KANSAS CITY, Mo. — The Jackson County Legislature passed an ordinance Monday to put a 40-year countywide 3/8-cent sales tax, which helps fund stadiums for the Kansas City Royals and Chiefs, on the April ballot.
The two teams issued a joint statement Friday, indicating a commitment to stay in Jackson County if voters approved the sales-tax extension in less than three months.
A late substituted version of Ordinance No. 5822 passed 8-1 during Monday’s meeting of the legislature, though Jackson County Executive Frank White Jr. could still veto the ordinance at any time in the next 10 days.
The ordinance repeals the current 3/8-cent sales tax which is in place until 2031 and replaces it with a new 3/8-cent sales tax for 40 years.
PASSED 8-1. Voters will decide in April whether to fund a sales tax for the @Chiefs and @Royals
— Charlie Keegan (@CharlieKeegan41) January 8, 2024
Legislator DaRon McGee applauded the ordinance's passage and called the sales tax "critical funding ... to ensure that Jackson County retains the Kansas City Royals and Kansas City Chiefs for another generation."
"All along, I’ve wanted to ensure that Jackson County voters had an opportunity to have their voices heard on the next chapter of our sports stadiums," McGee said in a statement. "Today’s vote of the Legislature makes that happen."
Megan Marshall was the only dissenting vote.
The ordinance essentially calls a sales-tax extension, which is what the Royals have asked for since November 2022 when the club announced plans to pursue a new stadium, “appropriate and the most effective means of funding the stadiums.”
Additionally, the ordinance stated that “improvements to and modernization of GEHA Field at Arrowhead Stadium and a new baseball stadium are necessary to ensure that each of these stadiums are in nationally competitive physical condition in the marketplace of professional sports, for the foreseeable future.”
The sales tax would require “lease and development” agreements with the Chiefs and Royals and urges a community benefits agreement that "will serve and advance the interests and vitality of ... residents, economies, and communities of Jackson County,” according to the ordinance.
The workers advocacy group Standup KC said the Royals invited them to the table to help negotiate a community benefits ordinance.
"We know just because they said we’ll have a seat at the table, doesn’t mean we’ll get everything we’re asking for. We’ll continue to hold the Royals and Chiefs accountable," said Terrence Wise, a worker-leader with Standup KC.
Keeping the Royals and Chiefs in the county is “in the best interests of the health, welfare and safety of the citizens of Jackson County,” according to ordinance language.
As a result of passing the ordinance, voters now will decide the fate of the stadiums at the polls on April 2, assuming White doesn’t issue a veto that would send it back to the legislature for a possible override. White would not say whether he plans to veto the measure.
"Everybody’s always trying to get in my head before I can get in my head," White said. "I’ve got to go back and digest it a little bit. I think we still have time before the time comes. Hopefully the teams will still negotiate with us and we can come up with something before that will even have to be considered.”
The newly passed ordinance lauded savings for the county after the Royals' and Chiefs' decision to forego the current proceeds the teams received from the county's parks levy, an annual $3.5-million appropriation, and their willingness to pay property insurance at the stadiums moving forward.
Those concessions will save the county millions of dollars, though how much remains unclear.
“Securing the best deal possible for taxpayers has been a priority for me," McGee said. "Through recent negotiations, we've been able to save the county hundreds of millions of dollars. Both teams have now agreed to give up the annual park levy, to pay their own insurance, and have agreed to a written commitment to enter into community benefit agreements. I’m proud of where we are today and appreciate my colleagues’ support of this legislation. We will continue to work diligently with the teams to negotiate the leases, development agreements, and community benefits agreements.”
Before the meeting, White preemptively argued against putting the stadium vote on the April ballot.
"I firmly believe that our county deserves and can achieve more before we commit to placing this on the ballot," he said in a lengthy statement.
White also stressed the importance of "a solid and enforceable agreement that includes the costs associated with the demolition of Kauffman Stadium" as part of any lease and development agreements and a commitment from both teams to keep their front offices and training facilities in Jackson County.
"It is essential that we fully understand and prepare for these financial implications," he said.
Despite White's protestations, the stadium issue seems destined for an April vote. The deadline to place a question on the ballot for the April municipal election is 5 p.m. on Jan. 23, 2024.
Voters passed the current sales-tax ordinance on April 6, 2006.
The current lease expires on Jan 31, 2006, according to documents reviewed by KSHB 41, but the ordinance says the lease agreements expire Sept. 30, 2031.
The Royals and Chiefs released a joint statement Monday night saying, "We thank the Jackson County legislators and County Executive Frank White for their decision today. We still have a lot of work to do, but this is an important step toward giving the Jackson County voters the opportunity to decide on April 2."
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