The New Kansas City Chiefs Stadium and STAR Bonds

By Eric Owens, Director at Swartz and Associates

Kansas’ decision to help finance the newly announced $3–3.3 billion Kansas City Chiefs stadium has put a powerful but often misunderstood tool in the spotlight: STAR bonds. Whether you’re a fan, a business owner, or simply someone who cares about how major projects get funded, understanding STAR bonds helps make sense of why Kansas is making such a bold investment.

What Are STAR Bonds?

Sales Tax and Revenue (STAR) Bonds are a Kansas financing tool that lets the state pay for major tourism and entertainment projects using future sales tax revenue generated inside a special district.

In simple terms:

Kansas creates a district around a big project
Sales taxes from spending inside that district are used to repay the bonds
No new taxes are created
The project must attract visitors and spending that wouldn’t otherwise occur

For the Chiefs stadium, Kansas approved STAR bonds to cover up to 70% of the project cost, or roughly $2.4 billion.

Why Kansas Is Using STAR Bonds for the Chiefs

Kansas leaders believe the new stadium — along with its surrounding entertainment district and new team headquarters — will:

Attract millions of visitors
Generate significant new sales tax revenue
Create long‑term economic activity
Position Kansas to host major events like the Super Bowl or Final Four

STAR bonds are designed specifically for projects that bring in regional and national tourism, not just local shoppers.

Other Kansas Projects That Have Used STAR Bonds

Kansas has used STAR bonds for more than 20 years, including several high‑profile developments:

1) Village West / Kansas Speedway (Wyandotte County)

One of the most successful STAR bond districts in the state. It includes:

Kansas Speedway
Legends Outlets
Sporting KC’s stadium

This area is often cited as the model for how STAR bonds can work well.

2) Mattel Adventure Park (Bonner Springs)

A new $540 million theme park featuring Barbie and Hot Wheels attractions.

More than $200 million in incentives — including STAR bonds — were approved to support it.

3) Other Tourism & Entertainment Projects

Since the program began in 1999, Kansas has used STAR bonds for:

Museums
Sports complexes
Entertainment districts
Large‑scale retail and tourism attractions

The goal is always the same: bring in visitors and generate new spending.

What This Means for the Kansas City Region

The Chiefs stadium will likely become the largest STAR bond project in Kansas history, and its impact will extend far beyond football.

Potential regional effects:

New jobs and construction activity
Growth in hotels, restaurants, and entertainment
Increased national visibility for the KC metro
A new economic anchor in Wyandotte County

Whether you’re a resident, a business owner, or a fan, this project represents a major shift in where and how the region grows.

Final Takeaway

STAR bonds are a unique Kansas tool designed to fund big, tourism‑driven projects without raising taxes. The new Chiefs stadium is the most ambitious use of this tool yet — and it will shape the region’s economy, development patterns, and identity for decades.

Swartz + Associates, Inc. (SAI) is a full service property tax firm specializing in the review, analysis and appeals of real and business personal property tax valuations. If you need help with your property taxes, give us a call!