Kansas Legislators Approve Plan to Woo Kansas City Chiefs

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Kansas Legislators Approve Plan to Woo Kansas City Chiefs

Legislators in Kansas have approved an ambitious plan aimed at luring the Kansas City Chiefs across the state line. Under this plan, the state will cover up to 70% of the costs for constructing a new stadium. The financing for this bold move is planned to be repaid over a span of 30 years, using revenue from sports betting, the lottery, and newly imposed taxes.

Awaiting Governor's Approval

Governor Laura Kelly needs to give her final approval and sign off on the plan. According to her chief of staff, a veto from Governor Kelly is unlikely, signaling a high probability that the plan will move forward. Kansas' initiative follows a recent decision by Missouri voters to reject a sales tax extension, creating an opening that Kansas legislators are keen to exploit.

Political Strategy and Delays

Initially, Republican leaders in Kansas delayed discussions on the stadium plan until tax cuts were approved. This led Governor Kelly to call a special session focused on addressing both tax reduction and stadium financing issues. The final bill, which gained approval, limits the state's financing of the stadium to 70% and requires both legislative and gubernatorial approval for execution.

The Chiefs' Investment

The Kansas City Chiefs have committed to investing between $500 million and $700 million in private funds towards the construction of the new stadium. Despite this substantial private contribution, the plan has faced opposition from economists and free-market advocates who argue that public funds should not be used to subsidize stadiums. Critics contend that money spent on the Chiefs would largely be redirected from other entertainment projects, rather than creating new economic activity.

Missouri's Position

Missouri has yet to announce any concrete plans in response to Kansas' aggressive move but remains determined to retain its major league teams. Arrowhead Stadium, the current home of the Chiefs, will require renovations seven or eight years before the current leases expire in 2031. Thus, the clock is ticking for Missouri to come up with a competitive plan to keep the team.

New Revenue Streams

Kansas is banking on new tax revenues to repay the bonds issued for the stadium's construction. Senate President Ty Masterson has emphasized the importance of delivering tax relief to citizens, balancing the need to attract the Chiefs with fiscal responsibility. According to House Commerce Committee Chair Sean Tarwater, "There are no blank checks," indicating that robust financial oversight will be maintained.

Lobbyist and Advocacy Support

Lobbyists from Scoop and Score, as well as the Royals, have shown support for the stadium plan, highlighting the urgency of the situation. Advocates argue that having major league teams is essential for a city's pride and economic vitality. Korb Maxwell, a prominent advocate, stated, "For a town to be major league, they need major league teams."

The Impending Decision

Ultimately, the outcome hinges on Governor Kelly's decision and the subsequent implementation of the plan. Successfully bringing the Kansas City Chiefs to Kansas could open up significant economic opportunities for the state, but it also presents challenges. As the legislative and economic ramifications unfold, the coming weeks will be crucial.

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"Most of the money that gets spent on the Chiefs is money that would otherwise be spent on other entertainment projects," said noted economist Andrew Zimbalist. He added, "It could still help Kansas and maybe hurt Missouri by the same amount."
"We definitely need to demonstrate that we're getting relief to our citizens," emphasized Senate President Ty Masterson.
"There is an urgency to this," stated David Frantz, underscoring the immediacy felt by proponents of the plan.
"For a town to be major league, they need major league teams," added Korb Maxwell, summing up the broader aspirations behind the initiative.