Chiefs commit to at least five years at Missouri Western
State and local university officials on Thursday announced — again — that St. Joseph would serve as the 2010 home of the Kansas City Chiefs summer training camp.
Five months after a similar lineup of stakeholders announced they’d clinched a five-year deal with five one-year renewable options between Missouri Western State University and the Chiefs, the Missouri Development Finance Board Thursday morning unanimously approved a second agreement.
This one holds the camp to Missouri for 10 years, specifically at Western’s campus for five.
While it may sound reminiscent, Gov. Jay Nixon said the new contract addresses what he deemed as “discrepancies” that held up the agreement.
“Those matters have been all worked out,” Mr. Nixon said during a press conference on Western’s campus Thursday afternoon.
Construction starts July 1, he said, spending more time on praising the deal for its job implications, rather than its past complications that until Thursday threatened the summer groundbreaking.
He said the partnership sent a message that St. Joseph wants to be a “major-league town.”
“This is just a solid deal that will help boost St. Joseph’s economy,” he said. “It’s just going to be really cool to have them here.”
The new contract includes the additional five one-year options, but also outlines a new, 10-year schedule of damages the Chiefs will have to pay if they don’t keep the camp in Missouri, starting with an $11 million penalty in the first year.
“This deal has been what it was (from) the very beginning,” Chiefs President Denny Thum said. “It gave us a little more time to spell out the details.”
Of particular concern has been who would pay $2 million in state tax credit fees. They ultimately split the fees, with the Chiefs paying $1.2 million and Western $800,000.
Also, instead of a full cash donation of $10 million to Western to help build an indoor practice facility, the Chiefs will contribute $8.45 million. The remaining $1.55 million will come in in-kind donations, such as consultant services, said Dr. Bob Vartabedian, Western president.
Dr. Vartabedian said he had no concerns over the smaller cash amount, noting the city of St. Joseph’s $2.25 million commitment and $1.5 million from Buchanan County.
“This is a very special occasion for us,” he said.
Members of the Nixon administration have contended the finance board in December approved a 10-year agreement between Western and the Chiefs in exchange for $25 million in state tax credits for improvements to Arrowhead Stadium. But the actual contract included a shorter five-year commitment from the Chiefs to Western, with five one-year renewable options, which raised the eyebrows of state attorneys.
Western officials openly said they were satisfied with the five-plus-five deal. But Economic Development Director Linda Martinez insisted for months that the state wouldn’t release the credits without a straight 10-year contract at Western. In the end, the department got Missouri.
The Chiefs have conducted their summer camps at River Falls, Wis., since 1991.
“It has indeed been a long process,” said Sen. Charlie Shields, R-St. Joseph, an early negotiator of the deal. “I believe this is a turning point for our community. ... Today we are the summer home of the Kansas City Chiefs.”
The Chiefs recently built a facility in Kansas City that could serve as a future indoor practice building for the summer training camp if the team chooses to leave for the 2015 season.
Mr. Thum, however, pointed to its 18-year track record in Wisconsin.
“We don’t move a whole lot,” he said. “We sincerely believe this represents the Chiefs’ first victory for the 2009 season.”
Added Mr. Thum, “We graciously accept your invitation to be part of your community. This is special. ... I just think this is going to be a great, great arrangement.”
Lt. Gov. Peter Kinder, a Republican ex-officio member of the finance board who helped craft the initial deal, said he was pleased it was final, but criticized the Democratic governor’s reluctance to openly support the project until recently.
“We ended up with the deal we negotiated. It was all there last December. Now it’s there in slightly different form,” Mr. Kinder said. “Today (Mr. Nixon’s) out there to take credit for it and I welcome him to the ranks of supporters.”
Alyson E. Raletz can be reached at alysonraletz@npgco.com.