KANSAS CITY, Kan. — The American Royal is saddling up for its full expansion in western Wyandotte County after Unified Government of Wyandotte County and Kansas City, Kansas commissioners approved three motions Thursday.
The motions:
9.3 Ordinance: Approval of Second Amended & Restated STAR Bond Project Plan (American Royal)
This ordinance authorizes the execution of the Second Amended & Restated Northwest Speedway STAR Bond District Financing Project Plan. It followed a public hearing.
9.4 Resolution: Setting Public Hearing for American Royal Community Improvement District
This resolution provides notice for a public hearing regarding the creation of a Community Improvement District (CID) known as the American Royal Community Improvement District. It includes the intent to levy a sales tax within the district. The hearing is scheduled for May 29, 2025, at 7:00 p.m.
9.5 Resolution: Approval of Amended & Restated Development Agreement (American Royal)
This resolution approves the Amended and Restated Development Agreement for the American Royal following a public hearing. It includes substitutions of documents as per an agenda update.
Commissioner Chuck Stites did not vote because of a conflict of interest, and Commissioner Phil Lopez was the only ‘no’ vote for all three items.
Thursday’s meeting included a presentation from American Royal representatives and a public hearing, which lasted over two hours.
Over 40 people spoke during the meeting, and the majority of the comments were in favor of the project.
Those in favor included Children’s Mercy Hospital, Kansas City Kansas Public Schools, Kansas State University and Visit Kansas City Kansas.
American Royal President and CEO Jackie McClaskey was at Thursday’s meeting.
McClaskey said the project was conceptualized in 2014. The American Royal board of directors started talks in 2016 with the Unified Government and the State of Kansas.
The groundbreaking came in March 2023.
Construction stopped after money ran out to build the complex.
"We just got to a point where we have spent the private funds that are available," McCaskey told KSHB 41 reporter Rachel Henderson. "The private funds are basically almost considered a match in the STAR bond process. And because those funds weren’t yet available, we felt the need, the right thing to do, was to pause construction until we could get that development agreement negotiated and approved."
American Royal leaders first asked for $80 million in STAR Bonds for a $165 million project.
The latest STAR bond request is now $155 million for a $375 million project.
The project has also expanded to include:
- A 125,000 square foot show arena with 5,000 seats
- 90,000 square foot multipurpose arena
- 75,000 square foot outdoor arena
- 39,000 square foot livestock exhibition hall
- 80,000 square foot agricultural education center
- 20,000 square feet of admin space
“It’s always been a public-private partnership,” McClaskey said.
STAR bonds, or sales tax and revenue bonds, fund large scale entertainment and tourism projects, like the Kansas Speedway.
They're the public part of that partnership.
The new agreement also includes a second phase: an optional, approximately 120-acre festival grounds concept located west of North 118th street. This addition would require the Unified Government to have a non-compete agreement for Azura Amphitheater and approve a final development plan for the festival grounds.
With the festival grounds added, the total cost for the complex comes to approximately $450 million.
“We have 20 years to be able to execute those STAR bonds and pay them back,” McClaskey said. “It is certainly our hope and the belief of many of those involved with the project, with the number of visitors we’re expecting, we’ll be able to pay them off early.”
That’s music to Alan Carr’s ears.
He’s the executive director of Visit Kansas City Kansas, KCK’s tourism organization.
“The American Royal excepts to see 2.3 million visitor days annually once they’re fully up and running,” Carr said. “That’s the equivalent of what we saw last year from the Kansas Speedway and Children’s Mercy Park combined.”
The new deal states the World Series of Barbecue contest will be held exclusively in Wyandotte County during the life of the agreement.
They also include the UG’s contribution of sales tax from Plaza at the Speedway for 20 years, in addition to the state’s pledge of its sales tax.
In order for the UG to contribute sales tax from Plaza at the Speedway, the tax increment financing (TIP) district must be terminated.
Rosana Privitera Biondo is the president of Mark One Electric Company, Inc., which won a request for proposal (RFP) to do the electrical construction for the American Royal’s new site.
Her family also owns 17 properties in Wyandotte County, and the Mark One headquarters is located in both Missouri and Kansas.
When she spoke at Thursday’s meeting, she echoed the sentiments of residents concerned about their property taxes.
“When I hear that they're going to have more sales tax, I think, 'Oh my goodness, my taxes may go down because more sales tax is coming in,"' she said.
UG commissioners said one selling point to approval of the project could be lower property taxes for residents.
“The people in this town desperately need help with their property taxes,” said Dan Cerran, a Wyandotte County resident who spoke in opposition of the development agreement, but not the American Royal.
Cerran said he spoke on behalf of senior citizens in Wyandotte County.
Other residents wary of the agreement told KSHB 41’s Rachel Henderson this project is another example of increased development west of I-635, while those east of I-635 struggle to see the benefits of other STAR bond projects like the Kansas Speedway or the Legends.
Commissioner Gayle Townsend brought up issues she’s seen with potholes being filled effectively in District 1, which in is the city's northeast area.
Mayor Tyrone Garner assured residents more of a focus would be placed on the east side of KCK for future projects.
The topic of property taxes remains a hot-button issue for this project.
Residents have expressed dissatisfaction with the American Royal not paying property taxes.
As a nonprofit, organizations are allowed to apply for a tax-exempt status through the Kansas Board of Tax Appeals.
“Once we move, we will be filing a request with the Board of Tax Appeals to be exempt from property tax, and if that decision is made, that is really the final decision in the process,” McClaskey said.
Even without tax-exempt status, American Royal would pay the Unified Government about $2.5 million worth of Board of Public Utilities PILOT payments.
Based on the presentation from the American Royal from its third party study’s results, the UG would gain approximately $37.5 million worth of revenue from the new American Royal project.
That's mainly because of new sales tax revenue coming from inside and outside of the district.
In a breakdown of the project’s funding sources, the UG’s revenues are 1% of the project instead of 9% in the previous agreement.
UG leadership and American Royal staff both called this agreement a “win-win," especially with a tool like STAR bonds, which they say has worked for Wyandotte County.
McClaskey says she hopes the focus of the project will become more clear.
“What we’re talking about is a whole new food and agricultural education and events complex that will allow us to truly champion food and agriculture on a daily basis and help people understand where their food comes from,” McClaskey said.
