Plan to lure Chiefs across state lines forming support from Kansas lawmakers
TOPEKA, Kan. (KCTV) - The top two leaders in the Kansas Statehouse are making a play to get the Chiefs to move to Kansas.
Lawmakers are poised to consider a bill in an upcoming special session that would allow the state to issue STAR Bonds in the case of attracting a sports stadium to the state. Currently, STAR Bonds are issued by local governments for any significant development or attraction that would bring tourism from outside the area.
The bonds are issued to investors by a governmental body. Then, some of the revenue from sales taxes in a specified district is used to pay off those bonds with interest. The tax revenue set aside is what is generated in excess of the typical amount generated before the development occurred.
The first STAR Bond district was created in 1999 to pay for the Kansas Speedway. The taxing district was only at the Legends. There are currently 19 STAR Bond projects at various stages of completion and repayment, according to the Kansas Department of Commerce.
READ MORE: Kansas lawmakers to introduce bill during special session to finance Chiefs move across state line
Susan Keim, an associate professor of public administration at Park University, notes that the rules on Kansas have changed over the years and the success of the projects has varied.
“I think that The Legends and the Speedway, for example, have been very successful,” said Keim. “But then there was Prairiefire that was not successful.”
The state now requires that the project be a big one. It has to be for a statewide and regional attraction. The capital investment minimum is $75 million dollars. Department of Commerce rules specify that the tax revenue can only fund just less than half of the project.
The bill drafted at the request of KS Rep. Sean Tarwater, a Republican from Stillwell, would change that when the STAR Bond is specific to attracting a professional sports team complex. Tarwater laid out some of the differences as follows.
- It can start with the state in the case solely of up to two stadiums. Local governments can opt in or out of their local sales tax revenue being used.
- The capital investment minimum would be raised to $1 billion and the funding maximum raised from 50% to 75%.
- It can include more than one taxing district for each team. For example, a team could have a stadium in one area and a training facility in another, with a separate taxing district for each.
Kansas Senate President Ty Masterson and House Speaker Dan Hawkins issued a statement Tuesday saying they have been in touch with the Chiefs.
“We have reached out to the Chiefs organization and asked them to weigh in on the possibility of using Kansas’ unique STAR Bond funding tool and explore what collaboration could hold,” the joint statement said in part.
KCTV5 asked a Chiefs spokesperson about it. He said the organization does not have a statement or comment to share.
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