The Kansas Senate is poised to vote on a bill today that would offer fresh incentives aimed at enticing the Royals and Chiefs to relocate across state lines by potentially fully financing new stadiums. Under the proposed legislation, a new STAR bond program tailored specifically for sports projects costing $1 billion or more would be established, empowering the Department of Commerce to initiate negotiations with sports franchises. Despite this, lawmakers have yet to engage with the teams directly.
Should the Senate approve the bill, the provision will be incorporated as an amendment into a House bill, necessitating approval from that chamber. With the Kansas legislative session slated to conclude today, lawmakers face a tight deadline. Meanwhile, Missouri lawmakers have until May 17, when their session is set to adjourn, to present a counter-proposal, although either state legislature could call for a special session.
STAR (Sales Tax and Revenue) bonds, a financing mechanism allowing Kansas cities to issue bonds repaid through project-generated revenues, have been utilized for various projects, such as the Kansas Speedway and Children’s Mercy Park. However, some projects like the Topeka Heartland Motorsports Park have failed to meet expectations, with critics contending that the program deprives governments of tax revenues for extended periods.
The proposed STAR bonds for sports teams differ in that they would cover 100 percent of project costs, unlike the typical 50 percent. Moreover, local governments would not be required to pledge their share of sales tax revenue for bond repayment, and alcohol taxes could be utilized instead. These bonds would have a duration of 30 years.
Relocating to Kansas could enable the teams to capitalize on sports gambling, legalized in 2022. Teams like the Guardians and Mets have established sportsbooks in their stadiums. Despite Kansas’ establishment of a fund to attract sports teams using gambling revenue, projections indicate limited funds by 2025 due to loopholes. While Kansas Governor Laura Kelly has expressed willingness to welcome the Chiefs, House Speaker Ron Ryckman of Olathe has shown interest in attracting them, backed by Republican veto-proof majorities in both chambers.
Earlier this month, Jackson County voters rejected extending a sales tax for Truman Sports Complex renovations to fund a new downtown stadium for the Royals and Arrowhead Stadium renovations. In light of this, the Chiefs have hinted at separating from the Royals in their stadium pursuit, with owner Clark Hunt suggesting a departure from Arrowhead Stadium. Jackson County Executive Frank White has urged patience, awaiting an opportune moment to resume discussions with the teams.