Kansas lawmakers to consider STAR Bonds to lure Chiefs, Royals

TOPEKA, Kan. (KCTV) - Kansas Governor Laura Kelly has called for a special session beginning Tuesday to address a comprehensive tax plan.

On Thursday, Republican lawmakers said they had reached a deal with the Democratic governor on a package that implements a two-bracket tax code, cuts the tax on social security, and includes multiple exemptions like the property tax cut.

With the expected agreement on the tax bill, Kansas lawmakers are expected to turn their focus on approving STAR Bonds designated to pull the Chiefs and Royals over state lines.

Sales Tax and Revenue (STAR) Bonds are a financing tool that allows Kansas municipalities to issue bonds to finance the development of major commercial, entertainment and tourism projects.

Kansas typically authorizes STAR Bonds for 50 percent of a project’s costs. This STAR Bond (which you can read below) would fund up to 75 percent of the project costs and would have a 30-year payback period, compared to 20 years for other STAR Bonds.

ALSO READ: What are STAR Bonds and how do they work?

The bill stated that the stadium project would need approval by June 30, 2025, but an extension agreement could be filed another year.

Supporters said they believed STAR bonds are key to the deal, but not everyone involved is on board with the plan.

Unlike most political debates, support and opposition on this bill to amend star bonds goes across party lines.

“One of the biggest things is municipal costs or county level costs,” Rep. Dan Osman of Overland Park said. “I realize for a star bond district all of its self-contained within the star bond itself. But for a project this size there’s going to be infrastructure needs and maintenance.”

“When we increase above the baseline of sales tax collection for that defined area that money goes towards paying off the bonds,” Rep. Bill Sutton of Gardner argued. “Those bonds are privately owned, the state issues them but the state does not own them.”

Rep. Bill Sutton is confident Kansas can pay off the bonds. Saying the crowds the team would draw would lead to more spending and enough sales tax.

“We’ve got a team that has won three of the five last Superbowl’s,” Rep. Sutton pointed out. “If they can’t draw, we’ve got a problem. Those sales taxes and bonds will payoff well before their license is up.”

For Rep. Osman, turnout to ensure sales tax revenue is made depends on the location the teams want. Which is still unclear.

“The Star Bond proposal itself doesn’t actually carve out a district,” Rep. Osman said. “Which should be something we discuss today. It doesn’t have to be at the legends, it doesn’t have to be in Wyandotte County.”

Missouri State Representative Mark Sharp (D-Kansas City) sent a letter on Friday to Republican Governor Mike Parson asking him to convene a special session over Kansas’ attempt to pull the Chiefs away.

Parson told KCTV5 on June 6 that he doesn’t think a special session is necessary, at least not as of a week ago.

The governor said Missouri has time to make its case for the team to continue calling the state home, saying he wants to see the Sunflower State’s plan first. He said he plans to approach any proposal as a business deal, which is how the Chiefs will also approach the situation.

Jackson County voters rejected a 3/8-cent sales tax proposal that would have gone toward funding a downtown ballpark for the Royals and renovation of Arrowhead Stadium.

In late April, Chiefs owner Clark Hunt said the organization is reassessing its options for the future, whether that be at Arrowhead Stadium or building a new venue.

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