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Wyandotte County gives tax money to Chiefs stadium in exchange for a vote on sports authority

A rendering shows a domed Chiefs stadium full of fans.
Manica Architecture
The Unified Government sued Kansas in early October, alleging the state acted unconstitutionally in making a deal with the Chiefs. The new agreement puts an end to the lawsuit.

The latest agreement fully settles a lawsuit the Unified Government of Wyandotte County and Kansas City, Kansas, filed in October, alleging Kansas overstepped its authority in negotiating for the new Chiefs stadium.

The Chiefs’ move to Kansas has become easier after an agreement between the state of Kansas and the Unified Government of Wyandotte County and Kansas City, Kansas.

The state and Unified Government announced the agreement Monday, closing a legal battle over the deal to bring the Chiefs across state lines.

“Settling these outstanding items is a decisive step forward for all involved,” Gov. Laura Kelly said in a statement. “Every detail is critical when you’re working on a $4 billion deal – and our strong, committed partnerships paved the way for a shared path forward for all of us.”

The dispute began when Wyandotte County was left out of the multibillion-dollar deal to bring the Chiefs stadium to Kansas City, Kansas. Local officials said they didn’t hear about the deal until days before it was finalized.

In its Oct. 9 lawsuit, Wyandotte County’s government said the state unconstitutionally stripped the county of its local powers to lure the Chiefs to Kansas. The county and city’s board of commissioners followed the lawsuit by unanimously opting out of parts of the law to maintain the city’s power over some taxes, zoning and utilities while securing a seat on the Kansas Sports Facilities Authority.

“If the state intends to embark on an economic development project of this magnitude, it must include the local citizens who work and live here,” Kansas City, Kansas, Mayor Christal Watson said in a statement after the county filed the lawsuit. “The current legislation does not give us a proper say in how this gets done and who will benefit.”

Under the new agreement, the Unified Government agreed to permanently dismiss its lawsuit. Watson will hold a voting seat on the Kansas Sports Facilities Authority, the 11-person board that will oversee construction, financing and management of the stadium, training facilities and the surrounding entertainment districts. The board also includes one member chosen by the Chiefs.

Kansas will remove the Quindaro Ruins area from the state’s STAR Bond District. STAR bonds, or sales tax and revenue bonds, were approved by the state legislature in 2024 to provide some of the funding for the $3 billion domed stadium in Kansas City, Kansas, and $1 billion training center and mixed-use district in Olathe.

The Unified Government voted unanimously on Nov. 5 to pledge sales tax revenue and a portion of its transient guest tax revenue collected in the local STAR Bond District, which will be limited to the new stadium and surrounding area.

This agreement follows one made in October, which confirmed that the Unified Government and Wyandotte County Board of Public Utilities would keep jurisdiction over the development — including local planning and zoning and paying of BPU fees — surrounding the stadium. It created a path for the BPU to develop a partnership with Evergy for electric service for the stadium.

The October agreement also stipulated that the stadium and its parking areas would be owned by the oversight board and would not be subject to local zoning or building codes. That area will be leased to the Kansas City Chiefs by Kansas for $7 million per year.

The Kansas Sports Facilities Authority board is expected to hold its first meeting within the coming weeks. That’s when it will sign and fully execute the November agreement between Kansas and the Unified Government, ending the legal battle surrounding the stadium.

“This is a win for the people of Wyandotte County, the State of Kansas and the Chiefs,” Watson said in a statement. “We appreciate the collaboration by all parties and the willingness to reach compromises that ensure the stadium gets built on schedule while also addressing local community concerns. The stadium will provide meaningful benefits to our community through economic opportunities, increased tax revenue, and anticipated job creation.”

As KCUR's local government reporter, I’ll hold our leaders accountable and show how their decisions about development, transit and the economy shape your life. I meet with people at city council meetings, on the picket lines and in their community to break down how power and inequities change our community. Email me at savannahhawley@kcur.org.