KANSAS CITY, Mo. — Missouri’s long-awaited counteroffer to the STAR Bonds package Kansas put together in hopes of luring the Chiefs or Royals across the state line passed Tuesday in the House of Representatives.
Gov. Mike Kehoe gathered the Republican caucus to discuss his proposal, which is an amendment to Senate Bill 80, earlier Tuesday morning, before a robust debate ensued.
Dubbed the Show-Me Sports Investment Act, the amendment would allow any MLB or NFL team to apply for a tax-credit program through the Missouri Department of Economic Development for projects of at least $500 million related to “the development, construction, reconstruction, rehabilitation, repair, or improvement of any athletic and entertainment facility.”
If a team’s project was approved, Missouri would redirect the tax revenue generated from activity at the facility — state sales tax general revenues accrued at the stadium, income-tax withholding from employees who work at the stadium, and “nonresident professional athletes and entertainers state income tax revenues,” the so-called jock tax — back to the teams, who could use it for bond payments or to recoup money spent on the project.
The baseline allowable tax credit will be based on tax revenues from the previous year, and any such agreements are limited to 30 years.
“Kansas City strongly supports the legislation presented today by Governor Kehoe,” Kansas City, Missouri, Mayor Quinton Lucas’ office said in a statement. “The Governor's legislation will ensure the Kansas City Royals and the Kansas City Chiefs are Kansas City’s teams today and will remain Kansas City’s and Missouri's teams for generations to come.”
The amendment passed the House 103-43, and Senate Bill 80 then passed 108-40, so it now goes back to the Senate as amended. Lawmakers began discussing the amended bill in the Senate chambers shortly after it passed the House. The bill was still being debated on the floor well into Tuesday evening.
House lawmakers debated for hours on Tuesday. Supporters brought up points of the amended bill keeping jobs in Missouri and staying competitive against Kansas to keep the Royals and the Chiefs. Lawmakers also emphasized how much tax revenue the bill would bring into the state and how much the Royals and the Chiefs are a staple in Kansas City.
“The House today demonstrated Missouri’s strong commitment to keeping the Royals and Chiefs in our state for many decades to come. These teams are vital parts of Kansas City’s culture and their loss would be a blow to the local psyche and economy," House Minority Leader Ashley Aune (D-Kansas City) said in a statement.
The amendment was proposed very late in the game, just days away from the end of session on Friday, May 16. That was one of opponents main points of concerns — there wasn't enough time to vet the amendment in committee or go through the formal legislative process.
Other lawmakers had concerns with giving the Chiefs and the Royals, both billion-dollar franchises, more funding while other state projects struggled to get any dollars in the budget.
Under the Kansas legislature’s STAR Bonds proposal passed last year, up to 70% of tax revenue at a professional sports stadium can be used to repay the construction costs.
The amendment — which was put forth by Rep. Chris Brown, a Clay County Republican — would allow this new development tool to be used anywhere in the state, provided it meets the requirements outlined, and could be further amended in the future to include an NHL or NBA team.
Additionally, the amendment includes a clawback provision that allows the state to reclaim every tax dollar credited in the event a team leaves while the agreement is in place.
"Having met with Royals leadership just yesterday, Mayor Lucas is grateful to see state legislation that responsibly facilitates public support, ensures taxpayers are protected, will generate revenues for Missouri well into the future, and provides transformative opportunities for Kansas City and communities across Missouri,” Lucas’ office said.
The amendment would apply to a new Royals stadium, whether it’s built in North Kansas City or Washington Square Park, and also would apply to a renovation at GEHA Field at Arrowhead Stadium, provided it costs at least $500 million.
But it would apply to future renovations for the St. Louis Cardinals as well.
A spokesperson for the Royals said the team appreciates the "dedicated efforts of the Missouri Legislature to pass this legislation" as well as the recognition of the "longstanding partnership the Royals organization has had with the State of Missouri and the Greater Kansas City region."
"This legislation is an important piece as we consider options for our team's future home. We will review it in detail, toward fully understanding the important opportunities it presents," a Royals spokesperson shared in a statement. "As we’ve said, we look forward to making a decision that is in the best interests of our team, our fans, our partners, and our regional community. We remain grateful to the State of Missouri for putting forth their best proposal, and for their continued leadership and partnership."
Currently, past renovations and maintenance at Arrowhead and Kauffman Stadium are paid for through a 3/8-cent sales tax in Jackson County, but voters rejected an extension of that sales tax in April 2024.
Should the Senate Bill 80 amendment pass, KCMO believes it would have a path to fund a new Royals stadium that bypasses the need for another countywide vote on a possible sales-tax extension.
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