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Olathe City Council approves STAR bonds for $300 million Chiefs HQ, training facility, residents speak out

Olathe is pledging to use portions of sales taxes generated from the Chiefs headquarters district to repay STAR bonds over the next 30 years
Olathe City Council approves STAR bonds for $300 million Chiefs complex
Councilman Matthew Schoonover
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KSHB 41 reporter Isabella Ledonne reports on stories in Overland Park, Johnson County and topics about government accountability. Share your story idea with Isabella.

The Olathe City Council unanimously approved its participation in A STAR bonds district to build a new Chiefs headquarters and training facility in Olathe.

Olathe City Council approves STAR bonds for $300 million Chiefs complex

The new facilities are proposed to be at the northwest corner of College Boulevard and Ridgeview Road, south of Kansas Highway 10.

The money spent in that area will help repay the STAR bonds used to build it.

The approved ordinance pledges to use portions of the sales tax only generated within the training facility district. That includes 1% of the general purpose city sales and use tax, Olathe's portion of the 0.5% Johnson County general purpose sales tax and 7% of Olathe's 9% transient guest tax [hotels].

Tuesday night's meeting in the city council chamber was standing room only as dozens of neighbors wanted to make their voices heard about the city's participation in the STAR bonds district. Many spoke against the ordinance, while a few spoke in support of the proposal.

The issue wasn't that Olathe residents don't want the Kansas City Chiefs training in Olathe.

Many brought up concerns about how quickly city leaders made the decision and with little information provided to the public.

Olathe's commitment to pledging sales tax revenue to repaying the STAR bonds is one piece of the package that brought the Chiefs across the state line.

For father and son duo, Scott and Glenn Walsh, they're wanting to make that a reality.

Scott & Glenn Walsh

"I think it's great, it's time for a new stadium," Walsh said. "You got to pay for a little bit of progress in your community, so I'm good with that."

But others are questioning why Olathe is pledging the cash for a multi-billion dollar franchise.

Darlean Washington

"How much of this would benefit us and how much of this is for the benefit of the Chiefs?" Olathe resident Darlean Washington said. "Am I going to be taxed out of Johnson County because of the Chiefs coming?”

City staff presented to the council that the estimated sales tax revenue generated in the training facility district would help repay the bonds. Several neighbors brought up concerns that the projected revenue wouldn't be enough to pay back the loans.

Shawn Greaseheimer

"There's no way to fund or make up that money, and we will have to pay that back," Shawn Greaseheimer said.

Many others felt a lack of transparency from Olathe city leaders.

Pete Marsh

"I feel this is not a public hearing, this is a presentation of what has already been decided," neighbor Pete Marsh said.

Olathe published the ordinance on Friday evening and scheduled a vote for Tuesday.

Some residents were happy the city moved quickly to bring the Chiefs to Olathe.

Aaron Bishop

"This is an opportunity for our area, this is a once in a lifetime opportunity for Olathe," Aaron Bishop said.

Some residents were left with more questions than answers.

Jeremy Thirston

"It feels like a lot of this info is not yet out in terms of what the city is going to commit," Jeremy Thirston said.

Several council members responded to concerns of transparency, standing by their opinions this is a good proposal for Olathe. City staff confirmed Olathe would not be on the hook to repay bonds if not enough sales tax is made from the STAR bonds district.

Councilman Matthew Schoonover

"As I see it, we're not currently generating any sales tax on this otherwise empty spot of land, there's really nothing to lose here," Olathe Councilman Matthew Schoonover said.

A few viewers asked KSHB 41's Isabella Ledonne at the meeting why this decision happened so fast when the STAR bonds deadline is still two weeks away. She brought that question to Olathe's mayor.

Mayor John Bacon

"That gives us an opportunity to fix something if we need to," Mayor John Bacon said. "If anybody [on the council] that wanted to say, 'I learned something about this, I want to reconsider,'" we have that opportunity to do that before the deadline."

Olathe will now be taking the next steps toward making the training facility a reality. The city will be conducting a financial feasibility study analysis and revenue study. The city council still has to approve land use and site plan developments.

More public engagement sessions and input opportunities are expected in the coming months.

A public hearing for use of STAR bonds in Kansas City, Kansas for a new Chiefs stadium was happening at the same time as Olathe's meeting. KSHB 41's Fernanda Silva covered the meeting in Wyandotte County.