a city's image and economic health, declaring, "For a town to be major league, they need major league teams."
The Road Ahead
The coming weeks will be pivotal as Kansas awaits Governor Kelly's final decision and moves forward with plan implementation. If successful, this strategy promises to offer significant economic opportunities for Kansas, while also presenting challenges that will need addressing as they unfold.