Missouri lawmakers create paths to publicly funded stadiums

Bloomberg News

Missouri lawmakers have opened a new salvo in the ongoing battle between Kansas and Missouri over whose taxes get to subsidize new stadiums for Major League Baseball's Kansas City Royals and the National Football League's Kansas City Chiefs.

State senators have introduced two separate bills which would ease public financing of new stadiums in Missouri. 

Senate Bill 822, introduced by Sen. Barbara Washington, who represents a district in Jackson County, would create the Missouri Entertainment Facility Capital Assistance Program and allow for public funds to cover up to 75% of total project costs. Jackson County is home to the stadiums that house the two teams today.

Senate Bill 710, introduced by Sen. Maggie Nurrenbern, who represents part of Kansas City, would enable counties to create a county sports complex authority. Each county authority would be funded by $3 million minimum annual contributions from the county and $3 million annual contributions from the state for 40 years. 

Washington's office did not respond to emails or phone calls seeking comment. Nurrenbern's office declined to comment, saying, "Senator Nurrenbern has had many requests for interviews about this bill."

Kansas City Mayor Quinton Lucas backed Washington's bill, saying in a statement that "professional sports are cities' economic engines" and "the balanced approach in the legislation… responsibly unlocks public support."

"The Kansas City Royals and the Kansas City Chiefs are Kansas City's teams today and will remain Kansas City's teams for generations to come," he said.

Citizens in Jackson County, which includes part of Kansas City, last year voted down a referendum that would have imposed a countywide sales tax to fund a new ballpark for the Royals and renovations for the Chiefs' Arrowhead Stadium. 

The recent moves by Missouri lawmakers follow an expansion of the sales tax and revenue bond program in Kansas last year to include sports facility projects.  

SB 822 contains language defining eligible projects as those with costs above $250 million; seating of at least 20,000; private funding commitments of at least 33% of project costs; local government support; and a pledge to stay at least 25 years. 

Elsewhere, the bill says that "the total amount of public assistance from all sources shall not exceed seventy-five percent of total project costs."

It says state assistance may include 50% of the state sales and income tax increment in the tax increment financing district around the project; 50% of state withholding taxes from new jobs created by the project; and state matching grants of up to twenty-five percent of total project costs.

The bill would allow a broad swath of sports franchises to benefit from the Missouri Entertainment Facility Capital Assistance Program: any team in MLB, the NFL, the National Basketball Association, the National Hockey League, Major League Soccer, the Women's National Basketball Association or the National Women's Soccer League.

The capital assistance program would be administered by the Missouri Department of Economic Development, with oversight by the Missouri Development Finance Board.

Missouri Development Finance Board Executive Director Mark Stombaugh did not respond to requests for comment.

SB 710 would allow the General Assembly to funnel $3 million annually from the general fund provided that a county sports complex authority had signed a contract or lease with an NFL, NBA, NHL or MLB team.

The state funds would be contingent on the county contributing a minimum of $3 million per year from any source. "Thereafter, subject to annual appropriation, transfers shall commence and continue each month pursuant to this subsection until such monthly transfers are made for forty years," the bill reads.