Chiefs, Royals Detail Their Community Benefits Agreements Ahead of April 2 Vote

Posted March 21, 2024

Updated 12:55 p.m., March 21, 2024

The Kansas City Chiefs and Royals announced plans for their community benefits agreement (CBA) in Jackson County.

The April 2 ballot is less than two weeks away for Jackson County voters to decide whether to pass the 3/8-cent sales tax extension to fund the teams’ new stadium projects. If passed, the Chiefs and Royals would commit millions of dollars to Jackson County through CBAs. Further details of these CBAs were disclosed in letters sent to Jackson County Legislatures earlier this week.

The Chiefs will commit $126 million and the Royals will commit $140 million.

“A Community Benefits Agreement is an extremely important part of a project like this, and it’s wide-reaching,” Chiefs president Mark Donovan said in a release. “The headline is that it covers a commitment by the teams of $266 million in spending toward community programs in Jackson County, but it also covers things that are very newsworthy to our unions, construction trades and workforce. As part of that, we’ve agreed to unprecedented MBE/WBE percentages.”

The Chiefs and Royals also guarantee 43 percent of all construction for renovations for Arrowhead and the Royals’ new downtown stadium will involve minority and women-owned businesses.

A CBA Board will be appointed to help govern the commitments. Boards for each team would be comprised of Jackson County Legislatures and appointed members from the teams. The Chiefs and Royals will appoint 45 percent of the boards, according to the letters.

The Chiefs CBA Board will distribute funds to support nonprofits and charitable programs in the following categories:

• Employment benefits, such as workforce training and education
• Healthcare
• Children and families with a focus on youth programming
• Diversity benefits, such as minority- and women-owned business goals
• Workforce assistance
• Education, including supplemental education support services for urban youth and adults
• Environment and sustainability, such as the development, implementation and maintenance of a sustainability operations plan, and efforts to reduce carbon emissions
• Public transportation benefits for both workers and residents

The Royals CBA Board will distribute funds to support nonprofits and charitable programs in the following categories:

• Employment benefits, such as workforce training and education
• Affordable housing
• Childcare benefits including workforce support
• Healthcare, such as anti-violence initiatives, mental health awareness
• Diversity benefits, including minority- and women-owned business goals, a low-interest loan program and a pay-without-delay program
• Workforce assistance
• Education, including supplemental education support services for urban youth and adults
• Environment and sustainability, including the development, implementation and maintenance of a sustainability operations plan, and efforts to reduce carbon emissions
• Public transportation benefits for both workers and residents

Following the team’s announcement, Jackson County Executive Frank White issued a response. In his response, he addressed his concerns about the lack of Jackson County’s involvement in drafting the CBAs.

White’s statement reads: 

“These letters, while mentioning possible community benefits, do not represent a Community Benefits Agreement (CBA) in any formal capacity. The decision by the teams to exclude Jackson County from participating in or contributing to the drafting of these documents is a significant concern, amplified by their timing — released less than two weeks before a pivotal election. Such timing raises legitimate questions about the motivation behind and the potential effectiveness of the benefits proposed.

“Statements from numerous community, civil rights and labor organizations has revealed a collective dissatisfaction with the negotiation process, leading to their withdrawal. Their departure highlights profound issues within the negotiation framework and casts substantial doubt on the inclusiveness and potential impact of the benefits proposed.

“These documents offer no mechanism for enforcement by either Jackson County or our residents. Consequently, the “commitments” made in these letters are yet another instance where the teams ask voters for their trust without providing a concrete basis for it. Basically, these letters represent non-binding expressions of intent, not the genuine, enforceable Community Benefits Agreements they intend to be.

“To distinguish between the proposals made by the teams and a genuine CBA, simply reference a definition from the U.S. Department of Housing and Urban Development (HUD):

CBAs are legally binding covenants made between developers or government bodies and community groups that require development on specified lands to meet outlined thresholds for living wage standards, local hiring policies, affordable housing, and sustainable development practices. Developers must abide by the CBA to receive tax breaks and other forms of public assistance. (Source: HUD)

“This clear disparity highlights a significant lack of commitment to enforceable, meaningful community benefits. While I recognize the efforts to outline potential benefits, I maintain a profound skepticism regarding the efficacy and reliability of these proposals due to the issues noted.

“As County Executive, I remain steadfast in my commitment to securing genuine, enforceable community benefits agreements that transparently and effectively address the needs of all residents. Jackson County voters were promised and deserve better than this.”