Royals stadium proposal: Examining Community Impact Partnership Agreement

KANSAS CITY, Mo. — KSHB 41 reporter Tod Palmer covers sports business and eastern Jackson County, including Independence. Share your story idea with Tod.

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In exchange for more than $1 billion in taxpayer funding, the Kansas City Royals will commit a minimum of $55 million over the next 30 to 40 years, according to the terms of a Community Impact Partnership Agreement set for discussion Tuesday at Kansas City’s Finance, Governance and Public Safety Committee meeting.

The 12-page Community Impact Partnership Agreement, or CIPA, is far and away the shortest document among four released Monday ahead of the meeting — which also included proposed lease, development and financing agreements.

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The CIPA calls for a $5 million contribution to the new Negro Leagues Baseball Museum, announced in February, and another $5 million for the city’s Housing Gateway Program, announced in February to target affordable housing and homelessness initiatives in Kansas City.

The Royals would pay an additional $14 million as part of the city’s 1% for the Arts Program.

The CIPA specifically singles out the FIFA Fan Fest Gateway Heart, or its permanent replacement, for use in the stadium plans or at Washington Square Park, subject to approval by the Municipal Arts Commission.

RELATED | Heart Gateway: Origins, meaning, what comes next for KC's World Cup icon

Costs associated with the Heart Gateway count toward the $14 million earmarked for the arts, though the city and the Royals may “mutually consider and agree upon alternatives” to its inclusion.

The remaining $31 million would be distributed annually over the term of the lease, equating to roughly $1 million per year — less if the lease is extended beyond the initial 30-year term.

The team’s commitment represents less than 4.9% of the public investment for the stadium project, which includes $600 million from the city and an additional $540 million from the state through the Show-Me Sports Investment Act.

A new downtown baseball stadium accounts for $1.9 billion of the proposed $3 billion overall redevelopment plan, including a surrounding entertainment district that would reimagine the Crown Center area.

Continuing community programs

With limited specifics, the CIPA also requires the Royals to remain active in school-based reading programs, charitable programs, leadership programs, Season of Giving and other holiday campaigns, youth baseball and softball clinics, and programs that encourage kids to be active.

It also requires the club to partner with charitable organizations that connect players with “children in need” and “strengthen diversity, equity & inclusion, support veterans, promote education and more.”

Additionally, the CIPA requires the Royals to continue providing charitable donations and scholarships through the Kansas City Royals Foundation (formerly Royals Charities), and continue supporting the Kansas City Urban Youth Academy — including free field trips to games, the Youth Academy and the Negro Leagues Baseball Museum.

It also requires the team to continue providing free admission to the museum each February during Black History Month and to adopt a City Preference Plan to give Kansas City residents at least a 25% discount on designated games, similar to the current discount available to Jackson County residents.

Finally, it requires the new stadium to include at least two sensory rooms.

Beyond that, the agreement doesn’t seem to compel the Royals to engage in new outreach or programs, but it does direct the club “at its sole cost and expense, design, construct, and complete improvements to Washington Square Park.”

The goal would be “year-round activations ... accessible to the public free of charge” and paid for by the Royals.

Labor carveouts

During construction, contractors will be required to pay prevailing wage, per city ordinance, under an agreement that’s fairly boilerplate for a project of its size and scale.

The CIPA generally requires the stadium’s general contractor to consider the inclusion of small businesses, including mentorship arrangements with larger firms, and minority- and women-owned businesses. However, the city council voted last week to terminate the MWBE program.

KCMO will require the project to encourage workforce development and education goals during construction and require participation in the Missouri Works program.

Once built, the Royals must commit to pay all hourly service at the stadium a wage “equal to or better than average wage rates paid by other professional sports teams in the Kansas City region.”

The team also must work with the Kansas City Area Transportation Authority and the Kansas City Streetcar Authority “to provide funding or other support for additional service to the Baseball Stadium for fans and workers,” including a fixed-rail feasibility study.

The Royals agreed to meet LEED Gold certification for the new building and pay into a fund to deal with the Truman Sports Complex after its current tenants, the Chiefs at Arrowhead Stadium and the Royals at Kauffman Stadium, abandon their longtime homes.

Limiting construction impacts

As part of the project, the Royals have promised to establish and maintain a website with construction updates, providing progress reports, timelines and anticipated disruptions at least every two weeks.

The Royals also would be required to designate a liaison for “requests, questions or concerns regarding construction.”

Construction activity would generally be restricted from 7 a.m. to 9 p.m.

The CIPA also requires noise and dust mitigation efforts during construction, as well as parking and shuttle service for construction employees to preserve and protect parking for adjacent residents and businesses.

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