American Royal gets closer to restarting construction. When KCK barns could go up
Underwriters contracted by Wyandotte County’s local government may soon ask public investors to buy more than $90 million in sales tax and revenue bonds to restart American Royal’s move to western Kansas City, Kansas.
At the end of a nearly six-hour meeting Thursday, the Unified Government Board of Commissioners by an 8-1 vote approved the Royal’s revised development agreement. Sixth District Commissioner Philip Lopez dissented.
The changes allow parties to make their first bond issuance on the public market instead of selling those privately as initially agreed in April. The amendment also revises how the long-promised project will be broken into phases.
American Royal’s relocation from the West Bottoms into Wyandotte has been in talks among government officials for a decade. Local leadership and the nonprofit came to an agreement to keep the project moving along during a meeting last spring, when they signed off on a 20-year, $155 million STAR bond deal, created a Community Improvement District and finalized their development agreement.
American Royal hosts its famous World Series of Barbecue annually and is known for its rodeos, stock shows and agricultural and educational activities.
Construction has been on hold ever since. American Royal has largely relied on private funding to carry construction up to this point, and it needs public investment to be able to continue, said Jackie McClaskey, the organization’s president. So far, about $120 million in private dollars have gone toward the project, McClaskey said.
After government officials approve specific bond documents, the parties will enter a public bond sale. They hope that sale, which they aim to close in late January or early February, will proffer $93 million of the $155 million deal.
What’s next?
When that’s finished, the nonprofit will kickstart its first phase of the project, which includes its exhibition hall containing 390,000 square feet of barn space. American Royal is legally obligated to restart construction within 60 days of selling those bonds and must complete the project within 18 months. McClaskey said the organization expects construction to be finished by summer or fall 2026, rather than the full 18 months.
Although the group initially promised to build its arena and education center in tandem with the barns and complete those within two years, the local government approved extending the deadline for that center to three years within closing on that first bond sale.
“Developer does NOT have enough money to deliver the entire Core Royal and Education Center based on first bond issue,” according to board documents. “So if UG issues the first STAR bond issue, they specifically agree to complete and operate the barns only until they can complete the rest.”
Activities in those barns would be underway while construction for the overall project remains in the works. McClaskey said that’s ideal because it would help the American Royal gradually transition into the new location as well as generate economic activity while construction is underway.
Project growth, financing
The total project cost grew to $450 million in 2025 from the estimated $160 million when negotiations began in 2016. American Royal’s bond ask also grew in that time. The $155 million approved by commissioners in April was notably larger than the $80 million deal they approved in 2016.
The $155 million STAR bond deal and other public and private funding will contribute to the first $375 million of the project. American Royal also wants to build extensive festival grounds for events to be held at the property. The organization and the Unified Government will likely not visit plans for the festival grounds until after all other construction finishes, McClaskey said.
American Royal will pay the government a $5 million fee after the bond is first issued. Then, it will make annual payments on those bonds totaling $1.3 million beginning in May 2027 through May 2045, totalling about $25 million in payments.
The group will pay property taxes on the land they own near the Kansas Speedway throughout the course of construction. After construction is completed, it may apply to the Kansas Board of Tax Appeals to determine whether the nonprofit qualifies for a property tax exemption.
