JACKSON COUNTY COURTHOUSE 415 EAST 12TH STREET KANSAS CITY, MISSOUAI 64108 MEMORANDUM To: Bryan Covinsky, County Counselor Fror \: Caleb Clifford, Chief of Staff Subject: Jackson County's Position for Negotiations with Kansas City Royals Date: September 25, 2023 |. TERM OF AGREEMENT Jackson County proposes a 20-year exter year period. n to the sales tax as opposed to the Royals’ suggested 40- I. LOCATION, Despite the Royals' preference for an “East Village” site, Jackson County believes that alternative sites, particularly those east of Troost, could offer better economic and social benefits. While open to discussions, we alm to highlight the potential benefits of other sites. Ill, SALES TAX & COUNTY CONTRIBUTIONS ‘* Assuming other terms are met, the County will place the extension of a 3/8 cent sales tax on the ballot at the earliest election date. ‘The County will agree to bond for a maximum of $250 million, Excess revenue will go to the County. ‘Discontinuation of the park levy's addition to the waterfall, leading to an annual saving of $3.5 million, ‘* The Royals will handle the insurance of the facility at its replacement value, stadium deconstruction, its site conversion for more parking, and cover all repairs and improvements. ‘They can use their part of the $250 million for these expenses. IV, RENT AND REVENUE ‘The Royals' yearly rent will begin at $5,000,000, adjusted annually based on the CPI. © OPTION: Rent can be directed to RMIMO Fund OR to Jackson County. Harry S. Truman, Presiding Judge, 1927-1954 ®@ (616) set-sas3 OFFICE OF THE COUNTY EXECUTIVE Fax: (816) 881-3133+ Revenue Sharing: A 50/50 split for revenues from stadium naming rights, concerts, parking, and ‘other non-baseball events, * Economie Activity Taxes (EATS) ‘© OPTION: RMIMO OR to Jackson County. \V. ECONOMIC IMPACT & COMMITMENTS ‘The Royals must provide a detailed account of thelr private Investment. Contractual language should ensure timely investments with penalties for unfulfilled obligations. Vi, AUTHORITY OVER INCENTIVES & ZONES © OPTION: (© Jackson County Legislature must approve any incentives or abatements in the "East Village" curing the agreement, OR © Taxing Jurisdictions must approve the redirection of thelr anticipated tax revenue {taxing Jurisdiction preference) ‘+ The team must work with the county to modify state laws, making sure the entire project and its surrounding area qualify for benefits like the Port Authority Aim Zone and Port improvement District. Vil. MAINTENANCE & COMMUNITY BENEFITS ‘+ The Royals should maintain "first-class" stadium standards, ‘© St, Louls contract: “Section 10.5 ~ Performance of Ballpark Capital Repairs and Improvements “[TJhe Cardinals shall be responsible for making and performing all Ballpark Capital Repairs and {mprovements.”” ~pg. 47A ‘+ Acomprehenslve Community Benefit Agreement Is anticipated, including: © Living wage proviston for stadium and nearby employees. © Ban on unlon-busting actions. © A$50-100 million investment by the Royals in vulnerable Jackson County areas, * Health Disparities (Our Healthy Jackson County} Affordable Housing Vill. VISIBILITY AND RECOGNITION Prominent advertising and signage placements for Jackson County within the stadium. Elected officials to welcome/thank Jackson County taxpayers during events (Le. video screen message) Equal or superior billing for county officals during significant events, 1X, PRIORITY SEATING & RESIDENTIAL INCENTIVES Priority for Jackson County residents to purchase tickets with a proposed 10% discount, 1X. INFRASTRUCTURAL COMMITMENTS‘The Royals must construct the pedestrian bridge shown in thelr plans, regardless of Federal fund avallablity. X1. ADDITIONAL CONSIDERATIONS Explore a split TIF mechanism to let PILOTs from the East Village financially benefit areas like 18th and Vine.