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New settlement details emerge as UG rescinds ordinance over Sports Authority bill exemptions

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The Unified Government of Wyandotte County/Kansas City, Kansas, voted Thursday night to rescind a charter ordinance that exempted it from new sections of House Bill 2466, the Sports Authority bill.

They also amended its pledge ordinance — resolving a legal standoff with the state of Kansas over the proposed Kansas City Chiefs stadium and securing a slate of key protections for the county.

Outside counsel Todd LaSala presented the terms of the settlement to the commission, noting that the original charter ordinance — which exempted the UG from more than a dozen sections of House Bill 2466 — never became effective because a required second publication was never completed. He said the legal fight, while adversarial in nature, opened the door to meaningful dialogue with the state.

"It has opened door to good conversations with state about how those issues are resolved," LaSala said.

The UG's lawsuit against the state was dismissed without prejudice on Oct. 26. Under the settlement, it will be dismissed with prejudice — permanently — after the mayor is seated on the Sports Authority board, the community impact committee is established, and the STAR bond district is amended.

LaSala said the conflict was never about the stadium project itself.

"It wasn't ever an issue we had with the stadium itself, it was these details," LaSala said.

He said both sides moved quickly once the lawsuit was filed.

"We sued them, it was a lawsuit. That can be very adversarial…folks got to the table very quickly," LaSala said.

Key settlement terms

The agreement resolves several issues that had been in dispute since passage of the Sports Authority bill, including utility protections for the Board of Public Utilities, a bridge repair commitment, land use provisions, and changes to the STAR bond district.

Board of Public Utilities

Under the agreement, the Sports Authority cannot select an alternative utility provider unless BPU and that provider first reach a separate agreement. Any alternative provider must compensate BPU for the right to serve in its electric service territory. The state contractually agreed that BPU will provide water service to the stadium exclusively — no other portion of the project may be served by an alternative provider.

The settlement also includes a contractual payment for water service intended to resemble the BPU PILOT fee, which had been blocked under the Sports Authority bill. Commercial development surrounding the stadium will not be owned by the Sports Authority and will pay the normal BPU PILOT. A BPU representative at the meeting said the agreement achieves what the utility set out to accomplish.

Central Avenue Bridge

The state reconfirmed its commitment to fund repairs to the Central Avenue Bridge — estimated at $135 million — and contractually agreed that those funds have been allocated to the Kansas Department of Transportation. The commitment is not subject to approval by another governing body.

Commissioner Davis called the bridge commitment transformative for the county.

"What has changed for me are the numbers…what is not an estimate that per this settlement agreement, we are getting $135 million worth of infrastructure that we could not have come up with ourself…it has changed the calculus of what this means for Wyandotte County," Davis said.

Land use

The UG agreed it does not have approval rights over land use and zoning for the stadium itself, but the Sports Authority will consult with the UG throughout construction. All improvements beyond the stadium footprint will be subject to normal local approvals, with the caveat that the UG cannot impose conditions creating costs unrelated to the project. Commercial development will follow the standard planning and zoning process.

STAR bond district

The state contractually agreed to carve out an area around the Quindaro ruins and KU Medical Center from the Chiefs' STAR bond district, preserving those areas for independent future development. LaSala said the state recognized the cultural significance of the Quindaro ruins site.

Commissioner Kump noted the complexity of the STAR bond framework.

"I get it, STAR bonds are confusing. They're confusing for me, and I'm a lawyer," Kump said.

Property tax

Because the stadium will be owned by the state or the Sports Authority, it is eligible to be property tax exempt. The agreement caps the exempt acreage at 355 acres, with any area beyond that threshold subject to a PILOT payment.

Aamended pledge ordinance

The board voted 10-0 to amend its pledge ordinance, expanding the area of pledged local sales tax from 240 acres to approximately 440 acres. The expansion follows the Kansas City Chiefs' acquisition of additional property options around the stadium site. The pledge covers the UG's 1% local sales tax and a share of the county sales tax, as well as a transient guest tax of up to 8%. The pledge does not include items like the UG's emergency medical services tax.

LaSala said the expanded footprint does not significantly alter the revenue projections.

"Although the area for the local pledge is growing, we are told that the money and the projections really don't change," LaSala said.

Projected value of the local sales tax pledge:

  • Through 12 years (2039): $188,094,960
  • Through 20 years (2047): $256,199,921
  • Through 30 years: $447,935,226

LaSala cautioned that those figures carry inherent uncertainty.

"You're predicting the future, and that's a dangerous thing to do…these are guesses," LaSala said.

The amended ordinance also strikes three conditions the UG had previously attached to its pledge: that the state's pledge district boundaries mirror the local pledge area, the UG approve the definitive documents between the state and the Chiefs, and that the UG have at least one representative on the five-person community impact committee. All three issues were resolved through negotiation.

If the amended pledge is finalized, the mayor will be seated on the Sports Authority board and the UG will gain representation on the five-person community impact committee, which will determine how community benefit funding is allocated and spent.

LaSala said he personally traveled to the state capital to review the unfinalized definitive documents with state officials and found them consistent with what had been outlined.

"I literally spent hours in Topeka talking with them," LaSala said. "The documents are as described, are very thorough, very consistent with terms sheet that we all read in December, and they do identify a very detailed agreement between state and team.”

He said the UG has what it needs to move forward in good faith.

"We have adequate information to let go at this point," LaSala said.

Commissioner Reaction

Commissioners praised the deal broadly, calling it a historic moment for Wyandotte County.

Commissioner Ramirez praised the mayor's leadership throughout negotiations.

"The thanks I want to give is to our mayor. She has been steadfast in all of this. She has been the cheerleader for us…she has been the voice of reason and the voice of trust," Ramirez said.

Commissioner Davis called the overall package extraordinary given the county's size and needs.

"I would say we have something that is historic. For the size of our community, what we're getting back is absolutely astounding," Davis said.

"If you add up everything and that's not including the revenue sources…we are actually getting more than we're getting for this deal," Davis said.

LaSala said that characterization was “possible.”

Commissioner Pacheco said the deal achieves what the UG originally set out to accomplish and urged the county to plan carefully for how to use the new revenue.

"This is a monumental financial thing for Wyandotte County," Pacheco said. "I personally am okay with getting rid of those [conditions] because we got to a point where we got what we wanted, we got what we needed.”

He says he wants constituents to reap the benefits of a deal of this magnitude.

"If we are going to capitalize on something this momentous…we have to come up with an actual spending plan from the money that comes from these things," Pacheco said.

Commissioner Howard reflected on the value of staying engaged throughout the process.

"I remember we were here in February and I said something to the effect of having a seat at the table, and I don't think that was received well. My point in all of that was…you have to have a seat at the table," Howard said.

Kump said the settlement positions the county well going forward.

"I think this has put us in a much better position than where we were in February," Kump said.

Not every commissioner was without reservation. Commissioner Lopez questioned what recourse the UG would have if the state did not follow through on its commitments.

"We've already been jived once by these guys….we've already been ran over once, and I want to prevent us for being ran over again," Lopez said.

LaSala acknowledged the concern and noted the UG retains the ability to refile its lawsuit if the agreed-upon terms are not met.

What comes next

LaSala said the rescission of the charter ordinance does not take effect until it is published, and the lawsuit will not be dismissed until a fully executed settlement agreement is signed by the UG, the state, and the Sports Authority. That agreement will outline the steps each party must complete, including the amendment of the STAR bond district.

The motion to rescind the charter ordinance was made by Commissioner Pacheco and seconded by Commissioner Burns. Both this and the amended pledge ordinance passed 10-0.

LaSala said the resolution reflects the spirit in which both sides ultimately engaged.

"There's a lot of this that we feel good about, and I do think it was a very productive resolution and the state has been a very good partner as we worked this things out," LaSala said. "I think we should celebrate this together and to be grateful to have reached such a productive resolution on these points.”

Mayor Christal Watson closed the meeting with a message of unity and optimism.

"It's been a journey, but I have to say at the end of the day, each of us has a voice…but we came together and we listened. That's all this commission board wanted, is to be listened to," Watson said. "What we have to look forward to is a partnership and an unprecedented legacy that we're going to leave here in the state of Kansas, and more importantly, here in Kansas City, Kansas.”

You can watch the presentation in full here.

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