KANSAS CITY, Mo. — Officials from the Kansas City Chiefs, Kansas City Royals and the Jackson County Sports Complex Authority announced they signed a lease agreement Wednesday.
LINK | KSHB 41 News coverage of stadium developments
The clubs have been working to provide a new lease ahead of next Tuesday’s election in Jackson County, asking voters whether to enact a replacement 3/8-cent sales tax with funding going toward stadium projects for both teams.
READ | Chiefs 2024 amended & reinstated lease
READ | Chiefs 2024 lease amendment
READ | Chiefs 2024 development agreement
READ | Royals 2024 lease
READ | Royals 2024 lease agreement
READ | Royals 2024 development agreement
Implementation of the new lease is contingent on voters approving the sales tax question next week and approval by the Jackson County Legislature.
RELATED | Answering your questions about the Chiefs, Royals stadium plans
Project funding
Chiefs: The Chiefs estimate their contribution to be $300 million. Other sources of funding are outlined as from the state of Missouri, the city of Kansas City, Missouri, and a new sales tax. The Chiefs would cover any cost overruns.
Royals: “The project will be funded by (I) State of Missouri contribution, (ii) City of Kansas City, Missouri contribution, (iii) the Tenant contribution and (iv) new sales tax (to the extent landlord and tenant agree to provide). State and City contribution to amount acceptable to the Royals; Royals contribution to be an amount acceptable to the landlord and Royals.”
The Royals would be responsible for any cost overruns.
Brooks Sherman, Kansas City Royals president of business operations, said the team anticipates “putting a lot of ownership money into the development," which they estimate to be $1 billion.
“We’ll be also putting in hundreds of millions into the stadium,” Sherman said. “We’re still at work negotiating and speaking with both the state and the city on the funding that will go along with the sales tax funding. Those are a little bit to be determined, but we’re working hard every day to round out all the financing.”
Length of lease
Chiefs: 25 years, with three renewal options of five years each for a total of 40 years.
Royals: 40 years, with two renewal options of five years each.
Rent
Chiefs: $1,100,000 per year, plus percentage rent
Royals: $2,750,000 per year, plus percentage
Insurance
Chiefs: Cover costs of casualty insurance
Royals: Cover costs of casualty and liability insurance
Maintenance
Chiefs: Responsible for all repair and maintenance to “first-class NFL manner,” except for repair and maintenance of “common areas."
Royals: “Responsible for all repair and maintenance to a First Class MLB manner.”
Shawn Foster, Jackson County Sports Complex Authority Chairman, said the clubs will bear the cost of the demolition of Kauffman Stadium. A cost for the demolition wasn’t available.
Documents
The Office of Jackson County Executive Frank White Jr. released a statement urging the entities involved in the lease agreement to "release the documents to the public and to the media to ensure that the community is fully informed."
“Today, reports have emerged about documents signed by the Jackson County Sports Complex Authority and the Kansas City Royals and Chiefs. It is imperative to clarify to the residents of Jackson County that these documents do not constitute leases with Jackson County. The Sports Complex Authority operates independently and does not have the authority to commit or act on behalf of Jackson County in matters of leasing or similar legal agreements.
“Any lease or similar agreement involving county-owned property must undergo a rigorous and transparent process. This includes approval by the Jackson County Legislature, which is predicated on thorough public hearings, extensive debate and valuable community input. Our commitment to transparency and public participation in these processes is unwavering.
“Unfortunately, it has come to our attention that there has been misleading communication regarding the nature of these documents by the involved teams. The actual documents have not been made available for public scrutiny or journalistic review. This lack of transparency is concerning, as it hinders the ability of journalists to effectively inform the public and prevents our community from making informed decisions, especially as they pertain to matters of significant public interest and potential impact at the polls.
“County Executive Frank White, Jr. will provide further comments on this matter once the documents in question are released and fully reviewed. Our office is committed to ensuring that the public is accurately informed and that the processes involving public assets and interests are conducted with the highest degree of transparency and accountability.
“We urge the parties involved to release the documents to the public and to the media to ensure that the community is fully informed. Our residents deserve no less than a transparent, open process that allows for informed decision-making and robust public participation.
“Further updates will be provided as more information becomes available. The trust and confidence of the Jackson County community remain our utmost priority.”
This is a developing story and will be updated.
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