The Missouri House has moved to see off the threat of the Kansas City Chiefs and Kansas City Royals potentially crossing state lines to new stadia in Kansas by opening up a new pathway that could offer state aid to stadium projects for the NFL and MLB teams.
Following a pitch from Governor Mike Kehoe, the Missouri House yesterday (Tuesday) voted 108 to 40 on amending a Senate bill that would provide for the state to make annual bond payments on NFL or MLB stadium development schemes worth at least $500m (£374.5m/€444.4m).
The extent of the bond payment would be equal to state sales tax revenues generated by the teams, and cannot exceed 50% of a project’s total cost, while the state would retain all new state tax revenue generated by the projects. Based on an individual team’s level of investment, owners would also be eligible for tax credits of up to $50m.
To be eligible for state aid, a stadium funding project must be connected to a venue seating more than 30,000 people. The legislation would also cover the Royals’ fellow MLB team the St. Louis Cardinals. Speaking before yesterday’s vote, Kehoe said the potential total value of the package would be more than $3bn.
The stadium-funding package will now head to the Missouri Senate, whose current session ends on Friday, but the development marks the state’s first major response to Kansas’ overtures to the two teams.
Rep. Chris Brown, a Kansas City Republican from Clay County who offered the proposal on the House floor, said, according to the Kansas City Star: “We need to compete with Kansas. We need to compete now.
“The state of Kansas has been aggressively negotiating with the Chiefs and the Royals to try and lure them away from Missouri. These are Missouri teams. They need to stay in Missouri.”
In June, the Kansas Legislature set up a potential battleground with Missouri over the future of the Chiefs and Royals after passing its own financial plans.
The Royals currently play at Kauffman Stadium, while the Chiefs play at GEHA Field at Arrowhead Stadium. The two venues are located next to each other at the Truman Sports Complex in Kansas City, Missouri, but with their lease on the site expiring in January 2031 both teams have been planning for the future.
Manica Architecture designs for a potential new home of the Chiefs were presented to Kansas legislators considering a bid to bring the NFL team to their state back in April last year. Earlier in February, the Royals unveiled Populous-designed plans to build a new ballpark and entertainment district in the Crossroads area of Kansas City.
The legislation passed by the House 84-38 and subsequently the Senate 27-8, authorised Kansas to potentially issue Sales Tax and Revenue (STAR) bonds to pay for up to 70% of the cost of stadiums for one or both teams – up from the 50% in current law.
Kansas City Mayor Quinton Lucas has backed the Missouri proposal, with his office saying that it would ensure the teams “are Kansas City’s teams today and will remain Kansas City’s and Missouri’s teams for generations to come.”
Lucas spokesperson, Megan Strickland, added: “Having met with Royals leadership just yesterday, Mayor Lucas is grateful to see state legislation that responsibly facilitates public support, ensures taxpayers are protected, will generate revenues for Missouri well into the future, and provides transformative opportunities for Kansas City and communities across Missouri.”
