Kansas is putting more than STAR bonds on the table to lure the Kansas City Chiefs across the state line. The proposal outlines a 30-year agreement that could be extended for another 30 years. Under the framework, Kansas would fund 65% of the project through STAR bonds, commit an additional 10% from the sports betting fund for future maintenance, repairs and operations, and exempt the development from property taxes.The deal also clearly separates what the Chiefs pay in rent from what the state guarantees for stadium upkeep.Base rent is the money the Chiefs pay to use the stadium. It starts at $7 million a year and increases annually with inflation. That money does not go into Kansas’ general fund.Repairs, maintenance, management and operations, known as RMMO, is a separate funding target set at $17 million a year to keep the stadium operating and in good condition.The preliminary STAR bond district spans roughly 300 square miles across Wyandotte and Johnson counties. In addition to Kansas City, Kansas, and Olathe, sales tax revenue from Edwardsville, Bonner Springs, Shawnee, and Lenexa would also be captured to help pay off the bonds.“The numbers that are currently being paraded are way too low,” said Geoffrey Propheter, an associate professor of public affairs at the University of Colorado Denver, who has written extensively on stadium financing.“In nominal terms that’s $6.3 billion based upon my best estimates,” Propheter said, referring to the overall value of the public commitment over time.Propheter said Kansas is competing directly with other massive stadium-anchored development deals, including the Washington Commanders project, which he described as the largest in the country because of long-term commercial rents tied to riverfront development in Washington, D.C.“Kansas is doing a really good job trying to beat the Commanders,” Propheter said.Still, he cautioned that the agreement is not final.“But it’s far from a done deal,” Propheter said. “The best signal for me is when the team files an application to relocate.”According to the term sheet, the Chiefs retain exit options if the necessary land is not acquired. Fans will know the move is official when the team formally files with the NFL to change locations.Propheter also warned about the long-term impact of tax increment financing districts like STAR bonds.“The biggest problem with these tax increment districts is that you’re diverting revenue, but you’re still paying for services,” he said. “So you have to, in the long run, either raise taxes or cut services or some combination of both.”Kansas currently collects about $2.7 billion each year from its statewide 6.5% sales tax, which makes up roughly one-third of the state’s general revenue. That funding supports education, public safety, local government grants, health services and environmental programs.“If you build this thing, everyone and their kids are going to want to spend the money to come see the shiny new palace,” Propheter said. “But you can’t sustain that demand for 30 years.”Along with the state commitment, a portion of the media kit indicates Wyandotte County and the City of Olathe could “approve an ordinance to pledge local incremental general sales tax within the STAR bond project area to the project.”

KANSAS CITY, Kan. —

Kansas is putting more than STAR bonds on the table to lure the Kansas City Chiefs across the state line.

The proposal outlines a 30-year agreement that could be extended for another 30 years.

Under the framework, Kansas would fund 65% of the project through STAR bonds, commit an additional 10% from the sports betting fund for future maintenance, repairs and operations, and exempt the development from property taxes.

The deal also clearly separates what the Chiefs pay in rent from what the state guarantees for stadium upkeep.

Base rent is the money the Chiefs pay to use the stadium. It starts at $7 million a year and increases annually with inflation.

That money does not go into Kansas’ general fund.

Repairs, maintenance, management and operations, known as RMMO, is a separate funding target set at $17 million a year to keep the stadium operating and in good condition.

The preliminary STAR bond district spans roughly 300 square miles across Wyandotte and Johnson counties.

In addition to Kansas City, Kansas, and Olathe, sales tax revenue from Edwardsville, Bonner Springs, Shawnee, and Lenexa would also be captured to help pay off the bonds.

“The numbers that are currently being paraded are way too low,” said Geoffrey Propheter, an associate professor of public affairs at the University of Colorado Denver, who has written extensively on stadium financing.

“In nominal terms that’s $6.3 billion based upon my best estimates,” Propheter said, referring to the overall value of the public commitment over time.

Propheter said Kansas is competing directly with other massive stadium-anchored development deals, including the Washington Commanders project, which he described as the largest in the country because of long-term commercial rents tied to riverfront development in Washington, D.C.

“Kansas is doing a really good job trying to beat the Commanders,” Propheter said.

Still, he cautioned that the agreement is not final.

“But it’s far from a done deal,” Propheter said. “The best signal for me is when the team files an application to relocate.”

According to the term sheet, the Chiefs retain exit options if the necessary land is not acquired. Fans will know the move is official when the team formally files with the NFL to change locations.

Propheter also warned about the long-term impact of tax increment financing districts like STAR bonds.

“The biggest problem with these tax increment districts is that you’re diverting revenue, but you’re still paying for services,” he said. “So you have to, in the long run, either raise taxes or cut services or some combination of both.”

Kansas currently collects about $2.7 billion each year from its statewide 6.5% sales tax, which makes up roughly one-third of the state’s general revenue.

That funding supports education, public safety, local government grants, health services and environmental programs.

“If you build this thing, everyone and their kids are going to want to spend the money to come see the shiny new palace,” Propheter said. “But you can’t sustain that demand for 30 years.”

Along with the state commitment, a portion of the media kit indicates Wyandotte County and the City of Olathe could “approve an ordinance to pledge local incremental general sales tax within the STAR bond project area to the project.”