transcript
Speaker 1:
[00:01] After years and years and years of having the conversation, we finally know where the Royals are going to be playing baseball come the next decade. It will be at Crown Center. Big announcement, big rollout yesterday that included obviously John Sherman, the Hormark folks, Mayor Lucas and Governor Kehoe, who now joins us on KCMO Talk Radio. Governor, good morning. We appreciate you being here as always. When you went through yesterday and obviously you spoke as well, what was the thing that you were thinking about yesterday as you put to rest, you know, what has been, let's be honest, since you got into office the big sports project that you have been focused on dealing with and that is trying to retain the Chiefs and the Royals. Couldn't keep the Chiefs, but at least the Royals are staying here. So what was going through your mind yesterday?
Speaker 2:
[00:49] Well, good morning, Pete. It's great to be on with you again. First off, you know, it's kind of crazy. It's been a long journey. You know, this conversation's been going on even before I got in office back when, you know, Governor Parson was here. And, yeah, we've tried to put forward economic development tools that we would do for any business. You and I have talked about this a lot to retain the jobs and the earnings and the economic development that go along with these teams. As you mentioned, Kansas, you bumped their head, really made an unbelievable offer for the Chiefs. And I guess I'm happy for the Chiefs. But the Royals have been great to work with. Mr. Sherman and his ownership group, along with his general manager, Brooks, have been incredibly good brokers to work with. And, you know, they have 81 home games. And the development they have announced around that stadium is not only historic, Pete, it's generational. I mean, somebody spending $3 billion, we did a little fact checking yesterday afterwards, there's no other major metropolitan area with a $3 billion economic development project going on the size of Kansas City in the United States. So we're very excited about what this actually turned out to be, way more than anybody thought it was going to be. But you heard John Sherman say yesterday, patience ended up with a deal that they really didn't think they were going to get in teaming up with the Hall family, who have obviously been involved in Kansas City for 115 years. And it was exciting. For me, it was really exciting to have that announcement and let folks in Kansas City know what this investment is going to mean to them.
Speaker 1:
[02:23] Well, you've been following this saga, going back two years to when you were still Lieutenant Governor, and obviously there was the failed vote in Jackson County. It does seem like this location has been more appreciated by Kansas City, just anecdotally speaking, than what was on the ballot a couple of years ago. What's your understanding on when Crown Center, specifically this plan, because it was always about Washington Square Park, what's your understanding on when the Royals and Hallmark kind of came together and said, maybe there's something here that we can work on with each other?
Speaker 2:
[02:55] Yeah, their announcement yesterday included, they hope to be breaking ground in 2027. They want to be playing ball there in 2031. And where the stadium is going is much different than what most people thought, because when you're working on a major real estate deal like that, that's, I think, almost 80 acres all together. And there's multiple ownership pieces and partnership pieces. It takes a while to iron all that out. And so that's why it took a little bit longer. But certainly, as I mentioned earlier, it was definitely worth the wait. And you'll start seeing earth moving and steel beams going up in a year from now, or maybe a little less than a year from now. That's when people will get really excited to start seeing what that's all going to look like.
Speaker 1:
[03:39] So we know that the city's, you know, kicking in six hundred million dollars. What exactly is the state portion of this going to be?
Speaker 2:
[03:47] Yeah, we're using the Show Me Sports Investment Act that we passed on a special session last summer. That is an economic development tool that's similar to other tools used to attract and retain businesses. It's about fifteen to seventeen million dollars a year that can go towards a bonding payment. You know, that's in the depending on when you sell the bonds, the rate you get, et cetera. That can be in the mid 300 million-ish mark. And then there's also some other economic development tools. We'd use cost share for infrastructure improvements and different things that any business that's creating this type of economic development activity would include. So there's a couple of different tools we'll use, but again, all tools that we have at our disposal to use to retain this type of economic development and a good investment for taxpayers. And I've talked about that a million times with you, Pete. We can't get to the point where this is a bad deal for taxpayers. I think we're at a very good balance point. With the help of Kansas City, Mayor Lucas and his council stepped up in a huge way, way more than we were able to do as a state. But the economic impact, the jobs it will provide in that area will be, like I said, it will be not only historic, it will be generational.
Speaker 1:
[05:00] So you're looking at maybe three to four hundred million with the city six. So it's about a billion dollars all in, it seems like, from the city in the state, you've got two billion dollars then in private investment that would come in on top of that. You know, compare that to, you mentioned earlier, the state of Kansas kind of bumping its head with the chiefs deal. Compare that to what's going on in Kansas, where it's about two billion dollars from the state in future sales tax revenues that is getting a billion dollars in public investment. So when you look back on the last few months, you compare this deal to what happened on the other side of the state line. How do you compare and contrast these two?
Speaker 2:
[05:36] Well, I mean, you know, Kansas made its deal, the Chiefs made its deal. It was good for their ownership team, obviously, who was very lucrative for them. But I don't see where that would have been a good return on investment for our taxpayers. I really to this day don't know how Kansas is going to pencil that out to be a good return. They know something I don't apparently because they're, they're moving that forward and good for them. But this, I think, is a good balance, as I mentioned earlier, it has, it is a true public private partnership. It's not where we've seen in the other states where it's massive amounts of public money. I think that will be the Kansas deal will be a record for infrastructure investment into a sports franchise in the US. And if they want to set that record, that's obviously up to them and their policy makers. And it's a good deal, like I said, for the team. But we've got to make sure our deal is good for Missourians. And that's why the ownership group we work with, I've known the Hall family for a long time. And as I mentioned earlier, their fingerprints on what they've done for Kansas City is obviously a very solid record. And the whole package together that ended up happening with our group and our deal, I think really reflects a good balance and a true public-private partnership.
Speaker 1:
[06:49] What would you like to see happen now with the Truman Sports Complex as that obviously falls by the wayside?
Speaker 2:
[06:57] I'm in that camp that says, let's not abandon an asset that's incredible in size and scope. I think everybody, the Royals have said all along, they weren't returning to Kaufman Stadium. So Kaufman Stadium, the baseball part of that facility, might need to be the piece that has a shorter life after the Royals get out of it. I'd love to see the stadium repurposed into a live venue for different events. And obviously we're hosting World Cup Soccer there just a little over 45 days. We've caught the international community's ability to host like that. You've got Women's World Cup, you've got Rugby World Cup. There's a lot of international events I think you can go in there. So it will take a lot of thought and time working with the Truman Sports Authority Complex, who are good people that are on that board. But I think we should imagine and think big. York, if you listen to the press conference yesterday, John Sherman looked at Kay Barnes and said, Kay Barnes would send him a handwritten note every so often and say think big. And he did. And that's what you're getting in the downtown Kansas City Royals Project. I believe we need to think big about that project out there with the Truman Sports Complex. It seems like it would be a horrible ending for it just to be bulldozed down and then who knows what you do with the land. I really hope that there's a way that we can find to repurpose that, again, bringing economic activity into Eastern Jackson County that also makes a good return on investment for the county and others who might be involved in that.
Speaker 1:
[08:32] Governor, Mike Kehoe is here on KCMO. While I've got you, obviously, you know, the income tax issue is one that now is going to be on the ballot for Missourians to vote on phasing out the income tax in the state of Missouri going forward. Do you know, and I guess you make the call on this, whether or not it's going to be on the August ballot or November ballot, do you know which one you're going to put it on?
Speaker 2:
[08:56] No, we'll look at that. As you know, there's multiple ballot initiatives that are likely, and some for sure will be on the ballot. So looking at what makes sense to get Missourians the best time to weigh in on that. Look, the income tax proposal is the largest policy piece I think the state has ever faced. Maybe in the last 100 years, I've heard a few people say that outside of my conversations. It's a major policy shift, and I think it's appropriate for Missourians to be able to weigh in on that and decide if this is the right way to create a new economic model. And in my mind, that would create growth, population growth, economic growth, and stimulus for our entire state. So we're excited and appreciative that the House and Senate got that through. By the way, Speaker Patterson did a wonderful job handling that bill in the House. Curtis Trent in the Senate from the Springfield area. But the leadership of both the House and Senate did a really good job of getting that to the point where, as you mentioned, it now is a referendum that goes to the ballot. And the Zurians will be able to vote on it. And I look forward to the discussion and conversation that we'll have leading up to that ballot question.
Speaker 1:
[10:01] And for people that are still just learning about this and obviously in this part of the state, they remember what Kansas tried over a decade ago with its income tax plan that went to zero. And then obviously they had to renege on that pretty quickly. How is it different from what Kansas tried when you have a model that did not work that's not all that old?
Speaker 2:
[10:22] Well, thank goodness we have, well, unfortunately for them, but good for us, we were able to use what happened there as a playbook of what not to do. So this is a constitutional measure that has protections in it where you can't ratchet down the income tax until you have sufficient revenue coming in from what will be a new sales tax code. So we have protections in there. For Missourians, for our central services, for education and public safety and all the things that Missourians rely on in our general revenue, we're going to make sure that funding is there first before we gradually phase out the income tax. And again, I've told you this all along, every before we had the specifics on the plan. I always thought it would be somewhere between a five and maybe even as long as a six year kind of phase out. That does it responsibly so you don't put yourself in the bad spot that Kansas did when they tried their plan. So we've learned some from that. We think we've got some good protections in there for Missouri taxpayers. And at the end of the day, nine billion with a B, nine billion dollars annually every year goes back into Missourians pockets for them to decide how to choose to spend. And it gives us an incredible competitive edge with other states for economic development and population growth.
Speaker 1:
[11:33] Mike Kehoe on KCMO Talk Radio, will you be barnstorming the state this summer and fall to advocate for the cut?
Speaker 2:
[11:42] I don't think I ever stopped barnstorming Pete. I forgot that the election was over. We just keep traveling. But we, you know, the one thing about getting to be in the position that I'm in, it's a humbling job. I think you know, and your listeners know my background and what I started with, which is not a lot. It's great to meet the people of the state. That's where I find the most energy to continue on this job is just meeting Missourians and hearing their stories and hearing what their family does and what their businesses do. You know, their efforts to try to, you know, achieve the American dream. So I love getting out in the state. I think that's what we should do. I don't think everybody should have to come to Jefferson City. Most people don't want to come to Jefferson City. So we like getting out and about. I'm sure we'll be out multiple times. We've got, you know, this little, there's a little soccer match going on, Pete, up there. You might've heard about called the World Cup. So we'll be spending a lot of time in Kansas City in the region doing different events in June and July. We really look forward to that.
Speaker 1:
[12:42] Well, we look forward to seeing you up here, Governor. Thanks as always for your time and we'll talk to you soon.
Speaker 2:
[12:46] All right, buddy. Appreciate you having me on. Have a great day.
Speaker 1:
[12:49] You as well. That is Missouri Governor Mike Kehoe on KCMO Talk Radio.