The real estate consultant group Hunden Partners projects the stadium alone could generate $462.5 million, and the “expanded impact area” an additional nearly $688 million, through 2059. Another $49.3 million is projected from state tax increment financing. Restaurant taxes, gaming revenue and street parking could contribute another $204.78 million.
The Kansas City Council will take up on Tuesday several questions about projected tax revenue for the new stadium and its surrounding area and how it will help finance the project.
The report assumes about 2.2 million stadium attendees in the first year, including Royals games and other events. It projects roughly 1 million additional people will visit businesses in the area surrounding the stadium in that same year.
The report says concerts, collegiate and high school sports, private events and potentially the MLB All-Star Game could add roughly 98,000 to 197,000 attendees annually.
The 2024 proposed stadium in the Crossroads was projected to drive similar revenue. The team estimated that the stadium and ballpark district would generate $1.2 billion in annual economic output once the stadium was up and running. Buta majority of economists agree that stadiums, no matter their location,do not deliver an economic boon to cities. Often, any money made in a new stadium districtisn’t new spending — it’s just moved to a new location.
Much of that estimate was based on the assumption that more fans will come to watch games in a new stadium.
Multiple studies have shown that any “novelty effect” that brings more fans to a new stadium wears off after just a few years. Decades of research show that there is “no systemic interaction” between a new stadium and better team performance or attendance.
During a Monday press conference, Royals CEO John Sherman pushed back on comparisons between the Crown Center stadium and the team’s current home at Kauffman Stadium, saying the downtown location would create more activity around games.
He pointed to the new stadium’s planned mix of baseball and surrounding development, as well as an uptick in transportation options.
On Tuesday, the council will consider a Downtown Stadium Tax Increment Financing Plan. It will also consider authorizing up to $560 million in revenue bonds for the new stadium, team offices and supporting infrastructure in the Crown Center area.
The city’s ordinance would estimate and appropriate $642.1 million in bonds proceeds toward its contribution to the project. A separate measure would formally designate the first redevelopment area under the stadium Tax Increment Financing plan.
