Voters reject stadium tax for Royals and Chiefs, leaving future in KC in question

KANSAS CITY, Mo. (AP) — The future of the Royals and Chiefs in Kansas City was thrown into question Tuesday night when residents of Jackson County, Missouri, resoundingly voted down a sales tax measure that would have helped to fund a new downtown ballpark along with major renovations to Arrowhead Stadium.

Royals owner John Sherman and Chiefs president Mark Donovan acknowledged long before the final tally that the initiative would fail. More than 58% of voters ultimately rejected the plan, which would have replaced an existing three-eighths of a cent sales tax that has been paying for the upkeep of Truman Sports Complex — the home for more than 50 years to Kauffman and Arrowhead Stadiums — with a similar tax that would have been in place for the next 40 years.

The Royals, who had pledged at least $1 billion from ownership for their project, wanted to use their share of the tax revenue to help fund a $2 billion-plus ballpark district. The Super Bowl champion Chiefs, who had committed $300 million in private money, would have used their share as part of an $800 million overhaul of Arrowhead Stadium.

“We’re deeply disappointed as we are steadfast in our belief that Jackson County is better with the Chiefs and the Royals,” said Sherman, who left without taking questions. “As someone whose roots run deep in this town, who has been a dedicated fan and season-ticket holder for both of these teams, and now leading a remarkable ownership group.”

Donovan said the Chiefs would do “what is in the best interest of our fans and our organization as we move forward.”

That could mean many things: The Chiefs could try again with a reworked plan more agreeable to voters, change their entire funding approach to include more private investment, or they could even listen to offers from competing cities and states — such as Kansas, just across the state line to the west — that would provide the public funding they desire.

“We’ve been talking a lot about the democratic process. We respect the process,” Donovan said. “We feel we put forth the best offer for Jackson County. We’re ready to extend the longstanding partnership the teams have enjoyed with this county.”

The current lease lease at Truman Sports Complex lasts through Jan. 31, 2031. And while Sherman has said the Royals would not play at Kauffman Stadium beyond the 2030 season, the Chiefs are hopeful of remaining at Arrowhead Stadium.

The tax — or, more accurately, the stadium plans — received significant public pushback almost from the start, when the teams struggled to put concrete plans before voters and were accused of lacking transparency throughout the process.

Last fall, the Royals unveiled two potential locations for their ballpark district, one on the eastern edge of downtown and the other across the Missouri River in Clay County, Missouri. But a self-imposed deadline to finalize their location lapsed without a plan, and in February, they finally announced they had scrapped both concepts and chosen a different downtown spot.

The new area, known as the Crossroads, has a vibrant arts and restaurant scene, and it is just blocks away from the T-Mobile Center and the bustling Power & Light entertainment district. It also is close to the Kauffman Center for the Performing Arts and the 18th & Vine district, which is home to the Negro Leagues Baseball Museum.

But even then, plans remained vague. The latest ballpark renderings were made obsolete just last week when the Royals acquiesced to Kansas City Mayor Quinton Lucas’ request that a major street that would have been part of the stadium footprint remain open; Lucas did not endorse the tax initiative until the Royals agreed to the change.

“I think everyone has the same mixed feelings,” said Deidre Chasteen, a voter from Independence, Missouri, who remembers attending games downtown at old Municipal Stadium when the Royals played there from 1969-72.

“It’s not that we mind paying the three-eighths-cent sales tax. I think the problem is putting the stadium where it is,” Chasteen said. “We’re saying don’t ruin businesses that have been established down there for years.”

The club also had not reached sales agreements with many landowners in the Crossroads, and other businesses had expressed concerns about traffic, congestion and parking in an already thriving residential neighborhood.

Sarah Tourville, the Royals’ executive vice president, said the goal was to move into the stadium for opening day in 2028.

The Royals moved from Municipal Stadium to Kauffman Stadium in 1973 and extensively renovated the ballpark from 2009-12. Arrowhead Stadium was built alongside Kauffman Stadium and also was renovated around the same time.

While the Royals insist on playing in a new ballpark, the Chiefs wanted to stay put with a renovation that would have touched every aspect of their 52-year-old building, from the seating bowl to luxury amenities to the tailgating scene.

“We would not be willing to sign a lease for another 25 years without the financing to properly renovate and reimagine the stadium,” Chiefs chairman Clark Hunt, whose father, Lamar Hunt, helped get the existing stadiums built, said before Tuesday’s vote. “The financing puzzle is very important to us to make sure we have enough funds to do everything we’ve outlined.”

The Chiefs had hoped their success, including three Super Bowl titles in the last five years, would sway voters in their favor.

“What my dad loved best about the stadium was the connection the team had with our fanbase,” Hunt said. “He loved this building for what it means to the fans, and we still believe it is one of the best stadiums in the National Football League and a bucket-list destination for fans across the NFL.”

Associated Press writer Nick Ingram contributed to this report.

AP MLB: https://apnews.com/hub/mlb and AP NFL: https://apnews.com/hub/nfl

A man votes Tuesday, April 2, 2024, at Yellow Rock Barn in Kansas City, Mo. Voters are being asked to decide whether to extend a sales tax to fund a new baseball stadium for the Kansas City Royals and football stadium improvements for the Kansas City Chiefs. (AP Photo/Charlie Riedel)

Katherine Castle votes Tuesday, April 2, 2024, at Yellow Rock Barn in Kansas City, Mo. Voters are being asked to decide whether to extend a sales tax to fund a new baseball stadium for the Kansas City Royals and football stadium improvements for the Kansas City Chiefs. (AP Photo/Charlie Riedel)

Kansas City Chiefs president Mark Donovan address the crowd during an election watch party after voters rejected the extension of a sales tax to provide funding for a new baseball stadium for the Kansas City Royals and renovations for the Chiefs' football stadium Tuesday, April 2, 2024, in Kansas City, Mo. (AP Photo/Charlie Riedel)

Jeff Gaeth votes Tuesday, April 2, 2024, at Yellow Rock Barn in Kansas City, Mo. Voters are being asked to decide whether to extend a sales tax to fund a new baseball stadium for the Kansas City Royals and football stadium improvements for the Kansas City Chiefs. (AP Photo/Charlie Riedel)

Kansas City Chiefs president Mark Donovan address the crowd during an election watch party after voters rejected the extension of a sales tax to provide funding for a new baseball stadium for the Kansas City Royals and renovations for the Chiefs' football stadium Tuesday, April 2, 2024, in Kansas City, Mo. (AP Photo/Charlie Riedel)

Kansas City Royals owner John Sherman address the crowd during an election watch party after voters rejected the extension of a sales tax to provide funding for a new baseball stadium for the Royals and renovations for the Kansas City Chiefs' football stadium Tuesday, April 2, 2024, in Kansas City, Mo. (AP Photo/Charlie Riedel)

Kansas City Royals owner John Sherman, left, address the media while Kansas City Chiefs president Mark Donovan looks on during a news conference about a plan to extend a sales tax to provide funding to build a new stadium for the Royals and stadium improvement for the Chiefs Saturday, March 30, 2024, at Kauffman Stadium in Kansas City, Mo. Jackson County, Mo. residents will vote on the question Tuesday, April 2. (AP Photo/Charlie Riedel)

Kansas City Royals owner John Sherman, left, looks on while Kansas City Mayor Quinton Lucas endorses a plan to extend an existing sales tax to provide funding for a new baseball stadium for the Royals and stadium improvements for the Kansas City Chiefs Saturday, March 30, 2024, at Kauffman Stadium in Kansas City, Mo. Jackson County, Mo. residents will vote on the question Tuesday, April 2. (AP Photo/Charlie Riedel)

Kansas City Royals owner John Sherman address the media during a news conference about a plan to extend a sales tax to provide funding to build a new stadium for the Royals and stadium improvement for the Kansas City Chiefs Saturday, March 30, 2024, at Kauffman Stadium in Kansas City, Mo. Jackson County, Mo. residents will vote on the question Tuesday, April 2. (AP Photo/Charlie Riedel)

Kansas City Chiefs owner Clark Hunt, left, and Kansas City Royals owner John Sherman talk before a baseball game between the Kansas City Royals and the Minnesota Twins Thursday, March 28, 2024, in Kansas City, Mo. Jackson County voters will decide on a ballot question to extend a sales tax to fund a new stadium for the Royals and stadium improvements for the Chiefs in an election held Tuesday, April 2. (AP Photo/Charlie Riedel)

Kansas City Royals owner John Sherman, left, address the media while Kansas City Chiefs president Mark Donovan looks on during a news conference about a plan to extend a sales tax to provide funding to build a new stadium for the Royals and stadium improvement for the Chiefs Saturday, March 30, 2024, at Kauffman Stadium in Kansas City, Mo. Jackson County, Mo. residents will vote on the question Tuesday, April 2. (AP Photo/Charlie Riedel)

An Air Force B2 bomber flies over Kauffman Stadium before a baseball game between the Kansas City Royals and the Minnesota Twins Thursday, March 28, 2024, in Kansas City, Mo. (AP Photo/Charlie Riedel)

RIVERWOODS, Ill.--(BUSINESS WIRE)--May 6, 2024--

Discover Home Loans recently conducted a survey to determine Americans’ intentions for their homes, and whether they are choosing to renovate their current property or buy a new house that better fits their needs and personal style.

This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20240506832767/en/

The survey found high interest rates are having a profound impact on American homeowners. 84% who were planning to buy a new home say interest rates have affected their decision. Of those impacted, 46% indicated they are no longer looking, 35% are less committed in their search and 30% have lowered their budget. For most in this group, rates would need to fall significantly with 66% of respondents planning to wait for 30-year mortgage rates to dip below 5% before they would seriously consider purchasing a home.

“When the Fed does gain confidence that inflation is under control, rate decreases are likely to be modest and gradual,” says Rob Cook, vice president of marketing at Discover Home Loans. “In the meantime, the housing market may remain sluggish. Consumers should reset their expectations and budgets accordingly.”

Interest rates are also modifying homeowners’ preferred financing options. Only 9% of homeowners plan to use a cash-out refinance for their home improvement project, down significantly from 24% in 2023. “Homeowners are understandably avoiding lending options that would impact the rate they currently have on their primary mortgage,” says Cook. “In this rate environment, home equity loans are an attractive option as they allow homeowners to leverage the available equity they have in their homes without modifying their existing mortgage.”

Inflation also has a significant impact on homeowners’ finances, with 49% of respondents reducing discretionary spending and 33% choosing to delay home renovation projects. For those who pursue home renovations, many are feeling inflation’s impact with 47% of respondents indicating their project is costing more than they expected and 30% stating they have reduced the size of their project.

U.S. Homeowners Are Renovating to Add Personal Style and Functionality

More than half (55%) of American homeowners would rather renovate their current home vs. move to a new home (24%) or keep their home “as is” (21%). In fact, 57% of survey respondents either have a home improvement project underway or are planning a project within the next year. For those planning a home improvement project, 87% want to make cosmetic changes to reflect their personal style; 84% want to use home improvements as an investment opportunity; and 73% want to upgrade home features in need of repair.

Gen Z vs. Baby Boomers: Thoughts on Home Renovations and Personal Finances

Younger generations are generally more optimistic about their financial future this year with 48% of Gen Z and Millennial homeowners expecting their finances to improve over the next year — compared to only 31% of Gen X and Baby Boomers. Reasons for renovating a home also differ between generations. Gen Z and Millennial respondents are more likely to take on renovation projects that personalize their homes, while Gen X and Baby Boomers are taking on home renovations to feel a sense of accomplishment.

Spending and saving habits also differ between generations. Gen Z, Millennials and Gen X are more likely to expect their home improvement project to go over their anticipated budgets, while Baby Boomers are most likely to expect to stay consistent with their budget. Baby Boomers are less likely to budget for extra costs, while Gen Z is more likely to save between 11-15% when compared to other generations.

“As younger generations are building equity and looking to renovate, they appear to be willing to spend more to create a home that better reflects their personal aesthetic,” says Cook. “Meanwhile, older generations are willing to spend on improvements to keep up with the maintenance of their homes, but not embellish or completely overhaul.”

Discover has resources that can help determine if home renovation goals are financially attainable. For example, consumers can receive an estimated interest rate and monthly payment breakdown on home renovation financing options by visiting the Discover Monthly Payment Calculator.

About the Survey

The national survey of 1,500 homeowners was commissioned by Discover and conducted by Dynata (formerly Research Now/SSI), an independent survey research firm. The survey was fielded from February 9th through March 13th, 2024.

About Discover

Discover Financial Services (NYSE: DFS) is a digital banking and payment services company with one of the most recognized brands in U.S. financial services. Since its inception in 1986, the company has become one of the largest card issuers in the United States. The company issues the Discover® card, America's cash rewards pioneer, and offers private student loans, personal loans, home loans, checking and savings accounts and certificates of deposit through its banking business. It operates the Discover Global Network® comprised of Discover Network, with millions of merchants and cash access locations; PULSE®, one of the nation's leading ATM/debit networks; and Diners Club International®, a global payments network with acceptance around the world. For more information, visit www.discover.com/company.

Equal Housing Lender

Discover makes loans without regard to race, color, religion, national origin, sex, handicap, or familial status.

55% of U.S. homeowners would rather renovate their current home than move or keep as is. (Graphic: Business Wire)

84% of U.S. homeowners say interest rates have impacted their decision to buy a new home. (Graphic: Business Wire)