Kansas City is formally proposing to offer $600 million in funding to help pay for a new Kansas City Royals ballpark and team offices in the Crown Center area.
That includes $90 million in infrastructure funding, with the rest to be paid through “legally available” sources, including bonds and grants.
The Kansas City Star said Sources for funding to pay back the bonds would be expected to include economic activity taxes generated by the project, a special 1% sales tax in the project area, restaurant tax revenue, parking revenue, tax increment financing through the stat.
It would also include possibly available tax revenue from related commercial and residential development and any other “legally-available” sources.
The Kansas City Royals are an American professional baseball team based in Kansas City, Missouri (US). The Royals compete in Major League Baseball (MLB) as a member club of the American League Central Division.
The Royals currently play at the 40,793-seat Kauffman Stadium in Kansas City, Missouri (US).
The Royals had been weighing several options for a new ballpark in recent months. But they ultimately rejected an option in the suburb of Overland Park, Kansas, and allowed a deadline to pass for a site north of downtown and across the Missouri River in Clay County, Missouri.
The Royals are now pursuing a $1.9 billion stadium that would anchor a $3 billion entertainment district in a transformed Crown Center.
The Royals expect to break ground at Crown Center in 2027 with a target date of opening for the 2030 season, although their lease at the Truman Sports Complex isn’t up until after the 2030 season.
City funding agreement
The Kansas City Star further stated that team would have “no obligation” to repay or support the city bonds, although the city would intend to seek funds for bond repayment every year — as not paying them would harm the city’s credit rating.
The proposed agreement marks the first public disclosure of the city’s full financial role in securing the stadium near downtown. Approval of the deal would effectively kickstart the project, a major step in the Royals’ yearslong search for a new home.
It also comes as a progressive labor advocacy group is trying to force a public vote on the project.
The committee will review other various proposed agreements between the city and the Major League Baseball team related to the stadium project, including a lease agreement and a community impact agreement.
Total public funding for the project would be $1.14 billion, the proposed funding agreement says.
After the city’s $600 million, the remaining roughly $540 million would come from the state through a mix of sources, including tax credits, bonds through the Show-Me Sports Investment Act program passed last year, transportation cost share funding and capital improvements funds approved by the state legislature.
The Royals would privately fund the remaining $760 million of the estimated cost for the project, the proposed agreement says.
Continue following Coliseum for the latest updates on sports venues, stadiums and arena business news worldwide.
Coliseum is dedicated to building a global community of sports and entertainment venue professionals helping create better and more profitable venues.
Become a member of the Global Sports Venue Alliance and connect with stadiums, arenas and industry experts from around the world. Apply for membership through the Global Sports Venue Alliance and access the 365Coliseum Business platform.