TOPEKA, Kan. (KCTV) – Kansas lawmakers asked questions to the Kansas City Chiefs regarding the team’s plans to move out of Missouri during a term sheet review on Wednesday in Topeka.
At the end of December, the Kansas City Chiefs announced the team would move to Kansas by the 2031 season. A $3 billion domed stadium will be built in Wyandotte County. The team’s new headquarters and practice facility will be built in Olathe.
Wednesday’s meeting
Wednesday’s meeting was a joint meeting between the Kansas Senate Committee on Commerce and the House Committee on Commerce, Labor, and Economic Development.
The two committees have multiple lawmakers on both sides of the aisle. They asked questions to both Chiefs and Kansas Department of Commerce representatives about the Chiefs’ Term Sheet.
“We are trying to be as transparent as we can, but it has caused some confusion,” said Rep. Sean Tarwater (R), Stilwell.
Tarwater felt this meeting would help clear up the confusion he’s heard since the term sheet was released.
During the meeting, Kansas Department of Commerce Legislative Affairs Director Rachel Willis shared what the state’s goals were during the negotiations that picked up speed in August.
Those goals. that are included in the deal, were:
Stay under the 70% threshold of STAR Bonds.Ensure the stadiums and facilities are surrounded by quality mixed-use developmentsMake sure the team is committing to a community benefit fund and increasing the amount every year
The Chiefs’ representatives were not able to answer all questions and concerns. They said they are currently still negotiating pieces to the project, such as locations, the details of the STAR Bonds, transportation, mixed-use developments, and whether local cities will provide sales tax to the deal.
The Chiefs did share that they plan to hold major national events, concerts, and hopefully Super Bowls at the domed stadium once it is finished.
One of the questions included the STAR Bond District Map. This is a proposal of where state sales tax revenue will go toward the project.
Tarwater said locations for the facilities are key in drawing a final map.
“Then we will be able to better define the district from a state standpoint and be a little bit more expletive about it,” said Rep. Tarwater.
As for paying for the STAR Bonds, Kansas City Chiefs Representative Korb Maxwell said they have 30 years to pay these off, but plan to have that done in 15-20 years.
As for who will own the stadium, it will be a sports authority. Similar to what the Chiefs currently have in Jackson County. It would be a public-private ownership.
But it will take the Kansas Legislature to act on this during the current Legislative Session, which ends in April.
“In order to do a sports authority, we will need a piece of legislation to do that. Once we have that bill that is drafted, we will be able to shine more light on that,” said Rep. Tarwater.
“If that is not owned by a sports authority, if that is owned in private hands, then if you had $1.8 billion of STAR bonds come into that development that would all be federally income taxed,” said Kansas City Chiefs representative Korb Maxwell. “That would blow a huge hole in the budget for this project and frankly would not allow it to move forward. The fix to that is having a public authority out there that would operate and be able to own the stadium, the key component in that is we are able to protect Kansas taxpayers in all of that.”
A big concern on many minds is how does this benefit me as a taxpayer?
Chiefs representatives said this will bring millions, if not billions of dollars in state income tax alone. That will go into the state general fund, which can be used for schools, infrastructure, and other state needs.
“I think there are going to be large benefits to the state as a whole, and the team is committed to making sure that we are bringing the kingdom deeper and deeper into the state,” said Maxwell.
Wyandotte County State Representative Lynn Melton (D) said she has a lot of concerned constituents. She asked if there is a need for increased public safety dollars and who would be on the hook.
The Chiefs responded that they expect this to be a positive for local police and fire departments.
Other legislators also asked about season ticket holders and the possibility of a Community Improvement District (CID), which can be another way to fund the project.
The Chiefs clarified that if the CID is created, a sales tax would be added to payments only in the stadium and facilities to help pay off the STAR Bonds, not an additional burden on the taxpayers outside of the area.
As for season ticket holders, the Chiefs said they plan to find a way to work with the fan base to ensure the stadium works for both current and prospective season ticket holders.
The Chiefs anticipate sharing more in the coming months and said they would be transparent with lawmakers throughout this process.
Chiefs representatives declined to provide an interview after the meeting.
Those on the Commerce committees plan to hold more meetings similar to Wednesday’s to push for transparency in this process.
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