Sporting KC to spend $7 million in Wyandotte County to repay Cerner tax incentives
Sporting KC’s parent company, OnGoal, will spend $7 million on Wyandotte County projects rather than the up to $15 million they could have been on the hook for in recouped incentives after Cerner Corp., now Oracle Cerner, left its Wyandotte County campus.
The Kansas Department of Commerce announced Friday they had negotiated a settlement between OnGoal and the Unified Government of Wyandotte County and Kansas City, Kansas. Last year, the UG demanded OnGoal to pay back about $3 million in economic development incentives it had granted to Cerner.
The city was seeking to recoup the incentive money because Cerner did not meet payroll obligations required to receive the incentives. OnGoal received separate incentives to build its west KCK soccer stadium project but was a guarantor of the office project too. As a result, OnGoal is responsible for paying clawbacks that came with Cerner leaving KCK.
Those obligations could have resulted in $3 million in annual clawbacks through 2026 totalling around $15 million, though the Department of Commerce said the amount of funds owed and details of the agreement were in dispute.
Instead, OnGoal will spend $7 million by 2025 on seven projects in the area. That includes $2 million on preparations for the World Cup, $1 million on the Quindaro Ruins and $2 million on the Willa Gill Services Center, a local nonprofit serving low-income residents.
State and local leaders promoted the agreement as an effective way of holding businesses accountable to economic development agreements.
“Since Day One of my administration, I have directed the Department of Commerce to pursue business deals in a way that benefits our communities,” Democratic Gov. Laura Kelly, who based much of her reelection bid on business recruitment, said. “Often that means creating jobs and bringing in investment, but – as this agreement shows – it also means holding businesses accountable and protecting taxpayer dollars. I’m so glad this agreement will uplift the entire region by supporting worthy projects like the Quindaro Ruins and the upcoming World Cup.”
Korb Maxwell, a Polisnelli shareholder representing OnGoal, said the company appreciated its partnership with the state and county.
“For more than a decade, OnGoal has been committed and invested in the local community and looks forward to further enhancing Kansas City, Kansas as a major destination,” Maxwell said.
