Revised plan for Kansas stadium authority clears legislature

A Kansas bill to create a sports facilities authority that would own and oversee the construction, operation, and management of a $3 billion partly bond-financed stadium for the National Football League's Kansas City Chiefs is on its way to the governor.

House Bill 2466, which received final legislative approval on Friday, is a combination of two bills, including one that makes changes to the state's sales tax and revenue (STAR) bond program.

The combined measure removes a provision in a previous bill version that would have allowed the authority to issue special obligation bonds and incur debt, according to a conference committee report.

It also increases the number of authority board voting members ? to 11 from nine ? with the inclusion of representatives of the Unified Government of Wyandotte County-Kansas City, Kansas, and the city of Olathe.

Both governments approved plans to pledge incremental increases in certain sales and transient guest taxes collected in specific geographic areas to help pay off STAR bonds that would be issued by the Kansas Development Finance Authority (KDFA) for the arena and a team headquarters and practice facility.

The authority's other members include the state commerce secretary and individuals appointed by the governor, legislative leaders, and the football team.

The state plans to finance its share of the $3 billion ? at least 65,000-seat ? domed stadium through the issuance of $1.8 billion of STAR bonds through the KDFA.

Kansas is pledging incremental increases in state sales and liquor taxes collected in an overall STAR bond district located in Wyandotte and Johnson counties for the stadium bonds, according to a term sheet for the project. Slices of sports betting and state lottery revenue will also be used to secure bonds for the stadium.

HB 2466 would extend the sunset to July 1, 2031, for the STAR bond program, which has been used to finance projects ? such as the Kansas Speedway ? that attract tourism. It also calls for the establishment of goals for the number of visitors at attractions and ties additional STAR bond issuance to meeting those goals. STAR bond financing for amusement park rides and related facilities would be allowed under the bill.

A beefed-up version of STAR bonds with a maximum maturity of 30 years was authorized under a 2024 Kansas law aimed at luring major league sports teams from neighboring Missouri. The law allows STAR bonds to cover up to 70% of costs for professional sports facilities that carry a price tag of $1 billion or more.