Kansas City Chiefs and Kansas City Royals commit more than $200M in economic benefits to Jackson County as part of path forward.
The Kansas City Chiefs and the Kansas City Royals today announced their commitment to remain in Jackson County if Jackson County voters approve an extension of the 3/8-cent sales tax on a ballot initiative this April. The Chiefs and the Royals have partnered with Jackson County for 50 years in a partnership that has worked well for all constituents.
As part of the proposed agreement between the teams and Jackson County, the teams have agreed to provide more than $200 million in new economic benefits to Jackson County over 40 years in a new lease agreement, alleviating the County’s obligation to pay stadium insurance premiums as well as the park levy to the teams. Under the agreement, the Chiefs will conduct an extensive renovation to iconic Arrowhead Stadium. The Royals will build a new downtown stadium and privately fund a $1 billion ballpark district.
The teams have not sought any increase in the existing sales tax and have committed to providing the County with significant additional benefits by:
- Paying for insurance coverages for their respective facilities – costs currently paid by the County – for the extension term of the Chiefs’ lease and new term of the Royals’ lease. This will result in a cost savings to the County of approximately $80 million to $100 million over the course of the extended and new term of the leases.
- Providing the County the ability to reallocate each team’s share of an existing park property tax for other County uses for the extension term of the Chiefs’ lease and new term of the Royals’ lease. This will allow the County to utilize approximately $140 million for other County purposes over the course of the extended and new term of the leases.
- The teams are committed to entering into a robust community benefits agreement similar to agreements provided by other NFL and MLB teams for other venues providing for various initiatives that will benefit the citizens of Jackson County.
The teams are appreciative of the City’s efforts to provide assistance and development structures that will also facilitate these exciting projects. These efforts are also contemplated to specifically benefit the County.
The partnership between Jackson County, the Chiefs and Royals has been a tremendous success over the past 50 years, and directly responsible for much of the great momentum our hometown has built. The framework described here is a significant financial benefit for Jackson County, collaboratively built around concerns expressed by the County Executive and other local leaders, and provides a further boost to Kansas City and the region for decades to come.
Editors Note: Press Release Courtesy of the Kansas City Chiefs
