Missouri House passes bill to keep Chiefs, Royals in state

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a day ago

JEFFERSON CITY, Mo. — The Missouri House of Representatives on Wednesday passed a plan to try and keep the Chiefs and Royals in the Show Me State.
Senate Bill 3 authorizes the state to issue bonds valued at up to half the cost of stadium projects for the Chiefs and the Royals. On Thursday, June 5, the Missouri Senate passed the bill, with 19 voting for it and 13 against it.
Now, it heads to the desk of Governor Mike Kehoe, who is expected to sign the bill into law.
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Kansas City Mayor Quinton Lucas released a statement Wednesday afternoon, praising the Missouri Legislature's passage of Senate Bill 3:
'I commend Governor Kehoe for crafting legislation that will keep the Chiefs and Royals in Missouri for years to come. With passage in the Missouri legislature, Kansas City will continue its work with the Royals to build a robust and responsible area development and incentive plan to keep the Royals in Kansas City, Missouri—building on a generation of investment and growth in Downtown Kansas City. New, firm, and non-speculative Missouri state support matched with Kansas City's own resources and unique experience among area local governments in large facility development of venues like CPKC Stadium, the Kansas City International Airport, and more, will allow Kansas City to move the long conversation on the future of local sports facilities to completion. Kansas City also will provide necessary assistance to the Chiefs, their landlord Jackson County, and Clay County to build a long-term future for Arrowhead Stadium, one of the finest football venues in the world, and practice venues that can spur more development opportunities for the team and our region.'
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The property tax portion of the bill has made it more controversial, though.
It allows counties to put a local property tax reform measure on their ballots – capping a person's real property tax liability at five percent. But the largest counties in the state, like Jackson County for instance, aren't included.
When it comes to the stadium portion of the bill, there was opposition from some state lawmakers who said it makes the Chiefs and Royals more profitable—at the expense of taxpayers.
The Chiefs also released a statement Wednesday, thanking Gov. Kehoe:
'We are grateful to Governor Mike Kehoe and the Missouri Legislature for taking this significant step forward. The passing of this legislation is an important piece of the overall effort. While there's still work to be done, this legislation enables the Chiefs to continue exploring potential options to consider remaining in Missouri.'
The Royals released a statement as well:
'As we said from the beginning of the Legislature's deliberations, their work is a very important piece of our decision-making process. Now that both houses have voted and the bill is headed to the Governor's desk, we look forward to evaluating the plan in full detail.'
'Our focus remains the same: to prioritize the best interests of our team, fans, partners and regional community as we pursue the next generational home for the Kansas City Royals.'
The bill will now head to Gov. Kehoe to sign.
The Chiefs and Royals currently play football and baseball in side-by-side stadiums in Jackson County, Missouri, under leases that expire in January 2031. Jackson County voters last year defeated a sales tax extension that would have helped finance an $800 million renovation of the Chiefs' Arrowhead Stadium and a $2 billion ballpark district for the Royals in downtown Kansas City.
That prompted lawmakers in neighboring Kansas last year to authorize bonds for up to 70% of the cost of new stadiums in Kansas to lure the teams to their state. The Royals have bought a mortgage for property in Kansas, though the team also has continued to pursue other possible sites in Missouri.
The Kansas offer is scheduled to expire June 30, creating urgency for Missouri to approve a counteroffer.
Missouri's legislation authorizes bonds covering up to 50% of the cost of new or renovated stadiums, plus up to $50 million of tax credits for each stadium and unspecified aid from local governments. If they choose to stay in Missouri, the Chiefs plan a $1.15 billion renovation of Arrowhead Stadium.
Many economists contend public funding for stadiums isn't worth it, because sports tend to divert discretionary spending away from other forms of entertainment rather than generate new income.
But supporters said Missouri stands to lose millions of dollars of tax revenue if Kansas City's most prominent professional sports teams move to Kansas. They said Missouri's reputation also would take a hit, particularly if it loses the Chiefs, which have won three of the past six Super Bowls.
The legislation faced some bipartisan pushback from those who described it as a subsidy for wealthy sports team owners. Others raised concerns that a property tax break for homeowners, which was added in the Senate to gain votes, violates the state constitution by providing different levels of tax relief in various counties while excluding others entirely.
The Associated Press contributed to this report.
This is a developing story. Stay with FOX4 for the latest updates.
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