September 10: KC Current’s CPKC Stadium, located on the banks of the Missouri River, will receive $185 million in expansion funding from the local government.
The National Women’s Soccer League (NWSL) franchise’s stadium will increase capacity from 11,500 seats to 18,000, the Kansas City Star reports.
What makes the deal remarkable is how the risk is shared. Under the plan, the team commits to supporting the city’s 30-year financing commitment, effectively covering the costs of the debt.
The council’s finance committee advanced an ordinance Tuesday that directs the city manager to a development agreement, and the full council could take it up Thursday. The project is part of a $1.4 billion renovation of the riverfront centered around the stadium.
Mayor Quinton Lucas is on board with the concept. “I think the debt guarantee is a very interesting model, which I would like more developers to offer if they came to us,” he said, praising the team for reducing the risk to the city’s budget.
The deal comes with guarantees. The team must obtain a line of credit worth 110% of one year’s debt service, and it is conditional on a feasibility study and a guarantee that the project will not cause a downgrade of the city’s credit rating.
The city and other taxing districts keep about $1 million in tax revenue from the stadium, with the rest of the support paid for through diverted taxes.
One sticking point remains. The deal currently does not include a no-relocation clause binding the Current to the city, though staff say one could be added. Committee member Johnathan Duncan was not satisfied. “If we’re going to put 30 years on the line, that should be non-negotiable for that,” he argued.
Contact the writer of this story, Nick Webster, at (email protected)
