Statements
Legislators Approve Plan to Attract Kansas City Chiefs to Kansas
The Kansas legislature has approved a bold new plan aimed at attracting the Kansas City Chiefs to relocate from Missouri to Kansas. The plan involves the state covering up to 70% of the costs required to construct a new stadium for the NFL team. This proposition, seen by many as a key to the state’s future economic vitality, is expected to be repaid over a period of 30 years utilizing revenue from sports betting, the state lottery, and new taxes.
Governor's Approval Required
For the plan to proceed, Governor Laura Kelly must sign off on the proposal. According to her chief of staff, a veto from Governor Kelly is highly unlikely. The approval in Kansas is a direct response to Missouri voters recently rejecting a sales tax extension that would have funded renovations to Arrowhead Stadium, the current home of the Chiefs.
Tax Cuts and Special Session
Initially, Republican leaders had postponed discussions on the stadium plan until tax cuts were approved. In response, Governor Kelly called for a special session specifically to address tax reductions and the financing of the new stadium. The final bill was crafted to limit the state's financing commitment to 70% of the total costs and requires both legislative and gubernatorial approval.
Private Investment and Opposition
Under the new plan, the Kansas City Chiefs are also committed to investing between $500 million and $700 million in private funds toward the construction of the new stadium. Despite this substantial private investment, the proposal has faced opposition from economists and free-market advocates who argue that subsidizing stadiums redirects money from other entertainment areas rather than creating new economic opportunities. Critics suggest that the funds spent on the Chiefs could simply be money that would have otherwise supported other local entertainment projects.
Andrew Zimbalist, a noted sports economist, stated, "Most of the money that gets spent on the Chiefs is money that would otherwise be spent on other entertainment projects." He also mentioned the potential economic impact could be a zero-sum game: "It could still help Kansas and maybe hurt Missouri by the same amount."
Plans and Renovations
Meanwhile, Missouri has yet to counter Kansas' proposition but aims to retain its teams. Arrowhead Stadium, which the Chiefs currently call home, will require significant renovations seven or eight years before the team’s leases expire in 2031. This timeline increases the urgency for both states to secure plans that keep or attract major league teams.
New Tax Revenues
New tax revenues highly anticipated from sports betting and the state lottery are expected to repay the bonds issued for the state’s share of stadium financing. Senate President Ty Masterson has emphasized the importance of ensuring that tax relief is provided to citizens, demonstrating fiscal responsibility alongside the stadium investment. "We definitely need to demonstrate that we're getting relief to our citizens," Masterson said.
Kansas House Commerce Committee Chair Sean Tarwater also pointed out, "There are no blank checks," stressing that the legislative financing has measures to prevent unchecked expenditures.
Lobbyist Support and Economic Stakes
Support from lobbyists, including those from Scoop and Score and the Royals, has been instrumental in moving the proposal forward. Advocates of the plan have highlighted the critical nature of the situation. David Frantz, a prominent supporter, noted, "There is an urgency to this," signaling the limited time frame to make decisive moves.
Korb Maxwell, another advocate, stated, "For a town to be major league, they need major league teams," underscoring the symbolic importance of such teams to city pride and economic growth.
Final Decision Awaits Governor Kelly
The ultimate outcome of this ambitious plan hinges on Governor Kelly’s decision and the subsequent implementation of the new financing strategy. While Kansas anticipates significant economic opportunities should the plan be approved, it also braces for the challenges that come with such a substantial investment. The coming weeks will be crucial for both states as they navigate through this pivotal legislative and economic landscape.