KANSAS CITY, Mo. — After initially voting for an ordinance to put a stadium sales-tax extension before voters, two Jackson County legislators — along with the one who voted against the ordinance in the first place, Legislative Vice Chair Megan Marshall — now say they will support County Executive Frank White Jr.’s veto.
A third legislator also signaled that he’s “willing to uphold the veto.”
Legislator Jalen Anderson and Legislative Chair Jeanie Lauer voted for Ordinance No. 5822 Jan. 8, which would place an extension of the 3/8-cent sales tax that helps fund stadiums for the Kansas City Royals and Chiefs on the April 2 ballot.
Both have now said they will sustain White’s veto unless the team’s sign a concrete agreement amid ongoing negotiations with between the teams and the county.
Legislator Sean Smith also said he needs “documentation that is clear and unambiguous, and signed by all parties involved including the teams, the Jackson County Sports Complex Authority and the County” before he would vote to override the veto.
The ordinance passed 8-1 but six votes are needed to override White’s decision to put the kibosh on the ordinance — and those three defections leave, at most, five votes.
Could that change again before Monday, when the legislature meets again? Perhaps, but if it doesn’t there will be significant doubt as to the future of the Chiefs and Royals in Jackson County.
Both teams agreed to extend their lease and remain in Jackson County if voters pass a sales-tax extension in April, but if the legislature lets White’s veto stand that won’t be possible.
The deadline to put the question before voters in April is Jan. 23, so the pressure to strike a deal before Monday afternoon has intensified.
KSHB 41 obtained a copy of a letter signed by the Jackson County Sports Complex Authority, which outlines concessions and commitments by the Royals and Chiefs.
The teams had yet to sign that letter of intent, though, giving Smith pause. He would reconsider if the teams and the county signed the agreement before Monday’s meeting.
However, White seems unlikely to sign and, in that case, Smith said he would “have to hear Frank’s rationale” before deciding whether or not to override the veto.
“I’m confident that the teams and the County along with the Jackson County Sports Complex Authority can reach an agreement promptly and retain this on the ballot if all parties devote the next several days and endeavor to reach mutually acceptable agreements,” Smith said in his statement. “If these conditions cannot be met by the deadline for a veto override, I strongly encourage my colleagues to sustain the County Executives veto and allow more time for the teams and the county to come to an agreement so that we can place this on the ballot later in 2024.”
He said he looks “forward to the teams and the county negotiating in good faith so that we can resolve this as quickly as possible,” but Smith’s statement didn’t outline demands the teams must meet to secure his vote.
Meanwhile, Anderson, Lauer and Marshall noted 10 specific “unresolved issues” that must be addressed before they would override the veto and agree to put a sales-tax extension before voters:
1. A more-robust Jackson County-preference plan
Currently, Jackson County taxpayers have access to a presale a few hours before tickets go on sale to the general public for most big events at the stadium, including Royals and Chiefs games.
Of course, that comes after other presales and offers a limited window for Jackson County residents to take advantage.
Moreover, those presales and other benefits for the teams’ home county residents often aren’t well-publicized or understood by the people who could benefit from them.
Anderson, Lauer and Marshall want “a substantial benefit for our county’s residents, designed to match or surpass comparable initiatives in the MLB and NFL over the entire length of the agreement," though no other details were offered.
2. Deeper commitment to county
There has been speculation that the Chiefs may move parts of their business operation or even the team’s training facility to Kansas.
Anderson, Lauer and Marshall want a “commitment to keeping front offices, training facilities, and essential operations within Jackson County.”
3. Property-insurance relief
The county currently pays property insurance for the Harry S. Truman Sports Complex, where the teams play their games and the Chiefs have a training facility.
Under the draft letter of intent, the teams would take on that expense, but Anderson, Lauer and Marshall want it in writing effective 2025.
4. Ending Parks Tax contributions
The teams currently split $3.5 million in revenue from the Jackson County Parks Tax.
The Royals and Chiefs are willing to give that up, but again Anderson, Lauer and Marshall want it in writing effective 2025.
5. Rental-fee agreement
Anderson, Lauer and Marshall want “a fair rental/licensing fee” agreed to by both teams and they want it to be pegged to inflation, so its value doesn’t plummet during the lease term.
6. Costs to say goodbye to ‘The K’
The Chiefs, under terms of the draft letter of intent, would take control of the former Kauffman Stadium space once the Royals move and it’s demolished.
That’s fair and logical, but Anderson, Lauer and Marshall want the teams, and the teams alone, to beat the cost of tearing down “The K.”
7. Clarity with respect to community benefits
It’s not enough for Anderson, Lauer and Marshall that the teams are amenable to a Community Benefits Agreement.
They want a long-term plan in place for how the ongoing investment in homes for the Chiefs and Royals will improve Jackson County for residents and other businesses.
8. Royals’ site selection
Anderson, Lauer and Marshall expect any agreement to specify where the Royals’ new stadium will be.
It “must be confirmed,” they wrote.
The Royals publicly narrowed the options to one inside the Downtown Loop and another in North Kansas City over the summer, but a third option, the former Kansas City Star press building, has emerged.
9. Arrowhead details
The waffling legislators want the Chiefs to articulate “detailed plans” for the future of renovations at GEHA Field at Arrowhead Stadium and plans for the former Kauffman Stadium site.
So far, Chairman and CEO Clark Hunt has only said that the team’s preference is to stay put.
The draft letter of intent indicates plans for “renovation and expansion,” including improving Arrowhead’s infrastructure and “potential renovation of the existing training facility.”
Anderson, Lauer and Marshall would prefer more clarity about what those plans entail.
10. Private-capital commitment
The Royals repeatedly and publicly have said the team’s ownership group is willing to commit $1 billion to the project and surrounding ballpark district.
The Chiefs’ ownership group has spent hundreds of millions during past renovations, but Anderson, Lauer and Marshall want both teams’ ownership groups to be up front about those private investments before taking a potential sales-tax extension to voters.
“We will not advance with agreements that could expose the county to future financial or legal risks,” according to the statement released by Anderson, Lauer and Marshall. “Our focus remains on safeguarding our community’s interests in these significant negotiations.”
Under the draft letter of intent, the teams and county would have to have new lease agreements in place by March 31, 2024, giving voters a chance to know all those details ahead of a possible April 2 vote.
However, early voters may be out of luck and, in the absence of having those questions answered up front, there’s fear among some legislators that a well-funded PR blitz by the teams might persuade voters to sign off on anything, even if it fails to address the concerns White and the legislature have.
“It would be irresponsible to present this matter to the voters without first ensuring that all significant aspects have been addressed comprehensively and to the benefit of Jackson County,” Lauer, Marshall and Anderson said in their statement supporting White’s veto.
They also noted that, in the absence of an agreement by Monday, they are willing to continue negotiations with an eye toward putting the sales-tax extension on the August or November ballots later this year or in future years.
The Royals and Chiefs are locked into existing lease agreements until January 2031.
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