Frank White vetoes Royals, Chiefs stadium tax ordinance

KANSAS CITY, Mo. — Jackson County Executive Frank White has vetoed an ordinance that would put a proposed stadium sales tax on the April ballot.

A spokesperson for White’s office confirmed the county executive has exercised his veto power on the ordinance that Jackson County legislators approved Jan. 8.

The ballot question would ask Jackson County voters to approve a 3/8th-cent sales tax for both the Kansas City Royals and the Kansas City Chiefs stadium projects.

The Royals said they want to build a new ballpark downtown, but they have not specifically said where. The Chiefs said they want an upgrade at Arrowhead Stadium. 

‘Not a good deal’

In a statement, White said he’s committed to securing a fair and equitable deal for Jackson County taxpayers before moving a question to the ballot.

The county executive said getting a favorable agreement for Jackson County requires further discussions and negotiations.

“This proposed sales tax would generate over $2 billion from our residents, yet there is no clear understanding or assurance regarding the teams’ commitments and contributions to the county,” White said.

“It’s not a good deal for taxpayers, and I cannot support an agreement that is not in their best interest.”

Jackson County leaders’ moves come after the Royals and Chiefs released a joint statement earlier this month, committing to stay in Jackson County — pending voters’ approval of a sales tax extension.

The teams said they would provide over $200 million in economic benefits.

That includes paying for insurance coverages the county currently pays, a $80-100 million savings; reallocating their park property tax to save the county $140 million; and committing to a “robust” community benefits agreement.

Override?

Jackson County lawmakers now have just a few days left to override White’s veto before the 5 p.m. Jan. 23 deadline to get this issue on the ballot for the April 2 election.

At the Jan. 8 legislature meeting, legislators voted 8-1 on the ordinance to put the stadium tax question on the ballot. However, it’s not clear if they’ll be able to hold onto enough votes for a supermajority to override the veto.

On Thursday, three legislators — Jeanie Laurer, Megan Marshall and Jalen Anderson — issued a joint statement that they support White’s veto and will vote to sustain it.

“It is striking to note that the proposed financial commitment to these teams significantly surpasses the combined annual budget allocated for all our parks, playground, trails, roads and bridges,” the legislators said in a statement Thursday.

“This disparity highlights the importance of reaching agreements that are not only equitable but also prioritize the wider needs and services crucial to our community.”

Legislator Sean Smith issued a statement shortly after saying, at this time, he plans to uphold White’s veto.

These four votes to uphold the veto — if they go unchanged by next week — would not be enough to secure a 6-3 supermajority and override White’s decision.

Unresolved issues

Laurer, Marshall and Anderson have identified what they call 10 unresolved issues, outlined in Thursday’s statement:

Jackson County resident preference plan: A substantial benefit for county residents that matches or surpasses comparable initiatives in the MLB or NFL.

Local presence of teams: Commitment from the Royals and Chiefs to keep front offices, training facilities and essential operations in Jackson County.

Insurance and indemnification: Transitioning insurance responsibility to the teams by 2025.

Parks tax reimbursement: Restoring $3.5 million each year from the county parks levy by 2025.

Rental fee: A fair rental/licensing fee from each team.

Stadium demolition: Teams would bear the costs with no additional county funds.

Community benefits agreement: Enforceable agreements for long-term community benefits.

Royals new stadium location: The Royals must confirm the specific location of their new stadium.

Chiefs improvement plans: The Chiefs must provide detailed plans for Arrowhead renovations and their vision for the Truman Sports Complex after the Royals leave.

Private capital investment: Both teams must commit to the amount of private capital they are willing to invest in these projects.

The three legislators said they will not vote to advance agreements that could expose Jackson County to future financial or legal risks.

“We are firmly committed to only supporting agreements or moving forward with a ballot question once these and other critical issues are resolved,” Laurer, Marshall and Anderson wrote.

What’s next?

The Jackson County Legislature is set to meet again Monday. They would need a 6-3 vote to override White’s veto. At this point, at least four legislators indicate they are planning to uphold the veto.

But Laurer, Marshall and Anderson stressed in their statement that there are seven years left on the Chiefs and Royals’ current leases at the Truman Sports Complex. There are also several other election dates available in 2024, the legislators noted.

Smith noted it costs the county about $1.5 million to hold a countywide election. In April, when there would likely not be any other issues on the ballot, the county would be exclusively responsible for that cost, Smith said.

He noted if the county waits until a later election in 2024, there would be better voter participation and the county could save money.

FOX4 will have a crew at Monday’s meeting and will bring you breaking updates on fox4kc.com.