Leaders in Olathe and Wyandotte County both plan to have public hearings Tuesday night on two very similar local tax ordinances involving the Kansas City Chiefs.In Wyandotte County, the new ordinance would create a district of more than 200 acres between 118th St. and 126th St. in KCK.The document says the new Chiefs stadium and entertainment district could be built in that area.The proposal involves Wyandotte County pledging KCK sales tax, county sales tax, and a portion of hotel tax generated in the district to go straight to paying off the STAR bonds.In a similar deal, a proposed ordinance in Olathe aims to create a new district on the northwest corner of College Blvd. and Ridgeview Rd.This 165-acre site would be the home of the new Chiefs headquarters and practice facility.The Olathe ordinance would also contribute new local sales tax, county sales tax, and a portion of hotel tax generated in that district to the STAR bonds.These local contributions would be in addition to the incremental state sales taxes collected in a much larger district, which are already pledged to pay off the STAR bonds.Michael Austin, a Kansas economist, said local deals like this can create a “mismatch” for municipalities down the road.”That development itself will still increase the demand for services,” Austin said. “You still have to provide roads to that area. You still have to maintain them, any type of parks or development. So, you’re going to have rising costs, but you’re going to have constrained revenue. That’s the real long-run risk, I think these local governments are deciding whether they’re going to accept or not.”In the ordinances, certain voter-approved sales taxes are excluded from the STAR bond collection. In Wyandotte County, that includes emergency medical services and public safety sales taxes. In Olathe, taxes already dedicated to street maintenance, parks, or other special taxing districts would not be affected.In both deals, no local revenue from outside the project area would be used to help pay off the STAR bonds.Right now, both sites are mainly empty fields. Proponents of the ordinances say that without the Chiefs’ developments, these would just continue to be empty areas that don’t generate tax revenue.On the other hand, Austin said it’s less about where the development is built and more about where the dollars for the development come from.”As an example, if Olathe residents decide to shift their shopping into that STAR district as opposed to anywhere else in Olathe, what would be labeled as new revenue would really just be today’s tax base being redirected,” Austin said. “And that doesn’t change whether you’re talking about an existing development or a brand new one.”This is called a tax revenue reallocation.”That was sales tax that you were collecting before, and now you’re not, because they simply decided to shop someplace else,” Austin said.Along the northeastern edge of the proposed district in Wyandotte County, a few houses sit along 118th St. KMBC9 talked to one of the neighbors Monday, who didn’t know the land her family’s house sits on could soon be a part of a new taxing district and very close to the new Chiefs stadium.“I’ve heard that it was coming to the area, but not that it was coming right to my backyard,” said Gackie Gildo, who lives along 118th St.Gildo said when Wyandotte County is making decisions directly involving their property, they usually are notified with a message on their door or by a letter in the mail.”This is the first time I’ve heard of it,” Gildo said. “Which is shocking, actually.”A state-imposed deadline is pushing both communities to move quickly. According to the deal term sheet between the Chiefs and Kansas, Olathe and Wyandotte County have until February 20 to decide whether to contribute local sales tax dollars.The Olathe City Council released information about the proposed ordinance to the public on Friday and plans to vote on the proposed ordinance right after the public hearing during the city council meeting on Tuesday night at 7 p.m.The Wyandotte County Commission released its proposed ordinance to the public on Saturday and is set to vote on it at the commission meeting on Thursday, just two days after it hosts its own public hearing, set for Tuesday at 5:30.KMBC reached out to Olathe Mayor John Bacon and KCK Mayor Christal Watson, asking whether they’re concerned that the speed of the vote won’t allow citizens to understand the ordinances and have their voices heard.Neither official was available for an interview on Monday, but both sent statements.”I believe the Chiefs’ development provides a lot of potential benefits for our city, in the immediate area of where it’s being developed and beyond. I’m excited about the possibilities it brings to Olathe,” said Olathe Mayor John Bacon in a statement.Bacon also directed Olathe residents to a city webpage with more information about the proposed ordinance.Mayor Christal Watson sent a statement to KMBC9 News saying they welcome the public input on the Chiefs. The statement adds that the vote on the proposed ordinance is scheduled more than two weeks before the deadline, so commissioners and the state have time to address any concerns.You can read Watson’s full statement below.“We welcome public input regarding the Chiefs and understand that many residents have questions and concerns. It is important to us that everyone has a meaningful opportunity to share their perspective and be heard.””The reason the vote is scheduled for Thursday, rather than at the Commission meeting immediately preceding the STAR bond expiration, is to allow sufficient time to address any concerns that may arise. This includes any additional clarifying questions from the Commission. The intent is not to rush the process or limit public input, but to ensure there is adequate time after the vote to thoughtfully respond to feedback from both the Commission and the state.””As it relates to the STAR bond district, we recognize that families living in the western region of Wyandotte County have raised concerns about taxes, infrastructure, and other quality-of-life issues. Any decision made will involve careful consideration of multiple factors, particularly those that directly affect residents financially and impact their day-to-day lives.””With respect to the STAR bond district, the sales tax that would be pledged from city and county will be generated directly from the new development itself, nothing outside of that. To be clear, we will keep all existing sales tax revenues generated from the rest of the city / county.””Following the public hearing, we will continue to compile, organize, and release additional details as we receive them. Our goal is to address as many of the concerns raised by residents as clearly and transparently as possible. We look forward to the public hearing and to continuing to work collaboratively with the community and the State of Kansas as we move forward in rebuilding and strengthening Wyandotte County.”

KANSAS CITY, Kan. —

Leaders in Olathe and Wyandotte County both plan to have public hearings Tuesday night on two very similar local tax ordinances involving the Kansas City Chiefs.

In Wyandotte County, the new ordinance would create a district of more than 200 acres between 118th St. and 126th St. in KCK.

The document says the new Chiefs stadium and entertainment district could be built in that area.

The proposal involves Wyandotte County pledging KCK sales tax, county sales tax, and a portion of hotel tax generated in the district to go straight to paying off the STAR bonds.

In a similar deal, a proposed ordinance in Olathe aims to create a new district on the northwest corner of College Blvd. and Ridgeview Rd.

This 165-acre site would be the home of the new Chiefs headquarters and practice facility.

The Olathe ordinance would also contribute new local sales tax, county sales tax, and a portion of hotel tax generated in that district to the STAR bonds.

These local contributions would be in addition to the incremental state sales taxes collected in a much larger district, which are already pledged to pay off the STAR bonds.

Michael Austin, a Kansas economist, said local deals like this can create a “mismatch” for municipalities down the road.

“That development itself will still increase the demand for services,” Austin said. “You still have to provide roads to that area. You still have to maintain them, any type of parks or development. So, you’re going to have rising costs, but you’re going to have constrained revenue. That’s the real long-run risk, I think these local governments are deciding whether they’re going to accept or not.”

In the ordinances, certain voter-approved sales taxes are excluded from the STAR bond collection.

In Wyandotte County, that includes emergency medical services and public safety sales taxes.

In Olathe, taxes already dedicated to street maintenance, parks, or other special taxing districts would not be affected.

In both deals, no local revenue from outside the project area would be used to help pay off the STAR bonds.

Right now, both sites are mainly empty fields. Proponents of the ordinances say that without the Chiefs’ developments, these would just continue to be empty areas that don’t generate tax revenue.

On the other hand, Austin said it’s less about where the development is built and more about where the dollars for the development come from.

“As an example, if Olathe residents decide to shift their shopping into that STAR district as opposed to anywhere else in Olathe, what would be labeled as new revenue would really just be today’s tax base being redirected,” Austin said. “And that doesn’t change whether you’re talking about an existing development or a brand new one.”

This is called a tax revenue reallocation.

“That was sales tax that you were collecting before, and now you’re not, because they simply decided to shop someplace else,” Austin said.

Along the northeastern edge of the proposed district in Wyandotte County, a few houses sit along 118th St.

KMBC9 talked to one of the neighbors Monday, who didn’t know the land her family’s house sits on could soon be a part of a new taxing district and very close to the new Chiefs stadium.

“I’ve heard that it was coming to the area, but not that it was coming right to my backyard,” said Gackie Gildo, who lives along 118th St.

Gildo said when Wyandotte County is making decisions directly involving their property, they usually are notified with a message on their door or by a letter in the mail.

“This is the first time I’ve heard of it,” Gildo said. “Which is shocking, actually.”

A state-imposed deadline is pushing both communities to move quickly. According to the deal term sheet between the Chiefs and Kansas, Olathe and Wyandotte County have until February 20 to decide whether to contribute local sales tax dollars.

The Olathe City Council released information about the proposed ordinance to the public on Friday and plans to vote on the proposed ordinance right after the public hearing during the city council meeting on Tuesday night at 7 p.m.

The Wyandotte County Commission released its proposed ordinance to the public on Saturday and is set to vote on it at the commission meeting on Thursday, just two days after it hosts its
own public hearing, set for Tuesday at 5:30.

KMBC reached out to Olathe Mayor John Bacon and KCK Mayor Christal Watson, asking

whether they’re concerned that the speed of the vote won’t allow citizens to understand the ordinances and have their voices heard.

Neither official was available for an interview on Monday, but both sent statements.

“I believe the Chiefs’ development provides a lot of potential benefits for our city, in the immediate area of where it’s being developed and beyond. I’m excited about the possibilities it brings to Olathe,” said Olathe Mayor John Bacon in a statement.

Bacon also directed Olathe residents to a city webpage with more information about the proposed ordinance.

Mayor Christal Watson sent a statement to KMBC9 News saying they welcome the public input on the Chiefs. The statement adds that the vote on the proposed ordinance is scheduled more than two weeks before the deadline, so commissioners and the state have time to address any concerns.

You can read Watson’s full statement below.“We welcome public input regarding the Chiefs and understand that many residents have questions and concerns. It is important to us that everyone has a meaningful opportunity to share their perspective and be heard.””The reason the vote is scheduled for Thursday, rather than at the Commission meeting immediately preceding the STAR bond expiration, is to allow sufficient time to address any concerns that may arise. This includes any additional clarifying questions from the Commission. The intent is not to rush the process or limit public input, but to ensure there is adequate time after the vote to thoughtfully respond to feedback from both the Commission and the state.””As it relates to the STAR bond district, we recognize that families living in the western region of Wyandotte County have raised concerns about taxes, infrastructure, and other quality-of-life issues. Any decision made will involve careful consideration of multiple factors, particularly those that directly affect residents financially and impact their day-to-day lives.””With respect to the STAR bond district, the sales tax that would be pledged from city and county will be generated directly from the new development itself, nothing outside of that. To be clear, we will keep all existing sales tax revenues generated from the rest of the city / county.””Following the public hearing, we will continue to compile, organize, and release additional details as we receive them. Our goal is to address as many of the concerns raised by residents as clearly and transparently as possible. We look forward to the public hearing and to continuing to work collaboratively with the community and the State of Kansas as we move forward in rebuilding and strengthening Wyandotte County.”