KSHB 41 reporter Isabella Ledonne reports on stories in Overland Park, Johnson County and topics about government accountability. Share your story idea with Isabella.
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With the Chiefs heading to Kansas, one question KSHB 41 News received from viewers was: Where will the STAR bonds come from in Kansas?
Officials provided a draft outline of where the taxing districts could be, with the largest district in Wyandotte County.
Whether you're in Missouri or Kansas, nothing says Kansas City like barbecue and the Chiefs.
"Even through failure, [the Chiefs] have been something that's important to me and my family," said fan Miles Marshall.
People going out to eat at local restaurants, like Joe's Kansas City Bar-B-Que in Kansas City, Kansas, pay a little bit of sales tax with their meal. That sales tax will eventually go toward STAR bonds.
STAR bonds are going to fund 60% of the Chiefs' new stadium in Kansas.
Wyandotte County is one of the several proposed STAR bond districts where a portion of local sales tax dollars would pay for the Chiefs' development. Kansas leaders stated they expect the deal to bring in billions of economic activity.
“This agreement to bring the Chiefs to Kansas takes our state to the next level," said Kansas Gov. Laura Kelly. "With this new stadium, we’re creating thousands of jobs, bringing in tourists from around the world, attracting young people, and most importantly, we’re continuing to make Kansas the best place in America to raise a family. This is a game-changer for Kansas, and it’s a signal to America and the world that our state’s future is very bright.”
But economic experts are critical of the anticipated economic benefit.
"[Officials] phrase it as, 'Hey, we're going to make money, and it's the road to riches.' But those virtually never pan out," said William Black, retired associate professor of economics at the University of Missouri-Kansas City. "We have now decades of experience and economic analyses after the fact, and the incredible promises virtually never turn out to be true."
KSHB 41 News spoke with Neil deMause, co-author of "Field of Schemes." deMause is critical of publicly funded stadiums.
SHARE YOUR VOICE | Tell KSHB 41 your questions about the new Chiefs stadium
"When economists have looked harder at it, they've found that stadiums do not generally show an increase [in revenue] or even bringing a new team to town," he said.
deMause cited economic research showing the offered subsidies cost more than the economic value added.
"It's shifting from one place to another," deMause said. "Missouri will lose something, but compared to the cost, that will be maybe 10s of millions of dollars a year, whereas you're talking about hundreds of millions of dollars a year that's going to have to be paid to pay off the stadium."
In addition to private investment, the Chiefs will receive $2.4 billion from Kansas STAR bonds to build the stadium, an entertainment district in KCK and a practice facility in Olathe. The public STAR bonds are repaid through the sales tax dollars.
"As a taxpayer and a city resident, I would be thrilled that I can still go see the games, and the people in the next state over are stuck with the bills," deMause said.
Kansas leaders have pledged that there will be no new taxes to pay for the stadium, but deMause questions whether it's a feasible option if Kansas can bring in the billions of dollars.
"It's a really good question as to whether or not there's enough liquor and sales tax revenue to pay off this amount of bonds," deMause said.
But for now, Kansas fans are excited to see how the deal plays out.
"We’re coming out to support small businesses anyways and putting the little extra taxes, we need those to create the things that we want and need, whether it's stadiums or schools," said fan Kelsey Landis. "I’m here for it, and we get good barbecue while we’re here.”
More coverage on the Chiefs' deal and move can be found here.
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