Chiefs Set to Cross State Line: Kansas Commits Billions in STAR Bonds for New Stadium and HQ
The Kansas City Chiefs are planning a major move - not just in terms of facilities, but across state lines. Kansas officials and the team announced a deal that would relocate the Chiefs’ stadium, headquarters, and practice facilities to Kansas, backed by a hefty public financing tool known as STAR bonds.
The total development price tag? At least $4 billion.
The project includes a domed stadium in Wyandotte County, a new headquarters and training complex in Olathe, and surrounding commercial development. It’s a sweeping vision that could reshape the Kansas City sports landscape - and it’s coming with a long-term financial commitment from Kansas taxpayers and visitors alike.
Let’s break down what this move means, how it’s being funded, and why it’s already drawing attention.
What Are STAR Bonds - and Why Do They Matter?
STAR bonds - short for Sales Tax and Revenue bonds - are a unique financing tool used by only a few states: Kansas, Nevada, and Illinois. They’re designed to help fund major commercial, entertainment, and tourism projects by front-loading money through bond sales, which are then paid off using future sales tax revenue generated by the project itself.
In this case, once the new Chiefs stadium and surrounding businesses open, a portion of the state’s retail sales tax collected in that area will be used to pay off the bonds. Local governments - like Wyandotte County and the city of Olathe - can also choose to chip in some of their local sales tax revenue, though they’re not required to do so.
It’s a gamble, in a sense: the state is betting that the new stadium and related development will generate enough economic activity to pay back the bonds over time.
The Deal: How Kansas Plans to Bring the Chiefs Home
According to the agreement, Kansas lawmakers will issue STAR bonds to cover 60% of the total development cost. That’s a significant public investment - and the largest percentage Kansas has ever committed to a STAR bond project.
Here’s how the numbers break down:
- New Stadium (Wyandotte County): Estimated cost - $3 billion
- New Headquarters and Practice Facility (Olathe): Estimated cost - over $300 million
Private investors will cover the remaining 40% of the cost.
The stadium site is set to be located at the intersection of I-70 and I-435, near the Legends shopping district in western Wyandotte County - a high-traffic area that already draws regional visitors. The exact boundaries of the STAR bond districts are still being negotiated, but both Wyandotte County and Olathe are expected to dedicate future local sales tax revenue from the developments toward bond repayment.
This deal leans on a 2024 Kansas law that expanded the state’s ability to fund professional sports stadiums through STAR bonds - increasing the cap from 50% to 70%. The Chiefs project will test just how far that new law can go.
Sweetening the Pot: The “Attracting Professional Sports to Kansas Fund”
The stadium development is also tapping into another state resource - the Attracting Professional Sports to Kansas Fund, which was created to lure pro teams with financial incentives. The fund is fueled by sports gambling revenue and state lottery proceeds, and it’s already amassed more than $26 million.
Of that, the Chiefs deal is set to receive 75% - roughly $19.5 million - to help cover costs.
STAR Bonds: High Risk, High Reward?
Kansas has used STAR bonds before - and the results have been mixed.
- Children’s Mercy Park, home to Sporting KC, successfully paid off its $150 million debt.
- Kansas Speedway, on the other hand, still owes more than $9 million - over a third of its original bond amount - more than two decades after the bonds were issued.
- Prairiefire, an entertainment and retail project in Overland Park, defaulted on the first portion of its $65 million in bonds in 2023.
That track record is exactly why STAR bonds remain controversial. Critics argue that some of these developments haven’t drawn the kind of out-of-state tourism needed to generate enough tax revenue to repay the bonds. If the Chiefs’ new stadium falls short of expectations, Kansas lawmakers could face pressure to dip further into state lottery funds - money that could otherwise support education, infrastructure, or other public services.
Will This Raise Taxes?
Not directly. Kansas residents won’t see a new line item on their tax bill because of the STAR bonds.
But there’s a tradeoff. The state won’t benefit from the increased sales tax revenue generated by the new stadium and surrounding development until the bonds are paid off - which could take decades.
And if the project underperforms, lawmakers might eventually consider raising taxes or redirecting funds to fill the gap.
What’s Next?
The deal is still in its early stages. Final locations for the STAR bond districts will be negotiated in the coming months, and construction timelines have yet to be announced. But the state has made its intentions clear: Kansas wants the Chiefs, and it’s willing to put serious money behind that vision.
This is more than just a stadium deal - it’s a high-stakes play for economic development, regional pride, and NFL permanence in the heart of the Midwest. Whether it pays off depends on how well the Chiefs - and the fans - show up in their new home.