Legislators Approve Plan to Attract Kansas City Chiefs to Kansas
State to Cover Stadium Costs
In a significant move, Kansas legislators have approved a comprehensive plan aimed at attracting the Kansas City Chiefs to the Sunflower State. The plan, which involves the state covering up to 70% of the stadium costs, is set to be repaid over 30 years. The repayment will come from a combination of sports betting, lottery revenue, and new taxes.
Governor Laura Kelly's Role
The next crucial step in the process is approval from Governor Laura Kelly, who must sign off on the plan. However, according to her chief of staff, a veto from Governor Kelly is unlikely, and the plan is anticipated to move forward without much hindrance.
Response to Missouri's Decision
The initiative from Kansas comes in response to Missouri voters rejecting a sales tax extension that would have funded stadium upgrades. Kansas Republican leaders initially postponed discussions about the stadium plan until after tax cuts were approved. In a strategic move, Governor Kelly called a special session to address both tax reduction and stadium financing.
Financial Details and Legislative Oversight
The final bill limits the state's financial commitment to 70% of the total stadium costs and mandates both legislative and gubernatorial approval. The Kansas City Chiefs are expected to contribute between $500 million and $700 million in private funds towards the construction of the new stadium. This significant investment from the team shows their commitment to the project and the community.
Economic Debates
Despite the support from some quarters, the plan has faced opposition from economists and free-market advocates who argue against government subsidies for stadiums. Critics claim that the money spent on the Chiefs would otherwise be spent on other forms of entertainment. Andrew Zimbalist, a noted 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 remarked, "It could still help Kansas and maybe hurt Missouri by the same amount."
Missouri's Stance
While Kansas pushes forward with its plan, Missouri has yet to formulate a response but aims to retain its major league teams. The current Arrowhead Stadium requires renovations, especially as the leases are set to expire in 2031, which adds urgency to both states' decisions and actions.
New Tax Revenues and Economic Implications
The plan's proponents argue that new tax revenues will cover the bonds issued for the state's share of the stadium costs. Senate President Ty Masterson emphasized the importance of providing tax relief for Kansas citizens, stating, "We definitely need to demonstrate that we're getting relief to our citizens." House Commerce Committee Chair Sean Tarwater reassured stakeholders that "There are no blank checks."
Support and Urgency
The urgency of the situation has been highlighted by various supporters, including lobbyists from Scoop and Score and the Royals. David Frantz stated, "There is an urgency to this," underlining the immediate need for action. Korb Maxwell added, "For a town to be major league, they need major league teams," emphasizing the broader significance of the Chiefs' potential move to Kansas.
Looking Forward
The ultimate outcome of this legislative and economic endeavor hinges on Governor Kelly's decision and the subsequent implementation of the plan. Kansas stands to gain considerable economic opportunities and face significant challenges in the weeks ahead. The coming days will be critical as the state navigates this complex and impactful process.