Olathe to discuss Chiefs deal publicly for the first time Tuesday. What to expect

The Olathe City Council will soon decide if it wants to contribute local tax revenue to help pay the bill for a new Kansas City Chiefs stadium and supporting facilities.

Tonight, the Olathe City Council will hold its first, and long-awaited, public hearing to decide whether the city will direct local sales tax and use revenues generated within a portion of Olathe to help pay off sales tax and revenue (STAR) bond debt to finance the team’s new Kansas facilities.

The discussion comes after the Chiefs and state officials announced their intention to move across the state line in December, along with a nearly $4 billion plan to build a new domed stadium and state-of-the-art practice facility and headquarters.

While it’s the first time Olathe officials will publicly discuss and vote on the project, it won’t be the last. It may be considered one of the largest government subsidies for a professional sports stadium in U.S. history, but any future development still needs to get the greenlight from Olathe.

Subsequently, residents will have more than one chance to share their thoughts as the Chiefs and the state try to get this project off the ground in the coming years.

What’s happening on Tuesday?

For now, the city is focusing on local sales taxes. Specifically, the Olathe City Council will decide if it wants to allocate local tax revenue from the area surrounding the new practice facility to help pay back the Chiefs projects’ STAR bond debt.

STAR bond districts usually encompass a new development aimed at attracting tourists and require local buy-in, because local governments are typically the entities that issue the bonds. Then, state and local sales tax revenue from the district are used to pay back the bond amount over several decades.

However, special incentives Kansas lawmakers passed in 2024 to specifically pay for stadiums allowed the state to issue STAR bonds itself and to create a bond district that doesn’t need local approval.

That’s because the state-drawn district would collect only on state sales tax revenue to put toward the stadium debt. Any local tax money for the stadium project needs to be voted on separately by local governments.

That set-up has resulted in a Chiefs stadium bond district that could include and pulls tax money from three parts:

• A sweeping district across much of Wyandotte and Johnson counties that would redirect state sales tax money,
• A smaller, 236-acre area around the new stadium site that would redirect local sales taxes from Wyandotte County,
• And an even smaller, 165-acre area around the new practice facility that would redirect local sales taxes from Olathe.

Later this year, state officials will decide the terms of the state district on their own — which will pull state money from both counties.

This month, local officials will vote on the terms for the local areas that would put local tax money toward the stadium.

Referred to as the “Base Revenue Area,” Olathe would allocate all of the city’s general sales tax not committed to other uses on a 165-acre site at the northwest corner of College Boulevard and Ridgeview Road — just south of Kansas Highway 10 — for 30 years, according to Olathe’s proposed ordinance.

Any local sales tax revenue generated within that site over the next 30 years would go to pay off the bond debt. Additionally, the ordinance calls for the city to pledge 7% of the 9% transient guest tax the city charges for hotels, motels or guest stays located within the “Base Revenue Area.”

The city’s street maintenance sales tax and park sales tax are among the voter-approved retail sales taxes that will be excluded from going toward the Chiefs project. The ordinance also has an exception for future special taxing districts — like community improvement districts, tax increment financing districts or transportation.

While the approval would solidify Olathe’s commitment to the Chiefs, the state has the discretion to request the City Council make changes to the district, which would require another vote.

Projects still need local approval

While tonight’s meeting focuses on financing, any development plans — and any additional tax incentive requests — would need to go before Olathe in the next few years in order to be ready for the 2031-2032 NFL season.

Plans for the headquarters and practice facility include a mixed-use development surrounding the site that would feature entertainment, dining, shopping, office, hotel and residential properties — mirroring similar projects in Dallas and Minnesota.

“Any development in Olathe, regardless of STAR bond etc., would still follow the standard codes and development process,” Olathe spokesperson Cody Kennedy said in an email.

According to Olathe’s building permit code, property owners must obtain building permits, undergo design review and financial analysis and create a preliminary development plan. The City Council would still need to hold public hearings to approve the land use and site plans, and adopt formal agreements with developers for the 165-acre site.

These developments need to begin no later than Dec. 31, 2028, according to the state’s STAR bond term sheet.

Tuesday’s Olathe City Council meeting is scheduled to begin at 7 p.m. in the council chambers at City Hall – 100 E. Santa Fe. St.

This story was originally published February 3, 2026 at 3:30 PM.