My thoughts on the city passing ordinance language allowing the city manager to explore lease negotiations, development agreements, and good-faith discussions with the Kansas City Royals for the purpose of building a downtown baseball facility. The following are my thoughts alone and do not represent those of my employer, and any speculation is subject to final development agreements and plans.
Well, the day many have hoped for and many others have dreaded is upon us: the reality that the Royals will be leaving Kauffman Stadium to explore other options. With the passage of the exploratory ordinance this week, the Royals are likely to end up downtown in an area generally located around Washington Square Park, in the Crown Center area of downtown Kansas City.
I know people have a lot of thoughts about this move, and I certainly understand those thoughts and feelings, but I want to clear up a couple of things so we are talking about this major public-private investment from a place of fact over feeling.
A couple of truths that we need to acknowledge prior to this discussion:
The Royals are leaving Kauffman. This is a fact. I know many people love the Royals at Kauffman, and I certainly do too. I have had some wonderful memories there. However, the team made it clear they were not renewing their lease and that this wasn’t up for discussion.
If the above is true, which it is, then what do we do about it? Do we let them go to another market? Do we let them go to Kansas as well? Or do we work with them to create a facility?
This is an exploratory ordinance only, and a development agreement and a Community Benefits Agreement will come back to the council for adjustments and approval—there is much room for improvement. There is also a TIF plan approval process this will go through. All that is to say, there are many more steps before we start moving dirt.
I’m going to speak on a couple of the common themes I am seeing in comments, personal discussions, and general discourse around this facility.
But Justin, that site is way too small?
Look, this site is tight. I’m not going to gaslight anyone into oblivion, but for reference, Target Field in Minneapolis sits on about 9 acres, while the proposed WSP site is 11 acres (source: City Scene KC). I do believe it can work, particularly if the ownership group acquires some or all of the Crown Center district. Given the existing infrastructure that is there and the surrounding entertainment options, I do believe this site works. It was not my first preference for a site, but I do believe with the right plan it will work and provide a better experience for game-day visitors.
But Justin, the city cannot possibly afford to just cut a $600 million check, right?
Absolutely correct. The city is not in a financial position to write a $600 million check. It’s important to understand how these things are done. The plan outlines up to $600 million of revenue. So what does that mean? This project would likely be funded by revenue bonds along with a significant investment from the state and ownership group, which means that this facility would be paid off using generated revenue from the facility.
For example, if I go to the facility and buy a large Diet Coke for $9.99 and the sales tax on that is $1.25 (it’s not; this is just for demonstration purposes), that $1.25 would go to the development group instead of the city’s general fund, up to an amount equal to $600 million. This is an EATS or PILOT program (Economic Activity Tax Subsidy or Payment in Lieu of Taxes). This model has been used before; for example, our airport is being paid off by airport revenue bonds, as were the downtown arena project and the Power and Light District.
(Yes, the city is still contributing around $13–17 million annually toward the Power and Light District project. That number continues to decrease, and these two deals are very different. One was made at a desperate time with enthusiastic revenue projections. The Royals stadium project would use a much more conservative approach to ensure that, even though the city will guarantee the debt, we don’t take from our general fund to backstop it.)
So this facility is being funded largely by folks who will be using it, not by a citywide or countywide general tax (we will get to that vote here in a moment). This is how many large-scale municipal projects are funded. That is the long way of saying this isn’t taking money from the city’s general fund, because such money does not currently exist. If this facility doesn’t get built, then that money won’t be in play.
The folks who say, “Well, we should be investing in this thing or that thing, or we have more important priorities,” are also correct—but the funding for the Royals stadium isn’t the reason we struggle with those items. They are two separate issues, both of which I look forward to tackling.
But Justin, didn’t we vote this down?
No. What we voted on in 2024 was a countywide sales tax. While it was tied to a specific stadium plan, it was for a sales tax extension that was voted down. So if you spend money in Jackson County, you will actually see your sales taxes decrease.
This is a completely separate, city-led incentive plan that does, by design, not require a public vote. So it’s important to understand that while the countywide sales tax initiative failed, the vote was not about whether the Royals should move downtown or not.
But Justin, what about the businesses and surrounding area?
This current proposal does not include demolition of existing businesses—only the vacant Blue Cross Blue Shield building, as they have relocated to their new facility on Main St. As for Crown Center, the good news is it should still thrive even during construction, and post-construction, this will be the boost it needs to continue to be a Kansas City anchor for years to come.
But Justin, the parking!?
Yes, absolutely a concern. Proponents will tell you there are 19,000 parking spots in the vicinity, which is objectively true, but it does not alleviate concerns over where people will park for this facility or during high-traffic times for downtown during other events. Personally, I do not believe parking will be as big of an issue as we might think. Downtown regularly handles large-scale events with little to no issue. I do hope that additional parking and transit options are included in the development agreement and surrounding area plans.
But Justin, we should be able to vote on this—why didn’t we?
These deals do not require a public vote by city charter. These decisions would be made by the council and mayor, whom you elect.
Final Thoughts!
I have always been a supporter of downtown baseball, and this proposal leaves me cautiously optimistic.
There are still many questions to answer, and this process is far from over. But this is a significant moment for Kansas City and it deserves a thoughtful, fact-based conversation about what comes next and how we ensure it has a positive impact on our community.