Kansas Gov. Laura Kelly announced on Dec. 22 that the Kansas City Chiefs are hopping the state line to build a new stadium in Kansas City, Kansas, and that Olathe will be the home of the NFL team’s new headquarters and training facility.
Despite the big announcement, the deal for the $3 billion project isn’t finalized, and specifics of the deal remain largely under wraps.
At least $1.8 billion in sales tax revenue raised by state-backed STAR bonds — a financing tool that uses sales tax revenues generated by a project to pay for developments — will help pay for the stadium in KCK.
STAR bonds are also set to pay for up to $975 million more in costs related to the team HQ in Olathe and a surrounding mixed-use district that’s being promised as part of that.
Despite the celebration last month on the part of state, local and team officials when the deal was unveiled in Topeka, some big votes remain for local governments, including in Wyandotte County and Olathe, where the new facilities are slated to go.
In addition to the state-backed STAR bonds, both Wyandotte County and Olathe are being asked to chip in their own portion of local sales tax revenues to help fund the project.
The Olathe City Council will get final approval over whether the city will do that or not, as well as other approvals related to zoning and site planning for a new team facility.
City officials have so far shared limited details about the project, citing non-disclosure agreements and the fact that many details are yet to be worked out.
“We’re not at liberty to discuss a lot of the details at this point, but we’re going to be working through those the next couple of weeks and months,” Mayor John Bacon said at the Olathe City Council meeting on Tuesday, the first since the stadium announcement.
Here’s what we do know
In late December, the Legislative Coordinating Council, a bipartisan group of legislative leaders from both chambers, approved the formation of a bond district tied to the Chiefs’ proposed move.
As part of that approval, both Olathe and Kansas City, Kansas — where the new stadium will be built — have 60 days to hold public hearings and adopt ordinances authorizing the use of new local sales tax revenue within the district to help repay the bonds.
So far, no hearing dates have been set in Olathe.
At Tuesday’s city council meeting, City Manager Michael Wilkes said the city will announce the details of the hearing through social media.
He added that the city is currently working with the state, the Kansas Department of Commerce, and the Chiefs to put together a deal.
Bacon said there will be an action item on the agenda related to the STAR bonds in the latter half of February. The 60-day window closes Feb. 22.
In addition to approving the participation of the proposed STAR bond district, Olathe will need to approve the creation of a subdistrict for the headquarters, training facility and adjacent mixed-use entertainment district included in the deal.
No one involved in the project has announced the exact location of the headquarters and training facility, but a marker on a map of the proposed STAR bond district released by the state suggests it could be near Kansas Highway 10 and Ridgeview Road.
Like any other development in Olathe, the project will also have to go through city planning processes, including public meetings, permit reviews and site plans.
How does the city council feel?
Some Olathe councilmembers have already spoken in favor of the move, signaling early support for the STAR bond vote.
At this month’s city council meeting, Councilmember Michael Schoonover said that if it’s done right, it could be a “wonderful transformational project for us.”
Councilmember Robyn Essex agreed, saying it’s “a very exciting announcement.”
Earlier this week, the Post published a survey asking readers, particularly those in Olathe, how they feel about the Chiefs’ move to Kansas.
Out of 893 respondents, 41% said they were in favor of the move.
Another 31% of people said they wanted the Chiefs to remain at Arrowhead, while another 21% said they supported the team moving to Kansas but thought the state gave away too much in the deal. A final 7% or respondents said they wanted more details before passing final judgement.
How the project will be funded
Funding for the new Chiefs stadium, headquarters, training facility and surrounding mixed-use developments will come 60% from public dollars and 40% from the team itself.
Most of the public share of the financing will come from STAR bond revenue, which can only be used to finance tourism and entertainment districts under state law.
Developers will use state and local sales taxes generated within the district to pay back the debt and interest over 30 years.
The preliminary STAR bond district map released by the state includes not only all of Wyandotte County and nearly all of Olathe but also includes Lenexa and Shawnee. (Those two cities are not being asked to contribute a share of their own future local sales tax revenues but will still have a portion of future state sales taxes collected in their jurisdictions go to the Chiefs.)
According to the terms of the agreement, the Chiefs would be responsible for the privately funded portion.
The Chiefs project would not be the first Hunt family-backed development in Olathe to use STAR bonds.
In 2024, the city council approved up to $65 million in STAR bonds to help fund Halo Ridge, an entertainment district at 119th Street and Renner Boulevard designed to be “ultra-accessible” for people with disabilities. Construction on the $320 million project is expected to begin in early 2026.
Halo Ridge’s developers, Loretto Companies, is owned by Lamar Hunt Jr., the son of Kansas City Chiefs’ founder Lamar Hunt and brother of current team owner Clark Hunt.
This story was originally published in the Johnson County Post
