American Royal development agreement, STAR bonds district receive UG Commission approval

The site plan for the American Royal project, as shown in Unified Government agenda documents. The UG Commission approved a development agreement and STAR bond district on Thursday night. Parallel Parkway is at the north of this map, State Avenue is to the south, and 118th Street is on the west, separating two areas of the project.

The Unified Government Commission unanimously approved the American Royal development agreement and a STAR bond district at the Oct. 26 meeting at City Hall.

The $165.4 million project is in a STAR bond district of 550 acres near 110th and Parallel Parkway. The site plan is on about 112 acres in the STAR bond district. The American Royal has been in Kansas City, Mo., for more than 100 years, and is well known for its annual rodeo and livestock show, as well as a barbecue competition.

Jon Stephens, the UG’s director of economic development, said $80 million would come from the net STAR (sales tax revenue) bond proceeds, $80 million from private contributions from the American Royal, and $5.3 million from other sources.

Stephens said there was an 18-month period to secure financing and complete the development plan, then construction of the American Royal would start within 6 months of the bond closing, and the American Royal core elements must be substantially completed within two years of the bond closing.

Korb Maxwell, an attorney representing the American Royal, said this is not just about moving the American Royal from Kansas City, Mo., to Kansas City, Kansas.

“This is about creating a bright new future for the American Royal, and hanging a sign in Wyandotte County and hanging a sign in the state of Kansas that Kansas is open to agriculture and we’re open for business,” Maxwell said.

This can be the “tent pole” for agriculture, he said, echoing Cliff Illig’s phrase, and “it can have an incredible future here in western Wyandotte County where we have built such wonderful destinations.”

The American Royal has about 275,000 event days in its current facilities and is looking to increase it to almost a million event days in the future, he said.

The development, according to UG officials, will include, at minimum:
• A 164,000-square-foot livestock expo arena with about 5,000 permanent seats and an additional 3,200 temporary seats for a variety of events.
• A 250,000-square-foot livestock exhibition hall, including pens for 2,000 animals, for events including a 10-day livestock show each October, and for other events.
• About 5,000 square feet of office space, including a headquarters for the corporate offices of the American Royal.
• A 6,500-square-foot Agricultural Education Center featuring exhibits, an interactive museum-based learning environment, and meeting and a professional training space.
• Additional land for potential future construction of an agricultural headquarters facility and expansion, with retail and restaurant use possible.

According to the development agreement, the annual American Royal barbecue may or may not be held inside the boundaries of the STAR bond district, but it would be held in Wyandotte County.

Maxwell said the arena also could be used for sports such as basketball, volleyball and soccer, besides rodeos and horse shows.

The agreement includes local benefit provisions for the Wyandotte County Fair, Wyandotte County school systems and Unified Government. There also are provisions for the American Royal to maintain its headquarters in Wyandotte County and participate in civic, charitable, educational and economic development in Wyandotte County.

Four UG commissioners, including Hal Walker, Jane Philbrook, Melissa Bynum and Mike Kane, were concerned about the local provisions for the Wyandotte County Fair. Stephens said the fair board and the American Royal must discuss and work toward a mutually beneficial proposal for the fair, but they are not required to participate in it. However, there must be opportunities for the fair to use American Royal facilities at operational costs without additional markups, he said.

Walker didn’t want to leave the language about this vague, and said he would have preferred more specific language about the costs. For example, he didn’t want to hear in the future that it would cost the fair $200,000.

“Make sure this issue doesn’t get screwed up,” Walker said.

“We haven’t done the fair justice, so they have some justice coming,” Kane said.

Philbrook agreed and said the whole thing needs to be put together, not split out apart. “This is the chance for the American Royal to step up and be the leaders of this, along with the Ag Hall of Fame,” she said.

Bynum said the development agreement, as she read it, stated that there would be no rent charges to the fair.

Maxwell said the message about the fair has been heard, and that the American Royal will need to sit down with the fair and work out an agreement, and they hope to do that before bonds are issued.

Commissioner Gayle Townsend asked about the American Royal parade. Maxwell said they want to reinstitute the parade, with the new facilities and the city as partner.

Steve Allison, with the Perry family, that owns property where the American Royal will be built, said the property was originally acquired by J.W. Perry, his great-grandfather, more than 80 years ago. In 1935, Perry acquired a 700-acre farm, and with his friend, the late Sen. Harry Darby, they acquired a neighboring property of 47 acres, which is on the west side of 118th Street.

“They believe the properties were located in an area that would be very important to the future of the city, and history has certainly proved that they were right,” he said. Part of the former Perry farm is part of the Kansas Speedway property and neighboring Village West developments.

“My great-grandfather cared deeply about the future and well-being of the city,” he said. Perry and Darby had ties to the American Royal, he added.

He also said last month, an agribusiness organization leader told him he planned to locate his headquarters next to the American Royal. He added there is another association that has expressed serious interest in locating its headquarters next to the American Royal. He anticipated other organizations would follow.

“My family has waited a long time for the opportunity to help facilitate on our property a destination for companies that will bring good-paying jobs to the city,” he said. “The American Royal project is key to making this happen in the near future, from our perspective.”

“This is not just about bringing the American Royal to Wyandotte County,” John Mitchell, chairman of the board of the American Royal, said.

He said they have a big vision about how this can be a home for the future of the agriculture conversation, for a world-class agricultural education center, and for programming 365 days of the year.

Doug Bach, UG administrator, said the UG had been working since last June to put together the development agreement. He added that if a convention center is done within the STAR bond district, the retail sales tax generated by the American Royal doesn’t go toward a convention center project.

During a public comment session, Michael Quinn, wearing a “Fire” T-shirt, said it was an amazing idea, but he wanted to make sure the American Royal hired union labor to construct the buildings, not like the Amazon project. On Thursday, firefighters protested outside City Hall (https://wyandotteonline.com/firefighters-protest-in-front-of-city-hall/). Commissioner Kane said he echoed Quinn’s remarks about good-paying jobs and about hiring local workers. The development agreement contains minority, women and local goals for construction and professional services.

“Congratulations, Kansas City, Kansas – the American Royal is coming,” Holland said after the vote.