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Jackson County lawmakers reject Chiefs-only sales tax measure aimed at saving stadium talks

The Chiefs could be tempted to relocate to Kansas using the tax incentives approved by lawmakers Tuesday.
Carlos Moreno
/
KCUR 89.3
Jackson County lawmakers hope a quarter-cent sales could persuade the Chiefs to remain in Missouri.

The Jackson County Legislature voted Monday against placing the proposed sales tax on the November ballot. It would have only supported the Chiefs in a play to keep the team in Missouri, leaving negotiations with the Royals to Kansas City and Missouri.

Updated: August 26, 2024 at 3:52 PM CDT
The Jackson County Legislature voted against the tax measure, 5-4.

It’s back to square one for the Jackson County Legislature as it tries to figure out how to keep the Chiefs from leaving Kansas City.

In a 5-4 vote, the legislature rejected a proposal to place a Chiefs-only sales tax measure on the November ballot.

The quarter-cent tax would go into effect in October 2031 — after the current 3/8th-cent sales tax ends — and would fund improvements for Arrowhead Stadium and the Truman Sports Complex and would not include Kauffman Stadium.

It was a compromise that 1st District Legislator Manny Abarca IV, who sponsored the measure, hoped would ease voters’ concerns about funding a new Royals ballpark.

In April, Jackson County voters rejected an extension of the current tax to fund a new Kansas City Royals stadium downtown and renovations at Arrowhead Stadium for the Chiefs.

“The goal is to make sure that voters have another crack at an opportunity to support the Chiefs,” Abarca said before Monday's vote. “It was clear that the main issues (with the April vote) were taxation, but also the unknowns surrounding the Royals. I think people wanted to support the Chiefs' efforts and make sure that they stay in Jackson County.”

The quarter-cent sales tax would only last for 20 years, instead of the typical 40. The Chiefs have previously said they want to stay at their current location and renovate the stadium. Meanwhile, Kansas lawmakers want to use STAR bonds to lure both the Chiefs and the Royals across state lines in exchange for covering 75% of building costs for new stadiums.

The Chiefs did not respond to a request for comment. The Royals declined to comment on the tax.

"The Chiefs will be playing in Kansas City, Missouri for a generation to come. The Royals will be playing in Kansas City, Missouri for a generation to come," said Kansas City Mayor Quinton Lucas in a social media post after Monday's vote. "Don’t get distracted by the day-to-day sausage making. Good work is getting done to ensure a positive future for all."

Sean Smith, who represents Jackson County’s 6th District, helped change the legislation to include the sports complex as a whole instead of only supporting the Chiefs as a team. Before the vote, he said he felt pressure to show the Chiefs and Royals that Jackson County voters are not abandoning them.

“It just seems like under the current situation, we're kind of like we can either kind of do something unilaterally and then hope that the teams like it, or we can sit and wait,” Smith said. “It seems like there's a really high risk that while we're waiting, the teams might just decide to completely abandon the sports complex”

Abarca said he hoped this proposed sales tax would bring Jackson County back to the negotiating table with the teams. If legislators approved the tax, it would have gone on the November ballot. That deadline doesn’t scare Abarca. But getting something done before Kansas’ STAR bond deadline next year does.

“It is kind of the nail in the coffin opportunity because if we fail twice, that could be the closure of the book, per se, on us publicly funding stadiums at this point,” Abarca said. “If we're going to truly negotiate and be in a good position to be considered for either team to stay here, we need to be at the table negotiating that and not just allowing Kansas to steal our lunch.”

A baseball stadium is shown from the outside. A curving, concrete shape rise above metal fencing and walkways with lights on white steel beams extending above.
Carlos Moreno
/
KCUR 89.3
With Kansas City reportedly in talks with the Royals on a new downtown location that would not need a sales tax, the Jackson County Legislature is taking a back seat on negotiations.

Leaving Royals talks to Kansas City

With the Jackson County legislature focused on the Chiefs, the fate of their place in negotiations with the Royals hangs in the balance. Negotiations between the teams and the legislature have been fraught since last year due to disagreements between County Executive Frank White, the teams and the legislature.

In the absence of talks with Jackson County, Missouri and Kansas City have stepped up. Gov. Mike Parson has said the state is putting together its own offer to keep both teams. Democrat Crystal Quade and Republican Mike Kehoe plan to continue those efforts if either is elected to replace Parson in November.

Kansas City Mayor Quinton Lucas has been exploring alternative ways to pay for a downtown Royals stadium that would not include a sales tax vote.

The city and Royals are reportedly evaluating Washington Square Park, between Union Station and Crown Center, as a potential ballpark site. In light of those developments, Abarca thinks it may be best to let the city take charge.

“The city has really taken on the focus to try and figure out the Royals,” he said. “They seem to have some development tools that they're going to execute to try and save the Royals and keep them in Kansas City. I've relied on the city to step in and take that on, knowing that it's probably a little longer distance away, but making sure that it's still an opportunity for us at the county to come back and play a role.”

Smith thinks Jackson County taking a backseat in Royals negotiations means Kansas City and the state are stepping up to do their part.

With the current sales tax rate, Jackson County contributes more than $40 million annually to the teams while Kansas City contributes about $2 million each year. Missouri gives about $3 million. If the legislature puts the tax on the ballot and voters approve it, Smith thinks this could be a moment for a more equal partnership between the state, county and city.

“This is a little bit like us putting our cards on the table,” Smith said. “We're kind of saying to the other parties involved, ‘Okay, now you go. You guys will figure out the rest of where the money is going to come from.’ Right now we've got no baseline for even those discussions. It's just sort of out there.”

Lucas did not respond to specific questions about Kansas City taking the lead on negotiations. On KCUR’s Up to Date in mid-August, he said it could be better for Kansas City to fund the stadium through other tax incentives.

“I think it is a very fair question from the electorate to say, ‘Why should every person in Jackson County pay a sales tax to support something that they may never use?’” Lucas said. “Rather than perhaps a shift to Kansas City that said, ‘Maybe we should do our own 3/8th-cent sales tax.’ If there are ways that you can look for a project that funds itself in many ways, or in large part, that is better.”

Sam Zeff contributed reporting.

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