KANSAS CITY, Mo. —
The Kansas City council on Thursday approved multiple ordinances for a financing plan for the baseball park in downtown Kansas City.
The council approved ordinances allowing the city to move forward with hundreds of millions of dollars in bonds and establishing a tax financing district to help pay for the stadium and surrounding development.
It’s part of the city’s $600 million commitment that would bring a baseball stadium to the Washington Square Park and Crown Center areas.
The city authorized the Missouri Development Finance Board to issue bonds to finance up to $537 million in costs for the stadium.
The city also approved a plan to create a tax increment district that would use revenue generated by the stadium and development to repay the bonds issued.
That area generally stretches from Truman Road and Interstate 670 south to 31st Street, between State Line Road and the western boundary of the city’s 3rd Council District.
It also includes some areas south of 31st Street.
The taxes involved include portions of the city’s hotel, restaurant, utility, sales, and other tax revenues.
On Tuesday, the finance committee also heard from two representatives of Hunden Partners. The city paid Hunden Partners to study how much tax revenue they could expect to be generated in and around a new Royals ballpark.
The study estimates the stadium, impact area, and other revenue sources could generate roughly $1.4 billion over 30 years to support the project.
City staff said Tuesday that internal numbers suggest it will cost the city $1.393 billion to pay off the bonds.
Earlier this week, Royals Chairman and CEO John Sherman said they want the new stadium ready for opening day in 2030.
He also plans an additional $1 billion in private investment for a mixed-use entertainment district around the ballpark.
“I think we’ve said that the stadium is $1.9 billion for the stadium, our offices, and infrastructure,” Sherman said. “We plan to invest another $1 billion in phase one, and that will be for – we’re actually working on our master plan right now, but that’ll be kind of certainly retail and entertainment and other things.”
The city also approved rezoning for the stadium.
The Royals would be responsible for at least $760 million in private funding and any cost overruns.