Royals, Chiefs sign leases with Jackson County Sports Complex Authority
KANSAS CITY, Mo. — The Kansas City Chiefs and Royals signed leases to stay in Jackson County Wednesday afternoon.
Those leases are contingent upon the passage of a 3/8 cent sales tax extension by Jackson County voters April 2.
The Royals lease is for 40 years. The Chiefs is for 25, but with three options for five-year renewals which would bring it to for years as well. The Chiefs agree to pay $1.1 million annually for rent. The Royals would pay $2.75 million.
As they’ve previously announced the teams will no longer receive parks levy funding and agree to pay their own insurance. Those two concessions would cost each team an estimated $5 million a year.
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There are also questions from the Jackson County Executive’s Office whether these leases are even legitimate. It pointed out these leases still need to be signed off on by the county, though there was no mention of that by either team or the Jackson County Sports Complex Authority.
Six days before the election, Chiefs President Mark Donovan and Royals VP Brooks Sherman put pen to paper vowing to stay in Jackson County if the 3/8 cent sales tax passes April 2.
“How did we get here today? It has been a process,” Jackson County Sports Complex Authority Shawn Foster opened his remarks.
That process started 12-18 months ago with the Jackson County Sports Authority and Jackson County Executive Frank White negotiating with the Chiefs and Royals on lease agreements and development agreements for a downtown Royals stadium and renovations at Arrowhead.
But last month the Jackson County Legislature voted to move forward in those negotiations without Frank White.
“Most recently we’ve been tasked as the landlord to negotiate the lease agreements for both the Chiefs and the Royals,” Jim Rowland, JCSCA Executive Director Jim Rowland said.
“The Jackson County Sports Authority has historically always been the authority that enters into the leases with the team,” Foster said.
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But in a statement Wednesday, the County Executive’s Office said: “It is imperative to clarify to the residents of Jackson County that these documents do not constitute leases with Jackson County. The Sports Complex Authority operates independently and does not have the authority to commit or act on behalf of Jackson County in matters of leasing or similar legal agreements. or act on behalf of Jackson County in matters of leasing or similar legal agreements.
Any lease or similar agreement involving county-owned property must undergo a rigorous and transparent process. This includes approval by the Jackson County Legislature, which is predicated on thorough public hearings, extensive debate and valuable community input. Our commitment to transparency and public participation in these processes is unwavering.”
The statement also demanded the full lease documents be made available, which they were within minutes on the JCSCA website.
The Chiefs pledge $300 million for their part of the renovations, the Royals contribution is still to be determined according to a lease summary.
“We’ll also be putting in hundreds of millions into the stadium. We’re still at work negotiating with and speaking to both the state and the city on the funding,” Brooks Sherman said also referencing a promised $1 billion private development in the stadium footprint.
But both the Chiefs and Royals say it’s a good deal for taxpayers keeping them here in state of the art facilities.
“I think what the taxpayers should know is they are represented by the Jackson County Sports Authority. That’s the way it’s always been they’ve done a great job of protecting the interests of Jackson County,” Donovan said.
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Other highlights of the leases
The county won’t pay to tear down Kauffman Stadium. It would be the responsibility of the teams.
The Chiefs and Royals would be responsible for cost overruns on their stadium and renovation projects.
The teams will forego the Park Levy they currently receive, providing approximately $3.5 million annually to Jackson County. The teams will also fund insurance coverage for the County-owned stadiums, which the County now funds, saving approximately $1.5 million annually.
The Chiefs will pay $1.1 million annually in rent. The Royals will pay $2.75 million per year.
