After 18 months of behind-the-scenes negotiations, Kansas officially pulled off a massive win - and not the kind that shows up in a box score. The Kansas City Chiefs are heading across the state line, with plans to build a new $3 billion domed stadium in Wyandotte County, a new headquarters and training facility in Olathe, and sprawling mixed-use developments around both sites.
The total price tag? Over $4 billion, with more than half of that funded by public dollars.
This isn’t just a stadium deal - it’s one of the most ambitious economic development projects in Kansas history. And now, with the release of the preliminary STAR (Sales Tax and Revenue) bond agreement, we’re starting to get a clearer picture of how it all comes together.
The Blueprint: Stadium, HQ, and a Whole Lot More
The agreement lays out a massive, multi-layered development plan. At the center is the new state-of-the-art domed stadium, set to open in time for the 2031 NFL season. Surrounding that will be retail, restaurants, and other commercial space - a full entertainment district designed to keep fans engaged long after the final whistle.
Meanwhile, the team’s new headquarters and training facility will be built in Olathe, giving the Chiefs a modernized home base on the Kansas side. The mixed-use developments around both locations are expected to drive long-term revenue, not just for the team, but for the state’s economy.
Who Owns What?
Just like at Arrowhead, the Chiefs won’t own the new stadium outright. Instead, they’ll lease it from a new “quasi-governmental entity” that the state will create to hold ownership of the land and facility. That setup allows the team to avoid paying property taxes in Wyandotte County - a significant financial perk.
The team will also hand over the land the stadium is built on to the state before any STAR bonds are issued. As for the practice facility and headquarters, the door is still open for those to fall under public ownership too, which would bring additional tax savings for the franchise.
The surrounding developments - think hotels, shops, and restaurants - will be owned by the developers, which could include the Chiefs or other private entities.
The Public’s Share: Big Investment, Big Expectations
Public funding will cover about 60% of the construction costs, including up to $1.8 billion for the stadium itself. That’s a hefty chunk of change, and it’s being pulled together through a beefed-up version of Kansas’ STAR bond program.
Here’s how it works: the state will issue bonds backed by future sales tax revenue generated in the newly drawn STAR bond district. That district isn’t just a few blocks around the stadium - it stretches across nearly all of Wyandotte County and a large part of western Johnson County.
Retailers inside the district will continue to collect sales tax as usual, but the “incremental” revenue - the increase over current levels - will be redirected to pay off the bonds.
In addition, the state will use 65% of its sports betting fund to help cover bond costs. As of October, that fund held $26.2 million, and it’s expected to keep growing as legal sports wagering continues to gain traction.
On top of that, the state is authorized to finance up to $975 million for the three-phase construction of the surrounding mixed-use developments.
What the Chiefs Pay - and What They Don’t
The Chiefs will pay $7 million in base rent annually - a major jump from their current $1.1 million lease at the Truman Sports Complex. That rent will be adjusted for inflation each year, but it won’t go back into the state’s general budget.
Instead, it’ll feed into a dedicated fund for stadium operations, maintenance, and repairs - responsibilities that the Chiefs will handle directly. Kansas is also committing at least $10 million per year from sports betting revenue to that same fund.
In total, the agreement requires $17 million to be available annually for upkeep, with a minimum 2% increase each year. If maintenance costs go beyond that, the Chiefs will have to cover the difference.
Naming Rights and Boundaries
The Chiefs will have full control over naming rights for the new stadium, with one caveat: the name can’t be deemed embarrassing or disparaging to the public. The state’s ownership entity will also retain veto power over certain categories of sponsors - no tobacco, vaping, adult entertainment, firearms, or political entities allowed.
Locking It In: The 30-Year Promise
Perhaps the most important clause in the entire agreement is the one that keeps the Chiefs in Kansas for the long haul. The team has committed to playing its home games in the new stadium for at least 30 years. If they try to leave early, the financial penalties are steep.
If the Chiefs walk away within the first 14 years of the lease, they’ll be on the hook to repay 100% of the public money used to build the stadium, practice facility, and headquarters - plus interest on the bonds. That liability gradually decreases over time, dropping to 93.75% in year 15, 50% by year 22, and just 6.25% by year 29.
What Comes Next?
While the STAR bond agreement lays the foundation, there’s still a lot of work to be done. The parties have until October 31, 2026, to finalize the long-form agreements that will govern the project in greater detail.
But make no mistake - this is a seismic shift for the Chiefs and for Kansas. The state isn’t just getting an NFL team; it’s betting big on the economic ripple effects that come with it. If everything goes according to plan, Kansas won’t just be a new home for the Chiefs - it’ll be the heart of a football-fueled entertainment empire.