Kansas City is witnessing a renewed economic “border war” as Kansas and Missouri grapple over high-stakes sports and stadium deals.
This battle, centered on retaining the Kansas City Chiefs and Kansas City Royals, could reshape the economic dynamics of the region and test the truce declared between the two states in 2019.
The 2019 Truce: A Brief Overview
Kansas and Missouri once fiercely competed to lure businesses across state lines with lucrative incentives.
However, this rivalry brought little to no benefit to the region, as businesses merely shifted locations without creating new jobs. In 2019, the states agreed to a truce, focusing instead on collaborative regional growth.
This truce allowed organizations like the Kansas City Area Development Council (KCADC) to unite efforts and attract businesses to the region as a whole. However, the upcoming stadium deals are putting this fragile peace to the test.
Stadium Deals and Economic Stakes
Royals and Chiefs on the Line
The Kansas City Royals are exploring a move to a new $2 billion stadium, while the Chiefs are considering renovations or a potential relocation.
When Jackson County voters rejected a ⅜-cent sales tax proposal to fund these projects, Kansas seized the opportunity, proposing STAR bond incentives to attract the teams.
- Missouri’s Response: Missouri has promised countermeasures, but no formal proposals have been made.
- Economic Impact: Studies suggest that while sports stadiums rarely provide substantial economic boosts, their cultural and community value is undeniable.
World Cup: A Model for Cooperation
Kansas City is preparing to host six FIFA World Cup matches in 2026, demonstrating how collaboration between Kansas and Missouri can yield significant results.
The event is expected to attract 650,000 fans and generate an economic impact of $650 million.
Funding Breakdown
- Missouri’s Contribution: $52 million
- Kansas’ Contribution: $28 million over two years
This unified effort showcases the potential benefits of acting as a single region to attract global events and investments.
Key Projects and Incentives
Mies Family Foods: A Case Study
Earlier this year, Mies Family Foods, a family-run business, moved from Missouri to Kansas, investing $15.6 million and creating 51 jobs.
The move was incentivized by a 50% tax abatement in Wyandotte County. Such deals highlight the ongoing negotiations that could intensify with higher stakes.
| Aspect | Details |
|---|---|
| 2019 Truce | Ended state-line poaching of businesses |
| Current Stadium Projects | Royals: $2 billion stadium, Chiefs: Renovations |
| Rejected Tax Proposal | ⅜-cent sales tax for stadium funding |
| Kansas STAR Bond Proposal | Incentives to attract sports teams |
| World Cup Economic Impact | $650M and 650,000 fans |
| Mies Family Foods Investment | $15.6M, 51 jobs in Kansas |
Challenges to Regional Unity
Fragile Cooperation
While the truce has brought stability, the high stakes of stadium deals could reignite competition. Both states are aware of the cultural and economic loss that would come from losing teams like the Chiefs or Royals.
Transportation and Infrastructure
Preparations for the World Cup highlight the region’s transportation limitations, with plans to double transit capacity temporarily. These challenges underscore the need for ongoing collaboration.
Kansas City’s economic border war reflects the complexities of regional growth and competition. As the Royals and Chiefs contemplate major moves and World Cup preparations accelerate, the region faces both challenges and opportunities.
By prioritizing collaboration over rivalry, Kansas and Missouri can secure a brighter future for their shared community and demonstrate their strength on the global stage.