Kansas City Chiefs’ proposed $3bn domed stadium sparks uproar over complex STAR bond tax system — a financing tool found only in two states
The team hope to make the move by 2031
KANSAS City residents are concerned the new Chiefs stadium will drive up taxes in the area.
The NFL team are looking to build a new $3bn stadium in Wyandotte County and a new headquarters in Johnson County.
Kansas City Chiefs are planning a stunning new stadium over the state border
The move is taking advantage of Kansas’ use of STAR bonds
The proposed move – penciled for 2031 – will see the Chiefs leave Arrowhead Stadium after more than 50 years.
It will also see the team cross state lines as they move from Kansas City, Missouri, to Kansas City, Kansas.
The Chiefs recently revealed impressive renders of their state-of-the-art, 65,000-seat domed stadium.
They also plan to build a $300million headquarters and training facility on a 165-acre plot near Olathe, in the south west of the city.
Kansas officials approved the deal using Sales Tax and Revenue (STAR) bonds to fund the project.
The Chiefs are requesting $1.8billion in STAR bonds, per KCUR.
That accounts for around 60 per cent of the total cost of the ambitious project.
The proposed STAR bond district for the Chiefs’ project would span more than 290 square miles, according to the outlet.
The Chiefs will then pick up the other 40 per cent of the bill.
Under this method, future sales tax revenue from the district will repay investors for the construction, with a 30-year term.
The Kansas Department of Commerce has yet to finalize the boundaries of the STAR district.
A preliminary map shows it could stretch across all of Wyandotte and about half of Johnson County, per KCUR.
The Olathe City Council recently voted unanimously, 7-0, to support the Chiefs’ development concept.
“This is not raising people’s taxes,” Olathe Mayor John Bacon said.
“There’s been several discussions about this taking taxes that are being collected in one part of our city and transferring it to another – and that could be the case.”
The Chiefs suffered a tough season and missed the playoffs for the first time since 2014
Kansas City Mayor Christal Watson addressed concerns from locals on Tuesday, saying the deal helped protect Wyandotte County’s financial future.
Some residents have express concerns over having a stadium in Wyandotte County, per KCTV5.
They claim their home values could be affected and may see an increase in their property tax bills.
“That concern is exactly why the ordinance includes conditions, not as window dressing, but as guardrails,” Watson said, via The Kansas City Star.
“A core purpose of those conditions is to protect Wyandotte County families from unintended tax increases, especially property taxes, while keeping the County financially whole.”
