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Chiefs seek extension for Kansas stadium financing, raising possibility of move across state line

Chiefs seek extension for Kansas stadium financing, raising possibility of move across state line

Independent2 days ago

The Kansas City Chiefs have requested an extension to an end-of-June deadline for a stadium financing package from the state of Kansas, an indication that the NFL franchise's potential move across the state line from Missouri is a legitimate possibility.
Chiefs president Mark Donovan requested the extension Thursday in a letter to Kansas Senate president Ty Masterson, a copy of which was obtained by The Associated Press. Donovan explained that the Chiefs have made 'significant progress' on plans for a new stadium development but that more time is needed to 'bring the effort to full fruition.'
The Kansas Legislative Coordinating Council is scheduled to meet July 7 to consider extending the incentive deadline.
'The letter from Mark Donovan indicates that the drive to bring this historic project to Kansas is moving down the field,' Masterson said in a statement. 'Now that we are in the red zone, this extension will provide stakeholders sufficient time to ensure the ball crosses the goal line.'
The Chiefs and Royals have played for more than five decades at the Truman Sports Complex on the east side of Kansas City, Missouri, where Arrowhead Stadium and Kauffman Stadium share parking facilities. But leases with Jackson County are due to expire in January 2031, and the two franchises have been trying to plot a course forward for years.
Donovan indicated in his letter to Masterson that Kansas remains an enticing option.
'Together,' he wrote, 'we have the opportunity to bring the National Football League to Kansas, anchored by a world-class domed stadium, new team headquarters, a state-of-the-art practice facility, and a vibrant mixed-use and entertainment district.'
Last year, Jackson County voters defeated a sales tax extension that would have helped to finance an $800 million renovation of Arrowhead Stadium — the home of the Chiefs — and a $2 billion ballpark district for the Royals in downtown Kansas City.
While local and state officials in Missouri were considering another a stadium financing package, lawmakers in Kansas quickly and aggressively authorized bonds for up to 70% of the cost of new stadiums to be built in their state.
Many believed the Chiefs and Royals would use the Kansas offer as leverage for a better deal from Missouri — including Kansas City, Missouri, Mayor Quinton Lucas, who acknowledged that "the teams are in an exceptional leverage position.'
Finally, earlier this month, Missouri Gov. Mike Kehoe called lawmakers into a special session to approve a stadium financing deal 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, plus up to $50 million of tax credits for each stadium and unspecified aid from local governments.
The prevailing belief was that the package would be enough to keep the Chiefs at Arrowhead Stadium, where they have floated plans for a $1.15 billion renovation, and perhaps hold onto the Royals, who are still interested in building downtown.
Yet news surfaced about a month ago that an affiliate of the Royals purchased the mortgage on a large property in the southern Kansas City suburb of Overland Park, Kansas, raising the possibility of building a new stadium and ballpark district there.
And the letter from Donovan requesting an extension in Kansas indicates the Chiefs also are serious about switching states.
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 also is keenly aware of the revenue streams available by building a new domed stadium, including the chance to host the Super Bowl, the Final Four and other marquee sporting events.
It is unclear where the Chiefs would build in Kansas, but one possibility is the juncture of Interstates 435 and 70 in Kansas City, Kansas. That's the site of Kansas Speedway, a mixed residential and commercial district called The Legends, the home stadiums of MLS club Sporting Kansas City and the Kansas City Monarchs minor league baseball club, as well as a casino, hotels, a major soccer training center and the infrastructure necessary to support a domed football stadium.
'We are excited about the potential for this project, which would represent the largest economic development initiative in the state's history," Donovan wrote in his letter Thursday. "Just as 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.'
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