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Land located northwest of College Boulevard and Ridgeview Road is the site of the proposed new Kansas City Chiefs practice facility.(KCTV5)<\/p>\nOLATHE, Kan. (KCTV) – The Kansas City Chiefs are relocating to Kansas. Part of that move includes building a new headquarters and practice facility in Olathe on a 165-acre plot of undeveloped land at College Boulevard and Ridgeview Road. To help finance that project, the Olathe City Council unanimously approved an ordinance pledging local sales and hotel tax revenue.<\/p>\n
Here\u2019s what that means for the city and taxpayers.The city is pledging to direct sales and hotel tax revenue from the project area toward repaying STAR Bonds \u2014 a special state financing tool \u2014 for up to 30 years. The pledge includes 1% of the city\u2019s general sales and use tax, 0.5% of Johnson County sales tax, and 7% of the hotel tax collected within the 165-acre development zone.<\/p>\n
Currently, that land generates zero dollars in tax revenue. It\u2019s undeveloped. But if the Chiefs\u2019 headquarters is built there, that will change.<\/p>\n
Land located northwest of College Boulevard and Ridgeview Road is the site of the proposed new Kansas City Chiefs practice facility.(KCTV5)<\/p>\n
The argument for committing is straightforward: the city won\u2019t lose any tax revenue because it has none to lose right now. Once development happens, new tax revenue will be created that wouldn\u2019t exist otherwise. The city will pledge that revenue for bond repayment, but keep it after the bonds are paid off \u2014 potentially in 15 to 20 years instead of the full 30-year window.<\/p>\n
Skeptics raised different questions: What if something else could go on that land and generate revenue faster? And why is the council voting before it has all the details \u2014 like the formal development agreement and information about other local incentives?<\/p>\n
The public hearing was standing room only. Most who spoke opposed the measure.\u201c<\/p>\n
Anyone that truly wants to put money towards paying for the stadium or playing field, feel free to start a GoFundMe for Mr. Hunt,\u201d said Derek Christensen, an Olathe resident.<\/p>\n
Pete Marsh, also an Olathe resident, was more direct: \u201cOur elected officials seem to be working harder at representing the Chiefs than your own residents, the taxpayers.\u201d<\/p>\n
Terrence McIff raised a procedural concern: \u201cThe next up on the plan there was to do a fiscal analysis. So we\u2019re going to vote on it first, then do the fiscal analysis?\u201d<\/p>\n
But some supported the deal. <\/p>\n
Jib Felter, an Olathe developer, realtor, home builder and commercial business owner, said the project creates opportunity: <\/p>\n
\u201cYes, we are helping billionaires, but these are the type of events that provide opportunities for the rest of us.\u201d<\/p>\n
Jon North, president of Mid-America Nazarene University and an Olathe resident, spoke to the partnership aspect: \u201cThe Chiefs players, the organization and the family are extremely generous when they walk with you in partnership.\u201d<\/p>\n
Despite the opposition at the hearing, council members said the emails they\u2019d received were primarily supportive. They also pointed out that the STAR Bonds are investor risk, not a burden on the city\u2019s credit rating.<\/p>\n
Several council members noted that the 165-acre parcel has received no interest from other developers.<\/p>\n
The vote is binding, but there are conditions. The city\u2019s pledge only takes effect if the headquarters actually locates within the Base Revenue Area and if bonds are issued by Dec. 31, 2030. If those conditions aren\u2019t met, the pledge automatically terminates unless the city council votes to renew it.<\/p>\n
This project is part of a much larger $3 billion Chiefs relocation. The team will build a domed stadium in Wyandotte County and the new headquarters and practice facility here in Olathe. Kansas is using STAR Bonds to help finance the overall project. Olathe\u2019s portion focuses only on the headquarters and practice facility.<\/p>\n
Tuesday night, the Chiefs also released a statement following the vote:<\/p>\n
We want to thank Mayor John Bacon and the entire Olathe City Council for engaging the community in a public hearing and subsequently approving Ordinance No. 26-06 in support of the STAR bond project for a new Kansas City Chiefs practice facility and team headquarters in Olathe. We also thank the members of the public who took the time to attend and contribute to the public forum. While there is much work still to come, we recognize the level of excitement in Olathe about this project, and that excitement is matched throughout the Chiefs organization. We look forward to building on this partnership.<\/p>\n
One key point for taxpayers: The STAR Bonds are not a debt of the city. The city is not required to levy additional taxes or make budget appropriations. The bonds do not count against the city\u2019s debt limitations.<\/p>\n
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