Chiefs STAR Bond Deal: Key Questions for Elected Officials

The following questions were submitted to the Kansas Department of Commerce for comment on December 30, 2025. The Department’s responses are provided inline below.

Olathe will host the $300M Chiefs HQ/training facility. The city may be asked to pledge local sales tax revenue.

1. Has the city been formally asked to pledge local sales tax to the STAR bond district? If so, what amount and for how long?

Yes, the city has been formally asked to pledge its new, incremental local sales tax derived from the district. The total amount is unknown, because the district map has not been finalized. The term for the STAR Bond is up to 30 years.

2. What city revenues currently flow from the proposed STAR bond district boundaries in Olathe, and what would be diverted under this agreement?

No current revenue will be diverted to support the STAR Bond district. For example, if the district currently collects $10 in sales tax revenue now and then in five years when the stadium opens the district collects $15 in sales tax revenue, the new $5 will be used to pay off the bond debt. The $10 will continue to go to the state and local governments.

3. The development is property tax-exempt. What services (roads, police, fire, utilities) must Olathe provide without property tax revenue to offset costs?

Not all the development will be exempt from property tax. This is a negotiant and has not been formally agreed upon. However, property tax exemption for stadiums is standard with professional sports teams.

Infrastructure & Services

4. What infrastructure improvements (roads, utilities, water/sewer) will be required, and who pays for them?

With local roads, utilities, etc., the local government and team would be best to answer this question. State highway infrastructure will be reviewed by the Secretary of Transportation.

5. Has the city conducted an independent fiscal impact analysis separate from the state's projections?

The city would be best to answer this question.

Questions for State Legislators / LCC

The LCC approved this deal in a closed session with no public deliberation.

The 300-Square-Mile STAR Bond District

1. The preliminary district captures sales tax from six cities (KCK, Olathe, Shawnee, Lenexa, Bonner Springs, Edwardsville). What is the current annual sales tax revenue generated within these boundaries?

We can share these numbers after the map has been finalized, and specific project areas have been identified. 

2. If existing economic activity is captured—not just "new" stadium-generated revenue—how does this not constitute a diversion from the state general fund?

No current/existing revenue will be captured and applied to this project. Only the new, incremental revenue will be pledged.

3. Prof. Geoffrey Propheter estimates the true public cost at $6.3 billion over time. Has the state produced its own independent long-term cost analysis?

I have attached the economic impact study.

Revenue Projections & Risk

4. Paying off ~$3B in bonds requires roughly $175M/year in sales tax. At 6.5%, that requires $2.7B in annual spending. What is the state's projection, and what assumptions underlie it?

We are unclear on how the $175M was calculated. The Attracting Professional Sports to Kansas Fund will also fund the project. Our feasibility consultants and bond underwriters are continuing to fine tune projections. As the district gets finalized and we are closer to selling the bonds, we will share our projections.

5. If bond revenues fall short, what happens? Who is responsible—the state general fund, local governments, or bondholders?

Bondholders assume all the risk. The state and local governments have no liability if the revenue falls short.

6. Up to 75% of sports betting revenue is committed to this project. What programs or funds currently rely on that revenue?

The Attracting Professional Sports to Kansas Fund only supports the state’s effort to recruit the Chiefs and Royals. Those funds do not support any other programs.

Services & Opportunity Costs

7. Sales tax funds schools, public safety, health services, and local government grants. If revenue is diverted, how will these services be funded?

No current funding will be diverted. It is the new increment that will support the project (the project is paying for itself).

8. The Prairiefire STAR bond project in Overland Park missed its 2024 maturity and risks default. What oversight exists to prevent similar outcomes here?

Cities with STAR Bonds provide annual disclosures to bondholders and bond trustees, which track revenues in and out. One payment was missed, which is the only payment in the history of the STAR Bond program (created in 1999) that has been missed. There were a variety of highly anomalous factors that contributed to the missed payment including COVID-19 when the project was in its early stages and becoming operational.

Process & Transparency

9. The LCC met in executive session for under 30 minutes before a unanimous vote. What analysis did members review, and will it be made public?

All the materials shared with the LCC are available on the Commerce website.

10. Final contracts are due by October 31, 2026. What opportunities exist for legislative review or public comment before finalization?

There will be opportunities for community engagement at the local level during the development plan process.