Border truce ‘didn’t include the Chiefs,’ Kansas governor says amid relocation talk
Kansas Gov. Laura Kelly said Thursday the state’s economic border war truce with Missouri “didn’t include the Chiefs,” after the team president disclosed it has considered stadium options in Kansas.
The Democratic governor’s comment signals Kansas would be willing to use economic incentives to lure the Chiefs, who have been in Kansas City since 1963, across the state line.
When initially asked about the possibility of relocating the NFL team, Kelly quipped that she was “on speed dial with Lamar Hunt,” referring to the Chiefs’ late founder and owner. His son Clark Hunt is the team’s chairman and CEO.
Kelly, who was attending an unrelated event in Roeland Park, then added: “You know, I would be all for it, obviously. When I signed the border war truce with Missouri, it didn’t include the Chiefs.”
The Chiefs are a hot commodity right now in the Patrick Mahomes era and with a Super Bowl victory in 2020. Still, the team’s current lease at the Truman Sports Complex doesn’t expire until 2031.
Chiefs president Mark Donovan a few days ago “said the team has considered options in state of Kansas,” Kevin Clark, who covers the NFL for The Ringer, tweeted. “They like Arrowhead and legacy of Lamar Hunt’s stadium, but have been pitched by Kansas developers on a bunch of options. Something to watch.”
Donovan’s comments came as the Royals have expressed interest in building a downtown ballpark, which would affect the Chiefs.
In 2019, Kelly curtailed the use of tax breaks and other incentives to attract Missouri-based jobs in the Kansas City metro into Kansas. Missouri Gov. Mike Parson also signed a bill holding his state to the same restrictions.
The agreement ended — or at least significantly reduced — frequent by poaching states to move jobs and businesses from one side of the metro to the other. The practice attracted significant criticism because it resulted in the states foregoing tax revenue without creating new jobs for the region as a whole.
For their part, Kansas City and Jackson County leaders have indicated they want to keep the Chiefs in Missouri for the long haul. Mayor Quinton Lucas said Kansas City would work with the Chiefs, Missouri and local officials and “to ensure the Chiefs remain home in Kansas City and Missouri for generations to come.”
If the Chiefs seriously consider moving, it’s not clear whether Kelly or another governor would ultimately make the final decision about how aggressively to pursue the team. Kelly is up for re-election this year and is expected to face Republican Attorney General Derek Schmidt on the November ballot.
Regardless of the administration, Kansas has a significant weapon, STAR bonds, it could use to entice the Chiefs. Missouri doesn’t have an identical program.
Under the Sales Tax and Revenue (STAR) bond program, Kansas could designate a STAR bond district that includes the location of the hypothetical stadium and the surrounding area. Bonds would be issued to finance the construction of the stadium. They would then be paid off through future increased sales tax revenue in the district.
“Arrowhead is an iconic stadium in the NFL but even the most historic of venues get replaced over time as the needs of the fans change and the economics of football change,” said Kansas state Sen. J.R. Claeys, a Salina Republican and Chiefs season ticket holder. “So I can see why they would be interested in reviewing their options.”
But STAR bonds have been controversial. A state audit last year found that Kansas may spend decades, perhaps a century, recouping the sales tax revenue it gave up developing large attractions under the program.
The Star’s Blair Kerkhoff and Kevin Hardy contributed reporting
This story was originally published March 31, 2022 at 2:11 PM.
