Hailey
The Kansas City Chiefs are planning a brand-new, state-of-the-art stadium in Kansas City, Kansas, expected to open by the 2031 NFL season.
The project is a major development with an estimated cost of $3 billion, which includes the stadium, team headquarters, practice facilities, and surrounding commercial development.
To help fund this ambitious project, the state of Kansas is using STAR Bonds — a financing tool designed to use future sales tax revenue from a designated district to repay the bonds without raising taxes on the general public.
A key question for fans, taxpayers, and investors is: who is managing the STAR Bonds sales for this stadium project? Understanding the organizations and professionals behind this process is essential to grasping how the stadium will be financed.
What Are STAR Bonds?
STAR Bonds (Sales Tax and Revenue Bonds) are a public financing mechanism used in Kansas for large-scale infrastructure, tourism, and entertainment projects.
The bonds are repaid with incremental sales tax revenue generated within a defined STAR bond district. The concept allows cities to attract large projects without raising general tax rates, instead leveraging the expected growth in revenue from the project area.
For the Chiefs stadium, STAR Bonds are expected to cover 60–70% of the stadium’s cost, translating to roughly $1.8 to $2.4 billion. The remaining cost will be funded through private investment from the Chiefs organization and other development partners.
Who Is Managing the STAR Bonds Sales?
A specialized team of financial institutions, legal experts, and advisors is managing the STAR Bonds sales. Here’s a breakdown of the key entities and their responsibilities:
| Entity / Role | Responsibility | Key Details |
|---|---|---|
| Kansas Development Finance Authority (KDFA) | Issuer & coordinator | Authorized to issue STAR Bonds on behalf of the state. |
| Bank of America | Lead underwriter | Handles pricing, marketing, and selling the bonds to investors. |
| Wells Fargo | Co-senior manager | Assists in bond sales and manages investor relations. |
| Public Financial Management (PFM) | Financial advisor | Provides guidance on bond structure, repayment strategy, and revenue projections. |
| Gilmore & Bell | Bond counsel | Drafts and reviews bond documents for legal compliance. |
| Kutak Rock LLP | Issuer’s counsel | Advises on regulatory and municipal finance matters. |
| Chiefs Development Group (StadCo & DevCo) | Project partner | Coordinates construction and ensures alignment with financing timelines. |
This team ensures the bonds are structured effectively, attract investors, and comply with legal requirements while aligning with projected tax revenues.
How STAR Bond Sales Work
The STAR Bonds for the Chiefs stadium function as follows:
- Issuance: KDFA issues the bonds, backed by future incremental sales tax revenue from the stadium district.
- Underwriting: Bank of America and Wells Fargo manage the bond sale, pricing, and marketing to institutional investors.
- Legal Oversight: Gilmore & Bell and Kutak Rock ensure the bonds comply with all legal and regulatory requirements.
- Financial Planning: PFM projects expected sales tax growth and repayment schedules to ensure bonds remain secure and attractive to investors.
- Revenue Source: Sales taxes collected above baseline levels within the district, including taxes from new restaurants, hotels, retail, and entertainment venues, are used to repay investors.
The STAR bond structure allows the stadium project to secure significant funding while limiting public exposure. It ensures investors have a reliable repayment source without relying on general state funds.
Financial Overview
| Item | Detail |
|---|---|
| Estimated Total Cost | $3 billion+ |
| STAR Bond Portion | $1.8–$2.4 billion (60–70%) |
| Lead Underwriters | Bank of America & Wells Fargo |
| Bond Counsel | Gilmore & Bell |
| Issuer’s Counsel | Kutak Rock LLP |
| Financial Advisor | Public Financial Management |
The STAR bond issuance is one of the largest in Kansas history, highlighting the scale of the Chiefs stadium project and the importance of careful financial management.
Why STAR Bond Management Matters
Proper management of STAR Bonds is crucial to:
- Ensuring investor confidence
- Structuring bonds to comply with legal and financial standards
- Aligning repayment with projected tax revenues
- Minimizing borrowing costs and financial risks
The involvement of top-tier financial institutions and legal experts signals confidence in the project’s viability and ensures a smooth bond issuance process.
The management of STAR Bonds sales is a critical component in making the new Kansas City Chiefs stadium a reality.
With a well-coordinated team of financial institutions, legal experts, and advisors, the project is positioned to secure $1.8 to $2.4 billion in funding while protecting taxpayers from undue risk.