The city could be on the hook for millions of dollars if the plan to fund a new Royals ballpark using the revenue from the stadium and the area around it falls short.
The city would borrow $510 million via bonds for the stadium and spend another $90 million on infrastructure, according to the Economic Development Corporation tax increment financing plan. Half the increase in sales and earnings taxes generated in the district would go toward paying off these costs for 23 years, as would several of the city’s existing taxes and a new sales tax of up to 1% for 30 years.
The idea is that the new Crown Center, touting the Royals stadium, will become a self-supporting entertainment area, like the city intended for the nearby Power & Light district — though Kansas City has had to cover that project’s debt with consistent infusions of cash. The proposed funding sources for the Royals would cover an anticipated $382 million. The rest comes from state funding and redirected taxes, as well as gaming, parking and surrounding development.
“The scale of the proposed investment, combined with major infrastructure improvements and long-term job creation, has the potential to support continued growth well beyond the ballpark itself,” said Andrea Bough, Interim President and CEO of the Economic Development Corporation of Kansas City, in a statement.
If revenue projections come up short, the city still has to cover the bonds through alternative means since the Royals have “no obligation to repay” those bonds. The city council still needs to give the plan final approval before it takes effect.
The plan entails breaking ground in 2027 with a goal of completion in late 2029, in time for the Royals home opener in March 2030. On Monday, the team announced the Mortenson-McCownGordon joint venture would serve as construction manager. JE Dunn, a Kansas City-based general contractor, is expected to focus on the surrounding neighborhood, developing a “live-work-play” ballpark.
Estimates suggest the plan would generate 16,000 jobs and $1.1 billion in labor during construction and 2,275 permanent jobs — full-time, part-time and seasonal. Of those, 200 would be completely new jobs to Kansas City.
A group representing low-wage workers in Kansas City, though, fears the drawbacks — and the taxpayer cost — will outweigh whatever gains the stadium brings.
In June, the group Missouri Workers Power brought 4,500 signatures to the Kansas City Clerk’s office to trigger a citizens' initiative on the ballot that would give Kansas City voters final say over the financial commitment. MWP has continued to organize against using taxpayer funds for a ballpark.
In total, the stadium project costs $2.05 billion, with the team covering $911 million.
