Royals, Chiefs release community benefits agreement for stadium projects

KANSAS CITY, Mo. — The Kansas City Royals and Chiefs have released their community benefits agreements for their proposed stadium projects.

The news comes as the Royals and Chiefs ask Jackson County voters to approve a 3/8th-cent sales tax that would help fund the Royals’ proposed Crossroads District stadium and renovations at Arrowhead Stadium.

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The Royals and Chiefs said, individually and combined, these are the largest CBAs in Kansas City history, including the recent one for the new KCI terminal.

The teams said the CBAs will total more than $260 million for several initiatives supporting Jackson County residents if voters approve the ballot question on April 2.

“We entered this process with the goal of creating a better deal for all of Jackson County,” Clark Hunt, chairman and CEO of the Chiefs, said in a release. “These CBAs demonstrate exactly that.”

“As I have said from the very beginning, we are committed to Jackson County, and these historic agreements represent how both teams will help lift up our fellow neighbors – from providing workforce benefits and assistance, diversity benefits, affordable housing, educational programs, and expanded mass transit,” said John Sherman, chairman and CEO of the Royals.

Royals CBA

The Royals CBA totals $140 million, which the team said is the largest across the MLB to date.

A board appointed by the Jackson County Legislature and the Royals would oversee the distribution of funds, governance, accountability and auditing of the agreement.

Diversity benefits, including minority- and women-owned business goals, a low interest loan program and a pay without delay program

Education, including supplemental education support services for urban youth and adults

Environment and sustainability, including development, implementation and maintenance of a sustainability operations plan, and efforts to reduce carbon emissions

Specifically, the Royals have a goal of having 43% of minority- and women-owned businesses involved in construction of their proposed Crossroads stadium.

Chiefs CBA

The Chiefs CBA totals $126 million. A board appointed by the Jackson County Legislature and the Chiefs would also oversee the distribution of funds, governance, accountability and auditing of this agreement, just like the Royals.

The Chiefs CBA is similar to the Royals with a few differences. The agreement includes:

Education, including supplemental education support services for urban youth and adults

Environment and sustainability, such as development, implementation and maintenance of a sustainability operations plan, and efforts to reduce carbon emissions

Like the Royals, the Chiefs have a goal of having 43% of minority- and women-owned businesses involved in the construction phase of the Arrowhead renovation.

Local reaction

The Royals and Chiefs released statements from several local leaders. FOX4 will update this story with reaction from other leaders and organizations as they are available.

“Today, Jackson County makes history – commitments of more than $260 million to Jackson County residents begin the next era of the long-standing partnerships between the Chiefs and Royals and Jackson County.

“We are pleased that these discussions have resulted in the most historic agreements in not just the county history, but across the country. That’s momentum that will last for decades to come and a point of pride for this public-private partnership.”

“We are thrilled to have sealed the deal with the Chiefs and the Royals, marking a historic milestone in Kansas City’s construction landscape.

“Achieving an unprecedented 43% minority- and women-owned business participation on the professional services and construction of the ballpark and stadium renovations is not just a win for us – it’s a triumph for diversity, equity and economic empowerment.

“This landmark agreement sets a powerful precedent for the future, demonstrating our commitment to fostering inclusive growth and paving the way for lasting change in our community.”

“We are excited about this substantive community benefits agreement, which will inject over $260 million into vital areas such as education, healthcare, affordable housing, transportation, childcare and beyond across Jackson County.

“This investment isn’t just about dollars and cents; it’s about creating a pathway to economic growth and stability for the communities we serve. With this bold initiative, we are not only investing in infrastructure but also in the future prosperity of our most vulnerable neighborhoods, laying the groundwork for a more equitable and prosperous Jackson County for generations to come.”

Shortly after the teams’ announcement Wednesday, Jackson County Executive Frank White said the county was excluded from drafting these CBAs. He released the following statement:

“These letters, while mentioning possible community benefits, do not represent a Community Benefits Agreement (CBA) in any formal capacity. The decision by the teams to exclude Jackson County from participating in or contributing to the drafting of these documents is a significant concern, amplified by their timing — released less than two weeks before a pivotal election. Such timing raises legitimate questions about the motivation behind and the potential effectiveness of the benefits proposed.

“Statements from numerous community, civil rights and labor organizations has revealed a collective dissatisfaction with the negotiation process, leading to their withdrawal. Their departure highlights profound issues within the negotiation framework and casts substantial doubt on the inclusiveness and potential impact of the benefits proposed.

“These documents offer no mechanism for enforcement by either Jackson County or our residents. Consequently, the ‘commitments’ made in these letters are yet another instance where the teams ask voters for their trust without providing a concrete basis for it. Basically, these letters represent non-binding expressions of intent, not the genuine, enforceable Community Benefits Agreements they intend to be.

“To distinguish between the proposals made by the teams and a genuine CBA, simply reference a definition from the U.S. Department of Housing and Urban Development (HUD):

CBAs are legally binding covenants made between developers or government bodies and community groups that require development on specified lands to meet outlined thresholds for living wage standards, local hiring policies, affordable housing, and sustainable development practices. Developers must abide by the CBA to receive tax breaks and other forms of public assistance.

“This clear disparity highlights a significant lack of commitment to enforceable, meaningful community benefits. While I recognize the efforts to outline potential benefits, I maintain a profound skepticism regarding the efficacy and reliability of these proposals due to the issues noted.

“As county executive, I remain steadfast in my commitment to securing genuine, enforceable community benefits agreements that transparently and effectively address the needs of all residents. Jackson County voters were promised and deserve better than this.”

More details

The Royals and Chiefs said these CBAs are in addition to over $200 million in economic relief the teams have already promised to Jackson County.

Included in that $200 million in economic benefits, the teams said they are willing to pay for insurance coverages that are currently paid for by the county. It would save the county $80-100 million over the course of the leases.

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The teams would also reallocate their park property tax to save the county $140 million over the course of their leases to be used for other county purposes.

The Royals have committed $1 billion in private money for their $2 billion ballpark district; meanwhile the Chiefs plan to spend $300 million for their $800 million renovation plans.

Jackson County residents are already paying a 3/8th-cent sales tax for past stadium projects, but they still have to vote on this issue as if it’s a new tax, not an extension.

The sales tax, if approved, would generate an estimated $2 billion in revenue over 40 years.

County leaders and community advocates have been calling for the team to release a CBA for weeks now, saying it should have been public people could start voting.

No-excuse absentee voting started Tuesday, but Jackson County residents have been able to vote absentee with an excuse prior to that. More voters will head to the polls April 2 to cast their vote.