Now that the news of the Kansas City Chiefs’ move from Arrowhead Stadium to a new facility in Kansas has begun to sink in, many Kansans are reflecting on the tax incentive package used to get them here, say some state lawmakers.
As the Kansas Legislature geared up for the session opening this week, members of the state Legislative Budget Committee said they have been flooded with constituent questions about the particulars of the Sales Tax and Revenue (STAR) Bonds that will make up a significant portion of the funding.
Legislators passed those questions on to a representative of the state Department of Commerce last week. Not all of the questions could be immediately answered, because final elements of the stadium location and property ownership are yet to be worked out.
The announcement
Kansas Gov. Laura Kelly announced on Dec. 22, 2025, that Wyandotte County will be the site of a new $3 billion domed stadium for the Chiefs. The move also includes a new headquarters building and training facility in Olathe, plus mixed-use entertainment and shopping districts nearby.
According to the state commerce department, more than 20,000 new construction-related jobs and 4,000 new permanent jobs will be created and the area will see over $1 billion a year in economic impact.
The financing plan calls for 60% public financing and 40% private financing. The public financing comes from the STAR bonds and a special fund of dedicated revenue from betting on the lottery and sports gambling.
Questions loom over STAR bonds
Legislators said many of the questions have been about the STAR bonds.
The STAR bond financing tool has been around since 1999, with repeated tweaks over the years by lawmakers. It was created to build tourist magnets that would draw visitors — and their sales tax dollars — from out of state and over 100 miles away.
The new sales tax revenue caused by the tourist attraction is then used to pay back the investors who bought the bonds. Kansas Sen. Troy Waymaster, chair of the budget committee, said the emphasis is on “new” sales tax revenue that wouldn’t exist without the tourism. For example, the Village West district near the Kansas Speedway is the most toured place in the metropolitan area now, but was largely greenfield twenty years ago, he said. The risk is assumed by the bond holders and not the state, he said.
The funding also doesn’t require any jurisdiction to increase its sales tax, although Olathe and the Unified Government will have to consider whether to dedicate their new sales tax revenue to the project.
Developers typically have had 20 years to pay off the debt, but in 2024, legislation was expanded to allow for a 30-year term and at least $1 billion for a professional sports stadium complex.
A full copy of the STAR bond agreement between the State of Kansas and the Kansas City Chiefs is below.
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Open in new tab How are existing STAR bond districts doing?
Rachel Willis, director of Legislative affairs for the state commerce department, told lawmakers the program is “booming.”
The state currently has 17 active projects, the most successful being Village West, which reaps more than $40 million in sales tax to the state each year and was able to pay off its investors five years early, she said.
There are two active STAR bonds districts in Johnson County — Bluhawk Arena and Fieldhouse and Prairiefire Museum, which has struggled recently. Both are in Overland Park. More on that here.
According to 2024 commerce department data, the Prairiefire museum had close to 500,000 visitors from 1,642 zip codes and from each of the 50 states since it opened in 2014. It had $58,267,178 in bonds outstanding and has generated sales tax revenue of about $3.7 million.
Overland Park city data provided to the Post earlier this month shows that Prairiefire had raised close to $38 million in sales tax revenue and had repaid $8.7 million of its bond debt.
The first phase of the Bluhawk sports and entertainment complex opened in October 2024, and there are no visitor numbers yet. According to 2024 commerce department data, Bluhawk has $50.5 million bonds outstanding and produced sales tax revenue of $5,418,778.
Overland Park city data provided to the Post earlier this month shows that Bluhawk had raised $15.5 million in sales tax revenue, according to the city of Overland Park, and had repaid $6 million of its bond debt.
Success of a STAR bonds project and its ability to repay the debt depends on the popularity of the tourist attraction and surrounding retail. While proponents of the Chiefs project have said the domed stadium has the potential for huge economic impact, some experts have expressed caution because of the unknowns.
A copy of the state Department of Commerce’s STAR Bond update is below.
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Has there ever been a STAR bonds default?
The Prairiefire district missed a payment in 2023. Willis told legislators that the missed payment was due to a variety of reasons, including the COVID pandemic and a movie theater lawsuit, but that the project appeared to be back on track.
Prairiefire also recently missed a bond payment on a local Community Improvement District that was not tied to STAR bonds.
Legislators also asked about a proposed Mattel Adventure Park near Bonner Springs. That project, which was proposed for STAR bonds, is “just moving slowly – slower than we would like,” Willis said. A recent Kansas City Business Journal story said the developer has not yet acquired the land. That project was not listed by the commerce department among the active STAR bonds projects.
Are the projects really bringing in new business?
Rep. Kristey Williams said she’d like assurance that the STAR bonds projects are bringing new business and “not simply cannibalizing existing business moving into the new districts.”
She suggested lawmakers require information on whether new business opening in the districts correlates to closings outside the district,
Willis said that type of data isn’t kept. However there is required tracking of where visitors come from. Commerce department guidelines ask that at least 20% of the visitation should be from out of state, and 30% from more than 100 miles away.
In addition to the tracking, STAR bond applications are subject to a third-party feasibility study, and a return on investment and cannibalization study.
What parts of Johnson and Wyandotte counties will be in the district?
The exact boundaries of the STAR bonds district are among the details yet to be worked out. State officials have released a map that includes a large section of Johnson County and all of Wyandotte County, but it is only a draft.
Once the final district is drawn, it will not overlap any active STAR bonds districts, Willis said.
Will the Chiefs pay property taxes on the facilities?
The ownership structure of the stadium and other facilities is also still being drafted, but state ownership is envisioned, under a yet-to-be-created stadium authority, Willis said.
Rent starting at $7 million a year would be paid into a maintenance fund. The Chiefs would also contribute $3 million annually to “community benefit.”
