After a new bill is passed in Topeka, the long border war between Missouri and Kansas enters a new chapter.

The recent effort to build the Kansas City Chiefs a new stadium and practice facility in Kansas has passed its first legislative step.

On Tuesday afternoon, the Kansas House of Representatives voted 84-38 to pass a bill creating a Sales Tax and Revenue (STAR) bond district where new facilities for up to two professional sports franchises could be financed and constructed. Then the Kansas Senate voted 27-8 to pass the measure.

“Are you going to step up today and take a leap of faith and make this happen – keep them in the metroplex and bring money to Kansas?” Rep. Sean Tarwater of Stilwell asked lawmakers during the House debate, per the Kansas City Star.

Kansas Governor Laura Kelly is expected to sign the bill.

After the vote, the team made a statement.

Statement from the Chiefs on the STAR bonds proposal passing: pic.twitter.com/BPXcjsL822

— Sam McDowell (@SamMcDowell11) June 18, 2024

When the original proposal was made earlier in the spring, lawmakers said it was intended to attract either the Chiefs or the Kansas City Royals (if not both) across the state line. This became possible after Jackson County voted down an extension of a 3/8 cent sales tax that would have kept the team in Arrowhead Stadium for at least 25 years.

Still, the Kansas legislation had been written so that it could have been used to build facilities for teams in other professional sports leagues. But now, the Major Professional Sports Franchise (MPSF) bill is limited to NFL and MLB teams — and says teams must currently be “adjacent” to Kansas. This effectively limits the teams eligible to take advantage of the new law to the Chiefs and Royals.

On Monday, lawyers representing both teams spoke at legislative hearings, marking the first time that either team has publicly engaged with Kansas lawmakers over the proposal.

“Missouri spoke [and] Jackson County spoke. They had their opportunity,” noted the Chiefs’ representative Korb Maxwell. “But now there’s a moment for Kansas to step up and [provide] an option for us all here.”

“This STAR bonds legislation you’re considering offers a very good opportunity for us to explore an option in the state of Kansas,” said Royals envoy David Frantze, via the Kansas City Star.

There’s a good reason both teams believe this could be a good option for them. They would have to provide just 30% of their project’s total construction cost, which is expected to be between $2 billion and $3 billion. (Typically, a STAR bonds project requires the developer to carry 50% of the cost). That means each team will be on the hook for just $600 million to $900 million of the total costs.

The money would be raised by selling STAR bonds to private investors. They will assume all risk; at this time, local, county and state governments will not guarantee these bonds. Investors will be repaid by sales tax revenue from the STAR bond district over 30 years. (Normally, STAR bonds have a 20-year life).

The MPSF district’s state alcohol taxes (in excess of current revenues) and money from the state’s Attracting Professional Sports to Kansas Fund (a portion of the state’s yearly lottery revenue) could also be pledged toward repayment of the bonds. At their discretion, the district’s local and county governments may also pledge their sales taxes from the district toward these repayments.

While STAR bonds were successfully used to finance Wyandotte County’s Kansas Speedway and Children’s Mercy Park, critics of the bill are concerned there won’t be enough revenue.

“When the project fails to generate enough sales tax revenue to cover its debt, future lawmakers will have to decide to bail out the project with additional taxpayer dollars or have the state’s creditworthiness take a hit,” said University of Colorado-Denver professor Geoffrey Propheter in a social media post. He said such an event “may increase the state’s future borrowing costs — and residents’ cost for debt-financed goods and services.”

Legislators might also issue bonds repaid directly from the state’s sports gambling and lottery revenues. Supporters say these other revenue streams could support bonds generating as much as $1 billion.

But even though these plans were presented as a way to build the stadiums without taxpayer money — Rep. Tarwater called it a “destination tax” to finance the stadiums — there was plenty of opposition among both Democrats and Republicans in the statehouse. A significant number of Kansans have also been opposed.

“This is the first time in my legislative career that I have ever seen district opinion, constituent opinion, at a dead heat,” according to veteran Overland Park Rep. Stephanie Sawyer Clayton, telling the Kansas City Star her vote “will be a difficult decision.”

Clayton ultimately voted for the bill.

Once the governor signs the bill, it becomes law on July 1. If no team has taken advantage of its provisions, it expires July 1, 2025. So the Chiefs and Royals have one year to decide if they want to move to new facilities across the state line — or find a way to remain in Missouri.

Jackson County legislator Manny Abarca has already fired the first return shot in the newest Missouri-Kansas border war. On Monday, he submitted a resolution to create a countywide 3/16-cent capital improvement sales tax that would be voted upon during the November general election. Its purpose is “retaining the Kansas City Chiefs sports team in Jackson County.”

When voters defeated the 3/8-cent sales tax extension in April, the money would have been split between the Chiefs and Royals. Abarba’s proposal for a sales tax that is half of the tax voted down in April will effectively separate the two teams at the ballot box.

Abarca also intends to introduce alternative resolutions with the same goal. To be placed on the November ballot, the county legislature must work out and approve a final version by August 27.

By then, Missouri lawmakers might also be involved.

In a recent interview with the Star, Missouri House majority leader Jonathan Patterson of Lee’s Summit sounded like his associates weren’t in a hurry to respond.

“I think after the primary [election], we will be able to look at possibly having a special session to address this issue,” he said. “Before the primary, there would be a lot of politics involved in this — and I think once that’s out of the way, it’ll make it easier for us to come up with a plan.”

Now that the Kansas bill is a reality, will the Missouri legislature make it a bigger priority? We’re about to find out.

Kansas House passes proposal to fund Chiefs, Royals stadiums

In the fresh border battle of Missouri vs. Kansas, the Chiefs win. The Royals, too.

With Jackson County, Missouri voters refusing to extend a sales tax that would have funded a renovation of Arrowhead Stadium for the Chiefs and a new facility for the Royals, Kansas is seizing the opportunity to steal both teams.

Via USA Today, the Kansas House passed by a wide margin (84-38) a bill to fund new stadiums for both teams with so-called STAR (sales tax and revenue) bonds. The measure now moves to the Kansas Senate.

The House moved fast. The bill was passed on the first day of a special session of the Kansas legislature.

The Chiefs have a lease that runs through 2030. They can still strike a deal to move to Kansas, if they want.

Or the effort can wake up Missouri.

Either way, the Chiefs win. The Royals, too.