The Kansas City Chiefs’ headquarters plans in Kansas overcame a major hurdle this week. With plans to build the headquarters and practice facility in Olathe, CEO Clark Hunt’s franchise has received unanimous approval from the city council to fund the project. However, the move comes amid many residents stepping forward to raise their concerns regarding public funding.

As part of their relocation plan from Missouri to Kansas, the Chiefs want to build a new headquarters and training facility in Olathe, Johnson County. They have proposed 165 acres of undeveloped land near College Boulevard and Ridgeview Road for it. To set the wheels in motion, the Olathe City Council unanimously passed an ordinance that directs future local sales and hotel tax revenue to help fund the development, per KCTV 5.

The backbone of this funding plan is Sales Tax and Revenue (STAR) Bonds. It’s a state-backed tool that allows the issuance of bonds to fund projects. In this case, the revenue will be used to manage development costs. Under the agreement, the state will set aside the sales and hotel taxes generated through the project for up to 30 years.

This includes 1% of the city’s general sales tax 0.5% of Johnson County’s sales tax. It also includes 7% of hotel taxes collected within the development area. The move comes less than two months after Klark’s team announced its plan to leave Arrowhead Stadium, which has been its home since 1972. They plan to construct a new $3 billion domed stadium in Kansas, expected to open for the 2031 season. 

While STAR Bonds will cover 70% of the cost estimated at $2.4 billion, Hunt’s family has committed to paying the remaining $1 billion for additional developments. Kansas lawmakers have already approved STAR bonds to cover up to 70% of that project, estimated at around $2.4 billion. Currently, the undeveloped land in Olathe generates no tax revenue. It could be a sound argument for backing the Chiefs’ plan.

According to city officials, the project will create new tax revenue that wouldn’t exist otherwise. Firstly, the state will use the project’s revenue to pay off bonds within fifteen to twenty years. After that, the city would keep all future tax revenue. Meanwhile, the STAR bond proposal is facing pushback from ‌residents in Wyandotte County, another location for the project. 

The Kansas City Chiefs’ move to Kansas hits a snag

The Chiefs’ proposed $3.5 billion plan to fund the project through STAR bonds is facing a backlash from people in Wyandotte County. It’s the very place where the team plans to build the new 65,000-domed stadium. On Tuesday, over 50 residents stepped forward to voice their concerns. They approached Unified Government commissioners, admitting to feeling shut out of the process that directly affects them.

Under the proposal, Wyandotte County would use future tax revenue from a 236-acre area near State Avenue to help pay off STAR bonds issued by the Kansas Development Finance Authority. These commitments could last for up to 30 years. The plan would redirect uncommitted city sales taxes. These account for over 93% of the county’s uncommitted sales taxes and hotel taxes, capped at 8%.

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Taxes approved by voters for services like emergency medical care and public safety would be safe. Still, several residents believe any added tax burden would mainly affect senior citizens and working families. James Bain, a resident, questioned why public money should benefit a billionaire owner. He described the idea as “insanity.”

Meanwhile, former Kansas City mayor Carol Marinovich expressed concerns about the plan’s potential effects on the Board of Public Utilities, the Piper School District, and public safety. Another resident called it an unfair deal.

“We’re giving away the farm for nothing,” Fannie Hill said. “This is not a deal. It’s an insult.”  

Meanwhile, commissioners will not take any formal action until Thursday, and the meeting was held to receive public feedback. As the Chiefs cleared one obstacle, another one has popped up to stall their ambitious plans.