Chiefs seek stadium funding extension in Kansas: Relocation?

Chiefs Seek Extension For Stadium Project in Kansas

The Kansas City Chiefs have requested an extension for the deadline at the end of June, with the aim of finalizing a financial package for the construction of a stadium in Kansas. This request suggests the real possibility that the NFL franchise will move from the state of Missouri. Mark Donovan, Chiefs president, sent a letter to Kansas Senate President Ty Masterson, requesting the extension. In the letter, Donovan explained that the team has made “significant progress” in the plans for a new stadium, but needs more time to “bring the effort to its full realization.” The Kansas Legislative Coordinating Council is scheduled to meet on July 7 to evaluate the extension of the incentive period.

“Mark Donovan’s letter indicates that the momentum to bring this historic project to Kansas is advancing,” Masterson stated. “Now that we are in the red zone, this extension will provide stakeholders with enough time to ensure the ball crosses the finish line.”

Ty Masterson

For more than five decades, the Chiefs and the Royals have played at the Truman Sports Complex, on the east side of Kansas City, Missouri, where Arrowhead Stadium and Kauffman Stadium share parking facilities. However, the lease agreements with Jackson County expire in January 2031, and both franchises have been trying to plan their future for years. In his letter to Masterson, Donovan indicated that Kansas remains an attractive option.

“Together, we have the opportunity to bring the National Football League to Kansas, anchored by a world-class indoor stadium, a new team headquarters, a state-of-the-art practice facility, and a vibrant mixed-use and entertainment district.”

Mark Donovan

Last year, Jackson County voters rejected a sales tax extension that would have helped fund an $800 million renovation of Arrowhead Stadium, home of the Chiefs, and a $2 billion stadium district for the Royals in downtown Kansas City. While local and state officials in Missouri considered another stadium funding package, Kansas lawmakers quickly and aggressively authorized bonds for up to 70% of the cost of new stadiums to be built in their state. Many believed that the Chiefs and Royals would use Kansas’ offer as leverage to get a better deal from Missouri. At the beginning of this month, Missouri Governor Mike Kehoe convened lawmakers for a special session to approve a stadium financing agreement that included disaster relief for the St. Louis area, where a series of devastating tornadoes caused widespread damage. The legislation authorizes bonds covering up to 50% of the cost of new or renovated stadiums in Missouri, in addition to up to $50 million in tax credits for each stadium and unspecified aid from local governments. The widespread belief was that the package would be enough to keep the Chiefs at Arrowhead Stadium, where they have proposed plans for a $1.15 billion renovation, and perhaps retain the Royals, who are still interested in building downtown. However, about a month ago, news emerged that a Royals affiliate purchased the mortgage on a large property in the suburb of Overland Park, Kansas, south of Kansas City, raising the possibility of building a new stadium and stadium district there. Donovan’s letter requesting an extension in Kansas indicates that the Chiefs are also serious about the state change. The Chiefs owner, Clark Hunt, has long professed his affinity for Arrowhead Stadium, which was built by his father and team founder, Lamar Hunt. But he is also very aware of the revenue streams available by building a new indoor stadium, including the possibility of hosting the Super Bowl, the Final Four, and other major sporting events. It’s not clear where the Chiefs would build in Kansas, but one possibility is the intersection of Interstates 435 and 70 in Kansas City, Kansas. That’s the site of the Kansas Speedway, a mixed residential and commercial district called The Legends, the home stadiums of the MLS club Sporting Kansas City and the minor league baseball club Kansas City Monarchs, as well as a casino, hotels, a major soccer training center and the infrastructure needed to support an indoor football stadium.

“We are excited about the potential of this project, which would represent the largest economic development initiative in the state’s history,” Donovan wrote in his letter on Thursday. “Equally important, the presence of an NFL franchise in [Kansas] will serve as a powerful engine for immediate and long-term growth, driving national attention, sustained tourism, and billions more in private development across the state.”

Mark Donovan